Buying a Home Series - Finding an Agent

Well, of COURSE I would like you to come to me, but I realize that people like choices, so below is an excerpt from an article on how to choose a real estate agent. You can do the whole thing yourself, practically, but there is still a lot of value in having an agent you trust!

One thing that I always like to remind people is that a buyers agent basically works for free until the time of closing, and then they are paid through the selling agent! Most agencies, including mine, will have a small fee to the brokerage, but it is usually covered with closing costs from the seller. Gone are the days where you go to an agent and they find your home. The stats show that many buyers today find their perfect house online and then go to the agent. Your agent can help you with many things, but ultimately, you are in control.

I think the most important things to look for in an agent are good communication, good organization and a good rapport - you want someone who is easy to talk to and open to any and all questions you might have. I hope this article is useful!

Jennifer

Finding the Right Agent 

With all the tools and advice available today ranging from books and magazines to online advice like this lesson - it would be possible for you to buy your home almost completely without the aid of real estate professionals. That's not necessarily recommended. The housing market, like politics, is basically local, and each state, city, and even neighborhood has a thicket of local laws or customs that you need to understand. For that, it helps to have a team of professionals to guide you. 

You might want to start by finding an agent who can represent your interests in the search. This is not as simple as it sounds. Sure, 85% of sellers list their homes through an agent - but those agents are working for the seller, not you. They're paid based on a percentage, usually 5 to 7% of the purchase price, so their interest will be in getting you to pay more. 

What you need is what's known as an "exclusive buyer agent." A buyer's representative has the same access to homes for sale that a seller's agent does, but his or her allegiance is supposed to be only to you. [T]here are hybrid agencies called either single-agency or dual-agency brokers. In both cases, an individual agent in the firm may represent either sellers or buyers, sometimes both, in the same transaction. Potential conflicts of interest abound in this situation, so if you are seeking a buyer agent but no exclusive buyer agent is available, make sure to ask the agent about conflicts of interest. 

Next start looking for a mortgage lender. Take your time, since you could be paying this loan for 30, even 40, years. Start on the Internet at places like LendingTree.com and E-loan.com. You may also want to check out the rates at CNNMoney.com, Bankrate.com, or HSH Associates. These sites carry nationwide listings of mortgage interest rates and other related information.

Don't limit your search to the Web, though. Once you have an idea of the best rates from national lenders, get on the phone to your community banks and any other institutions with which you may have a relationship. Ask if they can beat the national rates. Often, the local lender can offer a better deal simply because he or she knows the local market and wants to keep your business. 

You might also consider using a mortgage broker, a middleman who keeps tabs on rates from a multitude of lenders. The mortgage broker isn't paid directly by you but gets paid by the bank. However, the fee - usually 1.5 to 3% of the loan amount - may get transferred to you in the closing costs. Most search engines have extensive listings of mortgage brokers. There's also a trade group, the National Association of Mortgage Brokers, which can put you in touch with a broker in your area.

[source:  http://money.cnn.com/magazines/moneymag/money101/lesson8/index4.htm]