Angie's LIST Guide to
Real estate agents

Real estate agents offer home sellers and buyers the conveniences of their expertise and knowledge of the local market in completing a successful transaction that helps both buyers and sellers reach their personal goals.

Agents work on the basis of sales commissions. Home sellers do not pay the agent until the house is sold. The agent’s commission is taken from the proceeds of the sale as a percentage of the selling price. In some cases, flat fees may be agreed upon in advance, but this is not typical. Sellers should check with prospective agents about their commission rates while, at the same time, checking on the agent’s record of success.

To get a license, real estate agents pass a rigorous state examination that covers not only proper marketing practices but the numerous legal considerations in the sale and transfer of property from one person to another.

Additionally, real estate companies and local associations of agents establish ethical practices that contribute to the standards of professional conduct. This not only gives reasonable assurance to sellers that an agent is reputable, but the ethical standards enhance the reputation of this high-stakes business profession.

Keeping in mind that the real estate agent is paid on the basis of the sale of the seller’s home, prospective buyers need to recognize whose interest is most at stake in the transaction. Selling the home is the only way the agent can make money, so even if the agent shows a buyer a home which is listed by another agent, neither agent makes any money unless the house is sold.

Buyers should be selective in choosing a home, and they should remain selective during the buying process and not yield to the pressure of a buyer’s agent who demonstrates an unwillingness to negotiate on key points with the seller’s agent.

Prospective home buyers can benefit by working with a real estate agent to find a home.

A first-time buyer should research a few key things before soliciting the help of a buyer’s agent. Here is a short list:

Does the agent have a good number of his/her own listings in the community where the buyer wants to live? An agent is most likely going to show the buyer the homes he/she has listed. Her commission will be higher because she is both the seller’s agent and the buyer’s agent in the same transaction.

Is the agent associated with a realty company that has a large quantity of listings that are attractive to the buyer? An agent can bring the benefit of a much larger list of potential homes for the buyer to choose from if his network or agency has some prearranged sharing of commissions.

Ask the agent for references of recent buyers he/she has represented. Ask the referenced buyers questions about the negotiations, the closing of the deal, and what, if anything, they had to give up in the negotiations.