Step 1: The easiest part? Kinda but not really.
Finding a real estate broker is in one sense the easiest
part of the process- easy because few brokers will turn down your business.
There is no shortage of supply when it comes to brokers- you find ads on receipts
at the grocery store, bus stop benches, the internet, a multitude of other
signs as well as brick and mortar offices. There are plenty of us ready and willing
to help.
What is less easy is discerning which of these many agents
will be able to service you well. Since real estate is very relationship oriented, many
people simply go with a relative, friend, or a friend of a friend because they
expect that the connection will keep the agent accountable to provide quality service. During my licensure
training, I remember the instructor telling us that a real estate agent is the
third least trusted profession behind
the used-car saleperson and the lawyer. There are certainly agents out there
who support the impression- at a holiday party I met agents who said things
like, “Money is the only reason we do this.” I have no problem with money, but I
was disappointed after that conversation. I recently had a first meeting with a
client who asked me to be honest with
her and affirm that I would make more money in commission if she and her
husband purchased a more expensive home through me (implying that I would
secretly try to have her buy a more expensive home). I explained to her exactly
how my commission worked and showed her that even if her price point moved up
$20,000, the difference in my paycheck wasn’t hugely different. What is a great
improvement for me as an agent is doing the transaction instead of receiving
nothing. I suspect her suspicion was up because of advice about working with
agents from friends or relatives- there are enough horror stories out there that
it is not unreasonable. Fortunately the explanation helped clear things up. It’s
natural to want to go with someone you know. There’s certainly nothing wrong
with that as long as that agent is competent about what they’re doing and has
the bandwidth to work hard for you.
Brokers with lots of experience and high volumes of
transactions likely won’t be able to service you themselves. However, they may
have a team in place that can still do so effectively while still being able to
guide the process at key points with their expertise. Brokers with a smaller
operation might have more expertise in a niche market or may be able to provide
more customized support throughout the process. Both large groups and independent
agents can either provide excellent service or leave you feeling forgotten.
For a broker to serve a client well specifically for buying a
home, availability is a big factor along with experience, neighborhood
expertise, and reputation. Availability matters because a great deal coming on
the market usually attracts more than a few sets of eyes in short order. Being
able to join a client to show them the property and make an offer quickly is
very helpful. Getting that much from your agent doesn’t require a ton of experience, just an
ability to make the client a priority. In that respect newer brokers might
actually be a better option as they’re
usually a little more hungry for a deal. However, once it comes time to make an
offer and once that offer is accepted, then come the tasks where experience and
neighborhood expertise justify the broker’s commission. Experienced brokers
have a more intuitive grasp of what a home will likely go for in a particular neighborhood,
and their experience will help navigate the many hiccups that can arise between
contract acceptance and closing.
Now for my pitch: Even though I have been working specifically
with home buyers about a year, I work with highly experienced and
well-respected brokers in the highly educational environment at Keller Williams (which is currently
the biggest
brand in real estate in America as measured by transactions, agents, and sales
volume). Though I’m capable providing
service on my own merit and have functioned largely autonomously even while under my team lead during my first year, I’d still say one of my biggest assets as an agent is
that I have a network with expertise to consult when odd situations pop up. By myself I
bring availability and attentiveness along with a fairly good awareness of the
Chicago market, and my office provides a helpful support system when needed. As a client, you get the
best of both worlds.
All that said, here’s what often happens when you come in
contact with a broker: either over the phone or at a face-to-face meeting, the
broker will ask you some questions about what features you’re looking for in
your home, price range, timeline, and if you’ve already been prequalified with
a lender. They will explain their own experience, answer your questions about
the buying process, explain how the agency relationship works (I plan to write
about this as well), and perhaps start searching for properties online with
you. Many agents would like some sort of commitment to work together before
they start showing you properties. Personally, I don’t mind meeting someone for
the first time while viewing a property and then spending a few minutes
afterwards on these topics. Various agents do things differently that way. I
like to get right to work and kill two birds with one stone if the client
already has a place in mind they’d like to see.
As I mentioned, I will write about the nature of agency relationships
in the future. For now, I hope this has proved to be a helpful orientation on
this topic of finding a helpful broker to be your buyer representative.
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