Finding a Buyer's Agent - Methods and Sources

By Katherine Salant

It's important to have a buyer's agent on your side when shopping for a newly built home, but how do you find a good one?

You can look in the yellow pages for a "buyer broker" who specializes in representing buyers, call a traditional real estate broker and ask for an agent who represents buyers, look on the Internet, or get names from friends and neighbors. Some buyers' agents work exclusively with buyers, but most represent either buyers or sellers - although not in the same transaction.

Since purchasing a new house differs significantly from a resale, confirm in that first phone call that the agent regularly works with such buyers. And since much of the agent's advice will be around resale issues, you also need to confirm that the agent regularly works on resales that are two to 10 years old. Agents and builders both say that projecting trends farther than 10 years is iffy. If you expect to be in your house longer than that, the resale aspect is less critical.

Finding a buyer's agent who has worked as an on-site sales agent for a builder and understands a builder's mindset is a definite plus. A credential to look for is "ABR," Accredited Buyer's Representative. This means the agent or broker is a graduate of a certification program run by the National Association of Realtors.

Arrange to meet the agent at his or her office so that you can check out the support services as well as the agent. If the office appears disorganized and there's no receptionist to promptly answer the phone, the agent may not be able to give you the service that you need.

It's important to ask plenty of questions to make sure you and the agent are a good match. Meredith McKenzie, a Realtor in Studio City, Calif. with more than 20 years' experience, offered these suggestions:

Your first question should be, "How long has the agent been in the business?" The more experience the better, but agents generally agree that it takes at least two years to be effective.

Next, ask how many buyer transactions the agent closed in the last six months, and of these, how may were resales and how many were new houses?

If you already know what area or builder you are interested in, ask if the agent has worked with builders in that area. If the agent says no, ask for a referral for someone who does. Since the agent makes money on a referral, he should be happy to give you one.

Next, ask for a list of previous clients who bought houses within the last year and call at least three of them.

When you talk with the former clients, ask them, "Were you happy or unhappy? Would you choose this agent again? The more specific you can be in your questions, the more you will learn about the level of service the agent provides, which is what truly differentiates one agent from another," McKenzie said.

For example, ask, "Did the agent walk you through the paperwork and explain the loan process? Did the agent walk you through the sales contract? Did they bring up negotiating points? Did they help explain the financing terms and what other costs would be involved in the transaction, such as closing costs? Did they discuss other costs that you will likely incur in furnishing the house such as window treatments? Did the agent accompany you to the builder's design center to help you pick out stuff? Was the agent there at the preclosing walk-through when you assessed the condition of the house and drew up a 'to do' punch list?"

On this last point, McKenzie said that she always recommends that buyers hire a private home inspector for the walk through, but he tends to focus more on the guts and structure while agents look at the practical and aesthetic. "Do all the doors and windows open and close? Is there caulk around the bathtub? You can't have too many eyes to look at a house, and we all have our blind spots."

Most buyer's agents request that their clients sign an exclusive agreement for a fixed period - usually 60 days - and often within a certain fixed geographic area.

Many agents prefer a more formalized contract that also states that any houses shown to the buyer by the buyer's agent must be purchased through the agent's broker to insure that the agent gets the commission.

The contract may also stipulate that during the fixed period of representation if you visit a model home on your own and don't make clear that you have a buyer's agent and the builder's sales agent won't honor it, your will owe your buyer's agent a commission if you buy a house from that builder.

Some contracts also address the possibility that you may not find what you want in the new house market and decide to buy an existing house. If you elect to purchase one directly from the owner (otherwise known as a FSBO - a "for sale by owner" transaction), the contract will state that you will owe the agent a sales commission.

A buyer's agent may ask you to sign a contract on first meeting, but some prefer to sign a contract after an initial outing and a sense that a comfort level on both sides has been established. If the agent that you decide to work with requires a contract, read it carefully before signing.

Copyright 2000-2006 Katherine Salant. Distributed by Inman News Features