10 Tips for a Pleasant Working Relationship with Agents

August 31, 2009
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Top 10 Agent Protocol Tips - Rules for Working With Agents

If you are a newbie in the real estate industry, you are at a high risk for misunderstanding a lot of things and even persons—particularly your agent.  Keep yourself out of hot water by equipping yourself with knowledge before transacting with a real estate agent.  This may be a once-in-a-lifetime experience for you.  So here are some protocols you can use to make it a pleasant and smooth one:

1. Understand Agents Work on Commission. Very few real estate agents work on salary. Most real estate agents are paid commission. If an agent does not close a transaction, she does not get paid.  Do not ask an agent to work for you if you intend to cut the agent out of your deal.

2. Keep Appointments & Be On Time. Be respectful, use common courtesy and don’t expect an agent to drop what she is doing to run out to show you a home. You are probably not that agent’s only prospect / client. Do not make an appointment with an agent and then forget to show up.

3. Choose A Real Estate Agent. If you decide to hire your own agent, interview agents to find an agent with whom you are comfortable.  If you are interviewing agents, let each agent know you are in the interview stage.  Never interview two different agents from the same company.

4. Do Not Call The Listing Agent if You Are Working With a Buying Agent. Listing agents work for the seller, not the buyer. If you hire the listing agent to represent you, that agent will now be working under dual agency.  If listing agents show you the property, the listing agent will expect to represent you.  Listing agents do not want to do the buying agent’s job. Let your buyer’s agent do her job.

5. Practice Open House Protocol. Ask your agent if it’s considered proper for you to attend open houses alone. In some areas, it is frowned upon to go to open houses unescorted.  Hand your agent’s business card to the agent hosting the open house.  Do not ask the open house host questions about the seller or the seller’s motivation. Let your agent ask those questions for you.

6. Sign a Buyer’s Broker Agreement with a Buying Agent. Expect to sign a buyer’s broker agreement. It creates a relationship between you and the agent, and explains the agent’s duties to you and vice versa.  Ask about the difference between an Exclusive and Non-Exclusive Buyer’s Broker Agreement.  If you’re not ready to sign a buyer’s broker, do not ask that agent to show you homes. Otherwise, procuring cause may pop up.

7. Always Ask For and Sign an Agency Agreement. By law, agents are required to give buyers an Agency Disclosure.  Signing an agency disclosure is your proof of receipt. It is solely a disclosure. It is not an agreement to agency. Read it.  The best and most practiced type of agency is the single agency. This means you are represented by your own agent who owes you a fiduciary responsibility.

8. Make Your Expectations Known. If you expect your agent to pick you up at your front door and drive you home after showing homes, tell her. Many will provide that service. If not, they will ask you to meet at the office.  Let your agent know how you want her to communicate with you and how often. Feedback is very important.

9. Do Not Sign Forms You Do Not Understand. It’s the job of your agent to explain a form to you. Do not sign forms titled Consent to Represent More Than One Buyer. This is never in your best interest. Find another agent if this happens.

10. Be Ready To Buy. If you aren’t ready to buy, you don’t need a real estate agent. You can go to open houses by yourself; call listing agents for showings — but be honest, say you are “only shopping”; look at homes online; but don’t waste an agent’s time if you aren’t ready to act.  By the way, an earnest money deposit may be required to accompany your purchase offer.   So bring your checkbook.

Now that you know these things, you will be able to understand your agent better.  However, it takes two to tango, and so your real estate agent must do her part, too.  How about giving her your “Top 10 Client Protocol Tips to Have a Pleasant Working Relationship with You?”

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