Fort Sill Federal Credit Union Home Buying Guide
Issue link: http://www.epageflip.net/i/964956
You probably already know what real estate agents do: They find houses that meet your needs and interests, tour the properties with you and help you negotiate a purchase price. But many first-time homebuyers have questions about other aspects of real estate agents, such as: Who pays them? How do you find a real estate agent? Find answers to these and other FAQs below: WHAT IS THE DIFFERENCE BETWEEN A REAL ESTATE BROKER, A REAL ESTATE AGENT AND A REALTOR®? Real estate brokers manage, own or operate a real estate company. They generally have a high level of experience and must have education beyond the agent level. Real estate agents work for a broker and have taken classes and passed exams to meet the requirements to sell property. Realtors, on the other hand, are real estate agents who belong to the National Association of Realtors (NAR) and have agreed to abide by the association's strict code of ethics. HOW DO REAL ESTATE AGENTS GET PAID? As a first-time homebuyer, you likely won't have to pay for a real estate agent's services, as these costs are typically covered by the seller. Here's how it works: Sellers must pay their agent a commission (calculated as a percentage of the home's purchase price), and the listing agent then splits that commission with the buyer's agent. Be aware, though, that if you buy a "For Sale By Owner" property, you may be responsible for paying your agent's commission if the seller does not agree to do so. IF I'M AT AN OPEN HOUSE AND WANT TO MAKE AN OFFER, CAN I ASK THE LISTING AGENT TO HELP ME? If you're not already working with an agent – and if a dual agency situation is legal in your state – then the short answer is yes. However, it probably wouldn't be wise of you to do so. In a dual agency situation, one agent represents both the buyer and seller of the property. Obviously, the seller wants to sell the home for the highest price possible. And you, as the buyer, want to purchase the home for the lowest price possible. It is the agent's duty to work in the best interests of his or her client, but you can likely see why that is difficult to do in a dual agency situation. If possible, work with an agent of your own who you know truly has your best interests at heart. HOW DO I GO ABOUT FINDING A REPUTABLE REAL ESTATE AGENT? The best way to find a real estate agent is to ask friends and family members in your area for recommendations. (If you're new to the area and don't know many people yet, an online search is a good place to start.) Consider meeting with a few different agents to get a feel for how well they listen to you. Also, do some research to make sure any agents you are interested in working with have dealt with homes directly in the areas you want to buy in. Finally, ensure your agent is experienced, but not so busy that he or she won't be able to devote to you the time you need in your home-buying journey. R E A L E S TAT E M A D E R E A L S I M P L E The Basics About Real Estate Agents SOLD