How To Select A Buyers Real Estate Agent

GENERAL Recommendations:
(1) Using a friend or relative is not a good idea. If something goes wrong
in the transaction or you just are not happy in someway, and there is a
conflict, a falling out will probably occur. Your parents most likely advised
you never to lend money to family or friends, and a real estate transaction
is a lot more than just an out of pocket loan.

(2) Select a REALTOR who knows your area. Specifically your subdivision
or Planned Community is even better.  In selecting a ‘Buyer’s Real Estate
Agent’ ask for proof of their knowledge or expertise in the area you are
looking.  Request a list of sales specific to that area within the last 6-months.
NOTE:  REALTORS work solely on a commission basis and expenses are
out of their pocket.  Many want to do upscale homes because the higher
the sales price the higher their sales commission.  Again expertise is needed.  
Ask your Realtor where they live.  If they live in a million dollar home then
they have some knowledge of selling million dollar homes.
(3) Often times new REALTORS are a good choice. They work harder and don’t
take you for granted. The downside is they are new and it may take longer.  But
you shouldn’t rush into a real estate transaction.
Transaction Example:
You want to purchase a new car.  Most likely you will see several models from
different manufacturers then decide on price and best deal.  Real Estate works
the same way. See the home and think about it. This is a big step especially for
new home buyers.

(4) Don’t involve yourself with agents that want special time away from you or
have too many clients. Your time is valuable so don’t waste it on an agent that
is over extended or has personal issues to attend to.

 (5) Buying certain types of selective properties also requires some expertise
by your REALTOR. Examples: Condos, Townhouses, Build-to-Suit Lots, and Vacant/Agriculture (farm land). If your Realtor lives in a condo then he/she has
some basic knowledge. Why is this important? Here are some basic things to
think about:
~~ Townhouses: Assigned parking places, how many per unit, what about
guest parking, are you near a dumpster; maintenance (what does it cover);
What if I want to buy for investment and rent it, are there any restrictions;
what about security issues, crime, etc.; What are the Association Fees;
what about plants and decoration - are you aloud to do any?
~~ Condos: What happens when the elevators fail, is there a back-up
generator; Parking spaces - assigned and guest, how many and where;
If you have a balcony how many people can safely stand or occupy it;
restrictions on parties and noise; general areas - where are they and
what is included in my condo fee; maintenance fees; sound proofing;
are these real condos or are they conversions (apartments converted
to condos); are there any separate storage facilities??
~~ Build-to-Suit Lots: What are the building restrictions; Can any licensed
contractor do the construction; What about common walls - are there
any, height requirements, etc.; Will there be an HOA, If yes what are the
fees; Are there any soil condition concerns, What type of zoning; What
about utilities, what type and who are the providers; What about roads,
what type and when will they be completed; Are there any time frame
restrictions for when a home must be completed?
~~ Dirt, Raw Land, Farms, Agriculture Land, Horse Properties, etc.:
These are unique in themselves and require expertise. What about water;
utilities; public services; access; mineral rights; sub dividing the property,
zoning changes, soil conditions, historic preservation issues; protected
natural wild life or plant life; breeding stock may have limitations, i.e. how
many horses are permitted, can't raise or farm bees, etc.; does the property
have any old or abandon mines or wells; does the property adjoin or
encompass some part of a natural wildlife area, BLM, US Forest, etc.

 (6) There is a big difference between agents who list homes and ones who
work with buyers.

(7) Get a new agent right away if:
--- The agent refuses to take you around in their car.
--- They want you to follow them in your car.
--- They gave you an address and told you to meet them there.
--- They want to use your car.
--- Their car is too small, dirty, etc.

(8) If you want to use an agent for finding a rental property many real
estate offices (brokers) will have an agent that specializes in this area.
Most REALTORS generally stay away from rentals.

(9) Ask the agent if they are a Real Estate Broker or Designated Broker.
If the answer is yes, get a NEW agent right away.  Only work with Real
Estate Agents.  Brokers are part of a national problem that effects price
fixing (commissions).  Brokers in any capacity or duty are bad for the
real estate industry; and they are very bad for the seller, buyer, investor,
and consumer.

(10) Get the Real Estate Agents full name and RE License Number in
that state.  Go to the State Real Estate Commission and check out the
agent.  Make sure their license is active and also check to see if they
have ever had any complaints filed against them.  If they have, again
immediately get yourself a new agent. Agents can usually be checked
over the Internet with the Real Estate Commission Office in your state.

The following is pertinent to Real Estate transactions in Arizona:

What Not To Do:
 (1) NEVER sign a Buyer-Broker Agreement.  This is a tool designed by
REALTORS to lock you into using one agent (broker).  It is good for them
and bad for you. To fire them takes effort on your part. The best thing to
do is work with someone you are comfortable with. You won’t know this
until you have spent some time with that person.  If your REALTOR says
my broker requires this before I show you any homes, say goodbye and
go to another agent.
Also, Buyer-Broker agreements can cost you (the ‘Buyer’) money.
Example of a Buyer-Broker Agreement Gone Wrong (Bad):
You are unhappy with the agent, and go out and find another agent or a
home, and purchase it. You probably will be stuck paying the first agent
a 3% commission out of your pocket. The ‘Seller’ certainly isn’t going to
pay both Buyer agents each 3% and the new agent you are now using
who found your home will not be willing to split their commission with
someone else. Even if you find a home on your own you owe that agent
a commission, if you have a buyer-broker agreement. This includes NEW
Homes. In fact builders require the buyer’s agent to be present the first
time the buyer previews the home. The ‘Seller’ or ‘Builder’ won’t want to
pay that agent unless they are directly involved in the transaction.

(2) AVOID Dual Agency. 
(A) In the narrow defined explanation, this is a real estate term whereby
the Seller’s agent represents both the buyer and seller. A very bad idea.
You want someone who will work exclusively for you on your behalf. This
commonly occurs when a seller’s agent holds an open house and you, as
the buyer, view the home and wish to purchase it, but don’t have a
REALTOR of your own. The seller’s agent will offer to represent both
parties,
(B) However, it also means when a real estate agency owns a listing, and
an agent from that office, working as a buyer's representative, shows that
listing.  The problem lies in the broker who legally owns the ‘Listing’ as well
as the agent who must be loyal to both parties.  Some broker’s often push
their agents to show their own in-house listings first.  Avoid these people
and companies.

(3) Do not tolerate agents showing you property you don’t want to see.


What You Should Do As A Buyer:
 (1) Make it very clear what you want.  Always start with a price range and
specify a maximum price you will pay.
(2) Be specific about what you want.  Agents find homes you are interested
in by searching the local MLS (Multiple Listing Service).  If they attended any
MLS classes or have been doing real estate for a while, certain search criteria
will narrow the selection process of homes and reduce wasted time by both
parties.  In the summer months it gets hot in the Phoenix Valley, temperatures
can range from 104 to 115 degrees. During the summer months you may want
to try viewing homes early in the morning, preferably before 11:00am or after
6:00pm but before 8:00pm.
(3) Also be specific on what you don’t want.
Some Examples:
---- You only want a single story home then don’t allow the REALTOR
to show you a 2-story house.
---- You want a large backyard.
---- You do (don't) want a pool.
---- You want a pet free or smoke free home.
---- You need a home office.
---- You need 3 bedrooms, 2 baths.
---- You want two master bedrooms.
---- You need a separate detached room.
---- You want only a Gated or Guarded Community.
---- You only want a Condo (then don't look at Townhouses).
(4) Preview the MLS Listings the agent has prepared for you before going
out. If they are not correct tell the agent or at least tell them which ones you
don’t want to see.
(5) When previewing a home take some notes.  You will find that after say
house number five you will have trouble remembering things (details) about
the previous homes.  Make sure you tell the REALTOR immediately after
viewing the home, but not in front of the seller’s, if it is not on the consideration
list.  Have them put a no the MLS page.
(6) Ask your agent if they are showing you all the homes and have not
eliminated any criteria that benefits or suits them. In some cases seller’s
will pay less than the typical 3% commission but that is no excuse for your
agent not showing you that home. The opposite may be a factor for your
agent, the seller’s agent may be giving an incentive to the buyer’s agent
or the homes may either be listed by your agent or his broker
(office he works for, i.e. Century 21). 
As stated above avoid this conflict early.
(7) Even if you are buying a NEW home I strongly recommend having a
buyer’s agent present.  Local REALTORS know the market and the builders.
There input can be valuable.
(8) If you ask your agent any questions and he doesn’t answer you, it is
time for a new agent. Assume the worst about any given situation.  Buying
a home is a huge investment.
(9) Narrow down the buying list to 2 homes 3 maximum. Discuss these with
your agent, get his feedback, but don’t buy solely on their recommendations.
View these houses again before making a final decision.
(10) Go back at night, see the neighborhood.
(11) Knock on your new immediate neighbor’s doors, both sides, across the
street, and in back.  After all you have to live with these people not your agent.
Ask your neighbors if they have any current problems with:
*** Termites
*** Rattlesnakes
*** Scorpions
*** Feral Cats
*** Roof Rats
*** Pigeons
*** Coyotes
*** Barking Dogs
*** Bees (some people raise bees in Arizona)
*** Live Stock or animal odors (make sure you are not around horses,
     cattle or similar creatures. Arizona is a large live stock state. Not
     only is the odor bad but they attract unwanted pest and varmints,
     primary flies).
*** Bob Cats (they are dangerous to family pets, live stock,
     and children. They have been known to attack adults.)
 (12) Determine what is important to you, such as:
--- How many homes you will preview before buying. I would recommend
not more than nine (9) properties. If your Realtor can’t find you what you
want after 9 homes and you did your part of specifying what you want,
get a new REALTOR.
--- Schools, a pool, gated or guarded community, etc.
--- Location and travel time to your job, shopping centers, medical
facilities, etc.
--- Close or immediate proximity to major freeways.
--- Traffic congestion.
--- Noise.
--- Value. If this home is previously owned, how many owners have their
been?  What property value has the home been averaging over a given
period of time, say the last 3 years?
(13) Total monthly mortgage payments. Don’t forget to include Property
Taxes, HOA Fees, and Homeowners Insurance.
(14) Don’t ask your agent to do anything illegal or unethical.
(15) If you are unsure about something, ask to discuss it with your agent’s
broker.
(16) Be prepared to negotiate to get what you want.
(17) Be prepared to fill out an LSR, the Seller will want one.
(18) If you have a fear of certain types of infestation, such as scorpions,
rattlesnakes, coyotes, etc. inform you agent you do NOT wish to see any
homes affected by that problem.
(19) You may not want to live in a community that allows RV's or Boats.
 (20) When not sure, consult a Real Estate attorney (lawyer) before
signing anything.


KNOW THIS:
Many areas of the country do real estate differently.
--- In Arizona the Realtor does much of what an attorney may do
somewhere else.
--- Closings referred to as Close of Escrow (COE) are at a Title Company’s
office. The buyer selects which title company they want to use, not the seller
or their representative. Your real estate agent most likely works with a specific
title company on a regular basis, here the agent can be of valuable assistance
to you.
--- Title closings are generally done in two separate meetings, one with the
seller and one with the buyer.
--- Possession is at title recording, not at contract signing. You should have
utilities turned on in your name.
--- It is customary for the seller’s agent to either leave the keys, garage door
openers, etc. with the title company or with your real estate agent.
--- Make sure the Title Company is in Arizona and specifically within the area
you are buying (close to your new home).
--- READ everything before signing, this includes the Real Estate Contract
and all items at the title company and anything in between.  Don’t sign it if
you don’t understand it.  Don’t be afraid to ask questions or raise issues.
--- Be prepared to put down a minimum of 1% of the sales value in Ernest
Money (escrow).  Get a receipt from the title company.
--- In sub divisions and planned communities we do not generally do land
surveys like commonly done on the east coast.
--- Sellers are not obligated to make repairs that the Home Inspector or
other service providers (inspection services may discover).  Remember
you are buying a used home and it will probably have some problems
or issues.  Most of these are negotiable between the parties.
--- If purchasing a new home and you are not in the area to keep an eye
on it during the construction process, you may want to employ a licensed
Home Inspector to do the walk downs and pre-inspections with the builder.
Most builders hold at least two of these during construction.  Even if you
are in the area, you may also want to employ a Home Inspector on the
final walk through prior to acceptance.  Your real estate agent should
also be present.  The more eyes looking at the home before move in
the better.
--- READ the CCRs and HOA Rules and Regulations carefully.  If buying
a NEW home also read the Public Report.
--- If you are buying what we refer to as ‘Dirt’ such as a vacant lot,
subdivision raw land plots (build to suit) or agriculture land use a
Realtor that is experienced in this type of transaction.
--- In the Phoenix Metropolitan area it is commonplace to have a Home
Owner’s Association (HOA). The fees range from inexpensive to very
expensive.  Enforcement ranges from extremely strict to reasonable in
property issues.  In some cases failure to pay your HOA fees may result
in a lien placed on your home.
--- Average closing time is about 30 days from final purchase contract
signing.


What a ‘Buyer’ Should Insist On:
 (1) A SPUDS from the Seller.
(2) Any other disclosures from the Seller such as a current CLUE Report,
or a Lead Base Paint Report if the home was built prior to 1978.
(3) A Termite Inspection.  Your agent can assist you in recommending
someone.
(4) A Property Home Inspection. Your agent can assist you in
recommending a licensed home inspector.
(5) A Home Warranty. These can be purchased by you.
Your agent will assist you in recommending someone.
(6) Others – If you are buying an older home with a shingle roof or a territorial
style built up roof, it is advisable to also get an independent roof inspector.
(7) If you are purchasing a home over $350,000 it is also advisable that you
get an independent Security Inspection on your home.  Home Inspectors are
not qualified in this area. This is low voltage and involves security
systems, monitoring, cameras, motion detectors, and may include
structural wiring systems such as CAT 5.
(8) Also I highly recommend asking for the last 12 months of all utility bills.
Also ask what type of utility services is provided.  If high speed Internet is
important be careful, some homes in the Valley are vendor specific.
For example they may be a Cox only community (cable modem but no
DSL available or vise versa).


Points of Purchase Interest:
Realtors will often try and push a Mortgage Broker on you. If you are putting
20% down and/or have a credit score over 720 you can probably do better
on your own going directly to a mortgage company.

REALTORS are trained to get the ‘Sale’ so in some cases they are like
car salesman.  After all they work on commission and have out of pocket
expenses.  But don’t allow any real estate agent to pressure you into
making a decision to purchase. You should view the home a second
time, drive the community at night, see the things of importance to
you in relation to your home (grocery, mall, doctors, hospital, schools,
etc.), and talk with your potential new neighbors.

A new builder salesperson is a REALTOR. They work for the Builder.
The fact that they are nice, polite, etc. doesn't negate the fact they
represent the builder's interest not yours. That is why you should have
a REALTOR with you to represent your interest.

IF you are window shopping, do it on your own. Go see open houses
on the weekends. Don't waste a real estate agents time running you
all over the place and looking for a home if your not ready to buy.
Remember REALTORS get paid on a commission basis (when a
transaction closes), and any expenses are out of their pocket.


 About the Author:
I am a former REALTOR in Arizona.
This page was updated on: August 23, 2006


Disclaimer: This is a Buyer’s Guide for Arizona, specifically the Phoenix Valley and metropolitan areas. It is not
intended to cover ever issue, it is just a guideline. If you are unsure about any topic or legal document, hire a real
estate attorney before signing anything.