Finding a Real Estate Agent

A short Hello from Bill and Joe

We can’t overstate the importance of choosing the best agent for you. Sometimes there will be a lot of pressure to choose a family friend, or someone you work with. Remember, buying a home is probably the biggest financial commitment you are going to make in your entire life! (Sorry for the pressure, but it’s true.) Don’t just pick the first person you speak with. Real Estate Agents make money when you buy a home, so be sure they work for the money! Don’t be afraid to ask them questions. Hint: If they look like they are getting tired of your questions, change agents!

Okay, with that in mind, let’s take a look at 5 ideas that Chat GPT generated for you. Joe and Bill will see you on the other side of the AI.

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ChatGPT Artificial Intelligence

Here are a few things to consider when selecting a real estate agent as a first-time home buyer:

1. Look for an agent with a good track record: Consider working with an agent who has a proven track record of helping buyers find and purchase homes in your price range and desired location.

2. Choose an agent who is a good communicator: Buying a home is a big investment, and it's important to have an agent who is responsive and available to answer your questions and concerns.

3. Consider an agent with local knowledge: It can be helpful to work with an agent who is familiar with the neighborhoods you are interested in and has insights on things like local schools, amenities, and market trends.

4. Look for an agent who is a good negotiator: Buying a home typically involves negotiations on price and terms. Look for an agent who has a reputation for being a strong negotiator and can help you get the best deal.

5. Get referrals: Ask friends, family, or colleagues for recommendations on agents they have worked with and had a positive experience with.

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XAI (eXpert Advice and Insights from Joe and Bill)

How do Real Estate Agents make money? Simple - the Seller pays them. It doesn’t cost the Buyer anything. Generally, the Seller pays the real estate commission, and historically, that commission rate is 6% of the selling price. So, if you (the Buyer) agree to pay $200,000 for a home, the Seller is going to pay the Agents $12,000 in commissions from the proceeds of the sale. So, if a house sells for $200,000, the Seller will only receive $188,000 from the sale.

Now, there are two kinds of Real Estate Agents – the Listing Agent (who works for the Seller) and the Buyer’s Agent (who works for you, the buyer). Remember, you are interviewing and selecting a Buyer’s Agent. This is the person who works for YOU, and YOUR agent will get half the commission. SO, in the case of the $200,000 home sale, YOUR agent will make $6,000. That is a nice amount of money, so don’t be afraid to make them work for it! Make sure they know what you want, and make sure they show you ALL the potential properties that meet your needs.

Okay, here is a side note: Most Real Estates Agents work for a Real Estate Broker. The Broker supplies the office, support staff, etc., and the Broker will receive a portion of the Real Estate Agent’s commission. But, this isn’t your problem! You are working with a Real Estate Agent who is about to make a nice commission if you buy a house. Always remember that your Agent has profit motives for getting you to spend your money. Nothing wrong with that, but don’t spend your money unless you are getting what you want.

Finally, your Agent is going to be the one who is standing by your side when you do the really tough part of home buying – negotiating the best price. When selecting an agent, try speaking with other Buyers they served. Ask specific questions about how supportive the Agent was when those other people made an offer on a home. Remember, even though you aren’t directly paying your Agent’s commission, you ARE the one who is paying for the house!

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AI (Alumni Intelligence)