Difference Between Listing and Buyer's Agents
A listing agent is the individual that has worked with the sellers to put their home up for sale. A buyer’s agent is the individual that is actively working with the prospective buyers to locate a home for them to purchase. A buyer’s agent will also have homes that are listed and vice versa. Does this seem confusing? It really just boils down to one basic principle – a listing agent is looking out for the best interest of the seller and the buyer’s agent is looking out for the best interest of the buyer.

When you are looking for a home, you always want to locate an agent before locating a home. If you don’t locate an agent and call about a home you saw for sale, you are opening yourself up to financial danger. You may be ready to sign an agreement before you know that it is with a listing agent’s coworker that is acting as your agent and who may not be looking out for your best interests. Take the initiative to find a selling agent with a good reputation that will work hard for you.

Seperating the Good Agents from the Bad Agents
As stated earlier, there are just as many bad real estate agents as there are mortgage brokers. In fact, it is often said within both agencies that 20% of the individuals do 80% of the business and the remaining 80% of the people do the other 20% of the business. These are compelling numbers if you think about it, and they speak volumes about how the industry operates. Although there are exceptions, such as individuals just starting out or those that work part-time, there must be a reason that the remaining individuals fail to perform. They either do not work very hard, or they are not very good at what they do. Whichever the case may be, these are the agents you want to steer clear of because they lack the skills to make your home purchase a pleasant one. This does not mean these are bad people; they just simply lack the knowledge, skills, and know-how to perform their jobs in an efficient and effective manner.

Locating a Good Agent
Quite simply the best way to locate a good agent is to ask questions. Ask your friends and relatives who they used to purchase their home. Ask your mortgage broker who he or she recommends. Even ask coworkers if they know of any good real estate agents. With this list you may even notice a few that are recommended by different sources. Take the list and narrow it down to three to five agents to call for interviews. You will be hiring the agent you chose, and locating a home could take up to a year. So for the next year, this person could be your potential employee; you have the right to interview the candidates for the job. Besides, taking the time to understand objectives make the process easier on both of you. You gain trust in that agent and will be more willing to let him or her get the job done without second guessing every move. Some sample questions you may want to ask in your interview may be:

1. How long have you been a real estate agent?
2. How many clients have you worked with or how many homes have you sold?
3. Are you a member of any affiliated organizations?
4. Are you willing to use finance, settlement and appraisers I choose?
5. Do you have access to a multi list?
6. Are you willing to tell me if a home is overpriced?
7. Are you willing to locate a home for me that is listed with another agency?
8. Will you locate a home that fits my specifications, even if it takes awhile?
9. Are you willing to show me the pros and cons of each home we look at?

With real estate agents and mortgage companies alike, it is essential to do your homework and locate companies and individuals that will work for you. There is nothing wrong with asking questions to weed out the good from the bad. The real estate community is full of great people that are willing to work for you so that some day you work for them in providing referrals and repeat business. By doing a little research you will easily locate a good agent that you feel comfortable dealing with.

For Sale By Owner
Although this is an attractive way to purchase a home, it can lead to a disaster. Homes sold by their owners are attractive to both you and the sellers because it eliminates the cost of the real estate company’s commission, normally allowing you to purchase a home at less than a typical listing price. However, cutting corners like this can lead to problems and more often than not, lawsuits.

Without the knowledge of a real estate professional looking out for your best interest, structuring the sales contract in both you and the sellers’ best interests becomes a burden. Unless you know the seller personally, this may lead to misinterpreted ideas of how the transaction will pay out and ultimately harsh feelings on both sides. This can lead to one party or the other backing out of the transaction and the other suing for damages and upfront moneys.

In order to be successful, you and the seller need to have attorneys draw up and review the sales contract to ensure both parties are represented properly, thus resulting in costs that you were trying to avoid in the first place. Not only do you end up paying costs that you were trying to avoid in the first place, but you’ve also added more time and effort when you could have just hired a real estate agent to look out for your best interests from the start.

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