Soaring house prices are the biggest contender for why Americans are hesitant to buy a home, but many aren’t too put off because it means that they can get their own property and get their foot on the property ladder.
According to Nerdwallet, 15% of Americans report having purchased a home in the past 5 years, and 32% intend to do so in the next 5 years.
If you are thinking about buying your first home then check out our guide on how to choose a real estate broker.
Types of Brokers
There are two different types of real estate brokers that you might come across when you are finding a realtor.
The first one is a sponsoring broker, this is someone who has their employing broker’s license.
The second one is an employing broker, this is someone who is an agent with years of experience. An employing broker will have also taken coursework and tests to prove their knowledge of real estate laws and practices.
An employing broker will be more knowledgable and might be better for first-time buyers, as they will be able to guide you through the process of buying a house. However, a sponsoring broker might be cheaper.
Choosing a Real Estate Broker
The first thing that may impact your decision on finding a real estate broker is the money.
Real estate brokers usually get a standard commission rate of around 6%.
This is usually split between the sales agent and buyer’s agent. But not all of that commission goes to them, it first goes to the listing brokerage. The agent will then receive a cut between 60% and 90% of the commission.
So, if you want a real estate broker who knows their stuff, it might be worth paying a premium for their services (which means paying full commission for the agent).
To find a real estate broker that can help you get your ideal first home, you will also need to research their professional career and achievements.
Here are a number of factors that you need to think about before choosing your real estate broker.
1. Questions You Need to Ask
In order to choose the right real estate broker, you need to ask them a number of questions which will help you to determine whether they are a right fit for you.
These questions are some of the main ones that you will want to ask, but there are probably many more that you can think of.
What Previous Experience Do They Have?
You need to ask them about their previous experience. It is always good to find someone who knows the local market and area very well.
It is desirable to choose a male or female realtor who also has several years of experience in the business.
Have You Ever Negotiated a Price Down?
You need to inquire about their negotiating skills too, as this might come in handy if you find your ideal home but the cost is too high.
Even if your realtor can reduce the price by a thousand dollars, it still helps you save money.
Ask your realtor about how many houses they have managed to secure other people at a cheaper price.
How Good Are Your Communication Skills? And When Can I Contact You?
You need to be certain that your real estate broker is able to communicate well with you, so ask them about their communication skills.
You will want a good realtor who ensures they have their phone with them at all times and are able to be contacted at any point during the working day.
Can You Guide Me Through the Process?
When asking your real estate broker about their communication skills, also ask them about how well they are at translating jargon and complicated phrases.
If you are a first-time buyer then you might not understand everything about the property market and may need some extra assistance and guidance.
2. Find Someone Who Understands What You Want and Need
It is critical that you find a realtor who understands what you want and what you need.
First-time home buyers might not be aware of what their money can get them in different locations, so it is important to have an expert who knows the area and the property market.
For example, you might have a set budget and want to live in a certain area. But the houses that you can afford in that area might not be big enough for you.
Your realtor should know what it is you are able to compromise on, for example, they might find you a bigger house in your budget that is a 10-minute drive away from your ideal location.
3. Find a Real Estate Broker That Has Good Availability
You need to ensure that your real estate broker has good availability to show you around houses at times that suit you.
You don’t want to be dealing with someone who is always too busy to work out viewing appointments.
Similarly, you don’t want a real estate broker who keeps canceling on you and your house viewings as this will mean that it takes longer for you to find your home.
Make sure you find a realtor who wants to help you find your home, this will ensure that they make their schedule fit around you.
Are you looking to find commercial properties to buy or sell? Then you need to have a look at this website and talk to an expert commercial real estate broker.
How to Choose a Real Estate Broker
Finding your first home can be very tricky and there are a lot of complicating practices along the way.
However, if you follow our guide on how to choose a real estate broker then you will find your dream home at your ideal price in no time.