How To Hire A Local Real Estate Agent In Your Area

Tips on finding and choosing the local realtor that's right for you.

After various trial and error methods, some proving to be extremely costly, people learn that finding the right real estate agent is usually more about asking yourself the right questions before even trying to go out and find answers. Through this series of questions, you will be able to better understand how realtors vary in terms of their niches within the real estate market.

The main questions you need to ask first are:

1. Are you selling, buying, or renting?
2. What type of property are you interested in (residential or commercial)?
3. What should be the property’s attributes (number of bedrooms, bathrooms, etc.)?
4. Which location(s) are you interested in?


RENTING vs. BUYING:

At this point, it is important to put your budget first. People are often overwhelmed by a sudden drop or rise in real estate value and fall victim to impulsive decisions. Keep in mind that decisions have to be made according to your situation first, and the rest such as the situation in the real estate market and mortgage rates all come later.

The biggest priority for renters is usually location. Since renting a property is more of a short-term spending rather than a long-term investment, the renter is not thinking about resale, taxes or natural hazards in the area. Instead, people who rent think about aspects that fulfill their immediate needs, such as:

a. How far is my workplace from this property?
b. What is the school district like (for parents)?
c. Is the area safe to live in?
d. What will be the duration and other terms of lease?
e. Will I be comfortable living here?


Renting is definitely a great option for someone who moves about due to work or needs accommodation that is flexible according to his or her needs. There is also less commitment involved. However, in a sense rent money is really all money SPENT rather than INVESTED, and here lies the major difference. The rule is simple: if you can afford to buy rather than rent and are willing to permanently settle down, buying is the better option for you. So if you are thinking of buying, ask yourself these questions:

a. Can I realistically afford to buy a home (make payments without spending more than 36% of my income)?
b. What are the added costs (eg. repair costs, association fees, tax)?
c. Will I be able to find work easily here even if I lose my current job?
d. What sort of future am I giving my children who will grow up in this neighborhood (for parents)?
e. What are the risks involved (natural hazards, etc.)?
f. How much will the property’s value increase, is this a wise investment?


Keep in mind that owning a home does not eliminate your accommodation expenses, there are many continuing costs such as maintenance and tax. Apart from your real estate agent you must also correspond with a mortgage or tax advisor so you not only find the best property for you but also make sure that you can fully afford all of the expenses.


CHOOSING THE BEST REAL ESTATE AGENT:

A real estate agent is really the most basic person you can find in your quest for real estate. Even though agents are usually licensed, they do not do much more than help you browse within the MLS system and show you the properties that you are interested in. Many are part-time agents, and you have to try and find someone who will be available full-time to show properties quickly before they are taken by your competing bidders. When it comes to buying, you should also try to find a real estate agent who is really more than just an agent but rather a real estate broker or consultant who can help you in other aspects such as legal terms of contract and exploring financing options. Many real estate brokers work independently, but it is better to select someone who is affiliated with established real estate foundations and organizations in order to build credibility and trust. Ask the real estate agent the following questions:

a. Are you an agent or broker?
b. What is your specialty?
c. What is the length of your total and local experience regarding real estate?
d. Who are you affiliated with?

Following these steps in reverse, you can also start by looking up information through real estate associations in your local area which will help you filter out unwanted names and refine your options to the more qualified and suitable agents specializing in your area of interest.

Good luck!