Excerpted from “The CitizensFirst Homebuying Guide,”– available FREE to all CitizensFirst home loan applicants! (by Todd Thornton, Sterling Publishing, March, 2006).
While you don’t have to use a real estate agent to purchase a home, an agent will most likely be helpful, particularly if you are a first-time home buyer and/or you don’t know the area well. An agent should be able to:
- Help you learn about the history of a home
- Help you learn about the benefits and drawbacks of a neighborhood
- Help with determining a fair value for homes
- Help in writing an offer to purchase
- Help when negotiating the price or other conditions of a sale
- Help with inspection and contingency issues
Agents are Resources, Not Decision-MakersGreat agents will educate you, but will never try to make decisions for you. Use their knowledge, but make your own choices. If an agent tries to bully you into a decision, run the other way. |
Fiduciary duties an agent owes a client
Care: The agent should use her skill and expertise to the benefit of the client.
Respect: The agent must obey all lawful instructions of her client.
Accounting: The agent has a duty to protect all money given or documents signed.
Loyalty: The agent must put her clients’ interest above the agent’s own interests.
Disclosure: The agent must disclose all pertinent facts relating to the transaction.
Who is working for whom?
Make sure that you understand the nature of your relationship with the agent to whom you are speaking. Agents representing different parties will have different responsibilities.
Buyer’s agent: The agent who represents the buyer, and thus owes the buyer fiduciary duties.
Seller’s agent: The agent who represents the seller, and thus owes the seller fiduciary duties.
Dual agent: An agent with limited fiduciary duties because the agent/broker/company is representing both the buyer and the seller in the same transaction.
Transactional agent/broker: The agent who does not represent the seller or the buyer, but helps to facilitate the paperwork. The agent(s) owes the duties of honesty and fair dealing to both buyer and seller.
How to put together a list of real estate agents
Following are ways you can find real estate agents. Note that you should interview agents and check their references before choosing anyone.
- Ask friends, family or coworkers for references
- Ask the local chamber of commerce for suggestions
- Visit several open houses every week
- Ask members of your house of worship or civic organizations for references
- Contact your local Board of REALTORS for references/list of agents
- Call real estate companies and ask for an agent who specializes in helping new homebuyers
- If possible, visit a home expo (most large real estate offices have booths)
- Ask professionals in related fields (bankers, attorneys, etc.)
- Search the internet for agents in your area
Next Steps – Get the Book for FREE!
Once you’ve identified some potential realtors to work with, you’ll want to interview them. “The CitizensFirst Homebuying Guide” comes packed with tools, including a questionnaire to help you interview and select a realtor, and is free to new homebuyers who get pre-qualified on a home loan at CitizensFirst! If you get pre-qualified FIRST, before talking with a realtor, you’ll start the relationship right since both of you will know exactly what you can spend on your dream home. Get pre-qualified today – online! Or you can email a This e-mail address is being protected from spambots. You need JavaScript enabled to view it , or call us at 1-800-448-9228 or 920-236-7040, and get connected to a home loan specialist now.
