How to Pick a Real Estate Broker/Realtor?

Question

Hi,

I met with a real estate agent today and he showed me some properties that I was interested in purchasing. What criteria should I look for in a broker/realtor?

I am looking into property in Lowell, Massachusetts and he showed some on the MLS site to me. We discussed some details and drew out some analyses on the homes. By the end, he asked me to sign something that would bind him as my official broker/realtor I believe, but I did not sign it. I am new to the process and I told him I needed time to digest the information.

Can someone offer me some advice?

Thanks in advance!

Kelsey Crouch · Answer

@Danny Mak

Hey Danny! Realtor here 👋

I would say the most important thing is: Did you get the feeling he could meet your needs and perform to your standards? Do you get along? Is he knowledgeable?

The document that he wants you to sign is a buyers agreement...it just solidifies a professional relationship, and ensures he can be paid if he shows you a property that you end up purchasing. It doesn’t bind you to only 1 agent forever! Any (professional) agent would want you to sign this agreement, and it shows that agent that you are serious and not wasting his/her time. The only reason you wouldn’t sign is if you never intend to use him to help you purchase a property.

Hope that answers some of your questions!

Lien Vuong · Answer

Hi Danny,

What he probably gave you is a Buyers Exclusive Agreement meaning that you have chosen him as your exclusive Buyer's Agent for Real Estate in MA. Not sure if he presented the value of that contract to you and him but it simply explains the parameters of your relationship with him and that you are agreeing to have him present you in exchange for his professional feedback, market knowledge, and resources. He will then have the fiduciary duty to represent you, give you factual information about market stats, comparables, rents, etc. that will help you when you're making your purchase decision.

Now you're asking yourself if this person is the right one for you. Some of the questions I would evaluate would be:

• 1. What types of experience do you have working with clients like myself? Examples?
• 2. Do you practice in the local market? Where specifically?
• 3. Apart from the MLS inventory, what other properties do you have access to that would help with my search?
• 4. What are some resources do you have for contractors? Property Managers? Other professionals that would help? 
• 5. Client reviews?
• 6. What are additional value propositions that make you stand out apart from your counterparts in the market?

Ultimately you do have to work with someone you know, like, and trust so it does start from there. Best of luck!

Jamie Ryan · Answer

Hi Danny, One option is to call local property managers to find out who they are using for agents/brokers. You really want to have someone looking to help you find a good investment and not make a quick sale. An agent that has a good sense of what investors are looking for help weed out properties that wont cash flow / overpriced. I was recently in Billerica and there are a good amount of nice homes mixed with not so nice homes and seemed like a good place for some value add for flipping.

Good luck!

Joaquin Camarasa · Answer

@Danny Mak If I had to pick an agent.

All the questions above and then.

Can I speak with any of the investors you have worked with for two minutes? (Phone call)

Then ask about the deal and how was the experience with the agent.

Every agent that has worked with investors should have a good relationship with some of the past investors. Some of them should be willing to cooperate with the agent if they really appreciate the job the agent did.

Reviews in writing are good, I personally like to hear it.

Kind of a quick background check.

Timothy Lewman · Answer

Contact my friend Chris' company, I've known him 25 years since college.  He works with investors all the time up in that area:  https://www.dohertyproperties....

Howard Herrington · Answer

Danny,

Lien did indeed give you excellent advice on how to interview for the right agents.  I would say that you go with your instincts.  If you feel someone is not a right fit in assisting you with your search then move on to the next.  If for some reason you are having trouble finding an agent, my brokerage also has agents in that area that are very knowledgeable and will work hard for you.  Please let me know if you need assistance and I will introduce you to one of the agents in my office.

Phil Wells · Answer

Hi Danny,

Interview a bunch of agents and find the one that you like and get along with most. You're forming a partnership (not a legal partnership obviously) with this agent for this deal and potentially many deals in the future. If you don't want to grab a beer with them don't hire them!

There is a certain level of competency you should look out for too. Ask them probing questions but remember that a lot of agents don't have all the answers all the time and are still competent - they may just need to look something up or compare recent sales, etc. The real test is if they follow up with you with the info they said they'd give you!

In terms of a buyers representation agreement, in Washington at least, it can be ended by either party at any time for pretty much any reason. It's more a gesture of good faith. In theory it's intended to protect a buyers agent in the event they find a buyer a property and then the buyer offers on the property and cuts the agent out the deal.

I hope this helps

Danny Mak · Answer

Thanks everyone for the great advice and contacts.

I will ask the questions and reach out when necessary!

Danny

Danny Mak · Answer

Thanks again everyone!

Brad Brady · Answer

Hi Danny,

Lien gave some great advice and questions to consider when looking to work with an agent! If you have

any city specific questions feel free to reach out. We're based in Lowell and have sold/own condos to large

scale multifamily developments.

Regards,

Bradford Brady

Doherty Properties

How to Pick a Real Estate Broker/Realtor?

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