Choosing a buying agent

[Mia Tam]

Hello,

New first time home buyer here. 

I went for an open house yesterday and ended chatting with a seller's agent for the home I went for open house.

He seems to have good reviews by previous clients and such ( pinch of salt  - since it cannot be verified if credible or not) but he sounded like he knows his stuff. He gave us good information on the schools districts, their ranking and such which was helpful. He said he has contacts for mortgage guy, title etc. 

My question is, is it a good idea to work with the agent's contacts like for bank mortgage, title, home inspection etc. or should a buyer shop around instead?

Also, if the buyer agent is also a seller's agent for the house that you are interested in, should you still work with the same agent? What are the shortfalls?

What are red flags when working with an agent for house buying?

PS: are there any good online resources/ forums to ask questions specifically about home buying?

Thanks,

Piya

[Scott Trench]

These are great questions, Piya! 

The way that you are thinking about this is perfect, in my opinion. I believe that the process starts with finding a good buy-side agent, and using that agent's expertise as the gateway to lenders, title, contractors, etc. I'd make sure to interview several agents, before settling on one, and make sure that you have some criteria that you think will help you separate a good one from a mediocre one. 

Once you have selected your agent, you should certainly connect with their referrals for loans, title, etc. However, I'd also get some separate quotes as well. The Mortgage brokers seem to have dramatically different rates (relatively speaking) each time I go to buy a property. Sometimes, one guy will have better rates by a mile than the next. I like to shop with multiple lenders on every purchase at this point. 

If the buyer agent is also a seller's agent for the hose you are interested in, then most likely your state's law will prohibit that agent from representing both of you. Instead, the agent will likely need to operate as a transaction broker, representing neither of you, and simply facilitating the transaction. There's nothing wrong with this for more experienced investors, but for a newer investor, I think it's wise to have dedicated buy-side representation defending your interests. 

Lastly, you are in the right forum to ask questions about home buying. Please ask away! If there is another forum that discusses this subject better, we are doing something wrong! 

PS - @Mindy Jensen and I wrote a book called "First Time Home Buyer". Perhaps some of the questions you have may be answered by that book. If interested, please DM me for a free PDF copy!