Don't be Afraid to Hire a Real Estate Agent

Hiring a Real Estate Agent doesn't have to be a scary process.

In Maryland, the law requires the real estate agent to provide you with the “Understanding Whom Real Estate Agents Represent” disclosure at your first scheduled face to face meeting.  This disclosure explains your rights and the agent’s responsibilities when buying or selling a home.

If you as a buyer wish to have an agent represent you, you must enter into a written buyer agency agreement before a contract offer can be prepared.

If you are viewing a property listed by the company with whom the agent accompanying you is affiliated, and you have not signed a “Consent for Dual Agency” form, that agent is representing the seller.

Should You Sign an Exclusive Buyer Agency Agreement?

It's common for agents to expect a buyer to sign an Exclusive Buyer Agency Agreement before they begin spending time locating/showing properties and preparing the buyer to make a purchase, but most buyers need to feel comfortable with an agent before signing.

Interviewing a real estate agent can help to ease a buyer's uncertainty. Many buyers are leery of signing agreements because they are concerned that the relationship might not work out and are more often concerned with how the agent is to be compensated.

The Exclusive Buyer Agency Agreement must spell out the Broker’s and Buyer’s responsibilities, including Broker’s Compensation and Term of the Agreement.

Here are a few precautions you can take to relieve that anxiety:

• Ask For Short-Term - Ask the agent whether you can sign a 1-day Exclusive Buyer Agency Agreement for the homes you want to see at that appointment so you can spend a little time getting to know the agent. After spending some time and you think you can work together, you can sign another agreement before going out again.  
• Specify Areas and Terms - Most contracts contain a description of the property. If you are undecided about areas, you might want to specify the terms and area in the contract, which will allow you to work with other agents in other areas or at different terms. For example, you might specify a price range, a neighborhood, or even a specific property. If you later decide you do not want to buy a home in that price range or in that neighborhood, you can choose a different agent to show you homes in another price range or new area.
• Ask For a Guarantee - Many agents will guarantee buyers that if either of them decides that the relationship is not working out or their personalities clash, they will release them from the agreement, and they can do likewise.

Once you find an agent and have signed an Exclusive Buyer Agency Agreement, use these tips to help your agent establish procuring cause:

·         Don't forget to say “You are working with another agent” - If agents don't ask you if you're working with another agent, then promptly volunteer that information. Agents are supposed to ask you this question, but sometimes they don't: they forget, are afraid to hear the answer, or become distracted. Set them straight immediately.

·         Do not ask another agent to show you property - Your agent is eager to help you. Part of your agent's duties is to show you homes for sale, even if those are homes that you have located yourself. Let your agent earn his/her commission.

·         Do not directly call listing agents for information - Your agent will probably get more detailed information from the listing agent than you will get, anyway. There will be no confusion if your agent calls the listing agent.

·         Follow Open House protocol if you go unescorted - If you attend Open Houses without your agent, hand your agent's business card to the agent hosting the Open. Sign guest books with your agent's name next to your own. Not only will this help protect you, the open house agent won't try to corral you or request personal information.