First Time Home Buyer Article 6 of 10 Interviewing a Realtor

Posted on | August 12, 2009 | Written by: Diane Donnelly

Stop for a second to consider what a realtor’s role is regarding first time home buyers. I am sure some of you said, finding a home. This is in part true, and ultimately if the experience is a positive one, this is the end result. What goes on in between your first contact to obtaining the keys to your new home is what you need to consider when choosing a realtor.

The role of a real estate agent is varied and complex. If I had to sum it up in a word or two, I would say your realtor is a trusted advisor. He or she will be able to guide you on the entire process of researching a home, an area, a loan program, a home inspection, on negotiating, on problem solving, on budgeting, and of course, on closing on your new home.

What are important traits of a great realtor? Part of the answer lies with you. What do you want and what do you need from a realtor? Some realtors are pushy, some are soft, some are aggressive, some are passive. Personalities must match. If you are afraid of your realtor, chances are it won’t bode well for a happy exchange of information. If you don’t have confidence that your friendly realtor has strong negotiating skills, it may have disastrous effects. So first, it is important to interview several agents and make sure you have a comfort level. You will be entrusing them with one of the largest investments of your lifetime. You will entrust them with the most delicate of information - your financials, your credit, your needs and desires. It is important you find someone you trust and value.

From the business perspective, some things to consider asking when you are interviewing an agent:

How well do you know the area in which I am looking to purchase a home? How many homes have you sold in this area?
Are you a full time agent? If not, how much time do you devote to real estate?
How long have you been in the industry?
How many homes do you sell a year?
What is the biggest challenge you encountered as a realtor and how did you handle it?
Is now a good time to buy a home? Why or why not? (this answer is not always a Yes. The answer should be, it depends on your situation). If the agent hasn’t taken the time to ask you about your situation, perhaps he/she is looking at the commission and not at your needs.

Years ago, a realtor’s value came from being able to search the MLS for homes that are available. Times have changed. Technology has changed and the value of the realtor has changed. You, the consumer, can find homes on the computer. That is not a value of the realtor.

Let me say this. Getting a buyer to the settlement table today is harder than it has been in my 20 years of real estate experience. This is due, in part, to the changes to the mortgage industry. Things had to change. The appreciation of housing values were escalating at such an intense pace, first time home buyers were becoming non-existent because the prices continued to rise, making homeownership out of reach for so many. The mortgage guidelines became much to lax. They are becoming more stringent and this is good news for you, the home buyer.

Why? Because you want to be able to afford your home. You want to count on the fact that when the mortgage company offers you a loan, it is because you qualify for it. The fact that we are in a declining market is also a great thing for a first time buyer. It has made homes more affordable and has created a larger supply of homes (which in turn makes the pricing decline).

So go ahead and ask…..Is now a good time to buy a home? It depends on your situation :), I had to answer it that way! But, all in all, depending on your situation, the cards are certainly in a buyers favor. The interest rates are low, the supply of homes (inventory) is high, there is an $8,000 tax credit available, there are some great first time home buyer loan programs, prices have come down, sellers are more willing to pay for some closing costs, etc. Now is a great time to buy a home!

Find the right realtor. Interview several. Be comfortable with him or her…. they are helping you make your dreams a reality!

If you have any friends, co-workers, family, actually even if you don’t like someone, but know they need to buy a home, please forward this email to them….. they will thank you later!

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