The relationship between home buyers and their agents has always been tenuous. Agents are paid a cut of the selling price, so the higher the price, the better for them -- but not for their clients.
| Row 0 - Cell 0 | Tips for Sellers |
| Row 1 - Cell 0 | The Buyer's Advantage |
| Row 2 - Cell 0 | Top Sites for Buyers and Sellers |
One way around the conflict is to use an exclusive buyer agent (search for one at www.naeba.org). Unlike traditional agents, EBAs don't work for listing brokers, so they avoid the risk of dual agency -- when one broker represents both parties. EBAs are still paid by the seller, but they can promise to represent your interests exclusively throughout the transaction and help you negotiate the lowest price.
EBAs are a definite minority in the real estate world. But no matter whom you hire, use an employment contract so that your agent is legally bound to protect your interests. Laws vary by state, so ask your agent whether your local Realtor association has a model contract (EBAs have their own version). If you're dealing with a traditional agent, check the contract for a renege clause, or one that changes the terms if you choose an in-house listing.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Generally, a contract allows you to employ an agent for a set time period (three to six months is typical). Make sure the agent will give you access to all the houses on the multiple listing service, as well as for-sale-by-owner homes, to ensure that you won't be pushed to in-house listings. Ask whether you'll be able to perform your own listings searches, too.
When looking for an agent, talk to friends who have recently bought homes and interview potential candidates. It's acceptable to shop around with different agents before settling on one, as long as you make it clear that you're just browsing. -- Elizabeth Ody
-
Stock Market Today: S&P 500, Dow Snap Win StreaksBerkshire Hathaway shares tumbled after Warren Buffett said he'll step down as CEO of the holding company at the end of the year.
-
The Best Energy Stocks to BuyEnergy stocks can expose investors to volatile oil and gas prices. Here's how to find the best energy stocks to buy now.
-
How to Search For Foreclosures Near You: Best Websites for ListingsMaking Your Money Last Searching for a foreclosed home? These top-rated foreclosure websites — including free, paid and government options — can help you find listings near you.
-
Luxury Home Prices Rise as the Rich Dodge High Mortgage RatesLuxury home prices rose 9% to the highest third-quarter level on record, Redfin reports, growing nearly three times faster than non-luxury prices.
-
Four Tips for Renting Out Your Home on Airbnbreal estate Here's what you should know before listing your home on Airbnb.
-
Five Ways to Shop for a Low Mortgage RateBecoming a Homeowner Mortgage rates are high this year, but you can still find an affordable loan with these tips.
-
Looking to Relocate? Plan for Climate Changebuying a home Extreme weather events are on the rise. If you’re moving, make sure your new home is protected from climate change disasters.
-
Retirees, A Healthy Condo Has a Flush Reserve FundSmart Buying Reserve funds for a third of homeowner and condo associations have insufficient cash, experts say. Here are some cautionary steps you should take.
-
Cash Home Buyers: New Services Offer Help Making All-Cash OffersBecoming a Homeowner Some firms help home buyers make all-cash offers on homes. Weigh the fees before you sign on.
-
Home Sale Prices in the 50 Largest Metro AreasBecoming a Homeowner What’s happening in the market where you live?
