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.
| Tips for Sellers (opens in new tab) |
| The Buyer's Advantage (opens in new tab) |
| Top Sites for Buyers and Sellers (opens in new tab) |
One way around the conflict is to use an exclusive buyer agent (search for one at www.naeba.org (opens in new tab)). 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 Kiplinger’s expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of Kiplinger’s 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
-
-
This Week in Cannabis Investing: Safe Banking Act in Focus During Lame-Duck Session
Marijuana advocates are hoping the outgoing Congress will take action on the Safe Banking Act, legislation that will improve cannabis companies' access to finance.
-
Kiplinger's Weekly Earnings Calendar
stocks Check out our earnings calendar for the upcoming week.
-
11 Best Foreclosure Sites for Finding Properties
Making Your Money Last Searching for foreclosures for sale for your next home or to flip for a profit? These websites will guide you to foreclosures and real estate owned properties to buy.
-
How to Shop for a Low Mortgage Rate
Becoming a Homeowner Rates are higher this year, but you can still find an affordable loan.
-
Looking to Relocate? Plan for Climate Change
buying 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 Fund
Smart 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 Offers
Becoming 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 Areas
Becoming a Homeowner What’s happening in the market where you live?
-
How Much Will Home Prices Continue to Rise in 2022?
Becoming a Homeowner It’s still a seller’s market, but higher mortgage rates will slow the torrid price increases. Know how to be a smart buyer or seller in these conditions.
-
Conforming Mortgage Loan Limits Rising
Becoming a Homeowner For 2022, the standard conforming limit for single-unit properties is $647,200, up nearly $100,000 from the 2021 cap.
