Expert: Karyn Foley - 10/23/2008

Question
What type of questions should a real estate agent be asking me if I come into their office looking to buy property? I guess I just want to try to weed out the bad guys from the good ones. I am really not sure how to pick the right agent for me.  Thank you for your time!

Answer
Dear Destiny:  I admire an agent who will take the time to personally meet with a potential client.  It gives an opportunity for both of you to size each other up and see if the chemistry bodes well for a professional relationship.  That agent should either take notes, or have a questionaire prepared.  They will ask you what you are looking for, priority features, the make-up of your family, and so forth.  Also, if they are really on the ball, be candid about answering the questions honestly about your qualifications.  In the past several years, a great percentage of homes have not gone through because the buyer could not obtain financing.  You should be prepared to be pre-approved by a lender that the agent usually works with.  This does not mean you are obliged to use that lender when you do actually make a purchase, it means that the agent can have a good assessment on what you can and cannot afford to buy.  When you actually submit an offer on your proposed purchase, the seller of that property will want to have your pre-approval letter before they respond.  And, they will respond to your dollar offering as well as be influenced by your credit rating.  That pre-approval letter should state what you and your spouse, if you have one, earns as a salary, any other income, your debts, your credit score and any other facts that will be of importance and required by any lender.  For your own knowledge, that letter also states the purchase price for which you will be qualified, today's interest rate, the dollar amount of your monthly payments, etc.  You also will have an opportunity to ask questions of your agent, and please, do so.  You should know your agent's track record of success, in the business and in the neighborhood where you are looking.  How familiar is your agent with the homes, the home prices, the amenities, the drawbacks.....  You should consider interviewing three agents.  Pick from the ones whose signs you see frequently, and from recommendations from friends, relatives, and colleagues.  Take your time.  When you begin this process you can make easier comparisons, and will think of other questions you would like to ask.  It all comes together when you begin gaining knowledge.  Keep track of your local real estate picture by reading the neighborhood's local papers as well as the major papers.  It is usually quiet this time of year, so you have a good period to take charge of this project.  More homes will come out in the beginning of the year and in the spring.  But, if you are well prepared earlier, consider buying before the end of the year.  Even though the inventory will not be as large, there will be fewer buyers and thus less competition.  Also, the interest rates are now low, and will probably go up again when the activity picks up.  The best time to buy is when you see what you like and are in a position to make a move.  Good luck!!!Karyn Foley