For many first time home buyers, the process starts with finding the right real estate agent in Massachusetts. You can think of the agent as the project manager that helps to facilitate your home purchasing experience. They can help you find public and off market listings, schedule showings, analyze property values, and even connect you to other real estate professionals. Here, we’ll uncover in detail what they do, how can you find them, and more importantly, how to choose the right real estate agent in Massachusetts for your first home.
What Does A Real Estate Agent In Massachusetts Do?
In the most generic sense, real estate agents are professionals that help to facilitate a real estate transaction (duh!). These transactions may include selling, buying, renting, and leasing a property. The agent takes on different roles and responsibilities. In the context of buying a home, two agents are typically involved. The buyer’s agent represents the buyer and the seller’s agent represents the seller. The key difference in their roles is their fiduciary responsibilities. In other words, agent have an ethical and legal obligation to act based on the best interest of their principals (whoever’s hired the agent). For first time buyers, a real estate agent can play a crucial role in the following home buying tasks:
Finding
Real estate listings are publicly available information but most seller’s agent prefers buyers being accompanied by a buyer’s agent. Agents can help schedule a private showing and educate buyers about proper protocols. This helps to reduce the liability of a buyer mistake during a showing.
Preparing Offer Package
Agents can help craft the proper offer package if the buyer is interested in a listing. This is where the agent will help perform a property analysis, provide pricing information on the subject property, and include the necessary contingencies.
Negotiating
In the event of a negotiation, the agent can help craft the strategy and inform you on the different options available. Lastly, it’s also ideal for negotiations to take place via a third party such as your buyer’s agent.
Connecting
Buying is truly a team effort. The process will involve different professionals at various stages including inspectors, lenders, appraisers, attorneys and more! If a transaction is time-sensitive, your agent can quickly connect you to the right resources to get the job done. You ability to find these resources can make or break a deal.
Facilitating/Deal Management
Finally, your agent serves a project manager of sorts. Their job is to essentially make sure that everyone is performing their tasks on time to meet the agreed upon terms. That’s the value of an agent.
Where Can You Find And Interview A Real Estate Agent In Massachusetts?
Real estate services are generally not difficult to find. You can most often find agents through personal referrals. You may also find agents online on sites such as Zillow. In short, there’s no shortage of real estate agents around Massachusetts. However, finding the right agent that fits your personality and situation can be a daunting task. Here are three things to look for during your interview:
Is The Agent Likable?
You’ll be spending nights and weekends over the course of several months interacting with this agent. You should at least make sure that you enjoy your agent’s company. Is s/he an amicable, sociable, and respectful person? Does s/he respect your boundary? It may take some time to notice these qualities in an agent but don’t hesitate to shop around and speak to multiple agents.
Does The Agent Have The Experience and Capabilities To Get The Job Done?
Regardless of how likable s/he is, you want to make sure they have the experience and the know-how to actually help you find a home. Ask them how many homes have they sold in the past? Do they have experience working with first time buyers? Make a point to connect with references about their services. This process will help ensure that the agents have the resources and skills to help you find and purchase a home.
Ask Real Estate Agent In Massachusetts To Perform A Property Analysis
One of the most important steps in purchasing your first home is developing a property and price analysis. After all, this is the money YOU’LL have to come up with so you want to make sure the agent is a good steward of your financial interest. Ask them to price a subject property and subsequently explain to you step-by-step how they arrived at the price range. An agent’s ability to harness market data to provide a coherent pricing analysis is a key skill they should demonstrate.
How Does An Agent In Massachusetts Get Paid?
Both buyer and seller agents are paid based on sales commissions. The commission is a percentage of the property sales price. The seller’s agent typically negotiates the commission prior to the listing of the property. The commission splits between the two brokerages after the transaction closes. Note that although the buyer does not pay agents directly, the proceeds from the sale of the property is what ultimately pays the agents. In Massachusetts, the total commission can range anywhere from 4% to 6%. Each case is unique, depending on property type and size of the transaction.
Broker vs. Agent In Massachusetts
Brokers and agents are often used interchangeably by first time buyers but there are important distinctions within their roles and responsibilities. Both are real estate professionals who can represent buyers and sellers, however, the broker will take on more business level responsibilities. Firstly, the broker will need to complete additional state licensing requirements in order to be certified as a real estate broker. Broker will have more managerial and business-level responsibilities such as budgeting for marketing, supervising transactions, and more. Finally, each broker will need to purchase liability insurance in the event that a lawsuit is brought onto the brokerage.
If brokers can be thought of as supervisors or general contractors, then the sales agents can be categorized as sub-contractor that work under the brokers. Brokers pay the agents directly a portion of the sales commission. When dealing with deposits, buyers must be mindful to never write any checks directly out to the sales agent. All deposits should either be made out to the list brokerage office or the seller’s attorney’s office.
What Is The Agency Disclosure
An important form your agent might present you with is the Agency Disclosure Form (see attachment below). This is a mandatory form that agents must fill out to outline the specific roles they will play in representing you, the buyer, as the buyer’s agent. In some rare cases, one agent can represent both seller and the buyer. This is classified as dual agency where one agent must exercise fiduciary responsibility between two clients with opposing interests. While technically legal, it is a very legally and ethically complicated situation to handle and often results in lawsuits. The state of Massachusetts require that dual agents have both clients complete a Dual Agency Disclosure Form (see attached).
What Is A Buyer’s Broker Exclusive Agreement?
As you embark on buying your first home, some agents may request that you complete an Exclusive Buyer’s Agency Agreement (see attached). This agreement creates a binding relationship between you (the buyer) and the brokerage for a specified period of time. During which, you’ve agreed to allow the brokerage to exclusively represent you as a buyer’s broker. In the event that you’ve decided to hire a different buyers broker, you will have violated this agreement. A violation may result in a lawsuit against the buyer for commission reimbursement.
While this agreement is no longer a common practice in Massachusetts, some agents feel that it’s necessary to protect their relationships and investments. Ultimately, it comes down to the level of trust between the buyer and the agent. We strongly recommend speaking to multiple agents before settling with the professional that fits your needs.
Interested in becoming a real estate agent in Massachusetts? Real Estate Express offers an quick and inexpensive way to get certified online.
