A key member of your homebuying team is your real estate agent, who will accompany you through the entire process.
Choice of location and property requirements aside, there's complex information to understand, contracts to sign and endless jargon.
Selecting a real-estate agent to help you navigate this important journey can be key to a successful home purchase experience.
Take the time to find the right one. You’ll want an agent who not only is knowledgeable and well connected, but compatible and skilled at breaking down such common yet perhaps unfamiliar real estate terms as comps (data on similar homes to show you whether the one you want is priced right), active listings (homes for sale still on the market) and days on market (how long the home has been for sale) to ensure you understand them.
Compile a list of candidates
One place to start your search is on the Homes.com agent directory. The database stores information, including bios, the neighborhoods agents focus on, stats on the homes they purchased or sold on behalf of their clients and their state license numbers. You can contact them directly from the site.
Other ways to find agents are through referrals from your social networks. "I always tell folks to ask their friends and family who have purchased homes recently for a referral," said Maureen McDermut, an agent with Sotheby's International Realty in Montecito, California. "Then, do the due diligence to look up those agents online to see reviews."
As you search, you may find various terms for agents that at first may seem confusing: buyer’s agent, listing agent, seller’s agent, selling agent, dual agent, broker, Realtor, Accredited Buyer’s Representative. Here’s what they mean:
- Buyer’s agent: an agent who is bound by contract to represent the buyer
- Listing agent or seller’s agent: an agent who represents the seller
- Selling agent: the buyer’s agent who sometimes is referred to under the new designation once a contract with the seller is signed
- Dual agent: an agent who represents the buyer and seller in the same transaction in states that allow it
- Broker: an agent who manages the brokerage firm and other agents
- Realtor: an agent, who as a member of the National Association of Realtors, undergoes regular training and follows its codes of conduct
- Accredited Buyer’s Representative: an agent who passed a 12-hour course through the National Association of Realtors on the ethics and legal requirements associated with such duties as negotiating offers and handling closings
What agents do
Agents must be licensed in the states where a transaction takes place, according to the National Association of Realtors. The state issues the license, not the organization.
They should know the area or neighborhood you want to live in and have experience helping buyers who are in your particular situation, such as a first-time buyer.
Here's a list of their duties:
- Sending you listings from the Multiple Listing Service — the realty database of properties for sale in your locality — based on your preferences for architectural style, size, bedrooms, bathrooms, neighborhood and age
- Accompanying you to open houses and home tours
- Helping you spot gems and duds
- Analyzing the market and using data such as days on market to help you determine whether to offer the asking price or above or below it
- Crafting the offer letter with the price, closing date and contingencies to nullify the deal if the appraisal comes in below asking price, if you don't get financing or if a major expensive problem turns up in the home inspection
- Providing comfort and encouragement when you lose out on a bid and getting you going again
- Negotiating with the seller when an offer is accepted
- Recommending an appraiser and inspector
- Preparing you for the closing
But there are a few things agents can't do. They're prohibited by the federal Fair Housing Act from giving clients information on schools and crime. The law is aimed at preventing agents from steering clients to or from certain neighborhoods because of their race or gender.
Pro tip: Should you suspect your agent is violating the law, you can file a complaint with the U.S. Department of Housing and Urban Development. You can find information on schools and crime (in the neighborhood section) on Homes.com.
Vetting candidates
After compiling a list of candidates, you'll want to narrow it down to the top three to five. Then verify that the professional is the person they claim to be.
- Look up an agent’s LinkedIn or real estate firm profile as a starting point.
- Confirm an agent is licensed by contacting your state’s real estate licensing board.
- Contact the National Association of Realtors to see if the agent is a member, and if they have any special credentials.
- Contact the area Better Business Bureau to see if there are any complaints filed against the agent and their real estate company.
- Contact a local real estate association to check the agent's membership status and background.
Here are a few questions to ask the candidates:
- How do you scout properties?
- Can you refer me to appraisers, inspectors and home repair specialists?
- What's your experience in this neighborhood?
- What National Association of Realtors designations do you have?
- What's your experience with homes similar to the ones I want to purchase?
- What's your experience with bidding wars?
- How long have you been an agent?
- Are you privy to pocket listings — off-the-market homes for sale?
- What's your preferred method of keeping in touch?
- What's your negotiation style?
- What's your experience negotiating price reductions for clients?
- Can you provide references?
Pro tip: Recent success should be an important factor in your decision, McDermut said. Ask agents about their most recent purchase. "If they were all more than year ago, keep looking," she said. Markets change over the course of a year, she said.
Negotiating the commission
Commissions for buyer's agents vary. Historically, home sellers often paid for the commission, typically 5% to 6% of the home's price.
But that changed with a recent federal lawsuit settled in 2024 against the National Association of Realtors. As a result, buyer's agents must enter into a signed agreement with buyers before showing a home, in person or virtually, according to the association. This is to promote transparency in the homebuying process, especially by telling buyers what they have to pay the agent and how much. Buyer's agents typically get a 2 to 3% commission.
A buyer doesn't need an agreement if they are just talking to an agent at an open house or asking them about their services.
A buyer will negotiate the terms of the services an agent will provide, how much they will be paid and how long the agreement lasts. Keep in mind that you and your agent can always mutually agree to change the terms of the agreement.
Despite the settlement, the vast majority of commissions are paid by the seller, said Thomas McCormack, senior partner and broker at Resources Real Estate in Rumson, New Jersey. Many times, a buyer will pull out of house hunting because they do not know if they can cover the costs, he said.
Typically, buyers will reduce their offers by the amount they have to budget for their agent's commission.
Here's a checklist of other duties associated with hiring an agent:
Review the representation agreement
You don’t want to find out at closing that you owe hidden fees or need to hire another professional for a service you thought your agent provided.
- Understand the commission structure.
- Clarify how long the contract will last.
- Know what services are included.
- Specify the terms on which you would ask to terminate the contract — there's usually a section in the buyer's agreements that asks you to list them.
- Ask an attorney to review the agreement.
- Do not sign the agreement until you have thoroughly read its terms and understand them.
Assess compatibility
Is this someone you feel good doing business with?
- Ask how they communicate with their clients, and how often.
- Evaluate if the agent listens to your concerns.
- Ask the agent what hours they work and evaluate if they are compatible with yours.
- Evaluate whether you feel comfortable asking the agent questions and whether the agent satisfactorily answers them.
- Only consider agents who are professional and courteous.
Make your decision
Does your gut feel comfortable choosing this agent? Why or why not?
- Choose the agent who aligns with your goals.
- Sign the agreement and get started.