buying a home with little money in savings

Crucial Questions You Should Ask A Real Estate Agent Before Signing Your Contract

by Fernando Moore

Whether you are selling your starter home or this is just the latest of many homes you have bought and sold in your lifetime, you probably already know how important it is to work with an experienced real estate agent. However, choosing the right person is not always as easy as it seems. Fortunately, by asking the following three questions, you can be a little more sure that the real estate agent with whom you will soon be signing contracts will be the right person for the job.

Who Will Be Handling Everything To Do With The Sale Of Your Home?

Given the dollar amount you will be paying a real estate agent, it is important to be sure that you will be working exclusively or primarily with that person throughout the process. Therefore, you will want to make sure that your phone calls, research, open houses, etc. will not consistently be handed off to a junior agent.

Although it is illogical to assume that you will never be asked to leave a message, it only makes sense that you want regular updates and input from the agent you have hired -- not the receptionist, a co-worker or an aspiring real estate agent.

What Items Do The Administrative Fees Contain, And How Negotiable Will They Be?

It is important to note that many real estate contracts will contain an administrative fee. This is often the paperwork equivalent of a junk drawer and could be the charges for phone calls, excess paperwork, and you other miscellaneous expenses. That fee tends to be variable and can as low as $250 or as high as $1500.

If the total number of services being listed under the administrative fee do not seem equal to the dollar amount being assessed for those services, you may want to ask if the fee amount is negotiable. Since that money is likely to go directly to the real estate agent and is typically charged on top of the commission already being paid when you sell your home, there could easily be some room for adjustment.

In conclusion, choosing a real estate agent with whom you will be entrusting the sale of your home is a decision that can have significant financial repercussions for you and your family in the future. As a result, it is a good idea to ask the questions listed above of any real estate agent with whom you may do business with before signing any binding agreements.