As the housing crisis wears on, 
one group that has really taken it on the chin is real estate agents.
When homes aren't selling, agents can't earn a commission. Even worse, behind every failed attempt to purchase a home, there is likely an agent who has put in serious time, effort, and money only to walk away empty-handed.
It's no wonder real estate agents have been abandoning the house business in droves. The National Association of Realtors has seen membership plummet a whopping 21% since 2006! And, since the Web and social media throw another monkey wrench into the mix, it's fair to say that there's never been a more frustrating time to be a real estate agent.
Consider your agent the quarterback of your little home buying team. You've got a loan officer, a home inspector, an appraiser, maybe some contractors, and you. It's the agent's job to get the best performance from each team member and drive the entire motley bunch toward the goal line.
For these other team players, time is money — so you'd better come ready to perform. As the buyer, you have specific responsibilities and you need to understand them all completely. Here are three basic facts you need to know to hold up your end and keep yourself from getting cut from the team:
"It's up to you to know what you want in a home."
Real estate agents are human search engines: think Google for houses. But, as with any search engine, they are only as good as the terms you use to describe what you want. But, "garbage in - garbage out" still holds true. If your house needs are vague and uncertain, a list of unsuitable houses is often the result. And everyone's time gets wasted.
So, as the home buyer your first order of business is to sit down and sort out your needs and wants. Be as precise as you can in describing what features, floor plans, and amenities you require. Also be very clear on what you don't want in a home. Then communicate all of this clearly to your agent right from the start.
Just be sure to leave room to be surprised by the unexpected: We've heard plenty of stories of buyers who ended up loving a home that was nothing at all like what they originally asked for.
"Yes, it's a Buyers Market... but only if you can qualify RIGHT NOW."
With home prices at historic lows, now is arguably the best time to purchase a home that any of us will ever see in our lifetime. However, in order to take full advantage of this veritable buffet of tasty deals, you've must be able to qualify for a mortgage now (or have a mound of cash available).
It's no wonder, then, that the very first act of your real estate agent will be to determine whether you are mortgageable (and if so, for how much). If you can't get a loan today and you don't have a ton of cash, there is not much an agent can do to help you buy a home. (Home Pride can, but that's a topic for another day ...)
Every great real estate agent has a "go-to" loan officer that can review your credit and see what loans you qualify for. Your job is to submit a loan application (the dreaded Form 1003) in a timely manner. This pre-approval process shouldn't take more than a week, but don't expect much attention from the agent until you've received a thumbs-up from their loan officer.
"You hired me for my expertise: Now let me do my job."
This very month, some would-be homeowner will watch a late-night infomercial on the magic of foreclosure investing. With one swipe of a credit card, they'll become an overnight expert on the purchase and sale of residential real estate. All will go smoothly for these "Trumps-in-training" until they have that first fateful conversation with an experienced real estate agent. Then they'll learn about the dozens of real-world obstacles and hidden gotchas never mentioned by the slick-talking dude on the tube.
If you choose to engage a real estate agent to help you purchase a home, find the most talented professional you can and then let them do their job. No one minds the occasional question, but nothing slows down a deal more than having to explain every last detail to the newbie. Yes, it's your money and your house. But it's their livelihood. If you've selected the best, then you owe it to them and yourself to listen to their advice and heed their counsel.
Understanding these three truths should help make your home search more fruitful and less stressful for all parties involved. Happy hunting!
