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New home buying rules raise questions about how to hire an agent – ​​East Bay Times
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New home buying rules raise questions about how to hire an agent – ​​East Bay Times

Buying a house has always been difficult.

In August it became even more difficult.

Home buyers must now sign a contract with their agents before calling on a professional, thanks to new rules as part of a National Association of Realtors Judicial Rules.

Although you don’t need to use an agent to buy a home, 89% of buyers do, according to NAR figures.

A long time ago, home sellers had to master the skills needed to hire an agent, said Lisa Dunn of Laurel Real Estate Resources in Rancho Santa Margarita.

“Now I guess this needs to become standard operating procedure for buyers,” she said.

As of June, the top 25 percent of agents handled 70 percent of sales in the California Regional Multiple Listing Service, which covers most of California, according to Laguna Beach consulting firm Real Data Strategies. This left the other 75% scrambling for a third of the business.

“Hobbyists and part-timers are the scourge of this industry,” said Pomona agent Fred Van Allen of First Team Real Estate. “You need a pro.”

So how do you find a pro? And how do you avoid working with a misinformed underperformer who only sees you as a dollar sign?

Real estate agents and experts have recommended the following tips.

Do you need an agent?

Hiring a sales agent is not obligatory.

And many do-it-yourself buyers manage to buy a home without paying the extra $19,000 to $23,000 that agents typically command for mid-priced California homes.

RELATED: Now that California home buyers have to pay agent commissions, some are wondering: Is it worth it?

Zillow, Realtor.com, Redfin, Homes.com and myriad other websites provide listings of homes for sale.

Some buyers and sellers have reported hiring an attorney to handle the paperwork at a fraction of the cost.

Industry insiders advise against going it alone, however.

“There are a lot of things going around and a lot of moving parts in a real estate transaction,” said Aimee Hanson, a Minnesota broker and longtime instructor with licensing course provider Kaplan Real Estate Education. “You need a trusted partner during this process, and that means doing your research and asking the right questions before you get excited about opening doors and looking at homes. »

Buying a home is one of the most complicated and expensive things you can do in life, added Brentwood broker Anne Russell Sullivan, president of the Greater Los Angeles Realtor Association.

The right agent will save you a ton of headaches, sorting through the number of homes you’re looking at, guiding you through the loan process, helping you find appraisers and inspectors, and streamlining the voluminous paperwork.

“Before you do anything else, find a professional who can guide you,” she says.

Sullivan advises you to approach it the same way you would when looking for a divorce lawyer, architect, accountant or heart surgeon.

Look for references, research potential agents, interview at least two or three of them, then hire a competent agent with whom you feel most comfortable.

Get referrals

Ask family, friends, co-workers and acquaintances if they have had a positive experience with an agent.

“Use your network,” said Holden Lewis, senior editor for Nerdwallet.com. “Scour agent websites to see if they have experience working in your target neighborhood and within your price range. »

RELATED: Rules for home buyers and sellers are changing in California. Here’s what you need to know.

What if you don’t have a network for your target area? What if you’re new to the neighborhood?