How to Hire a Buyer’s Real Estate Agent

Buying a home can be a complicated and confusing process, even for seasoned home buyers. That’s why nearly nine out of 10 buyers work with a professional real estate agent at some point during their home purchase process, according to Zillow Research. Here’s how to hire a buyer’s agent — and why it’s usually a good idea.

 

A buyer’s agent is a licensed, professional real estate agent working on behalf of a home buyer. They officially represent the buyer in all aspects of their home purchase.

 

A buyer’s agent represents the home buyer in a transaction, while a seller’s agent, also commonly called a listing agent, represents the seller. Both buyer’s agents and listing agents are licensed professionals who have a legal obligation to represent their client’s best interests.

 

It depends — in eight states, (Wyoming, Alaska, Vermont, Colorado, Florida, Maryland, Texas, and Kansas), it’s illegal for one real estate agent to represent both the buyer and the seller. At Zillow, we believe buyers and sellers deserve to work with an agent who is committed to their best interests and only represents them.

 

When the same agent represents both the buyer and the seller in the same transaction, it’s called “dual agency.” Dual agency could present a conflict of interest. It would be akin to a lawyer representing both the plaintiff and the defendant in the same case — that lawyer couldn’t reasonably advocate for both sides fairly and to the fullest extent. This is why it’s important that, when hiring a real estate agent, you look for an agent whose job it is to solely represent you in the transaction — and make sure that this arrangement is spelled out in your buyer agreement (see below for more).

 

Buyer’s agents can help you navigate the entire home-buying process, from your initial search through closing. Here are the key benefits to using a buyer’s agent:

 

Support and advocacy: Buyer’s agents have a strong grasp on the local market and will be your partner in guiding you toward homes that fit your budget and priorities. You can share your saved homes with your agent or share feedback after you take a tour, and they'll be able to recommend potential compromises, which can be especially useful if you have a very specific list of priorities.

 

Skilled negotiations: Your agent will help you determine a fair market value for a home before you make an offer and give their expert input on a strategic offer based on market conditions. Then, they’ll negotiate with the seller’s agent on your behalf, helping you come to an agreement on price and terms.

 

Experience: An experienced agent can be invaluable in all phases of the process, whether it’s knowing when to expect a counteroffer or red flags in an inspection report. They are a trusted advisor who can give you honest guidance that could save you time, money and stress. Tip: We recommend checking out your agent’s profile to see their past sales and to get a sense of their experience.

 

Professional recommendations: An experienced agent can recommend lenders, real estate attorneys, escrow officers and home inspectors they trust. If your agent and these professionals have a strong working relationship, they can often work together to streamline processes and keep the transaction moving forward.

 

Expert guidance: From offer paperwork to contingencies to closing documents, buying a home means juggling a lot of complex forms and managing timelines. Your agent will gather documents, explain your rights and obligations under the contract terms, ensure nothing is missing, and walk you through everything that needs to be signed.

 

All home buyers deserve transparency regarding agent fees (who is paying them and how much), and should understand those fees are negotiable. At the same time, agents should be fairly compensated for their services. Historically, agent commissions have been between 3% to 6% of a home’s sale price, usually split between the buyer's agent and the seller’s agent. However, it’s important to talk with your agent early on in the process on how much the commission is, how it will be paid, and who will pay it — which should all be outlined in a signed agreement. It’s also important to know that agent commissions are negotiable and are not set by law.

 

When you work with an agent, you’ll typically sign a buyer agreement (sometimes called a buyer’s agency agreement), which will outline the terms of agent compensation, including how much your agent will be paid, how they’ll be paid, and what services you can expect in return. Commonly, this will involve the buyer’s agent receiving a percentage of the purchase price or a flat fee as agreed upon by the parties.

 

Before you sign an agreement, make sure you have an understanding of how commissions are paid, the scope of services provided, and the fees applicable to your transaction.

 

As with any professional you hire, you want to find an agent who is a good fit for your needs, communication styles and goals. Follow these steps to find a great agent.

 

Connect directly to a buyer’s agent in your local market, or perform a custom search for agents by neighborhood, name or specialty. You’ll find bios, reviews, ratings and a list of past sales they’ve facilitated. It’s a great way to get a feel for an agent’s reputation. Additionally, you can contact an agent directly in the Zillow app to set up an in-person home tour.

 

Talk to the agent you’re working with to make sure it’s a good fit for you to work together. Here are some important questions to ask:

 

At some point within the home buying process, you’ll sign an agreement. There are a few types of buyer’s agent agreements, depending on where you are in your home buying journey, and the type of agent that you work with:

 

Limited services agreement: If you’re just starting to look for a home, you might use a limited services agreement or a touring agreement, which outlines that you will work with the agent to tour homes. This arrangement allows you to evaluate an agent before deciding to enter into a more comprehensive buyer’s agency agreement. Zillow’s Touring Agreement, in particular, just covers touring activities and expires seven days after signing. The agreement does not require a fee, and it doesn’t bind you to work with this agent in the purchase of a home. If you want to keep working with that agent, you’ll be asked to sign a buyer agreement that specifies the terms and compensation for the additional services.

 

Exclusive buyer’s agent agreement: This type of contract means you’re agreeing to work only with that agent for a certain period, commonly 6-12 months. Typically, the agent will be owed a commission for any home you purchase during that time, and your agreement should spell out how and how much your agent will be paid. If the seller of the home you buy does not offer a buyer’s agent commission, you might be responsible for paying your agent’s commission, so read your agreement carefully and ask questions if anything is unclear. Again, know that compensation terms are not set by law, and it’s your right to be able to negotiate any terms of the agreement with your agent.

 

Non-exclusive buyer’s agent agreement: This agreement means you’re working with your agent, but you are also welcome to work with another agent as long as you let both agents know, and you haven’t signed an exclusive agreement with any agent. This might happen if, for example, you’re searching for homes in two different cities. Agreement requirements vary by state, so ask your agent for information on what documentation is necessary for your situation.

 

Your agent is not only your advocate for one of the biggest purchases of your lifetime, but will likely be working with you for months through the ups and downs of the home-buying process. This is why it’s important that you partner with someone with a complementary communication style and work ethic. In addition to a good personality match, here are some key attributes you should look for in a real estate agent.

 

Every real estate market is different. Home prices, demand and housing types can vary by state, city and even neighborhood. Look for an agent who is experienced in the specific area where you’re interested in buying. You can look up their past sales on Zillow and map the addresses, or simply ask how much business they’ve done in the neighborhood recently.

 

Your agent should be a skilled communicator both with you and with other key parties involved in a real estate transaction, so they can successfully communicate your offer and negotiate contingencies with the seller’s agent. They should also be adept at working with your lender, home inspector and attorney/escrow officer. Ask them how quickly they reply to client requests or questions and what their “off hours” are. Most good real estate agents make themselves available evenings and weekends in order to help keep your purchase moving forward.

 

Usually, an agent who has been in the industry for at least three years has a good handle on the process and a number of closings under their belts. If you choose to go with a newer agent, ask whether they have completed closings already, and whether they’re being guided by a more experienced agent. You can also read reviews to see how their clients rate them.

 

Ready to begin your search for a new home? Search Zillow’s available listings or connect with a buyer’s agent in your area that can help you find the property of your dreams.