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If you’re ready to buy a home, it’s important to find and work with an agent who best fits your needs. Under new California law that goes into effect on Jan. 1, 2025, you will be required to sign a written buyer agreement with the agent you select, which outlines the services they will provide and what they will be paid for those services. It’s important to ask them questions to make sure their services align with your expectations.
Here are 10 questions to consider when selecting an agent:
Are you a Realtor, broker or real estate agent?
All Realtors are real estate agents, but not all real estate agents are Realtors. Both are licensed professionals who help clients buy, sell and lease property. A Realtor, however, is required to be a member of the National Association of Realtors.
When you work with an agent who is a Realtor, you are working with a professional guided by ethical duties under the Realtor Code of Ethics, including the pledge to protect and promote the interests of their clients. Realtors also have access to a network of private Multiple Listing Service databases that NAR maintains for its members to use to share property listings. In some states and regions, membership in a local NAR Board is the only link to accessing these databases.
There also are real estate brokers, who are real estate agents licensed to operate a real estate brokerage. Brokers generally need to have a certain number of years of experience working as a real estate agent and must pass a national and state broker exam before they can earn their Broker license. Most real estate brokers are members of NAR.
What types of services can you provide me?
Agents may offer many types of services such as finding you homes that meet your criteria, accompanying you to showings, sharing their analysis of the market and available properties, negotiating on your behalf, verifying the legal names of owners, researching a property’s current use and zoning, and more. Make sure their services cover what you need.
How well do you know the markets where I am searching for a home?
Your agent must be licensed where you are buying a home. They also should have the market knowledge to help you successfully find a home where you are searching.
Do you have experience working with buyers in my situation?
Ask your prospective agent about their experience and any designations or certifications they have earned related to working with buyers like you. Many agents specialize in working with certain types of buyers, such as first-time buyers, seniors and veterans.
Some also earn the Accredited Buyer’s Representative designation to gain specialized skills in working with buyers.
Can you tell me about your approach to scouting properties?
Agents and brokerages have different business models and use various technology, tools and resources in their search process. Discuss with your prospective agent how their approach will help you find the right home.
What will be included in our written buyer agreement?
Once you are working with your agent and before you tour a home together, you will need to enter into a written buyer agreement with your agent that outlines the services the agent will provide, and what they will be paid for those services. These agreements are fully negotiable.
The written agreement is part of new real estate rules that took effect in August as part of the National Association of Realtors’ court settlement over how broker commissions are negotiated.
In California, Gov. Gavin Newsom cemented this industry directive into state law by signing Assembly Bill 2992, which goes into effect on Jan. 1, 2025. California is one of at least 28 states with laws requiring home shoppers to have a buyer-representation agreement with their agents.
How long will we work together?
Talk with your prospective agent about how long you would like to work together and ensure you feel comfortable with that arrangement. This term should be set out in your written buyer agreement.
Under California’s new law that goes into effect in January, written buyer agreements end automatically after three months, unless both sides agree in writing to extend it.
What are my options for paying you?
Agent compensation is fully negotiable and can take many forms, such as a flat fee, a percentage of the purchase price or an hourly fee. The written buyer agreement will contain the amount of compensation you agree on. You also can ask the seller to pay your broker’s compensation as part of your purchase offer or, in cases where a seller offers a concession, you may be able to use the funds to pay your broker for the value and services they provided you. Consumers can go to facts.realtor for more resources that provide the facts and latest updates on the National Association of Realtors’ settlement agreement related to broker commissions.
Can you recommend service providers who can help me obtain a mortgage, make home repairs or support other closing tasks?
Your prospective agent may have prior experience or trusted relationships with providers in the area where you are purchasing a home and can be a great resource for facilitating these introductions.
Do you have references?
Many agents will be happy to connect you with satisfied clients they have worked with in the past who can speak to their experience.
Silicon Valley Association of Realtors (SILVAR) is a professional trade organization representing 5,000 Realtors and affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.
The term Realtor is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of Realtors and who subscribes to its strict Code of Ethics.
