11 Things a Good Buyer’s Agent Needs to Know Before Showing a Home

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We’ve all heard that going public is the key to success in this business, but going public is only one aspect of the deal. Every successful transaction involves a buyer, and in most cases involves an agent working with the buyer.

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There is a significant difference between an average buyer’s agent and a good buyer’s agent. Here are the differences, along with 11 things a good buyer’s agent needs to know before showing a property.

1. They know the buyer’s value

A good buyer’s agent understands that a buyer is worth more than just a transaction. They know happy buyers will send referrals. They also understand that closed buyer transactions create a marketable event that leads to referrals from other buyers.

The old saying “birds of a feather flock together” definitely holds true for buyers. Good buyers’ agents understand that if they provide world-class service to current buyers, they are likely to attract or receive referrals from other buyers like them.

2. They know if the buyer is working with another agent

One of the biggest mistakes real estate agents make when working with buyers is not knowing if they are already working with another agent. Most agents learned the hard way and found themselves finding the perfect home for a buyer, only to realize before writing an offer that the buyer had a friend in the industry who would act as their agent.

A good agent will ask the buyer about working with another agent early on to save unnecessary time, energy and frustration. This question will become even more valuable as we enter the post-NAR settlement era, where buyers are required to sign a buyer’s agent agreement to see homes listed on the MLS.

3. They use mortgage pre-approval to understand what buyers can afford

Another mistake most agents make is not knowing how qualified a buyer is before showing a home. The best agents understand that the pre-approval process is not only to ensure a buyer can purchase, but also to ensure the buyer sees a home in the price range that is right for them.

Early in my career, I made the mistake of assuming buyers could afford a certain price range, only to find out they qualified for a home that was $75,000 cheaper than the one I was showing them. Buyers are never satisfied with homes in the price range they qualify for after seeing homes priced higher. This was a lesson I learned and a mistake I never made again.

The best agents won’t show a property until a potential buyer has been pre-approved for a loan.

4. They know what buyers want and need

A good buyer’s agent understands how valuable their time and the buyer’s time is. They ask questions to understand what motivates buyers. They ask if they have a specific period of time that they will need to be at home. They ask where they spend most of their time when away from home to find out if there are amenities, schools or offices close to their home.

By understanding buyers’ needs, they can provide them with homes for sale that best suit their needs and ensure their needs are met.

5. They understand and can communicate local market trends

A good buyer’s agent understands and is able to easily communicate current local market trends to potential buyers so they understand how these trends will impact their buying process. This process of introducing them to local trends provides insights that shape buyer expectations.

If inventory is limited, a good agent will help buyers understand how this may affect their ability to move quickly when they find the right home and offer above asking price in order to win in a potential multiple offer situation.

If days on market are increasing and the average listing price is approaching 95%, then agents will educate them on how this may impact their ability to negotiate price in a way that reflects these market trends. While every home and every negotiation is different, understanding trends is knowledge that can bring value to buyers.

6. They understand and can communicate specific neighborhood market trends

Sometimes, specific community trends can deviate from the overall trends in the local market. A good buyer’s agent knows which neighborhoods command a premium and which are ripe for more aggressive negotiation. This knowledge can be a huge benefit to potential buyers.

7. They understand the history of the homes they display

A good agent will have a good understanding of the homes that buyers are most interested in prior to showing them, based on their knowledge of the buyer’s needs/wants. The next step a good agent takes is to gather historical information about a home that they are confident a buyer will be interested in.

This includes when the home was built, who built it, what renovations were performed and when they were completed. They know the details of several recent sales, including the sale price and when the home sold. They collect property tax information and estimate homeowner’s insurance costs.

A good agent doesn’t wait for buyers to ask questions and then collect the answers. They educate themselves on the home and are prepared when problems arise.

8. They know the value of relationships with other agents

Good buyer’s agents understand that their relationships with other agents can affect how smooth or difficult a transaction is. They understand that their job is to advocate and negotiate for buyers, but they also realize that their professionalism and respect for other agents can make a difference for their buyers, too.

9. They know how to represent high caliber buyers

Good buyers’ agents know that in order to represent buyers of the highest caliber, they must develop their skills. They understand that their skill level in presentation, communication, and negotiation will have a direct impact on the transaction and the experience of the buyer they represent in the transaction.

The National Association of REALTORS encourages agents to develop these skills by offering free access to Accredited Buyer Representative (ABR) designation courses through the end of 2024.

10. They understand the value of good communication

An article in Forbes states that the three biggest complaints about real estate agents are that they “lye, are lazy and are poor communicators.” According to this article, poor communication is considered the same as lying and laziness. Good agents understand that providing good communication is a way to differentiate themselves from the competition and is one of the most common complaints people have about agencies.

We have to start from the beginning. Send a text message the morning of the first meeting to remind them of the meeting and make sure the time and location still works for them, setting the tone for communication throughout the process.

Let buyers know your expectations clearly by email, phone, or text message about the time you will be spending with them. Consistent communication from the search process through post-closing follow-up will deepen your trust and relationship with your buyer.

By changing the negative perception of the public into a positive one, good agents understand that good communication is the way to gain lifelong customers and referral partners.

11. They understand the value of lifelong customer relationships

The first point of this article is that good agents understand the value of buyers, and it’s fitting that we end with the fact that good agents understand the value of lifelong customer relationships. The best agents understand that everything starts and ends with the client.

This business is about them and how you serve them. When you focus on becoming an agent who is not only worthy of their business, but one who earns their business for a lifetime, your business will grow in spite of itself.

Buyers need and deserve the best version of you. Our industry needs great agents to step up in these changing times and demonstrate the value we bring to the home buying process. This is a critical point in our industry and your career. Now is your time to step up and be the great agent you are capable of being.