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The Existence Value of Property Agency

Homebuyers may wonder why most people bought homes through property agents who charge commission, but not through the Internet or through regular marketing and advertising channels without representation, which is commission-free.

Indeed, there are top 10 reasons why you might also want to hire a professional property agent:

Professionalism & Experience

If you hire people who are smarter than you are, it proves that you are smarter than they are! Hiring professionals with more education and experience can save us a lot of precious time in our lives.

Agents act as buffers

Property agents take the spam out of your property visits since they have previewed many of homes available for sale in the neighborhood.

Neighborhood knowledge

Professional agents possess an intimate knowledge of the neighborhood in where they work. They can figure out the schools, crime, transportation, and demographics.

Price guidance

A good property agent will be sharp enough to ask you about your financial and debt situation and about your family, so as to set the proper price range you should be looking in, and what a home you need is available in your price range.

Market conditions information

Property agents can disclose market conditions, which will govern your buying process. Many data such as the average per square foot cost of similar homes, median and average sales prices, etc will have a huge bearing on your ultimate decision.

Professional networking

Property agents network with other professionals such as lawyers and loan lenders who provide services when you buy. They know which vendors have a reputation for efficiency, competency and competitive pricing. They can give you a list of references with whom they have worked and provide background information to help you make a wise choice.

Negotiation skills and confidentiality

Top agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It’s part of their job description. Ethical agents must hold clients’ information confidential from competing interests.

Volumes of paperwork

Closing procedures involve a series of important disclosures such as land search and area proof, and purchase agreements run a number of pages with a lot of legal terms. Only tiny mistake or omission could land you in court or result in abortion of the transaction.

Answer questions after closing

Even the smoothest transactions that closed without complications can come into challenges, like dispute between the buyers and sellers. Or many questions that were overlooked may pop up when you wake up some day. Good agents always stand by ready to assist.

10.

Develop relationships for future business

Many agents have strong incentives to develop good relationships with their clients for referrals and future business. Thus, an agent who stays in the business will be there for you when you need to hire an agent again.

Dual Agency Practice in Hong Kong

In Hong Kong, most agents represent both homebuyers and home sellers, and we call them dual agents. Only in few transactions agents represent just one side, either buyers or sellers. To make sure, you should ask your agent to state the working relationship.
When representing both sides, an ethical agent becomes more of a transaction facilitator, an information provider and communication conduit. The agent will convey offers and counter-offers back and forth, but won't provide opinions to one party or the other on how "negotiable" the other party might be. In addition, they will answer questions, explain things as the transaction progresses.

Finding a good agent

Buying your home is probably the biggest purchase you've ever made in your life. Look for an excellent agent who can show you your most favorite home within your price range, represent your interests competently, and educate you about the transaction process. You want an agent who takes the responsibility very seriously. If someone seems too much like simply a salesman, then maybe you should look a little further. Especially when you work with a dual agent who represents both homebuyers and home sellers, does it make more sense to find a good agent in whom you trust?

1.	By Referral
	Referrals are often a reliable way to go. Ask your friend, colleague, or family member who recently bought a house in your target neighborhood and had a good experience. It may not be a good idea to use their agent if that agent works in another neighborhood, because you want an agent who knows the area in detail. You can also ask your lawyer, accountant, and insurance agent about the property agents they know.

2.	By Shopping on the Internet
	We have the Internet nowadays and have more information at our fingertips readily. There are lots of directories e.g. property.hk, http://hk.realestate.yahoo.com/ and www.cnp.hk that list agents. Peruse their own website. If the website has a lot of information probably the agents are more genuinely concerned about informing homebuyers. That’s probably a better choice than someone whose website only talks about how good they’re. Also if agents market themselves aggressively by placing many ads for the properties, more likely they can attract more home sellers to list with them so there would be more listings for the homebuyers to select.

3.	By Interview
	Walk in or phone in one of those agencies (you may have perused its website). Usually, you meet an agent at random. You need someone who is concerned about you and will take care of your interests, and demonstrate ready knowledge of homes available for sale. The ready knowledge indicates an agent has actually been out previewing homes and isn’t a lazy inactive one who just sit around waiting for the phone to ring or the buyers to come in. Proceed to ask the agent questions if that agent sounds good. e.g. How long have you been an agent? When did you become a licensed agent? Will you work with me personally or will I have to work with an associate? How many homes have you sold in my target neighborhoods? How many clients are you currently representing?

How do you know it is a good agent?

There is always no guarantee but good agents have concern patterns in common.
The best agents are:

1.	Specialized - They restrict themselves by neighborhood and type of property.
2.	Patient -They explain the home buying process step-by-step.
3.	Understanding - They can find a house that meets your needs.
4.	Professional - They can tell you what the house is worth.
5.	Presentable - They communicate with you clearly.
6.	Responsible - They coordinate throughout the closing procedures.
7.	Convincing - They help you negotiate an acceptable price.
8.	Full-time -They possess great professional contacts with mortgage lenders, property inspectors, property lawyers, home insurance agents and home movers.

Shopping homes with Agents

Any decent agents will always ask for viewing appointments to meet with you. It’s natural since they earn their living by commissions. You may shop homes with several good agents from different agency firms; however, it’s important to make sure you follow only one agent to the same property. Double viewing a home with two different agents will lead to payment of commissions to both agents when you purchase that home within a liable period of time. It’s advisable to jot down the home address, viewing date plus the name of the agent every time. Also read carefully when you sign any agreement before you view a home with your agent.

Eventually, you and one agent will zero in on what you need and like in the proper price range, and you will make an offer.