Four tips to pick the right real estate agent

With still-low mortgage rates and a growing for-sale inventory, even the most entrenched renters may be feeling the urge to finally become a homeowner. Unfortunately, finding that dream home - and then navigating the purchase process - can leave anyone with a new-homebuyer headache. Picking the right agent can make all the difference in feeling calm and confident throughout the home-hunting journey.

1. Why hire a Realtor?

Realtors - agents who are members of the National Association of Realtors and adhere to its code of ethics and standards of practice - are versed in which homes are a good value in the current market, what locations are most desirable, and how real estate laws and contracts work. "If a buyer doesn't have extensive knowledge of all the aspects of a real estate transaction - such as negotiating price terms and conditions of purchase - they can easily be taken advantage of," says Mark Minnis, a broker/owner and buyer's agent with InSight Real Estate, Grants Pass, Oregon. "But a Realtor is obligated by law to protect your interests."

2. How do you hire a Realtor?

Retaining an agent usually requires no out-of-pocket expense on the part of the buyer, adds Brady Moore, a Dallas-based Realtor with Keller Williams Realty. An agent's commission will depend upon the listing and the contract.

To find a licensed agent, your best bet is to start with referrals from friends or family, says Minnis, especially if they are located where you are looking. If new to a city, use the "Find a Realtor" function at Realtor.org.

3. Which comes first - the agent or the house?

Sometimes new buyers are tempted to call the listing agents for properties they like, but be cautious. Working with an agent who represents the seller may not be in your best interest as a buyer. Consider finding a buyer's agent and have that person help you find properties, Moore says.

4. How do you find the right agent?

To ensure this process goes smoothly, the experts agree it's important to find someone who is a good personality fit. "Buying a house is probably the biggest financial transaction most people will make in their lives," says Moore. "You should do it with someone you can trust [and] enjoy spending time with."

A good way to find that out is by interviewing potential agents in person. Ask about their areas of expertise, the neighborhoods in which the majority of their sales occur, if they own any real estate themselves and how long they've been in the business.

Keep in mind some agents may require you to sign an exclusive-representation agreement, says Moore, the details of which can vary. In addition to reading over the contract yourself, have a friend who understands real estate read it over. Know that a good agent will work hard to meet your needs. They won't get paid until the sale, so when they see you are committed, they know they can dedicate their effort to helping you find your dream home.