When does a buyer start working with a Realtor?

Q: We're interested in looking for a new and larger home in the same part of town where we live now. We need a bigger place and will probably buy something in the near future, but aren't in a real hurry right now.

With prices going down lately, we don't think it makes sense to rush into anything. I'm wondering if it makes sense to start working with someone now, even though we're not sure when we're going to buy, just to start shopping and see what's out there.

Will Realtors do this, or will they think we're wasting their time if we don't buy right away? Will we have to sign something, if they show us a few houses? And will we be obligated to them for a period of time if we do that?

-- Jayne C., Las Vegas

A: The short answer to your question is that it depends on market conditions.

I think most Realtors would be happy to work with you. At the very least, you may want to start contacting a select few Realtors who have worked successfully in your area, or with others you know and trust.

A good first step might be to ask a Realtor you think might be right for you to begin sending you emails or other communications showing you listing information for homes in your price range and in the neighborhoods you prefer that might meet your criteria.

At this point, you are not obligated to sign anything.

From the Realtors' perspective, I think it's only good business to offer such services to a potential buyer, even if he or she don't intend to buy immediately.

Now, once you're ready to get serious about buying a new home, you may want to select the Realtor who's right for you and sign a buyer's broker agreement enabling him or her to act as your agent.

Among other things, this agreement will specify the commission due to your agent at the time of sale.

Keep in mind that the seller usually pays this commission through the listing broker, but you could be liable for any difference owed to your agent.

You should also contact the lender of your choice to get prequalified for the loan amount you think you'll need to purchase the type of home you're seeking.

To sort out those who are serious from those who may not be, I know some Realtors here and around the country who have begun working with prospective buyers on a retainer basis. I don't do this in my own business, but I can certainly understand why some agents favor this business model.

If this method meets your needs, be sure to understand the terms and conditions of the retainer, such as whether it is credited against compensation due.

In today's housing market, where most Realtors find themselves working twice as hard for half as much money, many of us have to carefully consider how we use our time. Of course, most agents would prefer to deal with people who are ready and serious about buying a home.

But, like most good business people, I suspect most of us will welcome the opportunity to begin a relationship with a potential client.

For more information on such issues, consult a qualified local Realtor or visit lasvegasrealtor.com.

Paul Bell is the president of the Greater Las Vegas Association of Realtors and has worked in the real estate industry for 30 years. GLVAR has nearly 11,500 members. To ask him a question, email him at ask@glvar.org. For more information, visit lasvegasrealtor.com.