Choosing A Real-Estate Agent Or Broker

Everywhere you look, there are advertisements for real estate and for real-estate agents. Yes, it’s true—we are everywhere! But all these advertisements will not tell you the credentials and capabilities of the real-estate agents posting them, nor their work experience. This being the case, how are you going to separate the good, experienced agents from the not-so-good, inexperienced ones, unless you take the time to ask the right questions?

Most people choose a professional, in any industry, by asking for a referral from a trusted friend or colleague. This does not, however, mean that any person referred to you is a quality professional—everyone has a brother, sister, aunt, uncle, cousin, or Indian chief (all wonderful people) who is in the business, but other than their family connection to your friend, what do they have to offer you in terms of their real-estate experience? Here are some questions you should ask to narrow your search for the real-estate agent best suited to assist you:

How long have they been in the business? Pretty much any average person could decide they want to get their license today and have that license in their mailbox a couple of months later. As such, your real-estate agent’s experience is very important. A new agent will learn a lot their first year and will continue to learn more with every transaction. Don’t automatically decide against a new agent, but if you do choose a new agent, make sure they have a great support system behind them as they learn the ropes.

Is the agent you are considering a Realtor? Not all real-estate agents are Realtors. Members of the National Association of Realtors have to adhere to a strict code of ethics, or they face having their membership revoked. Also, you must be a member of the National Association of Realtors to have access to the MLS (Multiple Listing Service), which is what gives Realtors access to almost every home for sale in their market area.

Can you get a list of some of their past customers? Take the time to call a few of a real-estate agent’s past customers. Ask for their strengths and weaknesses (and make sure they don’t share the agent’s last name).

Who is the agent’s broker? Can the customer call him? Real-estate agencies are moving towards the “mega-brokerage” mentality, which means that many real-estate agents today rarely see their real-estate broker. If an agent doesn’t have their broker’s cell-phone number (or says he or she is not free to give it out), be aware up front that you will only be able to contact the broker directly at the office when the broker is in.

Is real estate the agent’s full-time job? This is the number one important question! It always surprises me how many people are willing to let their officemate down the hall handle the purchase or sale of their home. You need someone who handles real estate transactions full-time, day in and day out, to make sure your best interests are taken care of and that they are on top of the marketplace, getting you the best price and terms for your home.

How “on top” of the real-estate market is the agent? Ask them to show you comparisons of what homes in the area have sold for and when they sold, as well as what is presently on the market, what they are selling for, and the average time it has taken for those homes to be sold. Part of the presentation you should be shown should also include homes presently on the market that you will be competing with as well as possible homes that were on the market that were recently withdrawn because of price or other market reasons.

Experts say that about 70 percent of house searches begin on the Internet. For that reason, agents need to be completely comfortable using the Internet (not just that they do e-mail and check it once a day). You want someone who knows the technology and is completely comfortable with it, an agent who can take photos that make the house look good online.

Make sure the office your real-estate agent is with has its own website that can be surfed by prospective buyers at any time. Ask where the listing will go online. The answer you want to hear is “everywhere I can put it.” Don’t let the listing appear on just the broker’s website and the Multiple Listing Service site. Make sure your real-estate agent’s firm subscribes to reciprocity (which means that other brokers are able to post your listing on their sites, giving you full exposure). Don’t take no for an answer.

Here are some additional important considerations when choosing an agent:

Determine the right asking price. Don’t base your choice of an agent on who tells you the house is worth the most. The worst thing you can do is to price your home too high. Potential buyers will ignore the house or they won’t even notice it at all if they’re searching on the Web by price range and your house is artificially above their upper limits.

Communication. You want an agent who is easy to communicate with. A good real-estate agent should be able to provide you with a cell-phone number in addition to an office number. Since a major percentage of real-estate market transactions happen before or after office hours as well as on Sundays, it is important that you have a way of reaching them. An agent that is not easy to reach is also not easy to find by a prospective buyer or another real-estate agent wishing further information on your home.

In addition, you should discuss, up front, how often your real-estate agent will be in touch with you with feedback, and how you wish to be contacted—e-mail, cell phone, paper airplane, whatever! It is vital for you to be in regular touch with your agent, first so you know that the agent is alive and working, and second so you can be updated regularly on the feedback and reactions from potential buyers.