Selecting a Real Estate Agent

I’m going to touch base on one of the most important aspects in the process of real estate transaction; which is selecting a Real Estate Agent, whether you are buying or selling.

The market is full of Realtors from different backgrounds, with different skills, representing many brokers and brokerage firms, providing different levels of services, with different experience.

So the million dollar question will be: Which one to choose? The answer to this question will be whether you are buying or selling.

A- If you are selling your home, here are some of the characteristics sellers say they want in agent:

1. Experience. With the local market is a key to succeed in selling your house.
2. Education. Ask about degrees and certifications.
3. Honesty. Trust your intuition. Your agent should speak from the heart.
4. Networking. This is a people business. Some homes sell because agents have contacted other agents.
5. Negotiation skills. You want an aggressive negotiator, not somebody out to make a quick sale at your expense.
6. Good communicator. Sellers say communication and availability are key.

Two of the biggest mistakes home sellers make when choosing a listing agent are selecting an agent based on:

1. Highest List Price for Your Home
2. Lowest Commission

you may think that those are the 2 main keys to choose a realtor but those two criterion have very little to do with hiring a competent agent and, in many instances, are completely irrelevant. Let’s look at why.

The Highest Suggested List Price

Agents can’t tell you how much your home will sell for. That’s a not TRUE. A listing agent can show you comparable sales, pending sales and active sales. But YOU choose the sales price and a buyer will tell you if the price is right.

To get the listing, some agents distort the truth.

• Since agents can’t guarantee your sales price, the listing agent who suggests the highest price is probably untruthful. Ask the agent to show you numbers supporting that suggested list price. They probably won’t have them or the home sales will be located in a different neighborhood.
• Look for a listing agent who gives you a range.You always look for a price range. Many factors determine the range, among which are location, the market condition and improvements.
• Pricing is an art.The best time for an offer is within the first 30 days on market. If the home is priced right, you’ll get an offer. If it’s priced too high, you might not get any showings at all; buyers will shun your home and you’ll eventually end up reducing the price, leaving buyers wondering what’s wrong with your house.

Should You Choose an Agent Based on Commission?

Real estate agents are not equal; each is unique. Remember about 10% of the agents do 90% of the business. Each has their own marketing techniques and advertising budget. By choosing an agent with a large advertising budget and company dollars to match it, you will gain greater exposure to the largest number of buyers, which is ideal. Reaching greater numbers of buyers equals better chances of a good offer.

B- If you are buying a home, make sure to ask these questions:

1. Are you a member of the National Association of Realtors?
This organization requires certain standards from its members, and you don’t want to worry about having a shady agent.

2. Are you a member of MLS?
This is the Multiple Listing Service, which gives agents access to houses represented by all agencies — not just their own. For sellers, this means your home will be posted on the list as well, which means more people will see it.

3. Do you work on weekends?
Since this is when most open houses take place, the answer to this should be yes.

4. Can you outline how you would represent us?
The answer should include your housing inspections, following through with your mortgage approval process, and being present at your closing.

5. Will you show me houses listed by other companies?
Double-check that the agent isn’t partial to his or her own realty group.

6. Are you familiar with our area?
You’ll want the agent to know the ins and outs of your community.

8. What’s your business style?
Do you want a broker who calls you once a week or emails daily? Find out how the agent will keep you updated on prospects and inform them about your preferences.