Tips for Picking a Realtor
Tips on Picking a Real Estate Agent.
This article was published August 27, 2006 in the Post and Courier.
Potential home sellers are anxiously watching housing statistics go from bad to much, much worse. But there's one spot where it's still a seller's market: negotiating with your real estate agent.
If you're ready to list your home with an agent, you'll have plenty of candidates. There are a record 2.6 million licensed real estate agents in the U.S.- "way too many," says Stefan Swanepoel, chief executive officer of Realty U, a real estate education and training company in Aliso Viejo, California.
And now there's less work to go around. Sales of existing homes in July were down 4.1% from June and 11.2% below a year ago, the National Association of Realtors said last week.
The number of agents is likely to shrink as some people allow their licenses to expire, says Tom Stevens, president of the Realtors group, who's membership since 2002 has risen 50% to around 1.3 million. Realtors are real estate agents who join NAR and agree to abide by it's code of ethics.
Whether you are a seller or a buyer, experts say it is wise to ponder several questions before settling on the best agent for you.
1. What Level of Service do I Want?
"Some consumers are going to want a full service broker, but some are going to be able to do some of the services themselves," says Patrick Woodall, senior researcher with the Consumer Federation of America, a Washington, D.C. based advocacy group. Flat fee and "a la carte" real estate services are available for sellers comfortable with doing their own marketing or showing their own houses.
If you're a buyer, you might prefer an exclusive buyer's agent to one who also lists homes. By hiring a representative who works on only one side of the transaction, you'll get a specialized agent who probably won't have a conflict of interest, says Tom Early, president of the National Association for Exclusive Buyer Agents. But exclusive buyer's agents are in the minority. People looking for an agent may well end up working with one who assists both buyers and sellers.
2. How Experienced is the Agent?
In some places, a course and test can be completed in a long weekend, Mr. Woodall says. Yet the commissions you pay tend to be similar regardless of experience. To find good agents, "You can't pick up Consumer Reports and find their names," says Pat Rioux of ListForLess.com, which allows sellers not working with an agent to list homes on the local Multiple Listing Service and Realtor.com for a flat fee of $555 for nine months.
All of which isn't to say there aren't any quality agents out there. Just take precautions to ensure you hire a good one.
3. If I'm a Seller, What's the Agents Record and Game Plan?
Do interviews. "Talk to at least three real estate agents and get a listing presentation from each," says Elizabeth Razzi, a real estate and consumer affairs writer in Falls Church, Va. Experience will help a seller in a slowing market, she says. But it's also crucial that the agent is knowledgeable about the neighborhood and type of home.
Don't let the agent be vauge. Ask: What will you do to market the home I'm selling, on the Web and elsewhere? How many homes in the neighborhood have you sold or helped buyers pruchase in the past year? Are open houses and newspaper ads planned?
Give bonus points to the agent who talks frankly about the deficiencies in your home and requires fixes before accepting the listing. Ask the agent how often he or she will contact you with updates. It should be at least weekly.
4. If I'm buying, What Properties Will the Agent be Showing Me?
Sometimes properties posted by discount brokers aren't listed as prominently on the Multiple Listing Service as those that full service agents list, Mr. Woodall says. And many agents don't keep track of for sale by owner properties not listed in the MLS, says Ms. Rioux. Agents may shy away from properties that will yield them lower commissions. Don't let them. Tell them you expect to see everything on the market.
5. Is the Commission Negotiable?
The commission paid by a home seller often is 6%, split between the buyer's agent and the seller's. But the commission isn't set in stone. Sellers have a particular edge to negotiate commissions on high end houses or attractive homes that are sure to sell quickly.
Mr. Swanepoel suggests caution if an agent whacks a commission for no reason: "If an agent is so willing to cut commission....how willing is he going to be to cut your [asking] price?"
6. Is the Chemistry Good?
Ask yourself if you like and respect the agent. "Personal chemistry is actually quite important," Ms. Razzi says. "It's a personal transaction, and a lot of stress is involved." Try to ensure that "by the end of the deal, you're not going to be losing hair at the very sound of the agent's voice." If the agent has a bad reputation among peers, other agents may want to avoid dealing with him or her, which will "cost you in ways you'll never see."
7. Whom do Agents Represent?
A disclosure form will confirm the agent's loyalty to a buyer or seller, Ms. Rioux says, and it discusses at the outset what happens if dual agency enters the picture (if the agent represents both buyer and seller in a transaction). The NAR's code of ethics requires disclosure. So do many states.
8. What do References Say?
An agent highly recommended by someone you trust is golden. But if you don't have a recommendation, interview a few agents and call their former clients to get a sense of performance. The most telling question you can ask references is, "Would you hire this person again?" Ms. Razzi says. "If there is any hesitation, call another reference or two."
This article was published August 27, 2006 in the Post and Courier.
Potential home sellers are anxiously watching housing statistics go from bad to much, much worse. But there's one spot where it's still a seller's market: negotiating with your real estate agent.
If you're ready to list your home with an agent, you'll have plenty of candidates. There are a record 2.6 million licensed real estate agents in the U.S.- "way too many," says Stefan Swanepoel, chief executive officer of Realty U, a real estate education and training company in Aliso Viejo, California.
And now there's less work to go around. Sales of existing homes in July were down 4.1% from June and 11.2% below a year ago, the National Association of Realtors said last week.
The number of agents is likely to shrink as some people allow their licenses to expire, says Tom Stevens, president of the Realtors group, who's membership since 2002 has risen 50% to around 1.3 million. Realtors are real estate agents who join NAR and agree to abide by it's code of ethics.
Whether you are a seller or a buyer, experts say it is wise to ponder several questions before settling on the best agent for you.
1. What Level of Service do I Want?
"Some consumers are going to want a full service broker, but some are going to be able to do some of the services themselves," says Patrick Woodall, senior researcher with the Consumer Federation of America, a Washington, D.C. based advocacy group. Flat fee and "a la carte" real estate services are available for sellers comfortable with doing their own marketing or showing their own houses.
If you're a buyer, you might prefer an exclusive buyer's agent to one who also lists homes. By hiring a representative who works on only one side of the transaction, you'll get a specialized agent who probably won't have a conflict of interest, says Tom Early, president of the National Association for Exclusive Buyer Agents. But exclusive buyer's agents are in the minority. People looking for an agent may well end up working with one who assists both buyers and sellers.
2. How Experienced is the Agent?
In some places, a course and test can be completed in a long weekend, Mr. Woodall says. Yet the commissions you pay tend to be similar regardless of experience. To find good agents, "You can't pick up Consumer Reports and find their names," says Pat Rioux of ListForLess.com, which allows sellers not working with an agent to list homes on the local Multiple Listing Service and Realtor.com for a flat fee of $555 for nine months.
All of which isn't to say there aren't any quality agents out there. Just take precautions to ensure you hire a good one.
3. If I'm a Seller, What's the Agents Record and Game Plan?
Do interviews. "Talk to at least three real estate agents and get a listing presentation from each," says Elizabeth Razzi, a real estate and consumer affairs writer in Falls Church, Va. Experience will help a seller in a slowing market, she says. But it's also crucial that the agent is knowledgeable about the neighborhood and type of home.
Don't let the agent be vauge. Ask: What will you do to market the home I'm selling, on the Web and elsewhere? How many homes in the neighborhood have you sold or helped buyers pruchase in the past year? Are open houses and newspaper ads planned?
Give bonus points to the agent who talks frankly about the deficiencies in your home and requires fixes before accepting the listing. Ask the agent how often he or she will contact you with updates. It should be at least weekly.
4. If I'm buying, What Properties Will the Agent be Showing Me?
Sometimes properties posted by discount brokers aren't listed as prominently on the Multiple Listing Service as those that full service agents list, Mr. Woodall says. And many agents don't keep track of for sale by owner properties not listed in the MLS, says Ms. Rioux. Agents may shy away from properties that will yield them lower commissions. Don't let them. Tell them you expect to see everything on the market.
5. Is the Commission Negotiable?
The commission paid by a home seller often is 6%, split between the buyer's agent and the seller's. But the commission isn't set in stone. Sellers have a particular edge to negotiate commissions on high end houses or attractive homes that are sure to sell quickly.
Mr. Swanepoel suggests caution if an agent whacks a commission for no reason: "If an agent is so willing to cut commission....how willing is he going to be to cut your [asking] price?"
6. Is the Chemistry Good?
Ask yourself if you like and respect the agent. "Personal chemistry is actually quite important," Ms. Razzi says. "It's a personal transaction, and a lot of stress is involved." Try to ensure that "by the end of the deal, you're not going to be losing hair at the very sound of the agent's voice." If the agent has a bad reputation among peers, other agents may want to avoid dealing with him or her, which will "cost you in ways you'll never see."
7. Whom do Agents Represent?
A disclosure form will confirm the agent's loyalty to a buyer or seller, Ms. Rioux says, and it discusses at the outset what happens if dual agency enters the picture (if the agent represents both buyer and seller in a transaction). The NAR's code of ethics requires disclosure. So do many states.
8. What do References Say?
An agent highly recommended by someone you trust is golden. But if you don't have a recommendation, interview a few agents and call their former clients to get a sense of performance. The most telling question you can ask references is, "Would you hire this person again?" Ms. Razzi says. "If there is any hesitation, call another reference or two."
