A question I hear a lot these days is whether Cabarrus County is in a buyer's or a seller's market.  My answer to that question is that it is not so much a buyer's or a seller's market as it is an agent's market.  It is more important now than ever before to make sure you select a quality agent when selling or buying a home.  As of November 8^th, there were 9,697 agents who belonged to the Carolina Multiple Listings Service, the online database of homes that agents use to find properties and perform market analyses for their clients.  While this may seem to be a good thing in that there are so many agents from which to choose, it tends to make it more difficult for consumers to find the top quality agents who understand the market and can navigate them through the entire real estate transaction with as few hassles as possible.

The Pareto principle (also known as the 80-20 rule) states that for many phenomena 80% of consequences stem from 20% of the causes.  It was named after the Italian economist Vilfredo Pareto, who observed that 80% of property in Italy was owned by 20% of the Italian population.  In the real estate industry it means that 20% of real estate agents do 80% of the business.  More accurately, the numbers are closer to a "90/10" rule than an "80/20" rule.  Therefore the consumer must be very careful when selecting the right agent to help them buy or sell their next home.  In choosing your agent, look for advanced designations (those little letters after the agent's name).  First and foremost, make sure you choose a Realtor® and not just a real estate agent.  Realtors® are agents who pay to belong to a trade association that holds them to a high standard of ethics and stresses the importance of maintaining integrity in all their professional duties. 

Other important designations to look for include the Certified Residential Specialist (CRS) which is held by less than 4 percent of all licensed Realtors®.  To earn this designation, an agent must give proof that they have been a top performing agent in the recent past while also completing nearly one hundred hours (through four to six courses) on various topics from how to take better care of seller and buyer clients to effectively managing time and money. 

The Accredited Buyer Representative (ABR) designation is held by agents who have studied the history of buyer agency and how it has evolved for today's buyer.  It instructs agents in providing fantastic service and care for their buyer clients, making every effort to help consumers get the most home for their money with the least amount of hassle.

Graduates of the Realtor® Institute (GRI) have attended several multi-day courses, often in other cities, to learn methods of selling homes for top dollar, helping buyers in the purchase process and managing their own businesses more effectively.  While the GRI requires lots of course work, it does not have production requirements as does the CRS designation.

For the higher end properties, look for a Certified Luxury Home Specialist (CLHS) designation.  These letters show that the agent has studied the upper end home sector and understands how best to market them.  It also instructs the designee on how best to guide the $500,000 and above purchaser through the challenges associated with these homes.  Designees have completed several hours of study and met certain minimum production requirements proving their expertise in the higher priced home market.

There are other designations as well, which we will be examining in future articles, so be sure to look out for them.