I have always said that all realtors have the same tools for marketing homes as well as finding homes for buyers. If that is true then how does a potential buyer or seller choose a realtor?  There are several things that differentiate Realtors form each other.  The differences can affect how you buy or sell a house and how much you pay or profit.

For buyers, there are several factors to consider.  First, you want someone who knows about the local market.  Sometimes that means that they have been around an area for a long time, but that is not the only thing to consider.  Length of time in a market does not always translate into knowledge. They might be able to tell you that they can remember when a certain road was dirt, and a neighborhood was a farm, but that is not helpful today, for your purchase. Sometimes, someone who has been an agent for a while, but only in your market for a year or two might be just as good a source of knowledge.  Why?  Because most realtors, when relocating, will do 10 times the research that a local realtor might do for a buyer for themselves, and in the process, they will be cognoscente of learning the intricacies of the market. More importantly, you should ask how long your potential realtor has been an agent or broker.  This should be followed up by asking how many transactions have they been part of (either on the buy or sell side). This will give you a look into their experience.

Another important question to ask, both for buyers and listing agents is how much of your business is referral or repeat business.  Ask to speak to not one or two past clients but ask to speak to one client who has referred someone and also, the person that they have referred.  A good agent builds business this way.

Do NOT pick a name form the internet or from the phone book unless you know someone who has worked with that agent before.  Try not to call signs directly as you may end up using the seller’s realtor who really will not be representing you or looking out for your best interest as a buyer.

Look for someone who is involved in the community. Are they a member of local organizations?  If you have children, do they have or have they had children your Childs age?  This can help when looking at particular neighborhoods.

Make sure that your personality clicks.  In the Triangle area, a buyer’s agent will, sometime after your first meeting, most likely ask you to sign a buyer’s agreement, which binds you to them, and in some cases, assesses monetary penalties if you use another agent.  This is fairly common practice for Wake County North Carolina. Let this prospective agent take you out a few times, sort of like kicking the tires.  Make sure you have the same mindset and outlook and that your personalities click. Don’t be afraid to interview several, even if they have come from a recommendation of a friend or family member.

Choosing a buyer’s agent will be one of the most important parts of the home buying process. It will set the tone for the whole adventure, and can lead to either a good experience or a bad one, depending on your agent.  Furthermore, a good agent will work hard for you, help you to get the best possible price, and make sure everything goes smoothly and there are no bumps in the road.

For Sellers, many of the same things regarding the choosing of a buyer’s agent apply to you as well.  As stated earlier, never choose a Realtor from an ad or the phonebook without the recommendation of someone that you trust. Ask for references. Most importantly, interview at least three and have them give you a full listing presentation with a comparable market analysis.  Make sure they are not trying to get you to list too low so they can get a quick sale.  If they are knowledgeable about the area and home prices, there should not be much variance in the range of listing prices.

Most home buyers start of their home search on the internet. In my opinion, print is dead. Find out what types of technology the realtor uses to market you home.  Most homes will sell through the MLS system, but the more marketing, the better. Visit the agent’s website to see if it would appeal to you as a buyer. Ask where else you home will appear besides the MLS.  It is very important, in my opinion, that your Realtor has an enhanced listing on Realtor.com.  These are the listings that are highlighted and have more than one picture. Many times, when I have an out of town buyer, they send me homes they want to see from Realtor.com.  They almost always exclude those with only one picture as they do not want to waste limited time while they are in town looking at house when they can’t tell from pictures if it will appeal to them.

Communication is key.  Does the agent plan to call you weekly to discuss market conditions?  Is the agent keeping up with home sales in your neighborhood and comparable areas?  I have been the second realtor on a number of deals where my seller has told me that their agent signed the paperwork and did nothing more.  I contact my sellers a minimum of two times a week, even if I have nothing to say to them.  I may talk to them about the state of the market, calm their fears after reading one of the many negative real estate articles in the paper, etc. 

Even more important is that your listing agent should keep up daily on how homes are selling and being priced that are similar to yours in your area. If your realtor does not know what is going on around you, you run the risk no knowing when prices get lowered and what homes similar to yours are selling for.  This then, could leave you priced well above your neighborhood, in which case, you will not get any showings.  With today’s technology, it is very easy to set up an automatic email that tells your agent when comparable homes sell, come on the market, or lower their price.

Ask your agent what they will do if your home has not sold in a few months? They should be willing to have a marketing strategy, and be willing to make changes as you move forward.

Again, as above, experience in real estate is key. There are tons of realtors who only became realtors as the boom began. These people have never had to work in a normal or buyers market.  This is important as they may not have the knowledge on how to market and sell your home in today’s unprecedented market.

Remember that commission is always negotiable. Run if they tell you it is not – they are breaking the law. Ask for a discount on the commission. Many agents, when dealing with a sane seller who prices their home correctly will be willing to move within reason. Do not shop solely by lowest commission and highest price that an agent is willing to list your home for.  Pricing it too high will result in little to no showings in this market. Most agents cannot tell you what the listing price of your home is. They can give you a range, but should be able to back it up with a mixture of homes sold within the last six months, pending sales, and listed homes.

Remember whether you are listing a home or buying one, there will be many decisions to be made. The first and possibly, the most important will be who you choose to help you. It will set the tone for the rest of the process and can make or break the experience, and in the end, can make or save you a lot of money, if you choose correctly.

Jason Goodman
Realtor, Triangle Area North Carolina.