There's a common saying in the real estate industry regarding the vast number of agents in the business: "If you don't have any friends who are agents, then you probably don't have any friends at all."
With so many agents out there, how can you make an intelligent decision? Do you choose a friend, neighbor or coworker? Should you work with an agent at a large firm, a small firm, a franchise or an independent?
"With the expansion of the number of Realtors, the level of competence has fallen to its lowest point ever," says former NAR Chief Economist and best-selling author Dr. John Tuccillo. The 2000-2005 real estate boom not only caused a huge surge in new agents but during the heyday many of those that left or will soon be leaving the industry contributed to weakening the reputation of the profession in general-especially in the eyes of the new online consumer.
"Consumers have no guarantee that anyone calling themselves a Realtor actually knows what they are doing," says industry consultant Jim Sherry.While there's an exception to every rule, and every marketplace has its own nuances, here are some solid rules to apply when you want the best representation to protect your interests.
Demand Experience
The real estate profession is plagued by high turnover. This creates a workforce that is made up of many newcomers. While there are brand new agents with good intentions, why trust one of the largest investments you'll ever buy or sell to someone without experience?
Always look for an agent with at least two years of experience. Anyone still in the business after two years has probably learned at least the fundamentals of real estate.
Look for Commitment
Another problem we have in the industry is a large number of part time and recreational salespeople. These folks have either retired from some other career, work in real estate seasonally or are earning a second income for the family and honestly don't need to work full time.
No matter how long they have been in real estate, their lack of full-time commitment makes it impossible for them to keep up with the vast changes in law, marketing and business practices that are occurring in the profession today.
If an agent isn't working at least thirty hours a week, fifty weeks a year, look for someone else.
Consider Education and Designations
A much higher entry standards to qualify for a real estate license should be required. This, coupled with intensive post-licensing education, would have far-reaching effects on improving the level of professionalism in the industry.
In the majority of states, the requirements for real estate licensing are substantially less than those for cutting hair. You cannot rely on licensing to indicate competence. And, unfortunately, many agent's real estate education ends with their pre-license education.
The NATIONAL ASSOCIATION OF REALTORS® has nine affiliated Institutes, Societies, and Councils that provide a wide-ranging menu of programs and services that assist members in increasing skills, productivity and knowledge. Designations acknowledging experience and expertise in various real estate sectors are awarded by each Affiliated group upon completion of required courses. Below are three designations that any credible REALTOR® with two years of experience should hold or be working diligently to complete:
ABR, Accredited Buyer Representative
With over 40,000 members, REBAC is the largest association of real estate professionals focusing on all aspects of buyer representation. Over 30,000 ABR® designees have completed the REBAC course, passed the test and provided documentation of buyer agency experience.
e-PRO®
e-PRO® is a revolutionary training program presented entirely online to certify real estate agents and brokers as Internet Professionals. The NATIONAL ASSOCIATION OF REALTORS® is the first major trade group to offer certification for online professionalism.
e-PRO® is not just about technology - it's about how you can leverage your most powerful asset, your people-skills, into doing more business on the Internet.
GRI Graduate REALTOR Institute
Members involved in residential real estate who want a solid base of information for their practice will want to participate in the REALTOR® Institute program and earn the GRI designation. A REALTOR® who completes the fifteen eight-hour modules, and passes examinations, may then use the designation of GRI.
It should not be too difficult finding these designations in your marketplace as most realtors will commonly print the designation behind their name in advertising as well as on letterhead and business cards.
Conduct Interviews
Before you hire an agent to help you buy or sell a home, you should interview at least three agents in person. In order to do this, first get recommendations from friends, family and neighbors. Then look on the web, in homes magazines and the local newspaper to see what kind of marketing the various companies are doing in your area and call a few that impress you.
Then make brief fact-finding calls to determine which of the agents on your list are full time, experienced and hold designations. You will probably need to call ten to fifteen agents in order to find three that are worth interviewing.
The interview itself need not be a formal one. It is simply an opportunity for you to meet the candidate and explain your needs; and to determine whether you would be comfortable working with them. Ask whatever questions you like, or simply explain your goals and listen carefully to what they propose to do for you in meeting your needs.
The Decision
If you follow the suggestions above, you will find that there are excellent agents working for firms both large and small; both franchised and independent. Thus, the real decision must be made based on the competency of the individual agent you will be working with on a day-to-day basis.
Soures: NAR-Stefan Swanepoel
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