How Do I Select A Real Estate Agent? - My Realtor® Doesn't Seem to Know Much More than I Do!

How Do I Select A Real Estate Agent?®

"My Realtor® doesn't seem to know much more than I do!"

I'm hearing this one quite a bit lately from people who are not having a good experience with their agent. While I cannot explain the sudden increase, I think it stems from not knowing how to go about selecting an agent.

Most buyers and sellers have no idea how to go about selecting an agent. Strange, if you really think about it, considering they're hiring someone to perform one of the single most important jobs possibly in their life to that point. It's also a job that comes with quite a bit of liability and responsibility, and selecting the right agent shouldn't be something taken lightly.

MISTAKE #1 - "I picked the agent who had the nicest flyer"
Some agents market better than others. And while this is important for an agent's future business, it's absurd to select your agent because he or she hired the best marketing person or went to the best printer in town! Sure, give them a call, but make sure you interview them first.

MISTAKE #2 - "I picked the agent with the best website"
Again, this is about marketing, not about real estate knowledge or experience. Most agents don't even touch their website! They hire a company to maintain it for them. If you like the site, that's fine. Give the agent a call, but make sure you interview them. Don't select them on this alone!

MISTAKE #3 - "My Friend/Family Member has a Real Estate License"
This one is a bit less black and white. Getting a sales license isn't that tough (A Broker's license is much tougher to get and maintain...more later). The important part here is "full time" or "part time", and how much experience. If your friend or family member only does this on the side (or "part time"), then this could be a very bad idea. The market, laws, rules and regulations change so often lately, that if this is not an agent's full time job, I would recommend strongly against it. Also, did they just get their license or have they had it for years? I know this isn't the thing that newly licensed agents want to hear, but would you want a doctor fresh out of med school to perform brain surgery on you? Would you want a lawyer just out of law school to defend you in a criminal trial? Then why would you want an agent fresh out of... agent school... to sell your home? (I know this part is going to get blasted, but hey, it's something to consider).

MISTAKE #4 - "I Went with the Biggest Name in My Area"
Why??? In my opinion, this is one of the most common way that sellers select the wrong agent. When you pick the BIGGEST or BUSIEST agent, do you know what you get? They're assistants! Not at all saying that the assistants aren't completely competent, in fact, they're often much better agents in my opinion. But that's not why the seller selected the "Big Name". They assume they'll be able to deal directly with them, only to find out later that they saw them twice... when they took the listing and at close of escrow. Plus, these big agents often have so many listings that it's IMPOSSIBLE to give personal and attentive service. It's not even their fault! It just can't be done.

So What Do I Do?

While there are several things to consider, here is a short list of some "MUST DO's" to help find the right agent for you.

1) Ask the agent if they own their own home ~ You'd be surprised how many agents rent. If your dentist had no teeth, would you let him or her work in your mouth? If your doctor had giant sores all over his or her body, would you want them to give you a physical? So if your agent has never paid a mortgage, or property tax, or maintained a home, why would you let them advise you on what to do?

2) Ask the agent if they've ever bought and/or sold investment property ~ While this is not as crucial as #1, I think you'll see quite a big difference between agents who only own one property versus agents who have bought and sold many. Again, experience! The best way to learn is by doing. And while you can learn a lot just by being an agent for many years, you learn much more when it's your own property on the line.

3) Ask the agent who you will be dealing with most of the time ~ SELLERS: If the answer here is an assistant or associate (or even a Transaction Coordinator or "TC") my advice is to move on to the next agent. You really want an agent who will pick up the phone when you call, come over if need be, and be your primary point of contact from start to finish. If an agent is too busy for that, how important do you think your particular sale is to them?
BUYERS: This is a little different. Often times, big listing agents have specific buyers' agents. This is normal and not problematic in my opinion. They're doing this because they are giving their sellers all their attention (which they should be), and their "buyers' agents" are often very good. 9 times out of 10, I'd say they have a better understanding of a larger geographical area, and while their skill set may be different from a listing agent, they are often a bit more in tune with changes in the market.

4) SHORT SALES - Ask them how many they've successfully completed ~ Short sales are here to stay for a while, and they are in a constant state of change. They are difficult, time-consuming, arduous, and complicated. DO NOT leave these up to chance. Go with an agent who has successfully completed several, if you can find one, and who maybe even has some that they are currently working on. Experience in short sales is a MUST in my opinion.

5) Ask them if they have a Broker's license ~As I mentioned before, this is not critical. Most of the time, you're going to get a "No" on this one, and that's not the end of the world. I would say this, if you get a "Yes", this is definitely something to consider.

It's impossible to list all the DO's and DON'T's, but if you follow this guide, chances are you should end up at least with a knowledgeable, experienced, full time agent who will work hard for you. There are other things that matter, so trust your instincts. Interview several agents, as many as you want. Agents are all different, and you'll learn a lot just by talking to them!

IT IS ILLEGAL TO COPY, DISTRIBUTE, DISSEMINATE, OR USE THIS CONTENT WITHOUT EXPRESSED WRITTEN CONSENT FROM THE AUTHOR. ALL MATERIAL COPYRIGHT 2011