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Dec 4, 2010

We add value

Ok, be honest with me, when you think of a real estate agent, what picture really comes to mind?  I’m hoping the image you’ve conjured is one of a professional who provides valuable services and tools to guide you through the maze of the real estate purchase process.    If this description doesn’t quite capture what you envisioned or what your personal experience with a real estate agent has been, then let me shed some light on what makes a good real estate salesperson and the best way to find one.

First, let me make an important distinction, not all real estate agents are Realtors®.   In order to be a Realtor®, a real estate practitioner must first belong to the National Association of Realtors® and pledge to adhere to a strict “Code of Ethics and Standards of Practice” which establishes obligations which are higher than those mandated by law.  The “Code of Ethics and Standards of Practice” issues mandates, like how an agent is to treat clients and other parties to the transaction.  It holds Realtors® accountable to standards such as “Realtors® shall avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or the transaction” and Article 6 “Realtors® shall not accept any commission, rebate or profit on expenditures made for their client, without the client’s knowledge and consent”.   In your search for a good agent, your first question should always be, “Are you a Realtor®?”

So, once you have established that you are working with a Realtor®, how do you determine if your Realtor® is “good”?   The majority of Realtors are independent contractors; by law, a real estate salesperson must affiliate with a Real Estate Broker who is then ultimately responsible for that agent.  Because agents are not employees, this leaves the door open for Realtors® to run their individual Real Estate practices, within the scope of the law of course, in very different ways.

You will see a great difference in Realtors®, even among the same brokerage firms.  Not only is it important to consider the individual agent but also the brokerage firm where the agent is affiliated.  Although you may be working with a specific Realtor® whom you have chosen, technically, any contract that you enter into with a Realtor® is with the Broker first and then by affiliation, your designated salesperson.
Many Real Estate offices are individual franchises; you will see a wide variation in quality of service.  I would encourage you to call the office of the Realtor® you are considering and see how the front desk handles phone calls, stop by the office and see, is it clean?  Is it professional?  Is the front desk staff polite?  How difficult is it to get the Broker or the manager on the phone? 

Some brokerages are “virtual” meaning there is no physical office location where you can meet an agent or come in and talk to a manager in person, how might this fact affect your dealings with the Realtor® and brokerage firm.

Now, you have determined that you are dealing with a Realtor® and you are satisfied with the Realtor’s® brokerage firm, that other criteria should you use to discover if you are working with a good Realtor®?    I recommend having a face-to-face meeting with your Realtor® and not just doing an over the phone interview or an e-mail exchange.  Meeting with the Realtor® one-on-one should give you a strong indication of compatibility. Remember, whichever Realtor® you choose, you will be in a business relationship with this person throughout the course of the entire purchase transaction.  If you were to list your home with a Realtor® to sell and you were to receive an offer on it within 90 days and then in another 30 days, go to settlement that is a relationship that would span 4 months, so it is critical that you feel comfortable with this person.

In an initial interview with a Realtor®, many people ask “how long have you been in the business” but the fact is many agents have been “in the business” for years but may only do 3-4 transactions a year.  Experience is gained not just through “being in the business for years”, but by the number of transactions an agent has carried through to the settlement table.  A better question to ask a prospective Realtor® is “How many transactions have you closed?”  I would also pose the question “in what areas have you done these transactions”.  Customs vary considerably from county to county, even within the same state.  If you are searching for a home in Baltimore City, you need an agent who really knows Baltimore City, just because your cousin in Laurel is a Realtor® doesn’t necessarily mean he/she is the best person to help you find a home in Baltimore City unless he/she does a lot of business in that location. 

Blog author, Kathy Huver
Don’t be afraid to communicate to your Realtor® what your expectations of him/her are and make sure that he/she is willing to commit to meeting these expectations.    Let your Realtor® know how you prefer to be communicated with and how often.  Ask your Realtor® for references from past clients; most Realtors® would be more than happy to provide this type of information for you as they are eager to gain your trust and loyalty to them.  Once you have found a good Realtor®, listen to what he/she has to say, sit back and relax in the confidence that you are in good hands, the hands of a seasoned professional Realtor®!

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