Ever wish you could see through the hype to hire the best
real estate agent for buying or selling your home?
When it comes to choosing real estate agents, "we don't
have the information that we have about other service professionals," says
Stephen Brobeck, executive director of the Consumer Federation of America, in
Washington, D.C.
However, there are things you can do to pull back the
curtain and accurately assess a real estate agent's past performance and
potential success with your home. Whether you're the buyer or the seller, here
are seven ways you can find out more about your agent before you hire.
1. Talk with recent clients
Ask agents to provide a list of what they've listed and sold
in the last year, with contact information, says Ron Phipps, president-elect of
the Chicago-based National Association of Realtors. Before you start calling
the names, ask the agent if anyone will be "particularly pleased or
particularly disappointed," he says.
With past clients, "I'd like to know what the asking
price was and then what the sales price was," says William Poorvu,
professor emeritus at Harvard Business School and co-author of "The Real
Estate Game: The Intelligent Guide to Decision-making and Investment."
And, if you're the seller, ask if these past properties are
similar to yours in price, location and other salient features, Poorvu says.
What you want is someone who specializes in exactly what you're selling.
Another good question for sellers is: How long has the home
been on the market?
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2. Look up the licensing
States will have boards that license and discipline real
estate agents in those states, says Phipps. Check with your state's regulatory
body to find out if the person is licensed and if there have been any
disciplinary actions or complaints.
Some states, including Virginia, Arizona and California, put
the information into online databases that consumers can search. "But I
think very few people do," says Robert Irwin, author of "Tips &
Traps When Buying a Home."
3. Pick a winner
Peer-given awards count, says Phipps. One that really means
something is the "Realtor of the Year" designation awarded by the
state or local branch of the National Association of Realtors.
"These agents are the best as judged by their
peers," he says. "That's a huge endorsement."
4. Select an agent with the right credentials
Just as doctors specialize, so do real estate agents. And
even generalists will get additional training in some areas. So that alphabet
soup after the name can be an indication that the person has taken additional
classes in a certain specialty of real estate sales. Here's what some of the
designations mean:
CRS (Certified
Residential Specialist): Completed additional training in handling residential
real estate.
ABR (Accredited
Buyer's Representative): Completed additional education in representing buyers
in a transaction.
SRES (Seniors Real
Estate Specialist): Completed training aimed at helping buyers and sellers in
the 50-plus age range.
If the agent calls himself a Realtor with a capital
"R," that means he's a member of the National Association of
Realtors. By hiring a Realtor, "the most important thing you get is an
agent who formally pledges to support the code of ethics," says Phipps.
Five years ago, one-third of real estate licensees were
Realtors, he says. "Now, it's half."
5. Research how long the agent has been in business
You can often find out how long the agent has been selling
real estate from the state licensing authority. Or, you can just ask the agent.
"If they haven't been in business five years, they're
learning on you and that's not good," says Irwin.
Ultimately, what you're looking for is someone who is
actively engaged in a particular area and price range, says Phipps. You'll want
to know what knowledge of those two factors they can demonstrate and "what
kind of market presence they have," he says.
6. Look at their current listings
Check out an agent's listings online, says Brobeck. Two
places to look are the agency's own site and Realtor.com, a website that
compiles properties in the Multiple Listing Service into a searchable online
database.
Most buyers start their search on the Internet, and you want
an agent who uses that tool effectively. "A key thing is an attractive
presentation on the Web," says Brobeck.
You also can look at how closely the agent's listings mirror
the property you want to buy or sell. Are they in the same area? Is the price
range similar? And does the agent have enough listings to indicate a healthy
business but not so many that you'd just be a number?
7. Ask about other houses for sale nearby
A good agent should know about other available area
properties "off the top of his head," says Irwin, who wrote
"Tips & Traps When Buying a Home." Mention a house in your area
that's sold recently or is for sale. If the agent knows the property and can
give you a few details, that means he or she really knows your area, he says.
Says Irwin: "You want someone like that who's on top of the market."
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