Everyone seems to have a real estate license these days, or they know someone who does. Are they all alike, or is there really a difference? Real estate has become complicated by changing laws, liabilities, and the increased access to information that is readily available to the public. It is not easy to find the best-equipped person to guide you through the maze. Whether you are buying or selling, see how your agent stacks up to this Nine-Point Test help you find the right professional for the job. Be sure to read Point Nine for the most important tip of all!
1. Street Cred: There is no substitute for years of work in the city streets and country lanes of your town. If you want the benefit of experience, select an agent who has worked in all types of markets, up and down. Check out the background of the person you are considering hiring, since many people enter real estate as a second career. You will benefit if your agent’s past jobs bring a better perspective on the concerns of buyers and sellers. New agents, on the other hand, might be enthusiastic and have lots of time especially if you are their only client!
2. Book Learning: A college degree, while not required, is a strong indication of an intelligent person who can handle a complex business transaction. Good analytical and communication skills are essential, since education is more than just an institutional degree. Proficiency with technology is also required to effectively research and market properties.
3. Alphabet Soup: Your accountant may be a CPA and your doctor may be a MD. Perhaps your dentist is a DDS. Attorneys can be SOBs (just kidding). Experienced Realtors may have a long string of acronyms after their name. What do all those letters mean? Here are descriptions of a few:
- GRI = Graduate, Realtor’s Institute: A series of courses for advanced training in residential real estate financing, marketing, and technology.
- CRS = Certified Residential Specialist: The highest residential designation for Realtors; only about 5% of all Realtors have been awarded this title based on high standards of sales production, customer service, ethical practices, and experience.
- ABR = Accredited Buyer Representative: These agents have studied the advanced techniques of representing and negotiating for their buyer clients. Remember that most agents focus on listings, so it takes a shift in focus for a Realtor to properly represent buyers to the high standard that they deserve.
- CLHMS is a Certified Luxury Home Marketing Specialist, the elite group with experience as well as focused training on the upper tier of the market. This includes tools to market the most exclusive properties and represent the needs of top-tier buyers.
- SRES: Senior Real Estate Specialists have studied the needs of working with retired and older consumers. This is a growing sector of the market and their requirements may greatly affect the marketplace of the future.
4. Franchise or Independent? Small office or large? Most real estate transactions are handled by companies that are franchises of larger organizations. A national or international organization may have power to provide the marketing materials, the networking, and the training that can create higher standards of service for the consumer. RE/MAX International, for example, has its own Satellite Network which delivers technology, training, and communications to its 100,000 agents in 65 countries.
Some companies may be limited by inflexible office policies and practices that put your needs in jeopardy particularly in a traditional ‘top-down” organization, whether a franchise or independent company. Some examples might be advertising limits, inflexibility on commissions, or even a bad phone system.
Visit your Realtor in their office first to see what type of organization you are dealing with. An independent company may have more freedom to tailor a sale or marketing effort for the consumer In this case you are relying more on the individual qualities of the company owner and the principal broker, since they have no one to answer to.
5. Your Expectations: Every company has a personality, and some real estate firms are known for certain geographical areas, or a sector of the market such as high-end homes or even foreclosures. If you visit the office, you will get an idea of whether you are dealing with a fly-by-night organization or one that can be expected to be around later if things go wrong! If files are piled up all over the floor, how will they be able to find yours when you call?
Of course, your main contact with the company will be your own Realtor or sales agent. Their style of doing business should mesh with yours. If you are very detail oriented, you might want your Realtor to be like-minded. (If you are not, then you may need a picky one even more!)
If you are a decisive person, a wishy-washy agent will probably drive you crazy.
6. “I Have a Friend in Real Estate” and Other Recommendations: There is no shortage of licensed real estate agents in Hawaii. In fact, there are more licensed agents that there are sales, so many of these people are only marginally in the business. And almost everyone has a friend or relative in the real state business who would love your listing or sale. Never feel obliged to use someone recommended to you, unless you judge them by the same standards that you would a stranger. Think about whether this connection will help or hinder you if a problem arises. Some people prefer to keep business strictly on professional level for this reason.
Ask for a list of references of satisfied clients, and call a few. Most successful Realtors are happy to give you these names and numbers. You can also check out your agent and his/her company's license status and even look for complaints that might have been filed by unhappy consumers. Just call the Hawaii State Consumer Research Center at (808) 587-3222.
7. Pick By Price: Sellers in particular are concerned about the cost of representation when they select a listing agent. There are plans available which drastically reduce both the services sellers receive and the commissions or other fees they pay. If you are choosing the “K-Mart’ of agents, don’t expect to get the “Neiman Marcus” service. You should rightly look at the bottom line you are likely to attain when you sell. However, do you really expect that you will get as much for your home with an assembly-line marketing effort? Cut rate companies usually do not include in their advertising the full cost including the buyer’s side of the deal.
8. B.S. Meter Reading: Trust your own instincts. After you have carefully analyzed the qualifications and eliminated any persons who are not up to your standards, think about intangible personal qualities. Do you have a sense of trust in their integrity? Do they seem to have your needs foremost in mind or are you just another sale?
9. Wheels: Finally, and most importantly, we all know that the best Realtors drive the biggest and best cars. Be wary if your agent picks you up in a rusty old hulk. If you are a buyer, make sure you see an up-to-date safety check and registration sticker. Check for a spare tire. Do the turn signals work? Do you see air bags emblems – or even seat belts?
If you are selling, you want the Realtor’s car to upgrade the appearance of your home, not drag it down. And does the vehicle’s color complement your home’s exterior? You may have to ask them to park down the street in that case ;-)!
