The market is saturated with agents these days, and many are beginners or part time. Below are the eight questions you can ask to separate the average agents from the experienced , successful ones. Whether you're buying or selling, the difference between having an average real-estate agent or a superstar will likely mean thousands of dollars in your pocket. It can mean selling your home for the top dollar the market is willing to give or, if you are buying, losing the property of your dreams to a more organized, better represented buyer .
Referrals:
Over the past six years, nearly 600,000 new agents joined the National Association of Realtors, roughly doubling its membership between 2000 and 2006.
Based on the number of sales, that means that we have literally hundreds of thousands of agents that have never sold a house or have sold a couple to family members or friends.... in the recent sellers market we just experienced, that may have been o.k. because yearly, double digit appreciation was covering wild over pricing mistakes on the listing side and buyers paying 10's of thousands more than the market data dictated they should, looked like geniuses a year after the sale because what they purchased was worth multiples over what was paid. Now, it's an entirely different story...increasingly cautious, value conscious buyers want and need to have a thoughtful discussion regarding value before making a purchase...the "door opener" style agent will leave you at a distinct competitive disadvantage in this market.
The best way to find an agent, real-estate professionals say, is by getting a recommendation from someone you trust. Not only is somebody elses experience the best predictor of your satisfaction, but, since an agent's personal network is his lifeblood, he is likely to work harder knowing that a friend or client will hear about his performance.The agent you are interviewing should be able to provide you with a lengthy list of testimonials from clients in recent transactions.
But even with a good referral, you owe it to yourself to find one or two other promising candidates to screen. You can locate agents in newspaper ads, by stopping in at open houses or by cruising the area where you want to live, noting agents' names on the for-sale signs.
8 questions to ask real-estate agents
Interviewing candidates serves two purposes: You get an education about your local market while learning how the agent proposes to represent you. Ask very detailed questions and be prepared to receive answers that may be counterintuitive to your expectations about how you believe your home should be marketed. For example, most agents ,that are active and successful in this market, should tell you that open houses and print media advertising are statistically negligible ways to get your house sold..and are often better for the agent than they are for you! Be open to the answers, but insist that the agents back up what they are telling you with market data and thoughful analysis.
Here are the most-important areas to investigate:
May I see your resume?
Since you're searching for an above-average agent, look for evidence of advanced training ...
There are about 2.6 million real-estate agents in the country. They're licensed by their states, and each state's licensing and education requirements are different. (Use the Association of Real Estate License Law Officials' site to check an agent's license. Click "consumer" to get started.) About half of the agents belong to the National Association of Realtors. Those members call themselves Realtors. NAR membership doesn't have to be a deal breaker, but it provides some assurance, since the industry group requires ethics training periodically and members must subscribe to its code of ethics.
What's your commission?
Commission amounts aren't cast in stone anywhere. They can be negotiated -- and often are.
Negotiating works best when homes are selling quickly and easily. Today, with longer marketing periods now the norm, listing (selling) agents have to work harder to sell properties and the best agents may be unwilling to dicker. If you do find an agent willing to negotiate, consider it just one of the many factors to weigh before choosing a professional to sell your home.
What makes you special?
Don't settle for someone who just promises to show you homes or list, advertise and sell your place; every agent has to do those things.... What you want to know is, "How will you present my home to value conscious, cautious buyers and their agents? Exactly what sales information will you be using to defend my asking price?
How often will I hear from you?
Your agent's communication style and availability should mesh well with yours. Prepare for your agent interviews by asking yourself whether, for example, you'd need a twice-weekly check-in, even if there are no homes to visit. Do you expect a report after someone tours your house for sale? Do you prefer to keep in touch through phone calls or e-mail? How promptly do you want a response? While you're inquiring about the agent's availability, remember to ask who will return your calls and show houses if your agent is out of town.
What's your plan for marketing my home?
Unless they are personally willing to write the big check,No agent can guarantee they'll sell your home. But he or she can tell you what steps she'll take to bring it to the attention of buyers. Press for details like, "Are you going to post this on a Web site? Put an ad in free magazines in a shopping center? What type of mailing campaign will you use and how many pieces per month do you generate?"
Once you've selected an agent, you should request a one-page list of actions, each with a target date. Incorporate the plan in your sales contract so you can track your agent's progress and have documentation if he/she fails to live up to the agreement.
How many transactions did you complete last year?
Some agents keep score in dollars, saying, "I sold $50 million in real estate last year." But property values in this market, allow for the possibilty that well connected, part time agents are able to rack up millions of sales dollars in very few transactions, so what you really want to ask is, "How many deals did you complete?"...and maybe more importantly, " May I have the contact information for the sellers of the last six properties you sold , so that I can get their take on how you represented them?" If the agent did the same great job with these people that they are now promising you, there should be no hesitation in giving you this information.
Super salespeople or the "Mega Producers" can be a mixed blessing. The bonus is, they're likely to be knowledgeable (but not always). But a superseller is likely to be too busy for hand-holding. "If a solo agent is selling more than 70 homes a year, they're not going to have time for you"
What do you know about the neighborhoods where I want to live?
A super salesperson is no good to you if she isn't doing an active business in your target neighborhoods, so ask how many of the homes she sold last year were located where you want to buy and how many listings she has there now.
Really great professionals specialize in one -- or maybe two -- communities. Nellis says he declined a friend's request to help her find a home in a nearby city because he didn't know the place and could not help her unearth the particulars she needed -- everything from planned airport flight paths to zoning-regulation changes to freeway expansions -- that determine a property's true value.
Agents have a wealth of data at their disposal from local multiple listing services. Good ones will share it, educating you about the median income and educational level of a neighborhood's residents, for example, or telling you what proportion of residents work close to home or suffer long commutes. They can't discuss school performance or crime -- that would violate fair-housing laws. But they should point you to Web sites where statistics on crime and school performance are listed, one of which is Sperling's Best Places. (Read more about what they can't tell you here.)
Are you a solo agent or part of a team?
There's no right answer to this question. Due to the 24/7, always connected, nature of the business these days, teams are growing in popularity. They're good for engaging several individuals' expertise at once and for allowing high-powered salespeople to concentrate on what they do best, offloading to associates tasks like filing and tracking documents, dogging details and showing houses. Being part of a team lets a salesperson handle more listings more attentively.
But a team is only as good as its players. You can have a team with a crummy Web site and no real sales experience .
When you get right down to it, choosing the wrong agent can cost you thousands of dollars and there's no way better way to avaoid that than sitting down with a few agents and asking alot of questions.
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