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How do you select a Real Estate agent?

Would you risk your life on a tandem jump with a person who has taken a class and passed the exam or has only completed their basic qualifications?  Of course NOT!  Then why do so many people sign an agency agreement without knowing the agent’s professional credentials? 

Kalli on a tandem parachute jump Raeford, NC.

All agents upon first substantial contact with a prospective client are required by law to have that prospect sign a brochure called, “Working With Real Estate Agents.”  This is not a contract!  It is a document meant to protect the public.  It defines who works for whom.  An agent does not represent you without a formalized written agency agreement.  Any confidential information that is given to the agent prior to a formalized relationship can be revealed to the party of the transaction.
 

Agency is defined as “the relationship that exists by contract between a principal and an agent, whereby the agent is authorized to represent and act on behalf of the principal in certain business transactions.”

NC Real Estate Agency requires the Agent to:

• Promote your best interests 

Your agent should teach you how to purchase or market a home.  Invest the time to understand what impacts the value of a property.  An agent should be listening and asking questions to ascertain what is important to you.  Buyers:  Set your parameters and expect your agent to abide by them.  If inventory does not meet your expectations, time to readjust the requirements and look again.  Sellers:  Review the written marketing plan and hold your agent accountable for these criteria.  The agent’s knowledge of the local market is valuable.  Experience counts!  A new agent may not be aware of trends or pertinent information that would reflect on your transaction.  A rookie agent is going to promote your best interests but what if their abilities are limited because of inexperience? 

• Be Loyal

An agent’s loyalty regarding your personal information is imperative.  You will be discussing your finances and circumstances that impact on your negotiating capabilities.  The Agent is expected to guard that information and not divulge anything without your permission.  Even written ads should be proactive and not compromising.  Ie:  “Bring all Offers!” communicates desperation.  
 

• Follow Your Lawful Instructions

The Agent has a responsibility to follow your lawful instructions.  An Agent is not allowed to withhold fraudulent information.  Agent must disclose known material facts that are detrimental to a property.  You cannot deliberately omit information in order to deceive a party of the transaction. 

• Provide all material facts that could influence your decision

This is an important issue.  Finding information that will positively or adversely impact your decision to purchase or sell is important when you are dealing with a high dollar asset.  Agents face the challenge of staying abreast of what is happening in the community that will affect property values.  That is why experience and ability to ferret out information is important to your transaction.

• Use reasonable skill, care and diligence

Agents hold themselves out to the public as specialized experts in the real estate transaction.  They are to demonstrate skill ordinarily possessed and used by others employed in the field.  You will find there is a vast difference in agent qualifications and how they execute their skills.  Agents are to avoid error, exaggeration, misrepresentation or concealment of facts.  Good agents work to stay apprised of any facts and public policy affecting real estate values. 

• Account for all monies they handle for you

Most Agents will receipt all funds given to them.  Each time funds are handed off to parties within a contract your funds should be receipted again to create the paper trail.
 
To protect your interests, I strongly recommend you interview two or three agents before signing with anyone.
IF ALL REAL ESTATE AGENTS ARE LICENSED, WHAT SETS ONE AGENT APART FROM THE OTHERS? 

Here are some questions you can use to help you select an agent that is right for you:

1. How long have you been an Agent?  Too short a time and you will be their training ground.  Too long a time and you will have to wait for them to chisel your contract onto stone tablets.  Many times top agents come across as too busy.  Go with a higher end producer but not necessarily the very top of the food chain.

2. What is the agent’s level of education?  In looking to purchase a big-ticket item, you should want someone who has gone beyond a public school education or its equivalent.  A person can be licensed in North Carolina by taking and passing the real estate course followed by the state exam.  This does give them a beginning knowledge base and helps protect the public, however, it cannot replace experience and advanced education.

3. Has the agent invested in further designations within the industry? There are plenty of additional training opportunities within the Real Estate industry.  Certified Residential Specialist (CRS) is one of the more prestigious.  Accredited Buyers Representative (ABR) is one of the more common.  Leadership Training Graduate (LTG) is Women’s Council of Realtors leadership Training.  E-Pro is specialized training for Internet marketing and utilization.  There are other less known certifications.  Each shows that the agent is serious about career development.

4. How long has the agent lived and worked here?  Working with someone who is also new to an area is difficult.  Their sphere of influence is not as vast and their ability to represent the location to the public will be strained if not lacking.  On the Buyer’s side, you will expend excess time and energy because the agent is still getting acclimated.

5. What community organizations is the agent involved in?  Giving back through time and money is an important indicator of integrity and commitment to the overall productivity of a community.  The agent involved in good causes by contributing time and energy is one who has a greater understanding of what is happening in and around the community.

6. INTERVIEW 2-3 AGENTS: How long in the industry? Level of education? Professional designations? Length of time lived/worked here? Community involvement? Computer skills?  Access to available data on a property?  Knowledge of amenities associated with each community  Know your way around town? Outlying communities?  Knowledge of future projects such as roads, annexation, sewer installments? How often will you make contact? Other Factors: Articulate about issues, facts, and resources Good Listener

   Does the agent demonstrate savvy computer skills?  Why wait for an agent to hand write a contract that is typically illegible when there are programs available using standard forms put out by the Real Estate Commission.  Additionally, agents need to keep abreast of what the ever-changing inventory.  Staying current in a fluid market is important to the client.  You want to be able to send and receive documents via internet.  Email and web accounts are important.  Digital photo capability is another important internet tool an agent should demonstrate.

7. How well does the agent access information pertaining to property of interest to you?  Does the agent have the skill set to access data at the court house, the police departments, the department of transportation, the school board, flood zones, deeds, covenants, GIS photos of neighborhood, etc.  All these data sources are available and should already be a favorite marker on your agent’s computer.

8. What does the agent know about the community overall?  Can the agent tell you what is unique about the community?  What celebrations the town offers?  What festivals?  What the community calendar offers for varying ages and how you can get involved.

9. What is the agent’s knowledge of the town (streets, school locations, malls, churches, parks, downtown) and what amenities are close to prospective areas?  Your kids play lots of sports.  You’d want an agent who knows where the facilities are located.  Your agent should be able to help plug you into the community wherever your interests lie. 

10. What is the agent’s knowledge about future proposed projects that could impact on your decision?  Your agent should have access to information about annexation, sewer projects, road widening, school redistricting proposals, metro government and more.

11. How often does this agent routinely make contact with clients?  (daily, weekly, monthly)  What is the best way to communicate with the agent?  (phone, email, voice mail, …)  One of the biggest complaints the industry gets from Seller’s is they never hear enough from their agent.  What can you expect after a showing of your property?   Will you get feed back? Notice of the showing?  How will this information be sent to me?

Two other factors that will affect agent-client relationships are:

• Does the agent communicate on a level you can understand?  Are they articulate about issues, facts, and resources?  If you cannot communicate well with your agent, you will have difficulty in the transaction process.  Be sure you have someone you can understand both intellectually and verbally.  It is so much nicer to communicate on a more even plane. 

• Is the agent a good listener?  Some folks are verbal machine guns.  Forget trying to interject your ideas into a conversation.  When they come up for air, they aren’t listening because they are thinking about what they want to say next.  God gave us two ears and one mouth and we should be able to use them proportionately.   This does not mean the agent is quiet.  Do you feel that your dreams and desires are being taken into account?

How do you locate an agent you are comfortable with? 

Ask friends and relatives what they have personally experienced with an agent or company.  Listen to their answer…Are they giving you examples of how the agent helped them find the perfect home or solve problems during the transaction?  OR Are they letting you know they were not happy with the services their agent provided? 

Does the size of the company the agent works for matter? 

Yes and no…. Quality of service is the bigger issue.  Typically, smaller companies are owned and operated by established agents who have a successful history in the industry.  Many of the larger firms court new agents to train them.  Your interview and comfort level, as well as, the reputation of the Agent is more important then the company size.

In conclusion.  When I took hang gliding lessons, I didn’t think of hiring a rookie who just completed the basic course of flying.  Size of the company did not matter.  I hired an expert in the field.  When I did my tandem parachute jump, I hired someone with experience, skill and ability.  So again, I ask you….Why would you hire just anyone when you can hire an expert to represent you in one of the most high dollar transactions you will ever make?  Once you interview two or three prospective agents, following these suggestions, you will be more apt to find an expert agent who is right for you.