How to Choose the "Right" Real Estate Agent

It is very important that you choose the "right" real estate agent to assist you in completing your real estate transactions. An unqualified agent can make the process difficult at best, and potentially can make it financially devastating. Finding a qualified agent requires evaluating potential agents in three areas: credentials, commitment, and communication.

Credentials

A Contra Costa County, California-based study of Internet searches reveals that the factor Californians are most particular about when they are looking for a local real estate agent is credentials.

About half of the Californians looking for someone to handle their real estate transactions searched for "California Association of Realtors." About a third searched for a "California realtor," and another third of the searchers looked for "California Board of Realtors."

These three categories accounted for nearly 90% of the total searches for a California real estate agent, with the balance of the inquiries targeting specific geographic areas.

Let's look at the types of credentials you can look for when determining whether a real estate agent has the qualifications you need:

A real estate agent is a person licensed by the state in which they work to sell real estate as a Broker or licensee. Before a license is issued, that person must meet minimum standards (set on a state by state basis) by completing relevant coursework and successfully completing & passing an examination.

For a Brokers license there is a higher standard of care required, college courses, and an intense in-depth exam to pass. After receiving a real estate license, agents may choose to join their local board or association of Realtors®, and the National Association of Realtors® (NAR) whose Code of Ethics in many cases goes beyond state law.

Only those agents who join the NAR can use the registered collective membership mark of Realtor®. Other credentials demonstrate that the agent has taken additional coursework, typically in an area of specialization. Real estate agents may have designations such as Graduate Realtor Institute (GRI), Certified Residential Specialist (CRS), Certified Relocation Professional (CRP), or Leadership Training Graduate (CTG). Another is Certified Real Estate Brokerage(CRB). A CRB is recognized industry wide as a symbol of excellence in professional achievement in the field of management.

Clearly, credentials can be important. An agent's credentials demonstrate whether he or she has specific qualifications that may benefit you in your particular situation.

Beyond the credentials, however, there are two important measuring sticks by which the performance of a real estate agent should be assessed: commitment and communication.

Commitment

Commitment has two aspects. First is the level of investment the agent makes in his or her community and to the role of real estate agent within that community. The best agents typically are actively involved in their local Chamber of Commerce(s), Rotary Club, Junior League, PTA and/or other organizations.

Active involvement in organizations of this type is a strong indicator that an agent is concerned about and committed to supporting the local community. Agents who are actively involved in this manner:

• will have a better understanding of the community dynamics
• will have a better insight into community issues
• do develop more and better community contacts

As a result, these agents will typically be better informed as to available properties, local property values, and factors which may affect the local real estate market. Given this information, these agents will provide a more valuable service to their clients.

The second aspect of commitment is the level of enthusiasm and dedication the agent gives to helping you with your real estate transaction. To find a buyer for your home requires significant effort on the part of the agent – effort in putting together a specific marketing plan for your property, effort in staging and showcasing the property, effort in advertising and showing the property.

To help you find a home to purchase also takes a great deal of agent effort. All buyers need to be educated in the current market values, numerous loans available to them. Also, help in defining what they are looking for. The true measure of an agent's dedication is their knowledge, skill, energy.

Communication

The third area of evaluation is communication. As with commitment, communication also has two aspects.

First is guiding you through the process, providing you (in a logical, step-by-step manner) with the information you need to make sound decisions.

Second is developing a positive relationship with you, so that you can talk to each other clearly and comfortably as you work through the process together.

Credible agents will:

• Explain and disclose their agency relationship – that is, whom they are representing.
  
• Describe the responsibilities they will assume to help you complete your real estate transaction.
  
• Perform the research necessary in the public records and the Multiple Listing Service (MLS), a cooperative listing service. available to Realtors®) to help you (as the seller) establish a reasonable asking price for your listing or to help you (as the buyer) to identify homes on the market that match your stated parameters.
  
• Advise you on how to prepare your home for the sale (if you are listing) or help you evaluate a property you have an interest in purchasing (this includes ordering and presenting home inspections, etc.).
  
• Clearly explain the commission arrangement they have with agents/brokers representing the other party on a purchase/sale.
  
• Ask you specific questions and listen attentively to your responses, so that they can fully understand your needs and preferences.
  
• Assist you in understanding the meaning of any paperwork you are asked to sign as part of your real estate transaction.
  
• Coordinate the flow of activities between their clients and the title companies, appraisers, home inspectors, and others involved in the process.

The purchase or sale of your property may be the most important financial decision of your life, so it is important that you use a qualified real estate agent. Evaluating potential real estate agents on their credentials, commitment, and communication will enable you to decide which agent is "right" for you.