Of
all the decisions home buyers and home sellers need
to make, choosing a REALTORŪ is by far the most
important. Hiring the wrong person can make an
already stressful experience even worse. Hiring the
right person can make your transaction smooth and
problem-free. Given the importance of selecting the
right REALTORŪ, why do some consumers make a poor
choice? Generally, they interview too few
candidates, ask too few questions or allow their
emotions to interfere with rational decision-making.
But more to the point, most people just don't know
how to hire a REALTORŪ.
The
biggest mistake buyers make is to start shopping for
a home before they select a REALTORŪ. Rather than
interviewing candidates and making an informed
choice, they drive off with whoever happens to be
holding an open house in their preferred
neighborhood. Or they pick a REALTORŪ whose name is
on a for-sale sign or who answers the brokerage's
telephone when they call about a home advertised in
the newspaper.
Top
agents rarely hold open houses personally, nor do
they sit around the office answering cold telephone
calls. (This duty is known in the industry as "floor
time" or "opportunity time.") Productive agents are
busy with repeat and referral business from former
clients and personal marketing efforts.
There
are exceptions, of course. Some solid agents enjoy
holding open houses. And some enthusiastic new
licensees use floor time to build a client base.
It's okay to hire a REALTORŪ who does these
activities, but you shouldn't hire someone based
primarily on the chance encounter of one telephone
call, one open house or one for-sale sign.
Sellers make similar mistakes. Some select a
REALTORŪ because he or she sold a few other homes in
the neighborhood or sent out seed packages last
spring. While these "neighborhood names" may be
worth considering, sales and seed packages shouldn't
be the sole factors in the decision.
Another common mistake among sellers is to hire a
REALTORŪ because he or she states a high opinion of
their home's value. Some agents suggest an inflated
price to flatter the seller and capture the listing,
only to argue for a price reduction after a few
weeks. Other agents suggest a low price so they can
sell the home quickly or attract multiple offers.
Rather than being a factor in selecting an agent,
pricing decisions should be made in consultation
with the agent, based on market trends, recent sales
of comparable homes and how soon you want to move.
The
right way to hire a REALTORŪ is to know your own
needs and find someone who will meet those needs.
Talk to several candidates and take notes. Start by
getting some background information about the agent.
Ask: How long have you been in the real estate
business? What special training or qualifications do
you have? Do you have an assistant? What difficult
situations have you faced in this market and how did
you handle those situations? What are your
strengthens in negotiating? How many buyers/sellers
did you work with in the last year? How many of
those people bought/sold a home through you? What is
your view of market conditions? Then find out
whether the agent is experienced with low-downpayment
financing, condominium associations, lease-options,
multiple offers, high-end homes, disclosure concerns
or other special needs you may have. Finally, call
the agent's references and ask them whether they
were pleased with the service they received.
Published: March 10, 2004
