With so many agents out there, how can you make an intelligent
decision? Do you choose a friend, neighbor or coworker? Should
you work with an agent at a large firm, a small firm, a
franchise or an independent?
While there's an exception to every rule, and every marketplace
has its own nuances, here are some solid rules to apply when you
want the best representation to protect your interests.
Demand Experience
The real estate profession is plagued by high turnover. This
creates a workforce that is made up of many newcomers. While
there are brand new agents with good intentions, why trust one
of the largest investments you'll ever buy or sell to someone
without experience?
Always look for an agent with at least two years of experience.
Anyone still in the business after two years has probably
learned at least the fundamentals of real estate.
Look for Commitment
Another problem we have in the industry is a large number of
part time and recreational salespeople. These folks have either
retired from some other career, work in real estate seasonally
or are earning a second income for the family and honestly don't
need to work full time.
No matter how long they have been in real estate, their lack of
full-time commitment makes it impossible for them to keep up
with the vast changes in law, marketing and business practices
that are occurring in the profession today.
If an agent isn't working at least thirty hours a week, fifty
weeks a year, look for someone else.
Consider Education
In the majority of states, the requirements for real estate
licensing are substantially less than those for cutting hair. In
Michigan, for example, all that is required is a forty-hour
class and a multiple choice test. You cannot rely on licensing
to indicate competence. And, unfortunately, many agent's real
estate education ends with their pre-license education.
While there are numerous advanced real estate education courses
available, the only technical and competence based program
available nationwide is the Graduate, REALTORS® Institute (GRI)
series, which is administered under the direction of the
National Association of REALTORS®.
A REALTOR® who completes the fifteen eight-hour modules, and
passes examinations, may then use the designation of GRI. While
only 15%-20% of agents have earned this accreditation, it should
not be too difficult finding a GRI in your marketplace as they
will commonly print the designation behind their name in
advertising as well as on letterhead and business cards.
Conduct Interviews
Before you hire an agent to help you buy or sell a home; you
should interview at least three agents in person. In order to do
this, first get recommendations from friends, family and
neighbors. Then look on the web, in homes magazines and the
local newspaper to see what kind of marketing the various
companies are doing in your area and call a few that impress
you.
Then make brief fact-finding calls to determine which of the
agents on your list are full time, experienced and either hold
the GRI designation or are at least working aggressively toward
it. You will probably need to call ten to fifteen agents in
order to find three that are worth interviewing.
The interview itself need not be a formal one. It is simply an
opportunity for you to meet the candidate and explain your
needs; and to determine whether you would be comfortable working
with them. Ask whatever questions you like, or simply explain
your goals and listen carefully to what they propose to do for
you in meeting your needs.
The decision
If you follow the suggestions above, you will find that there
are excellent agents working for firms both large and small;
both franchised and independent. Thus, the real decision must be
made based on the competency of the individual agent you will be
working with on a day-to-day basis.
