How to Find the Right Realtor For You
Whether you’re buying or selling a home, a realtor is a necessary component of the process. When you’re selling, in particular, finding the right agent to work with is the determining factor when it comes to whether you experience a smooth closing process or a rough one, and the difference between a good sale and a bad one. If that sounds a little heavy, consider the fact that agents play an integral role in helping you list your property, securing credible prospective buyers, and getting the sale done in a timely manner for an acceptable price to you as the seller. Remember, you waste a lot of time by showing your property to non-serious or non-creditworthy buyers, so good agents are essential in that you need their network and experience to avoid wasting time and money or slowing down the process.
Before we go any further, a few definitions are in order. A lot of people mistakenly use the terms “agent,” “broker,” and “realtor,” interchangeably, and there are important distinctions between the three. A real estate agent is anyone who’s earned a license to sell property, which is a state-issued license that requires education and certification in the form of around 100 hours of course work and then passing an exam. A broker, on the other hand, is someone who’s continued his or her studies and can hire agents to work under them or on their behalf. A realtor is either an agent or broker who is a member of the National Association of Realtors. Realtors adhere to a detailed code of ethics to treat their clients honestly and fairly, so you can consider it a reassurance that they’re in the game to help you as much as they are to maintain a good reputation. Though in modern parlance it’s common for a lot of people to refer to any agent as a realtor, they’re not the same thing and there’s a reason most buyers and sellers prefer to go with an actual realtor. That said, there are a great many things beyond NAR membership you need to consider when choosing the right agent for you.
For starters, a lot of agents will offer incentives, such as paying a percentage of your closing costs or cutting their own commission. Some are able to offer lower commissions because they simultaneously juggle multiple clients at any given time. You as a seller need to learn to recognize which incentives work best for you and what they actually mean. For example, if you’re an investor and maximizing your profit is your goal, it may be best for you to accept an incentive that cuts down on your closing costs. But an agent is only likely to cut your closing costs by raising their own commission, which eats into your profit as well. By the same token, an agent who promises a quick sale is likely to suggest a lower asking price for the property. With incentives there will always be some element of give and take, so when choosing an agent you as the seller will need to determine what you’re willing to give up in return for an incentive an agent may offer.
Is your agent local to your area? Regardless of your situation, your ultimate goal is to sell your home or property in a timely and profitable manner, and usually an agent local to the area is going to be a little more on-the-ball regarding things like credible buyers, property values, and an overall understanding of the local real estate market. In other words, they’re likely to have knowledge and a network that’s beneficial to you as a seller than an agent who either isn’t local or is new to the area. When looking for an agent, check their other listings or past listings and compare their addresses and zip codes. A quick way to tell if an agent has a readily available, intimate knowledge of the local market is to ask them about other listings in the area. An agent who’s active in the area and knowledgeable about the local market should be able to name a few listings off the top of their head.
You’ll also want to check an agent’s listings to make sure they’re presented in an attractive and competent manner. Since most buyers begin their search for a home on the Internet, a properly constructed online listing and an eye-catching presentation is crucial. You want to make sure your agent has an understanding of this and puts it into practice. Further, take a look at how closely the agent’s listings mirror the property you want to buy or sell, and make sure the price range is similar to yours. An agent who seems to be selling mostly $500k homes may not be the best one to go with if you’re selling a home for much less, and vice versa. You can make a lot of headway in deciding whether or not an agent is right for you just by looking at their other listings, and don’t forget about the number of listings they’re juggling at the moment; ideally, you want to see enough listings to indicate a healthy business, but not so many that you might get lost among other clients.
If you’re selling, referrals and reviews are priceless in your search for an agent. See how satisfied previous clients are with the agent’s work, and as we’ve already talked about, ask if the previous properties were similar to yours in price and location. What you want is someone who specializes in exactly what you’re selling, and someone who is good enough at their job to come highly recommended. Finally, when asking previous clients of an agent you’re considering, know what the asking price of their property was and what the actual sales price was. This is absolutely crucial, because it demonstrates an agent’s competence in moving property for the desired price. Not to say that sellers overvalue their homes from time to time (actually, it happens a lot), but an agent should discourage them from overpricing their property from the start and it’s a red flag if an agent consistently sells properties for much less than their asking price. In other words, anyone can sell a property if they keep lowering the price. You’ll also want to know how long the properties were on the market before they sold.
Remember, agents aren’t a one-size-fits-all role; what works for one seller may not work for another. Likewise, the incentive offered by one agent may not be worth the cost when another incentive makes more sense for your particular situation. Check back with us and sign up for our email list for more information, advice, and updates on real estate, and don’t forget to follow us on Facebook and Twitter!
– Get It Right Solutions