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Step 1
Most articles in step one are going to tell you to get a referral. That's nice if you happen to be moving somewhere that you know someone, but in a lot of situations, this simply isn't the case. The main two pitfalls with referrals are:
* Being referred to a friend of the family (who may or may not be any good) and not being able to drop them.
* Being referred to someone who did great when ANYBODY could sell housing, but may not be so good now that nobody is buying.
Don't get me wrong, referrals are useful, but make sure you back them up with some research. -
Step 2
Go to the web. It is very important in the internet age that your real estate agent be web savvy, so the web will be your first stop in researching a good agent. All of the major real estate companies allow you to search online for real estate agents. What about local companies? Unless you are *BUYING* in a small or niche market, forget it. Don't even consider one if you are selling. If you want to put your house on the market, the major companies have A LOT more exposure, and what you need most right now is exposure if you are going to get a house sold.
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Step 3
Once you find the agents on the web, you will be bombarded with a plethora of acronyms like GRI, ABR, and NAR. Here is a quick guide to sorting them out and what will be most useful to you. Note that these titles aren't everything, but if the real estate agent that you are looking at has NOTHING in the way of certifications/awards, then they probably aren't very aggressive and sell real estate as a hobby.
* NAR - National Association of Realtors - This one is key. I'm not even sure someone can professionally sell real estate without being a member of this organization, but if you find someone who does, move on.
* GRI - Graduate of the Realtor's Institute - This means the agent has taken some initiative and actually had some training in the craft of real estate (at least 90 hours). Whoever you consider should probably have AT LEAST this.
* ABA - Accredited buyers representative - This means the agent specializes in helping buyers find a house. Not useful if you are selling
* CRB - Certified Real Estate Brokerage Manager - This is like continuing education for agents. A good sign that this agent is serious about keeping up with changing times (like right now)
* CRS - Certified Residential Specialist - This means they have sold a lot of houses, 43 on average a year. Not bad.
*Million Dollar Club - This one is controversial. It does not mean the agent has earned a million dollars, but has sold a million dollars worth of property. This is something like 6 houses a year, so not hard to achieve. Beware however that there is very little information on how this designation is achieved.
* Phoenix/Eagle Awards - These are awards real estate agents give each other (like the Oscars). A feather in their cap if the real estate agent you are considering has one.
This is by no means an exhaustive list. There are plenty others, and you can look some of them up on Wikipedia or on the NAR web page. -
Step 4
Once you have an idea of the different acronyms mean, create a spreadsheet or list with each real estate agent's name on it along the left column and the acronyms/awards along the top. For each acronym place an X in the appropriate column (or if you a really savvy, put a weighted value and sum it at the end). Go through REMAX or Coldwell Banker's web page and do this for each agent in your area. Once you are done, start weeding them out. If they have no Xs by their name, mark them off the list, they either don't know how to use the web or they sell real estate as a hobby. As you accumulate the Xs make sure you read what the agent has written in their profile and keep in mind the following things:
* If the profile is all about their kids and their hobbies, then they don't know much about real estate, so strike them from your list.
* If the profile is written in third person (contains a lot of she/he rather than I) then it was written by someone else and this agent knows nothing about the web. Strike them.
* Extremely web savvy agents will have links to blogs. If you find one of these, you can glean a WEALTH of information about them. Consider yourself lucky. -
Step 5
At this point, you should have a relatively small list of potential agents to consult. It's now time to put your interpersonal skills to work and pick up the phone. Few things can replace the actual interview and all of the above steps are designed simply to narrow it down so that you can spend as much time in the interview as possible. The most important thing when interviewing an agent is figuring out if this agent is compatible with you. If you are expecting updates every week by e-mail but the agent prefers to call you every other day, move on. Here are a few tips for the interview:
* Try to ask each agent the same questions. If you ask different questions for each agent, how do you compare them?
* Find out the price range the agent usually lists in and make sure you are within this range.
* Find out if they are primarily a buyer's or seller's agent. This is pretty important as this will directly affect experience and time devoted to your needs.
* Ask what commission they charge (only relevant for sellers). You don't want to find the perfect real estate agent only to figure out when you sign the contract you can't afford the commission.
If you don't feel comfortable talking to the person or you don't get a good impression, strike them from the list. -
Step 6
Once you have conducted the interview, then you should be at the single agent stage. If not then follow up on the interview as much as needed.
