How to Choose a Good Real Estate Agent

Buy or sell a home by using a real estate agent.

Real estate agents are frequently depicted as smarmy sales people who don't do very much for their large commission. However, quality real estate agents do more than show buyers homes and market houses. Real estate transactions are legal contracts that involve a great deal of money. One little missed detail can mean disaster to a buyer or a seller.

Instructions

1. Understand the real estate agent's role. If you sign a contract with a real estate agent, they are bound by law to serve your needs. Agents are the best source for determining home sales in the area, explaining real estate laws to which all home sellers (including For Sale By Owners) are bound to uphold, and tracking the process from offer, to loan approval to closing.

2. Choose a real estate agent who's a member of the National Association of Realtors. These agents are bound to abide by a code of ethics that is strictly enforced.

3. Get referrals. Real estate agents are everywhere; open houses, billboards, real estate magazines, etc. All of them may be very good, but asking friends, family and co-workers about their recommendations is a better way to find a quality agent.

4. Interview prospective agents. Things to consider is the agent's experience (home sales, etc), ability to offer feedback and resources, attentiveness (returns calls, emails in a timely manner), and tools at their disposal (Web listings, video tours, etc). Don't assume choosing an agent who's willing to sell at your price (which may be too much) or discount agents are better. The agent is the expert and should be able to show you proof of the market and how your home compares. Further, discount agents don't always provide all the services needed to make sure you're getting the best deal and are protected if something goes wrong.

Tips & Warnings

• Real estate agents are a great resource of information, however there are legal limits to what they can provide. For example, law prohibits them from providing demographic and socioeconomic information about about neighborhoods. For that reason, scout out neighborhoods and find other resources for information about schools and resources.

• Without a signed contract as a buyer or seller, you don't have an agent that represents your rights. While he can do the duties of the agent (i.e. show homes), he doesn't have a fiduciary responsibility to you without a signed contract.

• An agent that is representing (through a signed contract) both the seller and a buyer MUST disclose this and is unable to offer advice that could affect the other client.

References

• National Association of Realtors
• Realtor's Code of Ethics