Choosing a Real Estate Agent

Selecting the right real estate agent to help you buy or sell your home is essential to a smooth transaction. For the best possible experience, you should consider a professional's background, personality and responsiveness. Here are some tips to help you choose and work with your real estate agent:

Locate at least three real estate professionals. Do they know the neighborhood? Is the agent familiar with the housing market in the areas you're looking to buy or sell? Agents with a history of transactions in neighborhoods that interest you will know what's available and in what price range. If you're listing your property, a good agent will know the market well enough to set an optimum asking price attractive to both seller and buyer. Look around your neighborhood. Is the same for-sale sign in every other yard? Call this agent and arrange an interview. Use the Internet. Most Real Estate websites have the ability to help you find local agents. Ask a neighbor or friend. Who helped them buy/sell their home? Who would they hire if they decided to buy/sell?

Interview the real estate professionals you identified. Having a conversation with the person is a good way to find out if your personalities and goals match. Be sure to explain that you are in the interviewing process. Just as you are sizing up the potential for a good fit, rest assured that the real estate agent will likely be interviewing you, too. Be wary of agents who don't ask you questions and probe for your motivation.

You wouldn't work with just any agent off the street, and good agents are just as selective about their clients, too. Caution: Don't interview agents from the same company!

Here are things you want to ask:

· If selling, ask the real estate agent how he or she would establish a price. Request a Comparative Market Analysis (CMA), which shows the market value of similar homes in the area that are for sale or have recently sold.

· If selling, ask the real estate agent how he or she would market your property-flyers, advertisements (where and how often), online listings, etc. Understand that some agents may prefer to first tour your property and then put together a comprehensive customized marketing plan to present at a later meeting.

· Ask the real estate agent how often you should expect to hear from him or her. Know how and when you will communicate to avoid unrealistic expectations. Pay attention to office hours and whether you'll be invited to stay in touch via a cell phone or e-mail.

· Ask the real estate agent how often you'll be notified of new listings. In some markets, houses enter the market and sell within the first hour. You need an agent who is serious about finding a home you'll love. Buyers should expect to hear from their agent whenever a home matching their description appears on the market.

· Ask the real estate agent what is their average List-Price-to-Sales-Price Ratio? Knowing the agent's average ratio speaks volumes. When hiring a listing agent, expect to see list-to-sales ratio within 97 to 100 percent in a buyer's market and in a seller's market: 100 to 110 percent of list price. When hiring a buyer's agent, expect to see list-to-sales ratios within 90 to 97 percent in a buyer's market; in a seller's market: 100 to 103 percent.

· Ask the real estate agent if you can expect their honest feedback. Avoid "yes-men." If you can't find your dream house because it simply doesn't exist at the price you've quoted, you need more options. When you find a strong agent, you get more out of each meeting.

· Ask how long the real estate agent has been licensed and how many buyers and sellers he or she has helped. While time is not the most important factor, it may demonstrate experience.

· Ask about designations. Interest in continuing education is a strong indicator of motivation and professionalism. You may be interested in these designations: ABR (Accredited Buyer Representative), CLHMS (Certified Luxury Home Marketing Specialist), CRP (Certified Relocation Professional), CRS (Certified Residential Specialist) and SRES (Seniors Real Estate Specialist). There are dozens of designations pursued for continuing education, so identify one or more that fit your needs.

· Ask if you may review documents before you are asked to sign them. A sign of a good real estate agent is a professional who makes forms available to you for preview before you are required to sign.

· Let the real estate agent explain to you who he or she works with and why he or she chooses these professionals-mortgage brokers, home inspectors and title companies.

· Ask the agent whether he or she has ever been in a tough negotiation and how he or she negotiated a fair price. You'll want to select a strong negotiator.

· Find an agent who is savvy about technology. Through the online tools available to agents these days, you can expect nearly immediate e-mails about new property listings and quick replies to your queries. If you are the seller you'll want your property to be marketed on the Internet.

· Ask for references. This shouldn't be a big deal; you may find these on the agent's website. The agent should also have letters and thank you cards from satisfied clients. Check a minimum of three references. It's a last-step investigation that could confirm or reject your impression of the agent.

· Know what you're signing. Take the time to read through all of the fine print if asked to sign a working contract with an agent.

· Buyer agency agreements are common, but be careful. What if the agent doesn't follow up with you? What if you don't get along? What if the agent doesn't understand your needs? Remember that a buyer agency agreement is negotiable, and you can help determine the specific terms.

· Talk money. Usually the seller foots the bill for a real estate agent's commission, but don't assume this will be the case. Ask point-blank what your financial obligations are throughout the process.

· Be clear on how you will be represented. How many houses an agent has sold, how much he or she will advertise the house or what commission he or she will charge are not as important as understanding how or even if you will be represented. Make sure you understand how the agent views his or her responsibility to you and, just as important, what he or she expects of you in return. A good long talk about your legal and working relationship will go a long way toward preventing problems and misunderstandings and ensure a successful transaction.

· If you are dissatisfied with an agent's plans or personality, thank him or her for taking the time to meet with you and repeat the process with another real estate agent. Compare interview notes. Think about each agent, and decide which one is right for you. It can be time-consuming, but it's worthwhile. You should choose someone aggressive, but who doesn't make you feel anxious or pressured.

· What level of customer care will you receive? A real estate agent is your business partner in a huge financial undertaking, so you'll want to choose a real estate agent that is always ready, willing and available. Be sure that communication stays open and phone calls are returned. Some agents employ assistants to handle much of their legwork. If this is the case, be certain your agent is the one present and accounted for when it comes time to check the contracts and close the transaction.