What to Look for When Choosing a Real Estate Agent

What should one expect from a professional real estate practitioner? A competent, knowledgeable real estate practitioner gets paid for their time and their knowledge. Remember, the very best in every profession are always the highest paid. Understanding the value of a real estate practitioner is made more difficult by what the consumer sees and doesn’t see.

Essentially, the work of a real estate practitioner can be broken down into three main categories: functionary duties, compliance duties, fiduciary duties.

Functionary duties

Most of what the public sees the practitioner doing could be described as functionary activity. Measuring a house, hanging a lock-box, canvassing a neighborhood, and designing flyers are examples of things that could be done by an agent of any level and, arguably, do not rise to the value of several thousand dollars.

Compliance duties

Most sellers have no idea what disclosures are required of them or what the consequences are for failing to provide them. Many sellers incorrectly believe that their agent is responsible for providing these disclosures, but the legal onus is upon the seller. Among the agent’s compliance duties, would be a risk reduction strategy that directs the seller to be in compliance with all legally mandated requirements. The seller not in compliance is the one at risk, not the agent who cut corners.

Fiduciary duties

The fiduciary relationship is based on trust. There is an absolute duty of fairness and honesty from the agent to their client. That means education, training, and a commitment to mastering all of the technical and legal nuances of the business.

Here is what to expect from a top professional:

1. Courtesy

You should expect, at minimum, that a true professional will always be well-mannered, polite, relaxed, patient, and empathetic. These are more than niceties; they are valuable assets that benefit the client. These attributes foster effective communication, which is the heart of better negotiation. Courtesy extends to being on time, returning phone calls promptly, and fulfilling commitments.

2. Thorough needs analysis

Any professional will want to meet you in their offices for the purpose of an initial consultation. Among the reasons are to determine if your situation fits their expertise, to conduct a thorough analysis of your circumstances and options, and to make sure you fully understand the process.

3. Strategy

Once you understand what your options are, you can begin to form a plan for achieving the one best option for you and your circumstances. Your best option could be doing something entirely different than your original plan, or even nothing at all. The strategy is the step-by-step process of achieving your best option.

4. Advice and Counsel

It is imperative that an agent share his/her knowledge and experience with their clients in order for the correct decisions to be made.

5. Prior inspections

Most real estate professionals hate surprises. They understand that it is far better for the seller if all property defects are determined prior to bringing the property to market. Those defects will be discovered by the buyer’s inspection which is likely to trigger protracted and needlessly acrimonious renegotiation and often cancellation.

6. Comparable Market Analysis

The key to selling quickly for the highest possible price is to place the property in the marketplace at exactly the right price. If the price is too high, the best qualified buyers won’t get to see it because they’ll be looking at homes priced in their spending range. This is where your home should have been listed, in the first place.

Two sets of data help to determine what is known as current market value: what others have recently paid for nearby properties which posses similar attributes such as square footage and amenities, and what is currently available to compete for buyers.

7. Mortgage Review

Is there a prepayment penalty or are there other fees associated with paying off the mortgage at this time? A prepayment penalty is deductible but should also be reflected in the plan.

8. Title Review

You could have a lien on your property and never know about it until you go to sell. Considering that even a mistake will take time to unravel, this should be learned early in the listing period.

9. Estimate of Net Proceeds

When you list your home for sale, the only thing that matters to you is your net proceeds, not the selling price or the agent’s commission. You should expect that any professional real estate practitioner would provide you with a breakdown of all the known and anticipated costs associated with selling real estate.

10. Review Escrow Instructions

You should expect that your escrow instructions have been fully reviewed to make sure there are no surprises, and the instructions to the escrow company reflect the meeting of the minds of the parties. Usually, more than one party is contributing information to escrow and they don’t always get it right.