How to choose the right real estate agent for You!

How to choose the right real estate agent for You!

One Step Process!

Buying or selling, good real estate market or bad real estate market, metropolitan area or rural area; chances are that you (the buyer or seller) need the assistance of a professional real estate agent.  Even if you are an investor you may only purchase and/or sell a few properties a year and a career real estate professional could sell more than that in one month!  They can be very valuable in helping you make the right decision for You!

But how do you choose the right professional? 

First, let me explain the agency relationship that should be created and accepted by you and your agent.  Agency is a relationship of TRUST.  A consensual relationship that both parties enter into willingly.  Buyers and Sellers need to understand the representation they will receive from this professional.  In most states, like Arizona, there is a form that the real estate agent will present to you for signature.  It is not a contract.  The form discloses the type of agency relationship that is being formed and you are signing that you understand and agree to this relationship.

Buyers Broker or Sellers Broker and some real estate brokerages allow professionals to represent both the buyer and the seller (with the clients’ permission), the job description should be disclosed.  We all learned the job description in real estate school = loyalty, care, obedience, disclosures, confidentiality, and accounting.  Those are the fiduciary duties of a professional real estate agent and their broker.   The term fiduciary describes a person who is responsible for the money or property of another.  A fiduciary must treat another person’s affairs as if they were that person.

Here are a few more of the agent’s duties in regard to acting as your fiduciary:

• Protect and promote your interests
• Perform all duties without delay
• Exercise reasonable skill and care in the performance of those duties
• Provide services that conform to the standards of practice and competence recognized by the professional community

As I mentioned earlier, in Arizona there is a form that assists in the disclosure of the relationship.  It is called the Real Estate Agency Disclosure and Election form, (READE).  This form is provided by the Arizona Association of Realtors.

The relationship can end in many different ways but most often it will end with the completion of the job well done.   The agency relationship has ended.   In different circumstances the relationship may end when the contract ends (buyer broker or a listing).  Also, mutual agreement or one party can fire the other, should that party not live up to their end of the agreement.

There are many parties in a real estate transaction but it is important to note that a professional real estate agent is commanded to treat all parties fairly and honestly.

Next topic would be Knowledge.  And this is a big deal in the real estate industry.  A professional real estate agent must know the inventory, the market, lending practices, title and escrow procedures, and understand the area that they practice.  Or as we call it an area of expertise.  You certainly would not want to hire someone to represent you in an area they were not familiar with, correct?  There is something to be said about this expertise.  What spots have been known publicly to have less water or issues with standard septic systems, or subdivisions that will only permit site/stick-built homes or homes over 2300 sq feet, etc. etc.

They must also know (and follow) the rules and regulations set by the department of real estate or they could lose their real estate license. What about the transaction itself?  They should know the entire process front to back.   Do they know the forms and can they explain them to you?  Yes, you may hear from a real estate agent that you should seek legal, tax and accounting advice from those that work in that field.  A real estate professional cannot and should not counsel clients on these subjects.   Goodness!  There is enough to keep on top of at all times!

It may be in the years of business or the number of transactions that will gain this type of knowledge but the most important and best way for you to determine the agent’s knowledge and expertise is in a Consultation.

I can never understand why buyers and sellers want to skip that step!  But visiting with this agent whether in person, on the phone, or a virtual web meeting is crucial.  Preferably in a business atmosphere like their office.  You can then observe how they may interact with colleagues and support administrators. In this meeting a good real estate professional should provide a resume or packet of information.  It should be explained what services are provided by the agent and what is expected of the clients.  Samples of the forms that will be used in the transaction are also important so that the client is not seeing them for the first time when they need to make a decision.  I personally love flow charts!  Providing a flow chart on the entire process puts things into perspective for the client.  This time together should give you a good idea if the professional is knowledgeable enough to advise you on your real estate transaction. It will also establish the communication.

  During the consult did the professional convey the message easily and with confidence?  Will there be a system put in place for future communiques and who will they be coming from-team member, assistants or the agent?  Type and how often would you like the communications to happen?  Who should you first contact with questions?  (You will have a lot of questions!)  This should be brought up in the consultation but if the real estate agent doesn’t address this please speak up!  (Pun intended) Emails, texts, videos, meetings etc.  Hold the agent to this!  The better the communication the better you will feel about the process.

In conclusion, there really is only One (1) Step in finding the right professional real estate agent—schedule a Consultation!  Some may call this an interview or meeting but to have a truly productive time to determine if this professional is someone you want to be your fiduciary agent is to ask for a consultation.

  Consultation

1. the action or process of formally consulting or discussing.

Consulting definition    giving professional advice to the public or to those practicing the profession

Here is a tip for your consultation:

Be honest with what your goals are for real estate.  It is very difficult to advise someone without knowing all of the facts.

After the consultation you have the right real estate professional if you trust and have confidence in their knowledge and if that professional communicated to you effectively and you feel you are now more aware and better educated about the steps and actions you need to take to reach your goals.

Is it time to consult with a professional real estate agent?

If you are asking this question then the answer is YES.  A professional real estate agent will assist you in reaching your goals to homeownership and/or selling your home, whether it is in the current real estate market or in the future.  They should keep in touch with you even after selling or purchasing to provide current real estate information.  Remember, they are keeping their fingers on the pulse of what the national and local real estate market is undergoing and can keep you apprised of the value of your property.

You probably have a tax advisor, a legal advisor, health advisor, financial advisor but do you have a professional real estate agent?  If you don’t then I suggest you schedule a consultation today!