Tips for Choosing an Agent
Not all agents are created equally. As you begin the
process of selecting an agent, here are some tips to help you
narrow down the field and help you decide who the right agent
for you is.
Referrals – A good place to start is by asking friends and
family if they have an agent they recommend. Find out what their
strengths and weaknesses were. Just because you know an agent,
doesn’t mean they’re the best agent for you. Do your homework, a
referral is a good place to start, but shouldn’t be the only
criteria you consider.
Experience - How long has the agent been in the business? How
many transactions have they handled? Are they familiar with
unique situations? Do they have experience with foreclosures,
short sales, VA loans, FHA loans, USDA loans, seller financing,
or any other unique situations? Some new agents are fantastic
while some experienced agents are disappointing. Don’t let this
be the only criteria for your selection.
Service – Does the agent go above and beyond the call of duty?
Does he or she provide services that other agents lack? Does the
agent feel grateful to have you as a client, or do they treat
you like you’re lucky to have them as their agent?
Drive – Is the agent passionate about what they do? Do they have
a go-getter attitude? If the agent is ho-hum about your
business, this may be the first sign of more bad things to come.
Hours – Does the agent have a 9 to 5 schedule, or do they have
flexible hours to accommodate your availability. If the agent is
available evenings and weekends this is a good sign.
Accessibility – Can you get in touch with the agent easily? Do
they return calls, Emails, and text messages in a reasonable
amount of time? Does the agent have an alternative point of
contact such as a working partner or an assistant? If you are
having trouble reaching the agent before you’ve signed an
agreement, it probably won’t get any better once you have hired
them.
Availability – Are you ably to easily set up an appointment with
the agent or do you have to wait for several days or weeks to be
worked into their schedule? Does the agent attend inspections
and closings? Does the agent hand off tasks to an assistant that
you feel should be handled by the agent personally?
Expertise – What area of the market does the agent focus on
mainly? Do
they have experience with single family homes, condos,
townhomes, garden homes, duplexes, multi-family, lots, acreage,
or farm and ranch? Do they focus on commercial or residential?
Do they understand agricultural and wildlife tax exemptions? Can
they give you advice on remodeling or new construction? Do they
understand septic systems, water wells, rain water collection
systems, solar systems, geothermal heating and cooling, tank
less hot water heaters, solar hot water heaters, security
systems, swimming pool systems, automatic fireplaces, lake
access trams, automatic security gates, and home automation?
Some agents have experience in all of these fields, but it’s
probably not a good idea to hire an agent who only sells
downtown condos to represent you on you 20 acre horse ranch
purchase.
Involvement / Team – Is the agent involved in the process from
start to finish or do they hand you off to a lesser experienced
team member after hiring them? Are all of the team members
licensed agents? What is the experience level of the team members
that will be working with you? Some teams have a power agent
that acquires the clients and then hands them to an entry level
agent to manage their purchase or sale. This may not be the
right situation for you.
Attitude – Does the agent have a positive upbeat attitude? Is
the agent supportive to your particular situation, or do they
try and fit you into their mold? Does the agent set realistic
expectations, or do they just tell you what you want to hear?
Some agents will agree to anything just to get their sign in
your yard. You don’t want a “YES” man or a “Negative Nancy”. A
happy median is an agent that will set realistic expectations
and esthetically work to accomplish them.
Compatibility – You’re going to be spending a lot of time with
your agent while purchasing or selling your home. It’s best to
make sure you can communicate effectively with your agent. If
your personalities clash, this won’t make for a very rewarding
experience.
3rd Party Support – It takes more than just an agent to close on
the purchase or sale of a home. Does the agent have a good
referral database with contacts each company? Here are some to
the resources you may need for the purchase of your home: Home
Inspectors, Termite / Pest Inspectors, Septic System Inspectors,
Mold & Air Quality Inspectors, Surveyors, Appraisers, Title
Companies, Builders, Contractors, Handymen, Cleaning Services,
Pool Companies, Landscape Companies, Yard Services, and Movers.
Make sure the agent has a wide array of service companies he or
she can suggest.
Follow Up – Does the agent follow up after the sale has closed?
A good agent will send you a homestead exemption form in January
and help you get it filed. They should also send you a copy of
you closing statement (HUD-1) in January to help with your
income taxes. Are they available to help with property tax
protests if the need arises? Good service shouldn’t end at the
closing table.
Consumer Complaints – Check out the broker and agent’s
credibility with local and state licensing agency as well as
their standings with local affiliations. In Austin you can check
with the Texas Real Estate Commission (TREC) to verify that they
have a valid active license and that they are in good standing.
Another good source is the Austin Board of REALTORS (ABOR). You
can also check with the local better business bureau.
For Listings Only
Marketing – You should get a good understanding of the agents
marketing plan for your home. Not all advertising is appropriate
for every listing. While the MLS is a good tool to advertise
your home to other agents and potential buyers, it should not be
the sole form of advertising. In today’s world, 90% of buyers
start their search online. Does the agent have a good grasp of
online advertising? While traditional print advertising still
has some useful applications, no more than 10% of the marketing
budget should be spent on this medium.
Pre-listing Consultation – Does the agent walk through your home
room by room and suggest items to move or remove? Do they give
advice about repairs that should be made or updates that should
be done before listing your home? Does the agent know the return
on investment for various improvements? Can they tell you where
to best spend your time and money in preparing your home for
sale? Often a couple of days of decluttering and touch up
repairs can go a long way to help you sell your home for more
money in less time.
Photography – A picture is worth a thousand words, and since a
buyer’s first impression of your home will likely come from the
pictures they see on the flyer and online, you should have a
professional quality pictures taken of your home prior to
listing. Does the agent hire a photographer or have professional
equipment of their own? Does the agent use professional photo
editing software to prepare them for print and online use? If
the agent starts snapping pictures with their IPhone, this is a
bad sign.
Fees & Extra Fees – Everyone wants to get a good deal, but the
cheapest price isn’t always the best financial decision. The old
saying “You get what you pay for” is true even for real estate
agents. While it may be true that the best agents can charge the
highest fees, just because you’re paying a high price doesn’t
mean they’re the best agent. For discount brokers, find out what
services they’re skimping on in order to offer you the discount.
Many discount brokers charge add on fees for services that are
included in other brokerages standard service. Find out what
they are and if you need them. In many instances, by the time
you add up all the extra fees, the service doesn’t look like a
discount anymore. Make sure these services are included: yard
sign, MLS lockbox, flyer box, color flyers, professional photos,
advertising budget, after hours and weekend support, agent
willing to show buyers your home, buyer lead capture system,
contract negotiation support, and closing support. Finally, find
out if the agent charges a “Transaction Fee” and find out
exactly what it covers. In most instances this transaction fee
is nothing more than an agent bonus in disguise, so take the
mask off and don’t be fooled.
Final Thoughts
While no agent is perfect, a good agent should score fairly high
in most of these categories. If the agent is lacking in several
of these areas, it’s a good sign you should keep looking. Once
you have found the right agent, sign a written contract with
them to officially hire them as your agent. The contract states
that you are their client and they are your agent. This
arrangement provides you many benefits and protections and
assures you that the agent is looking out for your best
interest. If you are working with an agent and you do not have a
signed written agreement, then your official status is that of a
“customer” which does not provide you with the benefits and
protections that the agent / client relationship does.