| Copyright 2005-2007 All Rights Reserved Charles E. Marunde & FreeRealEstateLaw.com |
If you're buying a home, you must ask and answer the question, "Should I hire a
real estate agent?" There's only one reason not to hire one--to save the
commission. There are several reasons you might decide to hire a Realtor:
- The Agent has access to thousands of available homes through the
Multiple Listing Service. - The Agent has experience in finding, screening, and evaluating homes.
- The Agent has education and experience in drafting contracts. [See note
on Realtors drafting legal documents & how to stay out of legal trouble.] - The Agent is constantly keeping up-to-date on changes in the law that
can substantially effect your transaction. - The Agent as your "Buyer's Agent" does not cost you anything, because
he/she gets paid a commission at closing out of the Seller's proceeds. - A good Realtor does this full time and is very good at it and very
professional.
You may be thinking, "Where can I find a Realtor like that? I'd hire him." Well,
they should all be like that, but we know they aren't. This does seem to
emphasize the importance of actually interviewing your Realtor before blindly
hiring him, doesn't it?
The tendency of human nature is to assume or think that we can do everything
ourselves, including buying our dream home or investment home. Please be
careful, because that kind of thinking could cost you a small fortune and lots of
stress. As an attorney for almost 19 years, I made a lot of money from buyers
who did not retain my services until after the fact. As I was fond of saying, "You
can pay me a few hundred dollars now for advice, or tens of thousands later,
whichever you prefer." Why use an Agent to buy? It is wise.
Now, let's get to the fundamental rules on retaining a real estate agent. For
purposes of full disclosure, I am both an attorney and a real estate associate
broker. The rules are not difficult, but are not widely known or not widely
practiced.
- Identify an Agent who is first of all competent.
- Filter through those who are competent with another qualification--
honesty. - Hire the Agent because the Agent meets your criteria, not just because
the Agent works at a large franchise. - Know what to expect from your Agent, and know what he/she expects of
you.
Now, let's get into a fuller explanation of these criteria, because for you there is
much at stake.
1. Identify an Agent who is first of all competent.
Before you even contact your agent, see what you can learn about a
prospective Realtor. Realtors like to talk about "prospects" like you. You might
as well talk about Realtors as prospective Realtors. Create a list of half a
dozen Realtors, and then filter though that list. Can you get a good referral
from a trusted friend or business associate? Add that name to your list. Check
out the Internet web sites to see who is doing what in the area you are
interested in. Be careful not to assume that a "Top Producer" can do the best
job for you. Maybe. Maybe not. We're looking for competence here, not just
volume. Check out the Realtors resume, and find out what has he been doing
all these years that will contribute to doing an extraordinary job for you.
Frankly, someone who has been a housewife for 25 years and then gets a real
estate license probably does not meet this competency standard. That person
could do a great job for you on a single family purchase or sale, but you can
still end up with some very serious and expensive battles because an
addendum was not drafted precisely. We never get away from the challenge
that all Realtors have: when a Realtor drafts a contract, they are held to the
standard of a lawyer.
Look at the prospective Realtor's history. Does he have experience in anything
related to real estate that can be helpful as a Realtor? Was he a builder,
contractor, plumber, inspector, loan officer, title officer, escrow agent, attorney,
urban planner, or property manager? If not, it's not the end of the world, if he
has a great deal of education and experience that can substitute. Remember,
the goal is to find a Realtor who knows a lot more than you do about real estate
and drafting contracts, and who can keep you out of trouble in the process.
You want someone you feel is competent and can do a great job for you.
2. Filter through those who are competent with another qualification--
honesty.
Some may think I'm joking when I say find an honest Realtor. I'm not. Honesty
in this context isn't the simple childhood concept of not telling a lie. Today, our
culture has extended the boundary of subtle misrepresentations far into
dishonest territory, but it's not considered dishonest by most standards today.
Word games. There are plenty of them, and what isn't said is often as much of
a misrepresentation as what is said. So be on guard. Make sure you have
enough discernment to recognize honesty, or lack thereof. And, by the way,
there are a few very dishonest agents out there. Don't use them. ("Gee, he
sure seemed like a nice guy when we first met." Heard that one dozens of
times.)
3. Hire the Agent because the Agent meets your criteria, not just
because the Agent works at a large franchise.
When you hire a Realtor, you hire the person, not some fictitious franchise or
building or corporate atmosphere. It's your Realtor who does the work, and if
he can't do it well, the rest of the Brokerage is not going to do it for him.
Furthermore, if he delegates important responsibilities to a non-licensed person
or a less experienced agent, what good did the franchise or largeness of the
company accomplish for you. Maybe the opposite of personal attention.
Ultimately, whether you get outstanding professional service depends on your
Realtor, not the rest of the building.
4. Know what to expect from your Agent, and know what he/she expects
of you.
If you have made a list of half a dozen prospective Realtors (as opposed to just
a real estate agent), filter through that list with further research, much of which
can be done right on the Internet. You should personally interview the final
contestants in person and in their office during the week day.
Once you have decided on a Realtor, tell him exactly what you expect of him,
and ask him if he could do those things for you. Then ask your Realtor
something virtually no one asks their Realtor in the beginning, "What exactly do
you expect of me?"
CONCLUSION. If you do all of these things carefully, you minimize the chances
of misunderstanding with your Realtor, you increase the probability of a
successful relationship and a successful real estate transaction, and that
means more money in your pocket and less stress. And as Martha Steward
would say, "That's a good thing."
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| Should You Hire a Real Estate Agent? How Do I Find a Real Estate Agent? (Written by a Retired Real Estate Attorney Chuck Marunde) |
How to Find a Great Real Estate Agent
| "If you are buying a home, you either need to bring in experts to help you with the biggest investment of your life, or YOU must become an expert in negotiating, market value, title defects, encumbrances, drafting contracts with unambiguous language, dealing with contingencies and addendums, surveys, appraisals, home loans, real estate tax issues, structural and mechanical inspection concerns, the meaning of answers on the Seller's Disclosure Statement, handling earnest money, and a thousand and one real-life problems that actually occur. FreeRealEstateLaw.com is intended as a resource to help you personally work through these kinds of issues. Of course, we don't pretend to be your Attorney, and we recommend you retain your own legal counsel. Please see our Disclaimer." Charles E. Marunde, (360) 775-5424 Real Estate Attorney (Retired), Broker/Owner Sequim & Port Angeles Real Estate, LLC |