Choosing the Right Agent

There is no question that our real estate market has changed this year. With fewer sales and a tougher market to navigate, how do you choose the agent that is right for you?

With more than 5,000 real estate agents selling properties in San Francisco, how do you go about choosing an agent to service your real estate needs? When choosing one, do you choose a friend, relative, neighbor or co-worker? Should you work with an agent at a large firm, a small firm, a franchise or an independent?

While there are exceptions to every rule, and every marketplace is different, here are some solid rules to apply when you want the best representation to protect your interests. Just remember, in the end, it’s your money that is at stake!

The real estate profession is plagued by high turnovers. Statistics show that 50% of Realtors do not make it past their first year in business, and then another 50% of those who remain do not make it past their second year. This creates a workforce that is made up of many newcomers. While there are brand-new agents with good intentions, why trust one of the largest investments you will ever make or sell to someone without experience?

Always look for an agent with at least a few years of experience. Anyone still in the business for a few years has probably at least learned the fundamentals of real estate; they made the cut and have transitioned into being an experienced agent. Especially in today’s changing real estate market, a skilled negotiator and their awareness of the marketplace can assure that you can obtain the best possible price if you are the seller and that you are not overpaying for a property if you are a buyer.

Another problem we have in the industry is a large number of part-time salespeople. They have either retired from some other career, work in real estate seasonally (such as teachers working the summer in real estate) or are earning a second income for the family by working in real estate evenings and weekends.

No matter how long they have been in the business, their lack of a full-time commitment makes it impossible for them to keep up with the vast changes in the law, market conditions and current business practices that are occurring in the profession today. If an agent is not working full time, look for someone else.

Obtaining a real estate license is extremely easy. All someone has to do is to take a few classes and pass a multiple-choice exam and he or she can sell real estate. You cannot rely on licensing to indicate competence. Unfortunately, many agents’ real estate education ends with their pre-licensing education. Look for someone who is educated in real estate and constantly attends seminars to learn the most current trends and selling techniques.

Before you hire an agent to help you buy or sell a home, you should interview at least three agents in person. In order to do this, first get recommendations from friends, family and neighbors. Then do some research on the internet to see what kind of marketing the various agents and companies are doing in your area and call the few that impress you. Then make brief fact-finding calls to determine which of the agents on your list are full time and experienced.

The interview itself need not be a formal one. It is just a time for you to meet the agents, to explain your real estate needs, and to determine whether you would be comfortable working with him or her. Ask whatever questions you like, or simply explain your goals and listen carefully to what they propose to do to help you in attaining your them. Ask if they have been through a down real estate cycle like the one we are experiencing, and what they are doing differently to assist their clients during this time.

If you follow the suggestions above, you will find that there are excellent agents working for firms both large and small; both franchised and independent. Thus, the real decision must be made based on the competency of the individual agent you will be working with on a day-to-day basis, especially in this rapidly changing market.

John M. Lee is a broker with Compass specializing in the Richmond and Sunset districts. If you have any real estate questions, call him at 415-465-0505 or email at johnlee@isellsf.com.