All Realtors Are NOT Created Equal!
(Part 2 in a Series.)
Now that you’re ready to buy a home, it’s time to put your team together. The first team member to choose and consult with is your Mortgage Planner. A competent and qualified Mortgage Planner will help you define your housing needs, monthly housing budget, and ensure your mortgage complements your financial goals. Then, once you’re prequalified, you can match them to the right property. A competent and professional Realtor will help you identify that property and make it your home.
Your Realtor is the Second Critical Member of your Team
Like most professions, not all Realtors are created equal. It’s your responsibility to weed out the dabblers to find the best. And if that means choosing not to work with Aunt Bettie, who sells houses to occupy her time, so be it.
As a prerequisite to selling real estate in New York, a person must be licensed either as an agent/salesperson or as a broker. Before a license is issued, minimum standards for education, examinations, and experience, must be met. After receiving a real estate license, many agents go on to join their local board or association of Realtors, as well as the National Association of Realtors.
When choosing a Realtor, Consider These Factors
o Ask for references. The best Realtors will be more than happy to provide you the names and numbers of some past clients who would provide glowing testimonials.
o How long have they been selling real estate? Is real estate their full-time career? Every Realtor has to start somewhere. And being a new agent isn’t necessarily a strike against them. Often new agents are more enthusiastic and will try harder. What you want to avoid are sales agents that are using you to learn the ropes and are “faking” their knowledge and experience. In addition, you don’t want an agent who sells real estate as a hobby.
o Is the Realtor Representing you – or the Seller?
This discussion is supposed to occur early on, at “first serious contact” with you. You might consider hiring a buyer’s broker, one who owes the full range of duties, including confidentiality and obedience, to the buyer. (A seller’s agent’s fiduciary responsibility is to the seller.) A buyer’s broker is often paid by the seller, regardless of the agency relationship.
o Is the Realtor Intimately Familiar with the town your Interested In?
Although it’s not necessary that the sales agent live in the neighborhood, he should have an in-depth knowledge of the local market, including values, recent sales to support those values, home styles, schools, demographics, building and zoning laws, etc.
o Will the Realtor help you choose the right home?
Will he provide objective information about each property? Will the Realtor show you homes that meet your requirements and provide you with a list of the properties he or she is showing you? Or will they show you only their listings or properties above your price range? The right agent will show you properties that best suite your needs. The wrong agent will show you houses that earn them the highest commission.
o How Knowledgeable are they About the Closing Process?
Are they skilled negotiators? Can they communicate effectively with all of the interested parties? Are they familiar enough with real estate law that they can coordinate with the attorneys on the transaction? What about the mortgage process? Or do they believe their job ends once the sale’s agreement (the binder) is signed?
Choosing the wrong Realtor can have consequences you won’t realize until much later. This could include delayed closings, missing certificates of occupancy, paying too much for a house that’s not appropriate for you, or even buying a home with issues you weren’t aware of.
But the right realtor can match you with the right house at the right price. You’ll enjoy a smooth transaction, and often gain a new friend, neighbor, and trusted advisor that you’ll cherish for years to come.
Warren Goldberg is a Mortgage Planner, and published author. His interviews include Blog-Talk Radio, Newsday, and the Long Island Herald. His newsletter is read by almost two thousand subscribers. Since 1992, Warren Goldberg has helped thousands of clients own their homes, refinance their mortgages, restructure their debts, and invest in real estate. Warren is known for his wide knowledge of mortgage products and wealth-creation strategies. To learn more or subscribe to his newsletter, visit www.WarrenGoldberg.com.
