How to Choose a High-Quality Real Estate Agent

Performing multi-dimensional research

• Source
• Check references
• Verify license and any disciplinary actions taken
• Look up their practical experience
• Ask this question

Locate several local prospects through referrals (ask friends & family) and utilize a local directory that specializes in agents such as Realtor.com

Once you have a short “hit list,” check their references using an online rating service such as Yelp. Google their name + “realtor” and a quarter page listing should appear with their profile and some reviews as well. If you find none, it means they do not care about their reputation.

People typically sort reviews from bad to good. A bad review or two is not a deterrent—everyone takes a ding from time to time. Did they respond? If so, was the response defensive in tone, or did they own what happened graciously? Did they attempt to remedy a bad situation? Sometimes mistakes happen.

Next, go to the California Department of Real Estate website – www.dre.ca.gov and look them up by name or state license number.

See how long they’ve been licensed as a practicing real estate agent. Have there been any disciplinary actions taken against them in the past. Was their license ever suspended or revoked?

One more for online research, go to Homes.com

Look up the agent (last name first). See how many transactions they have had in the recent past. Homes.com will display how many transactions they have had over a 1, 2 and 5-year periods. Someone who is recently licensed and has had little or no closed transactions, might not have the experience you are looking for.

Last find an excellent negotiator:

Once you’ve vetted a good candidate to represent you, ask this question of a prospective real estate agent (most important): “What makes a good, or excellent real estate negotiator?”

You will likely receive answers that will be all over the place, but there’s only one correct response. A good negotiator obtains as much information as possible early before the offers begin.

Information such as:

• How many properties are currently listed in the area you’d like to purchase?
• What is the average number of days on the market (DOM)?
• How many closed transactions has that area averaged per month?
• What are the average number of price reductions (if any)?
• The answers will help craft the kind of offer you are going to make.

Next, when you find a property you like, and would like to purchase, your agent should get the following information

• Is the property currently occupied or vacant?
• Is it investor owned?
• If vacant, has the owner left the area and needs to sell?
• Did the prior owner pass away and the heirs are selling the property?

The answers to these questions can tell you how urgent the owner is to sell. The more urgency, the more aggressive you can be with your negotiations. Both with your offer price and when asking for seller concessions for closing costs.

I’m frequently astounded how many realtors I see that don’t do any of this. Remember, they have access to tools that you do not. Much of this is relatively easy for them to procure and there’s simply no excuse or reason for them not to.

A real estate agent is your representative and going into the process of purchasing a home without one puts you at a steep disadvantage. Think of this like going into divorce court and negotiating with your soon-to-be ex spouse’s attorney on your own. That attorney has a responsibility to their client, not to you and you will come up short every time.

In summary, don’t just hire the first real estate agent that pops up on a Google search. Dive deep and do a bit of research. The online tools are easy to use and are very informative. Check their reputation, experience, licensing and approach to the business. Most of the folks I work with typically do not perform  truly in-depth research before they hire an agent and many regret it. I hope this article helps clarify what you should be looking for in a real estate agent.