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PDF Editor FAQ

How do most people decide on which Realtor to work with? In CA, everyone (and their mother) is a licensed Agent. How did/do you make a decision on who to use?

Ahhh yes. It’s an occupation that welcomes everyone (almost) regardless of skill and capability, wastes their time endlessly while over rewarding them when they accidentally “catch a fish” thus keeping the zombie nation alive to fumble through someone else’s life another day. Good luck.My reply is entirely too long, sorry. One could write a book on how to pick an agent. Time and effort do pay off.It is a HUGE disservice to the many competent able agents in the industry that are worth their weight in gold that the dotards among them don’t wear signs. But new and more agents are a money machine for NAR and the state governments that “protect the public” so don’t expect it to change until the banking industry figures out they could be blowing their lending numbers off the charts by competing with staff agents… really don’t take me down this dark path. “Realtors” are one bottom Jenga(r) block away from becoming Authorized Real Estate Agents, all NAR has is the MLS which really is only as good as it’s oldest listing (the commercial agents mostly gave NAR the boot years ago) and they are all vulnerable to Zillow becoming a listing service rather than a licensor of data playing nice with valueless area boards… in time. Back to your question…I have been licensed since the 80’s and hold the highest of designations awarded by this esteemed group of “professionals”. I did extensive research on Realtors a number of years ago because there were so many that sucked. (Except in Texas where it is much harder to get a license then anywhere else I am aware of and they are pretty capable there. The “average” NAR residential agent closes 5 homes (sides) a year - AVERAGE… there are many many many agents that close 5 homes a month or more… do you know what that means for the rest of them… right - you’re the only deal they will do this year… I will now try to just stick to an answer and limit my opinions.i do not know from your question if you are hiring a listing agent to “help” you sell your home, or a buyers agent to “help” you buy a home… or looking to trade commercial/investment or development property. It matters a lot and as you’ve already surmised, they all look the same on the outside but the results can be night or day. I’m going to invest some time in an answer to residential only but both buy or sell. For commercial, start with a lender and a lawyer and find a CCIM.The purchase or sale of even a home can swing by tens of thousands of dollars or more - who you hire will save or squander those funds so you’ll have to do some work - but it’s worth it - the money will come back to you if you hire a good agent. They are out there (I would start with ReMax agents, and I’ll discuss why at the end, I am not a ReMax agent but was for years before having my own firm)If you are buying a homeyou will search Zillow without me even telling you to. But don’t hire an agent and go looking. Hire a lender first. Get your income and debts together (and whatever equity you might have in your home to put into your next purchase) and find out what you can truly afford to borrow. What’s your credit score and what kind of rates you can expect to get. Lock it in and get your preapproval letter. Now you can go shopping without heart break or delays.if you know the area where you want to be, you can move to the next step. If you don’t, then you need a relocation expert (A Certified Relocation Professional CRP - yes, I was one once years ago when I worked in homes) can be acquired through your HR dept. at your company if they are helping with moving costs or you need to find one on your own which you can do through WorldwideERC which is a great org for helping people move long distances and getting agents and supporting services to make that go more smoothly. Note ColdwellBanker agents are big in relo but their skills vary too so check out your agents background deeply before hiring. But a CRP knows their stuff.Use a search engine and a mapping tool to find real estate offices in the areas where you would like to be. What you are looking for in an agent (now that you’ve got the banking locked in) is industry relations and service of the contract & process - pricing and negotiating skills and knowledge of specific problems you need solved in the area (Drs, schools, religious affiliations, gyms, civic centers, libraries, shopping, restaurants, etc.) and transferring risk. they won’t likely run you crime reports but you should find that on line and pedophile websites on your own and look them over. Visit the schools if you care (you should care for resale) and see how they rank, how big they are and how long their teachers stay. Private schools in the areas help if the public schools are sub par but it’s great if the public schools are strong (your homes value will grow faster). They will offer vendor lists like insurance and licensed contractors but get 3 bids on this sort of thing anyway if you need services.interview questions for a buyers agent: how many buyers are you workin with now? Are you an agent or a broker? Do you work on a team? How is work divided? Are their any buyer specific fees beyond the commission you are responsible for paying (you’d be surprised!) Ask then explain how “representation” works in the state the property is in. How many years have you been in the business? How many homes have you sold over those years? What price range do you mostly work with (do not work with a luxury agent if you’re buying something less than 25% below their average client sale / DO work with a first time buyer specialist if you are a first time home buyer!!) what’s the average contract to close time frame for Pre approved buyers? Have you ever had a deal miss a closing date? (Yes) Why didn’t it close in time? How did they resolve the issue? How will they help you determine an offer price on a home you select? (Hint asking price isn't it). Have you ever been involved in a law suit? What was your role? How was the matter resolved? Has your license ever been suspended or revoked? What is your average response time to communications? How do you prefer to communicate (text/email/phone)? Do you have an assistant? Are they licensed? Do you have a pre-showing checklist I can use? How much do you recommend (as a %) buyers escrow at signing? Do you expect another deposit After inspections are complete or all contingencies are met? What are their thoughts on inspection duration times? Pre-closing possession / post closing possession? Who selects a contractor for repairs (buyer/seller)? What happens prior to closing if repairs are not properly made? What about after closing? Where are they on As-Is contracts? Tell me about the most difficult transaction you’ve ever closed - what made it difficult? How was it resolved? Have you ever fired a client? If yes, why? Have you ever had a contract not close? Why didn’t it close? What happened to the buyers escrow? Have you ever had a buyer lose an escrow? If yes, why and what role did you play? Who Watches/manages dates in the contract? What happens if one is missed? What happens if the seller doesn’t perform to the contract? What days of the week do you recommend for closing and why? What happens to unexpected expenses (like movers/hotel stays/travel expenses, ect.) if the seller can’t close on time or vacate and turn over possession on the contracted closing date? Do you expect me/us to sign an acceptance of condition during a pre-closing walk through? What liability does this transfer to us? Why do you use the title companies you use? How long have you been using them? (They will tell you you can choose whoever you want but how are you supposed to know who to select? pricing for title insurance is likely set by the state and contrary to what you may hear from others it IS a valuable asset.) Just pay it and sleep at night knowing that the entire worlds’ economy functions because you do. The fees however ARE negotiable and you should ask for a copy of your costs (the HUD-1) at least 48 hours before closing. Your lenders fees will be most of what you pay for as a buyer.Paragraph 4 is LOADED with small punctuations of your experiences that will matter a lot. Inexperienced agents have fewer problem solving skills or know the seemingly small decisions (like don’t close on the 15th, or 30th or 31st or a Monday or a Friday) that matter a lot; they simply haven’t helped enough people to know how to help you. Don’t be OJT for newbies. Life doesn’t have to be that hard, and in this case good skills and bad ones cost the same dollars.you will notice the above is date and market unspecific - times of the year, competitive vs dead markets, unique properties with some other quality to them (like rare architect or purpose) make your transaction a whole other issue beyond the basics. The more you’re issue is outside the “norm” the more important it is you pick a great match for your needs.interview at least 4 agents; the ones who can answer the questions will separate the good ones from the newbies very very quickly. Don’t be scared off by harrowing stories - Sh*t happens, it’s how they helped their clients resolve it that matters.If you are selling a home:interview no fewer than 4 agents (the number you interview will be determined by the answers you get in the interviews). Find them by knowing who the best ones are because you’ve lived in the area forever and everyone knows who the top 10 agents are that have been working their market for years - or you have no clue so follow on… (a) using Zillow first (this is what all buyers do, the MLS is virtually worthless for finding buyer, agents are Uber drivers and clerks - buyers drive the search now and if you’re not on Zillow your house doesn’t exist) - “search” Zillow for a home exactly like the one you live in give or take 500 feet. And open the search up to all the zip codes that the schools your kids do or would attend. Zillow will provide you with a list of homes currently on the market with agents lucky enough to have a listing like yours close to yours at that moment. This is not enough information but it’s something helpful. Print the list no matter how long and make notes of all the agents names and brokerage offices they work in. Bonus points for agents that have more than one listing in the area of your home. If there’s something unusual about your home for your area you need a specialized agent (these are harder to find). (b) using google or a mapping program or search of your choosing, locate real estate offices near your home. Write them down, call those offices and ask for the name of the qualifying broker (or you can likely look up the name of the qualifying broker on their websites - in my state by law the name of the QB has to be on the website) and IS also searchable on the website of the states real estate regulating agency (that regulates licenses). Also do this for the four to ten offices with the most listing on Zillow from your search above.Using your new data, Call the QB of the offices with listing and close to your home and ask who their top performing agent /team is in their office. Also ask that that team/agent produce a report (list) of all the homes THAT THEY ONLY, THE TEAM (not the whole office) has listed and sold within (a) your zip code and (b) a 10 mile radius of your homes geography in the last year (rolling 12 moths). (This list should only include SOLD AND CLOSED) and it should be in excel format and show 1 Home address, 2 listing agent AND selling agent (name and office) 3 general details (bedrooms, bathrooms, age of home, land size, sqft,)4 total days on the market and 5 original list price vs sold price. Tell them you would like to meet one of the agents on the team and will be coming by to pick up the report. IF your Zillow report indicates there’s more than one great team in the same office, ask BOTH/EACH team to produce the report for you. Go. Meet the agent briefly, let them know you are planning to interview agents. Pick up the report (did they give you what you asked for? Did they load you up with marketing crap? Do they listen?). Take the info home, look over it and compare to the others.Go to your area grocery store or pharmacy and look for a copy of homes and land magazine. Pick one up (they are free) look for properties in your area similar to your home advertised for sale. Note the agents names. Google the agents and visit their websites. Like them? If yes, call and ask them for the same report you got from the area office top performing teams. Go. Meet them, pick up the report.By now, you likely have found the names of 4–20 realtors that are actively selling and have historically been selling (more than their own credentials) - actual homes, possibly even ones like yours. Choose the 4 that you feel stand out to you and interview them. If you like one group enough, hire them and listen to them. They likely know their stuff and can guide you through the process from which you will benefit from their likely years of knowledge - of the area, the standard contracts, what can go wrong, proper pricing, how to set your home up to sell for the most, how to handle your transition, nonsense that the buyers side should not do, qualifying buyers (so your time isn’t wasted), area schools and amenities, area employers and civic services; a whole host of skills the inexperienced and confused agents don’t even think about because their worried about screwing up all day. Because the only time they’ve read the contracts they are going to ask you to sign was in their class three years ago and they can’t answer questions because they don’t know the area, can’t help you work through issues that come up because they haven’t had enough experience to know what to do. They don’t know one title agent from the next… the list is so long of things a bad agent can screw up.interview questions: how many listings are you working with now? Are you an agent or a broker? How is work divided On your team? Are their any fees beyond the commission you are going to be responsible for paying (you’d be surprised!) Ask them to explain how “representation” works in the state the property is in. How many years have you been in the business? How many homes have you sold over those years? What price range do you mostly work with (again do not list your home with a luxury agent if you’re selling a home that’s less than 25% below their average client sale / DO work with a listing agent with a first time buyer specialist on their team if your property has 1–3 bedrooms and is less than $210k - they have many first time home buyers!!) what’s the average contract to close time frame for Pre approved buyers? Have you ever had a deal miss a closing date? (Yes) Why didn’t it close in time? How did they resolve the issue? How will they help you determine a list price on your home? What if I don’t have the history of all repairs ever made to my home? What if I forget to dispose something repaired years ago that becomes an issue after the closing? Have you ever been involved in a law suit? What was your role? How was the matter resolved? Have you ever had a seller sued for specific performance? Has your license ever been suspended or revoked? What is your average response time to communications? How do you prefer to communicate (text/email/phone)? Do you have an assistant? Are they licensed? How do you market my property? What should I change before showing? Who pays for photos or drone videos? How much do you recommend (as a %) buyers escrow at signing? Do you expect another deposit After inspections are complete or all contingencies are met? What are their thoughts on inspection duration times? How much should we be expected to spend on repairs? How do you feel about Pre-closing possession / post closing possession? Who do they feel should select the contractors for repairs (buyer/seller)? Will vendors warrant repairs if they are not properly made? Do they all carry licenses? What about after closing issues on repaired items? Where are they on As-Is contracts? Tell me about the most difficult transaction you’ve ever closed - what made it difficult? How was it resolved? Have you ever fired a client? If yes, why? Have you ever had a contract not close? Why didn’t it close? What happened to the buyers escrow? Have you ever had a seller lose an escrow? If yes, why and what role did you play? Who Watches/manages dates in the contract? What happens if one is missed? What happens if the buyer doesn’t perform to the contract? Will you qualify all buyers who see my home before a showing is scheduled? Will you attend all showings? Does your firm carry insurance if something is stolen from my home during a showing? Will agents be allowed in my home without you there? Will buyers be allowed to come into my home without an agent present? What days of the week do you recommend for closing and why? What happens to unexpected expenses (like movers/hotel stays/travel expenses, ect.) if the buyer can’t close on time or take possession on the contracted closing date? Does the buyer sign an acceptance of condition during a pre-closing walk through? What liability does this transfer to us? Why do you use the title companies you use? How long have you been using them? (They will tell you you can choose whoever you want but how are you supposed to know who to select? pricing for title insurance is likely set by the state and contrary to what you may hear from others it IS a valuable asset.) Just pay it and sleep at night knowing that the entire worlds’ economy functions because you do. The fees however ARE negotiable and you should ask for a copy of your costs (the HUD-1) at least 48 hours before closing. Your agents fees will be most of what you pay for as a seller.after interviewing agents (and each one should give you a Brokers Opinion if Value) check for how professional and thorough they are. (If they are sloppy or hard to get a hold of winning your business it only goes down hill from there!) Ask them how they chose their comparable sales and the price range to list (btw, the software does some of this for them now but sharp agents put more data in and get better results out.) They also try to see your home the way a buyer would see your home. Ask them candidly what you feel are your properties assets and liabilities. Ask them if you can tour the three or four comparable homes that show up most frequently on the reports all agents are giving you. It is worth your time to view your home the way a buyer would view it. (but only tour with the agent your most likely to choose) The hardest thing a seller has to do is be objective! eliminate agents that present to you homes that do not compare to your home. They will stick out like a sore thumb and you’ll see they may be trying to under price your home to get a fast sale or over pricing it to flatter you into listing with them. You want the home to sell fast but if it goes too quickly, it’s likely under priced. Even in a fast market.A lot of people and agents will likely not care for what I’ve written here but I’m a warrior from the trenches whose been in real estate virtually my entire life in some capacity. It’s solid. You have more than enough to go on to select a competent agent here. Good luck.My early note about ReMax agents stems from the way their brokerage model works. See, most agents get Just a piece of the total commission the seller pays at closing after the qualifying brokers take their cut. QBrokers typically hold back anywhere from 15% to 45% of the total commission based on how lucrative an agent is at closing volume. QBrokers pay some marketing costs and some fees and maybe insurance (rarely) but the agents give up a pretty healthy chunk of their fees on each deal. But ReMax agents have a different model that rewards agents that close more deals - the agents actually pay the broker to be a ReMax agent. It’s “free” to be an agent at KW or CB or BHHS. At ReMax you pay an annual fee and in some cases (every office is different) a monthly fee just to be a ReMax agent - why? Because they keep a bigger split at closing. Rather than 55% - 85% They keep 95% to 99%. Whose going to take that deal? Only closers. Agents who don’t do as much business don’t want to pay out guaranteed dollars if they aren’t going to close. But it’s a far better deal for the good agents that get closed to pay the fixed fees to keep a larger % of their check at closing. This doesn’t mean their aren’t great agents in every camp - there are. There are just a lot more newbies and part timers and that’s who I’m trying to help you save yourself from. ReMax attracts closer.hope this helps. Sorry it’s soooo long.

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