A tale of two realtors: Choosing a real estate agent
Feb 04 '01
The Bottom Line Choosing a realtor really depends on how you as the purchaser or seller view the process and how much input and support you want in the process.
If you've read my recent advice epinion called "Robbing Peter to Pay Paul: A Tale of Two Houses", then you know I recently purchased a new house and sold another, nearly simultaneously.
An addendum to the story is that I used different realtors for each transaction, and it gave me a real look into how to select a realtor. Note that these qualities apply to both buying and selling realtors.
The Referral
Of course the best way to find a good realtor is like any other service profession - get a good referral. One agent was actually a husband and wife team, and a long time family friend. The other is the spouse of a co-worker, who is also a friend (though not a close one). Thus, we trusted each, despite having no idea about the quality of their work.
My story
I’ll leave names out to protect the innocent, but each of the realtors was very good, though in different ways. Realtor Number 1, the couple (Agent A) helped us buy our first house, and to sell it. Realtor Number 2, (Agent B) helped with the second house. I chose two agents not because I was unsatisfied, but because I moved to an new area of the San Francisco Bay Area that Agent B knew a lot better.
Looking for houses
When I went looking with Agent A, I received a spiral bound notebook filled with a few houses, including pictures, with the showings already set up. We went from house to house to house. Agent A told me that they did not include any area where they would not want to live, so some less expensive houses were left out.
When I went with Agent B, I went to his office, and sat with him at the computer while we input different zip codes and price ranges. We then looked at house descriptions (and he gave me tips about things to look for or not look for), and he made calls to set up showings, and off we went.
The real question here is whether you want to be spoon fed, or whether you want to see all the info. Also at issue is whether you want organization up front or not. The tough part is that you can really have organization and not be spoon fed, as organization means decisions must be made by the realtor beforehand.
I suppose what I would have wanted is the full listing approach of Agent B 2-3 days beforehand, and then an organized showing on the day of.
The Offer
Deciding how much to offer or accept can be one of the toughest decisions in buying a house. The real question is how much help can/will your realtor give you?
On the first house, Agent A was lucky enough to know the realtor on a prior deal that had fallen through. We thus knew a prior accepted price. This is what you call “connections”. We were able to make a fair bid (higher than the first price mind you) and get the house. On the second house, Agent A said “you probably won’t do any better.” We agreed, and accepted the house. This was very definitive advice.
Agent B said “you should put your best foot forward” and showed me some comparable listings and sales, and left the decision to me. He was very patient as we drove around to each of the “comps” to compare the house I was impressed with to the others.
The Paperwork
Agent A had us travel several miles to do the “signoff” for our first house. It sucked. They set up the second one down the street from my office for the second house.
Agent B worked with a mortgage broker that brought the papers to both my office and my wife’s. It cost a bit more, but it was completely worth it. I would prefer this.
Control
Agent A believes that control is the key to getting the job done. Thus, nothing is left to chance, or even to the homeowner, if necessary. They arranged all title work, all service, getting keys copied, getting reports done, the painting and carpeting and cleanup, everything. Why? They want absolutely nothing to get in the way of getting the job done. I like this view.
Agent B is much more willing to let the homeowner take control and set up appointments and work. This is preferred by some people, but not really me (I am just way too busy).
The Support
Agent A’s support team was and is, in a word, superb. The people who did property inspections, termite inspections, roofing inspections, carpet and flooring, painting, cleanup and general carpentry (yes, we used all this when selling our house) were all fantastic and affordable. You will want to ask the realtor about who they use for these things and how long they have worked with them - this will give you an idea about quality (for example, Agent B worked with the same mortgage broker for 15 years, while Agent A switched in the last 2 years - this told me a lot)
I didn’t get to evaluate Agent B, because I bought the house “as is”, so there was no real support staff. One point, though, was that I needed a copy of a report, and he recommended I call an office assistant that promptly helped me. I would have liked (and Agent A would have) him to handle the arrangements, and not make me take steps necessary to make it happen.
Personalities
I like both Agents A and B. You don’t have to like your realtor though, if they get the job done in a satisfactory way. This is not a long term relationship. Just like buying a car, you will gradually forget the interpersonal pain associated with the purchase if the outcome suits you.
Conflicts
One key point is that you do not want to have the same realtor representing buyer and seller. Even if the other party is unrepresented, you should make it clear to your realtor that they are your agent. Why? There is an interesting conflict of interest - your realtor gets paid more money when the home price is higher. I believe that a quality realtor has no problem in trying to get the buyer the lowest price (our realtors actually wanted us to bid lower than we did when we bought our first house - and they were right!).
However, if the realtor represents both parties, the interests are torn between two parties, and the seller will wind up with a higher price to increase the commission.
Conclusion
Choosing a realtor really comes down to what works for you and what type of personality you have. I was happy with both, but I would probably choose Agent A again (though in the right area, I would choose Agent B). I hope that my story here will help you make a choice - my goal was not to define a checklist, but to allow you to see how the process affects what you might want to do.
 |
|
|
|
|
|
|
|
© 1999-2009 Shopping.com, Inc.