My theme as 2004 president of the Oakland Association of Realtors is the importance of how we, as Realtors, do business. Many people are not aware that only approximately one-third of all licensees in California are Realtors, members of the National Association of Realtors, as well as State and local Associations. Despite the fact that Realtors are bound by a strict code of ethics, there is much room for improvement in how buyers and sellers are represented.

Possessing a real estate license is evidence of passing a fairly simple examination; it is not an indication of understanding the intricacies of the business. There are incredibly capable, bright and diligent individuals selling homes; others are predominantly salespeople. The difference is in the desire to acquire the information and skills necessary to be a professional.

Learning first, making sales later, is not a mantra ascribed to by all Realtors. As the number, but not the quality, of licensees in our area has more than doubled in the past eight years, it is important, whether as a buyer or seller, to discern what an agent should be doing for you. Some of these items include:

Communicating. Eliciting relevant information from you regarding your needs; distilling often complex concepts into simple language.

Negotiating. Communicating with others (e.g., other agents, trades people, escrow officers) on your behalf.

Pricing. Having knowledge of the local market and a keen sense of the appropriate amount to ask or offer for a particular home.

Financing. Understanding the limitations of a buyer's ability to purchase and the risks and advantages of various financing scenarios; accurately judging which lenders may or may not be the most reliable.

Condition, inspections, reports. Perceiving the inescapable link between condition and value and how to order and evaluate inspection reports; this includes a familiarity with trustworthy inspectors and those to avoid.

Purchase contract, listing agreement, related documents. Possessing expertise with the nuts and bolts paperwork of real estate.

Presenting and handling offers. Being adept at presenting a buyer's contract to a seller and his agent, as well as knowing how to review and analyze offers for a seller when acting as the listing agent.

Marketing. Seeing how to position a home in the marketplace and show it in its most favorable light.

Solving problems. Serving as a problem solver vs. a problem maker; utilizing experience to avoid predictable pitfalls (before, during and after escrow).

Managing escrow. Following through on the details and dates of an escrow to shepherd it to a successful close.

As an expert witness in real estate matters, I am periodically called upon to evaluate a licensee's “standard of care” in a specific transaction. This, of course, is after a practitioner has been accused of failing in his or her responsibilities.

Agents owe their clients “a fiduciary duty of utmost care, integrity, honesty and loyalty” (Agency Disclosure form). Sadly, not every buyer or seller can count on this treatment.

In our ever-quickening, “me-first” world, we, as customers, are not always the top priority. Making money sometimes trumps doing the right thing. This is true whether we are doctors' patients, lawyers' clients, purchasers of computer equipment or home buyers/sellers.

I am committed to elevating how Realtors function. Our business is not worse than any other. It is, in my opinion, not really better either. That is the disconcerting thing about business: acts of neglect or worse are often unjustifiably justified.

This problem would quickly disappear if buyers and sellers took the time to think about the real estate person they are hiring. If the public worked with only those who give extraordinary service and loyalty, those who do not would either change their ways or leave the business.

At this point, you may be thinking, “I would hire a high quality agent if I knew how to find one.” Actually, there are many out there; they are successful because of repeat business and referrals based on the excellence of their service.

You, however, must do your homework on what you require from a Realtor. Take responsibility for conducting interviews before committing to an agent.

Due to the expense and its complicated nature, most people need professional assistance in buying or selling real estate. Nevertheless, too many make the mistake of underestimating the process and the necessity of superior representation.

Remember to choose a Realtor who will work in your best interests. When how we do business becomes more important than how much business we do, I will have accomplished my purpose.

Related Articles: How to Interview Agents, Part 1, Part 2, Part 3, and Part 4; Reputation: Good, Bad or None?; Communication Skills Are Important; and Protecting Sellers