Parts one and two of the series focus on buyers
Parts three and four cover considerations for sellers.
This is the first of four articles discussing what homebuyers and sellers
should think about before choosing an agent. As both a salesperson and
a manager, I have seen the negative consequences of not taking the time
and making the effort to choose a competent agent.
Although there are many ways to dissect the function of an agent, three
broad categories are communication skills, technical ability and knowledge
of the market where you want to buy or, in the case of sellers, where your
property is located. Underestimating the critical nature of these skills
could cost you money and heartache.
Despite what many may think, most buyers do not choose their agent;
they let an agent select them. Why? It is because these buyers may not
fully understand what real estate agents do and the importance of working
with an experienced professional.
As a buyer, you could end up with a particular agent for reasons conscious
and unconscious. The agent may have the qualities of a favorite friend.
A male Realtor may have a deep, powerful voice that assures you. Perhaps
you respond to the way an agent looks or dresses. You may be drawn to someone
authoritative. Conversely, a mellow, easygoing manner may attract you.
They are all valid, but your choice should not be based on these factors
alone.
Many buyers without agents make the mistake of going to open houses
shopping just for homes; they should also be looking for an agent. These
are people who decide not to worry about choosing an agent until after
they find a home they like. Meanwhile, they may feel overwhelmed and resentful
about being approached by agents at every open house they visit.
If you feel that way, or have in the past, consider this: agents are
at open houses to sell the home and meet new buyers — mainly the latter.
Take this as your opportunity to learn about a lot of agents in a relatively
short time. Think of it as a smorgasbord of agents from which you can pick.
Your job is to observe the agent. Be conscious of what attracts and
repels you and why. I suggest being prepared with some questions to ask
the agent if he or she does not volunteer information. These questions
can also be used once you have narrowed the field and are ready to make
a final choice.
Are you a full-time agent? If the answer is no, eliminate from consideration.
How long have you been in the business? Go for experience, unless
you want to be the guinea pig for a newer agent. The size of the company
and its excellent training program do not change my recommendation. Answers
like, “Longer than I want to remember,” are usually meant to be evasive.
As a buyer, why do I need an agent? You will get some interesting
replies. You should be able to begin to differentiate agents by the quality
of their responses.
How’s the market? Top agents know the market is always changing and
adapt accordingly. If the agent doesn’t volunteer, ask the direction of
prices and the amount of activity in the areas of your interest. You can
also ask how business is for that agent, but most agents will say they
are doing great, even if they just borrowed money for their mortgage payment.
How familiar are you with...? Insert here the areas of your choice.
Use someone local, he or she knows the territory.
Do you prefer to work with buyers or sellers? Most top producers work
with both. Some agents who say they prefer buyers may be weak at getting
listings.
How are you different from other agents? Many agents will emphasize
their “service.” Look for other aspects, e.g., specialized knowledge and
experience, advanced professional designations and participation in Realtor
organizations.
Long before you get to the end of your questions, most successful agents
will have asked for your phone numbers and an appointment. If the agent
does not, he or she may not be assertive enough.
How the agent communicates with you is a reflection of how good a job
he or she will do in communicating for you, e.g., when presenting a purchase
contract to the seller on your behalf. The key attribute in effective communication
is the ability to listen. Top professionals do this very well. They want
to understand your needs from the start in order to best help you.
Your first contact with the agent may be at an open house, calling on
a newspaper ad or sign, or a referral from someone you know. Regardless,
the best agents usually request a face-to-face meeting during this first
conversation. This is known as a buyer interview or buyer “probe.” The
purpose is for you to interview each other.
Be wary of agents who want to immediately get you into their car and
show you property without first taking the time to find out what you want
and why. This cannot be done effectively in a short chat at an open house,
on the phone or in the car. If you are serious about buying, you should
be delighted to take the opportunity to meet with a good agent. To reassure
buyers, I always stress there will be no obligation, on their part or mine,
unless we mutually decide to work together.
Now you are in the agent’s office. Keep in mind that 55 percent of all
communication is nonverbal; 38 percent is related to tone of voice; and
only 7 percent is words. Use this knowledge when observing the agent and
notice how he or she is attentive to you.
You will be able to tell relatively quickly how good a listener the
agent is and whether he or she is listening to understand or listening
to reply. It will not be difficult to discern who is doing most of the
talking. Let the agent take the lead; you will learn more about him or
her that way.
Excellent communicators spend up to 80 percent of the time listening,
not talking. After all, how much can I learn about you and your situation
from talking? This is why effective listeners ask numerous, open-ended
questions, ones that cannot be answered simply “yes” or “no.” Agents who
talk at you do the same with everybody. This will work against you, especially
in negotiating.
One technique to assist in communicating is called “reflective listening,”
where the listener repeats or paraphrases what you have just said. What
better way to know that someone has really heard and understood you? For
example, you might say, “It is important for us to be in our new home by
mid-August so we can get the kids situated in their new schools.” If the
agent then addresses the factors involved in closing escrow by mid-August,
you know he or she was listening. If he babbles, “Let me explain why my
company is the biggest and best in the area,” this would be a clue to keep
looking. You don’t need to be convinced. You need to be understood.
The most significant thing for you to communicate, and for the agent
to know, is your motivation. Why are you in the market to buy at this time?
Are you downsizing because the kids have moved out? Do you or does someone
in your family have a health problem? Did you just get transferred from
out-of-town with a big promotion? Or were you transferred with a salary
cut in order to avoid losing your job?
Understanding your “why” is everything. Rarely, however, do buyers quickly
and easily disclose this vital information. The most capable professionals
gear all their questions to uncover your motivation. The right series of
questions, when answered by you openly, will always reveal your reasons
for buying. An agent must be clear on this in order to do a truly effective
job for you.
Obviously, you will divulge personal details only if you feel comfortable
and trust the agent. You will know in an hour or so if you have this trust.
By that time, the agent should be able to summarize your situation to your
satisfaction. If this is so, and the Realtor meets other criteria I will
cover later, you have found yourself an agent. You will have the beginnings
of a positive relationship that can endure for years.
My wife and I are fortunate to have made a number of lasting friendships
with people who started out as clients. This continues to be one of my
greatest joys about being in the business.
How
to Interview Agents, Part 2, Part
3, Part 4; Use
Local Agent; Clarifying Reality;
Another
New Contract, Part 1 and Part 2;
Not
Just Termites, Part 1 and
Part 2;
Are
Permits Important?; Check Drainage;
What
Is A Bedroom?;
Understanding The Market
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