Have you ever returned from a doctor’s appointment feeling frustrated?  Or from your accountant or mechanic? I certainly have. I rely on these professionals to advise me in areas I lack expertise. Unfortunately, I often do not get all the information I need. They filter the possibilities and, generally, provide one or two suggestions. There may have been other choices, but I’ll never know what they were. Of course, I am aware that giving the “whole story” takes a lot more time, energy and caring than the edited version I receive. Extra time seems to be sacrificed because of a need to “turn over” more patients, clients or customers. Literally, “time is money.”

Because I prefer to know what all my options are, I choose those professionals who treat me as a unique individual. For example, some time ago I changed my CPA. Although he was quite knowledgeable and had previous experience as an IRS auditor, I didn’t feel he gave enough thought to my individual situation. Our yearly tax meetings were rushed. One day I read about various legitimate deductions he never mentioned. When I brought this to his attention, he had no reaction. My reaction was to hire a new accountant who takes the time to discuss all my options.

Real estate, as a technical, complicated business, can be considered in the same category as the services I have mentioned. Whether you are a buyer,  seller, or both, there are two aspects to each side of the transaction. As a buyer, your first phase is the search for the home of your choice; the second phase is the transaction itself, i.e., the negotiations, purchase contract and escrow.  As a seller, you first market your property to find a buyer and the transaction follows. At each step, there are numerous decisions to be made. Your choices could have a positive or negative long-term effect on your finances and life-style.  Don’t you want to know all your options?

Some questions may illuminate my point. As a buyer in the search phase, there is more to it than just liking a neighborhood.  Assuming the agent is more familiar with the territory than you are, does your agent explain which neighborhoods in your price range are preferable and why? Or, does the agent only show you homes in the area you say you like, even if it is a less desirable one?  Which is easier? Which shows more caring?

If the property is in or near an earthquake fault zone (also refered to as a “special studies zone”), how far does your agent go in helping you understand the implications? Does the agent offer to take you to the city planning/building department so you can look at their maps and ask questions? Does the agent point out the possible relationship between such a home, its present resale value and what its location will mean to that value when you want to sell? What does your agent tell you about the 1993 state law that mandates specific regulations for cities and counties regarding the earthquake fault zone?  If the property is located near a fault line, are there any restrictions concerning structural changes you may want to make? In the event it is damaged by an earthquake, what about the possibility you might not be allowed to rebuild your home? Would you even be entitled to insurance proceeds if you were prevented from rebuilding?

These are all thought provoking, and possibly scary, questions that you might not know enough to ask. How would you feel about finding out after the purchase is completed that you didn’t have some relevant facts you needed? A real estate agent is not an expert on earthquake information, but he or she should be able to convey issues and suggest resources for answers.

As a seller in the marketing stage, what advice are you receiving? Is the agent in a hurry to have you sign listing papers and get your property on the market right away? Does the agent explain the benefit to you of investing some time and money before you expose your home to the market? Cleaning and freshening up usually helps unless the property is a "fixer-upper" with major, deferred maintenance. Does the agent clarify how this could contribute to getting a faster sale for a maximum price? Would your agent be willing to wait one, two or three months, if necessary, to get your home in tip-top shape for selling? How much assistance will your agent give you in getting the home ready? Does he or she have a team of people who know how to prepare a home for sale at a reasonable cost to you?

When you are sitting and discussing the buyer’s contract, what steps does your agent take to protect you? Has he or she asked the appropriate probing questions about the buyer’s financial situation, credit history, available cash and employment? Are you cautioned about writing a “blank check,” where you agree to pay for something without a limit? What about those boiler plate contract clauses that could cost you thousands unless you limit your liability with specific language? Does the agent take the time to discuss all this verbiage in a way you understand, or is your agent happy to have you sign and move on?

At various times of our lives, we deal with a profound concept: not knowing what we don’t know. This does not excuse us from being responsible for what happens as a result of our not knowing. We have to make sure to ask enough of the right questions. One of my favorites is: “What else should I be asking you that I don’t know enough to ask?”

As a buyer or seller, you need to understand that information sharing is a two-way street. It is essential for you to trust that your agent cares more about protecting you than just turning another sale. You must also be forthcoming with specifics about yourself, telling the agent what he or she needs to know in order to do a good job for you.

Real estate is like every other profession — not everyone in the business will work in your best interests. It may not be fair to expect someone to consider every possible nuance of your personal situation, but there are basics that come up over and over again.  A competent, experienced agent will point these out. It is up to you to insist on a real estate professional who makes the extra effort to give you information you didn’t know you needed.

Related Articles: How To Interview Agents, Part 1, Part 2, Part 3, and Part 4