Your 7-point checklist for assessing the trustworthiness of a Realtor®
Your 7-point checklist for assessing the trustworthiness of a Realtor®
10 second overview: Finding a Realtor® or real estate agent you can trust can mean the difference between buying your dream home at a great price and buying a nightmare property for an exorbitant price. This checklist will help you weed out the bad eggs and bring you steps closer to finding a real estate agent or Realtor® who is trustworthy.
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Everyone dreams of owning a home someday and what was once a dream home can become too big or too small depending on how your family and lifestyle evolves. For instance, did you know the number of multigenerational homes has increased, contributing to growing demand for bigger houses in the US? So, if you're thinking of transitioning from a nuclear to a multigenerational home, you're likely considering selling the dream house you bought a few years ago and buying a bigger one instead. Whether you're entering the market for the first time or looking to get something bigger or smaller for you needs, one thing is certain— you're going to need a Realtor® or real estate agent you can trust.
When it comes to buying or selling a house, trust matters because the stakes are often painfully high. For many of us, buying a home will be the biggest and most important investment we ever make and for those of us who are selling, there's usually a lot riding on the expected proceeds of the sale whether it's buying or renting a new home, paying expensive medical bills, or raising funds for a new business.
So, you need a trustworthy real estate agent to guide you through the process of buying or selling a house. The trouble is that not all real estate professionals are to be trusted. Many people have paid more than a property was worth or sold a property for much less than it could have fetched on the advice of unscrupulous real estate agents.
Buying or selling a house isn't something you want to do in a rush. You should think carefully about your needs and prepare yourself for the process of searching for an agent. It will mean doing background checks, conducting one-on-one interviews, and making enquires. Some people are lucky to land a good agent through referrals from friends and family, but sometimes, it takes extra work to find an agent you can trust. Here’s a 7-point checklist for assessing the trustworthiness of a Realtor® and finding the right agent for you needs.
Real estate agents are required by law to be licensed in order to do business within a state or region, and licenses are subject to renewal every 2 - 4 years depending on the state. Also note that even when an agent is licensed in one state, they must obtain reciprocal or equivalent licensing in any other state where they wish to operate. So, for instance, if you're looking to buy or sell a property in Georgia, your real estate agent should be registered with the Georgia Real Estate Commission (GREC) even if they have years of experience operating successfully in New York.
Also note that an agent can only claim to be a Realtor® if they also belong to the National Association of Realtors (NAR). Belonging to the NAR is a plus because the NAR has a Code of Ethics which is binding on Realtors® and which can be cited when filing a complaint about unethical conduct.
You can verify an agent's license with a quick online search through your state's real estate commission website. You can also search the Association of Real Estate License Law Officials (Arello) website for the agent's name or number. If you cannot independently verify an agent's name and number, you should definitely move on.
There are two ways of assessing an agent or Realtor's® experience. The first is by the number of years they've worked in the business and the second is by the volume of deals they've done. Agents have been known to lie about the number of years they've spent in the industry and one way to catch them in this lie according to real estate expert Elizabeth Weintraub, is to ask how many times they've renewed their license.
The state of Georgia requires real estate agents to renew their license every 4 years while the states of Alabama, Florida and Tennessee require renewal every 2 years. So, if an agent in Georgia tells you they've never had to renew their license, that means they've been in the business for less than 4 years or are operating with an expired license, which is a red flag.
An agent’s record of success is an even better measure of their experience because some agents simply do not put in the effort it takes to be successful in the business. So, it's entirely possible to find an agent who has only closed 5 deals after 5 or more years in the business. To check volume of deals done, you can ask the agent directly and have them show you their 'Production Report' or 'Sales Summary' from the MLS (Multiple Listing Service) website which most agents and brokers use today. You can even have another broker check on an agent's production record or sales report via MLS. If an agent's record of sales or deals closed doesn't check out or is too low, you should move on.
The agent or Realtor® you want to work with should be able to demonstrate expertise and professionalism. Your prospective agent should be able to answer your questions, improve your knowledge of market and housing trends, and put you at ease about the journey you're about to embark on.
You want to work with an agent who is knowledgeable, skilled, and professional; someone you can rely on to prioritize your interests in an industry where the lure to cut corners and make gains at the expense of homebuyers and sellers is high. If an agent does not demonstrate a solid grasp of important industry information, ethical risks, and market trends, you should move on.
It's important for any Realtor® or agent you want to work with to have a good reputation and referral history. Reputation is a form of social proof that's hard to beat in any industry and the real estate industry is no different. According to the NAR, most homebuyers find an agent through referrals from friends, neighbors, or relatives. Real estate agents bank on referrals and a good reputation and are happy to go above and beyond for clients in the hope of receiving referrals down the line. It's a strategy that pays off and favours everyone in the end.
You should ask your agent directly for references and referrals. You should also check online reviews now that most listings and searches are done online. If no one knows your prospective agent, you should probably look elsewhere as you're likely dealing with a newbie who should be working with a brokerage firm to gain experience and networks. However, if they have a string of bad reviews and no referrals to show, you should definitely move on.
According to real estate expert Elizabeth Weintraub, real estate agents often specialize in selling and buying certain kinds of property or working with specific types of buyers. They also specialize in specific neighborhoods as each real estate market is different owing to the peculiar history, economy, and property trends of each neighborhood or community. So, you want to work with an agent or Realtor® who understands your locale. This will mean that the real estate agent understands local real estate trends and how regional administration laws, or policies affect the local market. If your prospective agent seems to think all markets are the same or can't demonstrate sufficient knowledge of the neighborhood where you'd like to buy or sell a property, you should probably move on.
To be clear, a good, well-networked Realtor® will refer you to a different agent who has better knowledge and experience dealing with properties in the neighborhood that's of interest to you. This is the ideal outcome.
As mentioned above, buying, or selling a home isn't something that should be rushed. You want to find a Realtor® or agent who wants to build a relationship with you. If an agent starts pushing you to buy or sell from day one or before they've had time to get to know you and understand your needs, you should probably move on.
You don't want to work with a real estate agent who will pressure you into making hasty decisions. That's how expensive mistakes are made.
Unscrupulous agents or Realtors® can pressure you into buying by telling you they have a million buyers lined up for a property or that the selling price of the property you're looking at is going to double in a matter of days. Buying a home is a big decision and you should work with an agent who is committed to doing things thoughtfully and carefully.
It's important that you work with a real estate agent who communicates clearly and appropriately. With so much at stake, the last thing you want is to work with an agent who doesn't give you the one-on-one attention you deserve and who isn't attentive to your needs. Bad customer service can make the already stressful process of buying or selling a home much more stressful. So, you should check that both your agent and their staff communicate and interact well with you and others.
Asking the right questions is one sign of good communication skills you shouldn't overlook. A would-be agent should ask the right questions and should demonstrate good listening skills.
If you're looking to buy a home, a good Realtor® should ask you what you need in terms of space and usage, your price range, proximity requirements like distance to schools or hospitals, preferred neighborhood, etc. If you've met with a real estate agent a few times and have not been asked appropriate questions and feel your needs are not well understood, that could be a red flag and you should probably move on.
Entering the real estate market either as a buyer or seller is no joke. It's a big deal with a lot at stake and finding an agent or Realtor® you can trust is of utmost importance. While this checklist is by no means exhaustive, it's a good place to start as you begin your search for an agent. Be sure to be attentive and give yourself all the time you need to assess prospective agents and their offerings. It will make all the difference.