Ever wish you could see through the hype to hire the best real estate agent for buying or selling your home?
When it comes to choosing real estate agents, "we don't have the information that we have about other service professionals," says Stephen Brobeck, executive director of the Consumer Federation of America, in Washington, D.C.
However, there are things you can do to pull back the curtain and accurately assess a real estate agent's past performance and potential success with your home. Whether you're the buyer or the seller, here are seven ways you can find out more about your agent before you hire.
Ask agents to provide a list of what they've listed and sold in the last year, with contact information, says Ron Phipps, president-elect of the Chicago-based National Association of Realtors. Before you start calling the names, ask the agent if anyone will be "particularly pleased or particularly disappointed," he says.
With past clients, "I'd like to know what the asking price was and then what the sales price was," says William Poorvu, professor emeritus at Harvard Business School and co-author of "The Real Estate Game: The Intelligent Guide to Decision-making and Investment."
And, if you're the seller, ask if these past properties are similar to yours in price, location and other salient features, Poorvu says. What you want is someone who specializes in exactly what you're selling.
Another good question for sellers is: How long has the home been on the market?
States will have boards that license and discipline real estate agents in those states, says Phipps. Check with your state's regulatory body to find out if the person is licensed and if there have been any disciplinary actions or complaints.
Some states, including Virginia, Arizona and California, put the information into online databases that consumers can search. "But I think very few people do," says Robert Irwin, author of "Tips & Traps When Buying a Home."
Peer-given awards count, says Phipps. One that really means something is the "Realtor of the Year" designation awarded by the state or local branch of the National Association of Realtors.
"These agents are the best as judged by their peers," he says. "That's a huge endorsement."
Just as doctors specialize, so do real estate agents. And even generalists will get additional training in some areas. So that alphabet soup after the name can be an indication that the person has taken additional classes in a certain specialty of real estate sales. Here's what some of the designations mean:
Â·CRS (Certified Residential Specialist): Completed additional training in handling residential real estate.
Â·ABR (Accredited Buyer's Representative): Completed additional education in representing buyers in a transaction.
Â·SRES (Seniors Real Estate Specialist): Completed training aimed at helping buyers and sellers in the 50-plus age range.
If the agent calls himself a Realtor with a capital "R," that means he's a member of the National Association of Realtors. By hiring a Realtor, "the most important thing you get is an agent who formally pledges to support the code of ethics," says Phipps.
Five years ago, one-third of real estate licensees were Realtors, he says. "Now, it's half."
You can often find out how long the agent has been selling real estate from the state licensing authority. Or, you can just ask the agent.
"If they haven't been in business five years, they're learning on you and that's not good," says Irwin.
Ultimately, what you're looking for is someone who is actively engaged in a particular area and price range, says Phipps. You'll want to know what knowledge of those two factors they can demonstrate and "what kind of market presence they have," he says.
Check out an agent's listings online, says Brobeck. Two places to look are the agency's own site and Realtor.com, a website that compiles properties in the Multiple Listing Service into a searchable online database.
Most buyers start their search on the Internet, and you want an agent who uses that tool effectively. "A key thing is an attractive presentation on the Web," says Brobeck.
You also can look at how closely the agent's listings mirror the property you want to buy or sell. Are they in the same area? Is the price range similar? And does the agent have enough listings to indicate a healthy business but not so many that you'd just be a number?
A good agent should know about other available area properties "off the top of his head," says Irwin, who wrote "Tips & Traps When Buying a Home." Mention a house in your area that sold recently or is for sale. If the agent knows the property and can give you a few details that means he or she really knows your area, he says. Says Irwin: "You want someone like that who's on top of the market."
Mortgage rates fell to their lowest point in six weeks.
The average 30-year fixed-rate mortgage sank 9 basis points, to 5.12 percent. A basis point is one-hundredth of a percentage point.
Meanwhile, this week's average 15-year fixed-rate -- a popular option for refinancing -- slipped 5 basis points, to 4.49 percent.
The average jumbo 30-year fixed rose 3 basis points, to 5.94 percent.
Adjustable-rate mortgages split this week. The one-year adjustable-rate mortgage rose 2 basis points, to 4.91 percent. Meanwhile, the popular 5/1 ARM fell 6 basis points, to 4.31 percent.
(Distributed by Scripps Howard News Service. Reach Dana Dratch at editors(at)bankrate.com)
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