Want to buy a house? Tips for picking agent

  • Sunday, March 23, 2008 11:50am

With all the turmoil in the mortgage market and prices stagnating on single-family homes, is this the time to buy that first house or a second home?

It is likely that, aside from a business, your home is the largest purchase you will make. The difficulty with that transaction is there are many variables, and you must consider many factors with the purpose of buying or selling most efficiently. “Efficiently” here means selling or buying in a timely fashion, at the right price and having your eyes wide open.

As a regular reader of this column, you know that I highlight professionals to assist in the topic at hand. This month, I’ve asked Jamie and Sarah Reece from Regatta Partners of RE/MAX Northwest to help us discover how to make buying (or selling) your home as painless and profitable as possible.

I see this as an advisory relationship. Being a financial adviser, I understand that the financial impact will be with you for a long time, so it is imperative you receive good advice. The recent markets for both home prices and mortgages make this more important than ever. (For information on mortgages, see my October 2006 column highlighting Ann Liberato of Homestone Mortgage of Kirkland.)

But with so many real estate agents out there, how do you know which one is the most qualified to lead you to your new home? You want someone you get along with, someone you can trust. But how do you find such a person? Start by interviewing them.

The Reeces offer these seven essential questions to get you started on your interview process:

– How do they get their business? The best Realtors work primarily by referrals. Advertising is not a bad thing, but if their clients haven’t been happy enough to refer them — well, you get it.

– Are they a Realtor? Not everyone who has a license to sell real estate is a Realtor. To be a Realtor, you must be a member of the National Association of Realtors (www.realtor.org) and subscribe to a higher standard of ethics than the state laws mandate. Only about half of all sales agents are Realtors.

– Can you trust your Realtor? Most people know very quickly if they can trust someone. When you meet your potential Realtor, can you imagine sitting next to this person in a car for hours looking at homes? Do you think he or she will be totally honest with you and not just tell you what you want to hear? Will you be able to be completely honest with this person so that he or she can help you to the best of his or her ability? If you don’t think you can trust this person, this is not the right Realtor for you.

– Do they sell real estate full time? Being a Realtor is a full-time job, not a hobby. As in all professions, much more effort is required than just the face-to-face time spent with a client. During the day, calls to lenders, title and escrow companies as well as other real estate agents are made along with many other administrative tasks. Evenings and weekends are typically when an agent will meet with clients. Although it is unrealistic to expect instantaneous access to your Realtor at all times, he or she should be able to respond to you promptly.

– Do they practice dual agency? Dual agency is when a real estate agent represents both a buyer and a seller in a transaction. By law, when an agent helps you find a home in Washington state, that agent is acting as a “buyer’s agent” and represents you and only you. The same is the case with a seller and the seller’s listing agent. However, some agents will offer to represent both parties, acting as a dual agent. This is akin to going through a divorce with both parties using the same lawyer. It is reasonable to believe that you cannot negotiate in the best interest of two clients on opposing sides of a transaction. It is very important to know up front how your Realtor would handle the situation if that agent had a client who wanted to buy your home or if that agent had a home listed you wanted to buy. The Reeces do not practice dual agency. If you are interested in one of their listings, they will refer you to another agent they know will represent you extremely well, to have them write an offer and negotiate on your behalf.

– How many homes a year do they sell? According to the National Association of Realtors, an average Realtor sells approximately six homes per year. In the Puget Sound area, a successful Realtor often will sell more than 16 homes per year. There are some Realtors who are too busy and aren’t able to give you the personalized attention you deserve, so they may not be the best choice. On the other hand, some of the worst deals the Reeces have seen have been with agents who were in desperate need of a paycheck. Their clients did not get the benefit of an agent who could give them a balanced perspective on what to do.

– How long have they been in the business? Demand experience! You do not want someone learning the ropes on your home sale or purchase. There are far too many things that can go wrong, and it can cost you too much both financially and psychologically.

Remember, it is not just how the Realtor answers your questions, it is also how he or she behaves. Just think to yourself, “Am I going to want to be around this person for 30-plus hours of my life, and can I trust them to put my interests and needs before anything else?” If you feel at all pressured or like it may not be the right fit, keep interviewing.

Jamie and Sarah Reece, from Regatta Partners of RE/MAX Northwest, can be reached by e-mail to homes@regattapartners.com, online at www.regattapartners.com or by phone at 206-910-1439.

Dale Terwedo, certified as a CFP, ChFC and CLU, is principal of Terwedo Financial Services LLC, an independent financial services firm in Edmonds. In practice since 1983, Terwedo offers securities and investment advice through FSC Securities Corp., Atlanta, Ga., a Registered Broker/Dealer, Member of FINRA/SIPC and SEC Registered Investment Advisor. For more information, visit www.tfsadvisors.com, send e-mail to retire@tfsadvisors.com or call 425-776-0446.

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