At every point in the ebb and flow of economic prosperity, buying and selling a home (or other property) has confounded the most level-headed people among us. It’s a complicated process with strong emotional currents and repercussions. Will she get the home of her dreams? Will he sell his home in time to make the big move? The results of a property transaction can affect the courses of lives on both sides: buying and selling.

To combat the confusion and emotional reactions that are driven by such a process, buyers and sellers often rely on the expertise and objective perspective of a real estate professional. But which kind of professional should a person choose: agent, broker, Realtor? And then who? How does someone decide which person will be right for the job? It is important for buyers and sellers to treat the transaction with due seriousness and commit to finding the best representative for their particular situation.

First, buyers and sellers should understand the differences between the titles agent, broker, and Realtor. The distinctions between the three are small. Professionals in each of these roles perform the same functions: walk you through the process of buying or selling a home, provide pricing information, negotiate sales, help prepare the closing, and more. They are at least 18 years old, have graduated high school, have passed a written exam administered by the state, and are licensed by that state.

If that is the extent of a professional’s licensing, then he would be considered a real estate agent, or sales agent. If a professional is also licensed to manage his own real estate business, then he is a broker. Brokers typically employ sales agents through contracts, paying them a portion of the commissions earned from the agent’s sales.

Realtor is a registered title indicating that a sales agent or broker is a member of the National Association of Realtors. The implications of that membership are strict adherence to the association’s code of ethics and access to more properties and information through the association’s multiple listing service. For these reasons, people in the market to buy or sell a home often want to work with a broker or sales agent who is also a Realtor.

Who to Choose: Buyers Guide

Buyers are encouraged to search for an agent first, before looking for property. Whether the buyer asks friends and family for referrals, calls an agency office for a contact, or looks online, it is important that he finds someone who will represent him fully as a buyer. Calling the agent listed on a “For Sale” sign will put him in contact with a “seller’s” agent, someone whose primary concern is for the owner of the home. By finding an agent who is not attached to a home he has his sights on, the buyer will be hiring an agent that will work strictly on his behalf and find him the most appropriate property for his needs and price range. But what to look for?

1) The buyer should choose an agent who works with homes in his price range. Choosing an agent who works with homes worth significantly more or less than his budget will be ineffectual and lead to frustration. Agents are specialized. They have a thorough understanding of the real estate in specific communities and price ranges.

2) It’s worth extra effort on behalf of the buyer to find an agent that he trusts and gets along with. Buyers and their agents spend considerable amounts of time together, so it’s important that good will exists on both sides. The agent should strive to help the buyer understand and feel comfortable with the process.

3) An agent and buyer should have complementary schedules. If the buyer can only view homes on Saturday, he shouldn’t hire an agent that doesn’t work weekends.

4) The buyer should look for an agent that goes the extra mile by volunteering to perform or help with additional tasks like setting appointments with inspectors, lenders, and attorneys.

5) An agent who works in real estate full time will be a stronger representative for the buyer. The buyer should also look for someone who demonstrates success and communicates frequently with clients.

6) Interviewing multiple agents from different firms will give the buyer the best picture of who will work hardest for his business.

Who to Choose: Sellers Guide

Many of the qualities a buyer should look for in an agent also apply to sellers doing a similar search. A seller should not hire someone with whom he doesn’t get along or who hasn’t demonstrated the necessary experience to be successful in the property’s particular market.

1) The seller should listen closely to the agent on first contact. A trustworthy agent will openly disclose who he represents: the buyer or seller.

2) An agent who is dedicated to the sale will advise the seller on how to prepare the home for the market.

3) The seller should only work with someone who shows enthusiasm for the property and gives him confidence in the success of the sale. If the agent has already researched the property in public records and, if he is a Realtor, in the multiple listing service, that would be a demonstration of enthusiasm for the property.

4) An agent should come prepared with data on nearby properties that have sold or failed to sell lately.

The Ethics of the NAR

Realtors – agents and brokers who are members of the National Association of Realtors –are held to a strict code of ethics, which is one of the reasons they are preferred by buyers and sellers to non-members. All licensed real estate professionals are liable to the laws of their state, but Realtors’ responsibilities to the client and customer, the public, and other Realtors often go beyond those laws. Simplified and condensed, their duties to the client include the following nine articles:

Article 1 - Realtors pledge themselves to protect and promote the interests of their client. This obligation is primary but does not relieve them of the need to treat all parties honestly.

Article 2 - Realtors will avoid exaggeration, misrepresentation, or concealment of pertinent facts relating to the property or transaction.

Article 3 - Realtors will cooperate with other brokers except when it is not in the client’s best interest.

Article 4 - If selling a property or making an offer to purchase one on behalf of themselves or affiliates, the Realtor will make his role known.

Article 5 - Realtors will disclose any present or contemplated interest they may have in a property or they will not undertake professional services concerning that property.

Article 6 - Realtors will not accept any commission, rebate, or profit expenditure without the client’s knowledge and consent.

Article 7 - Realtors will not accept compensation during a transaction from more than one party without disclosing that information and without the informed consent of the client.

Article 8 - Realtors will maintain an account separate from their own funds for monies coming into their possession in trust for other persons.

Article 9 - Realtors will assure whenever possible that all agreements related to the transaction are in writing and are explicit and understandable.

Share your tips for choosing a real estate professional on our Facebook page: www.facebook.com/rowanmagazine!
 
References:
The National Association of Realtors, www.realtor.com, www.realtor.org
U.S. Bureau of Labor Statistics, http://data.bls.gov/oco/ocos120.htm
Bankrate, www.bankrate.com