With more than 700,000 agents in the real estate field, there’s a huge variation in skill level. So the savvy seller won’t pick an agent in haste.
It’s not always obvious who is most qualified for this vital transaction and there are many potential pitfalls in the selection process, says Elaine Euscher, a Coldwell Banker agent.
After doing interviews with several agents, for instance, many sellers will single out the one who suggests the highest listing price, even if it seems inflated by neighborhood standards. Perhaps this agent is more skillful than the others and can command a premium sum for my home, the owner reasons.
But it’s a rare feat for any agent to extract more than the market value of a property, stresses John N. Davis, a broker-associate for the Prudential real estate chain.
An agent who knowingly promises a higher sum than can be delivered is engaging in a practice known as “puffing the price to get the listing,” Davis says. A short time after putting the home on the market, such agents often go to the seller and ask to reduce the price to a more realistic level to make the home truly salable, he says. “Some agents know deep down in their hearts that a house won’t sell for what they originally say it will.”
Fortunately, price puffery by agents is becoming increasingly uncommon, according to Davis. Agents are now “more professional,” realizing it takes integrity to keep their phones ringing with referrals from past clients, he says.
Given the hazard of overpricing, which can ultimately cost the seller time and money if the home becomes “stale merchandise,” honesty is an extremely important trait in an agent, Davis says.
Besides honesty, here are five other key traits to seek out:
1. Energy. Granted, the computer is a terrific tool to assist agents in scouting prospects, tracking sales trends, and handling other key elements of an agent’s job. But too many agents now “camp out behind their computers,” contends Euscher. Residential real estate remains a “people business,” she says, and you’re most likely to sell well if you find an agent who spends alot of time talking up your house to other agents and would-be buyers.
For example, Euscher has found many leads for the sale of her listings through a local networking group that meets every week for breakfast at 7:15 a.m. By rising early and continually making contacts, she encourages agents and buyers to view the homes she lists. But that takes energy.
“I eat, live and sleep real estate,” Euscher says.
2. A yen for working with people. When interviewing agents, it’s smart to find out what motivates them. Some agents are refugees from other fields, who sell homes because the barriers to entering the real estate profession are lower than for other occupations.
And a few are too introverted to enjoy–and therefore thrive in–sales, Euscher says.
How do you discover what motivates agents?
Ask them why they got into the business. It’s not good enough for them to say a fondness for homes propelled them into the field. An extraordinary agent thrives on interaction with people. And the cooperative field of real estate demands that agents interact often. So the best answer to your query is, “I love working with people.”
3. Enthusiasm. An agent’s capability to sell homes is closely linked to his passion for his profession. Obviously, a job that stimulates one person could bore another.
“Seeking to be of service to people and genuinely caring about them is the secret,” Euscher says. An agent who is excited about the challenge of marketing your home will demonstrate that in his vocal tone and body language during your initial interview.
4. Tactfulness. An agent who isn’t diplomatic may alienate prospects or other agents who might bring would-be buyers to visit your home.
“I sometimes hear agents telling people off on the phone and I think how foolish that is.” Euscher says. “A good agent shouldn’t get mad–not at other agents or at clients.”
5. Skill at negotiating. “Within the last five years, real estate transactions have become enormously more complex. Now, more than ever, you need an agent with a savvy sense of negotiation,” says Peter G. Miller, co-author with Douglas Bregman of “Successful Real Estate Negotiation” (1994, HarperCollins).
An adroit negotiator will know how to present a deal that represents the best possible terms for his or her client.
“People think a real estate sale is solely on the basis of price,” Miller says. “But it’s really a package that involves price, terms and liability, not having someone turn around and sue you because of a technical flaw.”
How can you tell if the agent you engage is aware of some of the more complex aspects of negotiating? Miller suggests you ask the agent to bring a standard real estate sales contract with him during your initial interview. Then, to see how attentive he is to detail, ask that he go through the document and point out how it might best be filled out to serve your interest.
An agent who understands that the contract is a key tool in successful home sales is likely a good negotiator who could prove invaluable if discussions over price and terms become protracted, Miller says. “He who negotiates best, wins.”
