John M. Lee: How to Choose a Good Agent

With more than 5,000 real estate agents selling properties in San Francisco, how do you go about choosing an agent to service your real estate needs?

As prices increase, more people are migrating to the real estate industry because they perceive it as an easy field to make money. When choosing an agent, do you choose a friend, neighbor or co-worker? Should you work with an agent at a large firm, small firm, franchise or independent? While there are exceptions to every rule, and every marketplace is different, here are some solid rules to apply when you want the best representation possible.

Remember, in the end it is your money that is at stake!

Demand Experience
The real estate profession is plagued by a high turnover rate. The statistics show that 50 percent of Realtors do not make it past their first year in the business, and then another 50 percent of those who remain do not make it past their second year. This creates a workforce that is made up of many newcomers. While there are new agents with good intentions, some will not be capable of competently representing their clients.

Always look for an agent with at least two years of experience. Anyone still in the business after two years has probably at least learned the fundamentals of real estate. They have made the cut and transitioned into being an experienced agent.

Another problem we have in the industry is a large number of part-time salespeople. They have either retired from some other career; work in real estate seasonally, such as teachers working the summer in real estate; or are earning a second income for the family by working evenings and weekends in real estate.

No matter how long they have been in the business, their part-time commitment makes it difficult for them to keep up with the vast changes in the law, market conditions, and current business practices that are occurring in the profession.

Education
Obtaining a real estate license is extremely easy. All someone has to do is to take one class and pass a multiple-choice exam to sell real estate. You cannot completely rely on licensing to indicate competence.

Unfortunately, many agents' real estate education ends with their pre-licensing education. Look for someone who attends seminars to learn current trends and selling techniques.

Conduct Interviews
Before you hire an agent to help you buy or sell a home, you should interview at least three agents in person. In order to do this, first get recommendations from friends, family and neighbors. Then look on the Internet, in home magazines and the local newspaper to see what kind of marketing the various agents and companies are doing in your area.

Call the few that impress you. The interview itself need not be a formal one. It is just a time for you to meet the agents, to explain your real estate needs, and to determine whether you would be comfortable working with them. If you follow these suggestions, you will find that there are excellent agents working for firms both large and small; both franchised and independent. The real decision must be made based on the competency of the individual agent you will be working with on a day-to-day basis.

John M. Lee is a top-selling real estate broker with Pacific Union. For questions about real estate, call him at (415) 447-6231 or e-mail johnlee@isellsf.com.