Choosing a Good Real Estate Agent : Interview several, then call their clients; a lazy agent can cost you time and money.

If you are buying or selling a home, a top real estate agent can ease your task. There are thousands of agents, but finding the best one is not always easy. Here are some suggestions.

Selling your home is one of your major business decisions and selecting the agent to market your home is critical to a successful sale for top dollar. Spending considerable time and effort before selecting an agent will be worth the effort.

Choosing the wrong agent can be a costly mistake, especially if you tie up your home on a long sales listing with a lazy agent who puts the listing into the local multiple listing service computer, never advertises it and prays some other agent will find a buyer before the listing expires.

The best approach for home sellers is to interview at least three active local real estate agents. The best agents love competition for listings, but the poor agents hate it.

When selecting agent candidates for your listing, ask friends and business associates for recommendations. In addition, consider agents who actively sell homes in your neighborhood. Also check which agents advertise in the newspaper steadily, week after week.

Select at Least Three

Beware of agents who either won’t spend money on advertising or who run ineffective ads. Also avoid “out of area” agents whose office is located far from your home, since these agents are probably out of touch with local home market values and the advantages of your neighborhood.

After selecting at least three agents to interview, write down a list of questions for each agent. Ask about their firm, its owners, services offered, the agent’s experience, fees and anything else you want to know.

Each agent should prepare a written “comparative market analysis” form showing recent sales prices of similar homes near yours, the asking prices of comparable neighborhood homes currently listed for sale--your competition--and the agent’s recommended asking price for your home.

Watch out for any agent who suggests a high asking price that is out of line with recent sales prices and current asking prices of similar homes. This technique is called “high balling.” The agent estimates the highest sales price to obtain your listing and later seeks price reductions if the home doesn’t sell.

Another topic to discuss with each agent is the listing term. Most agents want as long a listing as possible. Many agents ask for six-month listings, but will gladly accept a three-month listing.

30-Day Listing

Personally, when I list a property for sale I give a 30-day listing with the understanding that if the agent does a good job, but the home is unsold when the listing expires, I will renew the listing. Realty agents send me nasty letters for saying this but I find the shorter the listing term the harder, smarter and faster the agent works to get the home sold.

Before selecting a listing agent, ask each agent for the names of their three most recent home sellers. After the agent has left, phone those client references to ask: “Were you in any way unhappy with the agent and would you list your home again with the same agent?” You will soon know which agent should get your listing.

Finding a top agent when you are buying a home is not any easier. Ask your friends and business associates for recommendations. If the agent who sold them their home did a good job, they will probably recommend that agent. Of course, be cautious of agents who are recommended by people who have never done business with that agent.

For at least the first 30 days of a home search, it is best to work with only one agent. Let the agent know you will work exclusively with that agent and you are depending on him or her.

Read Classified Ads

However, just because you are working with one agent, don’t stop reading the newspaper classified ads and inspecting weekend open houses. But when you see an ad describing a house that interests you, phone your agent rather than the advertising agent. Virtually all real estate agents cooperate with each other, so when you see an ad or a for sale sign on a home which interests you, call your agent rather than the listing agent.

If your agent is a top agent, he or she has already seen the house you are inquiring about and can quickly tell you its pros and cons. Except for brand new listings, if your agent either has not seen the home or has not phoned to tell you about it, perhaps your agent is not keeping up and it may be time to start working with another agent.

Incidentally, it is a good idea to discuss with your agent whether the agent will represent you or the home seller. Although the agent will usually split the sales commission with the listing agent, it is possible for the agent to represent just you, rather than being a sub-agent of the seller’s listing agent.

Still another alternative is to sign a “buyer’s broker” contract with the agent. You pay your agent’s commission and your agent receives nothing from the seller or the listing agent.

However, whether the agent represents you or the seller, all agents owe buyers honesty and full disclosure of known defects in the property. The best agents point out both the pros and cons of a property without your asking. But each agent uses different procedures, so be flexible because finding the right home often takes several months. Don’t be in a hurry. Buying a home is one of the biggest decisions you will ever made.