Finding Best Real Estate Agent for Your Needs Takes a Plan
With roughly 7,000 real estate agents in the San Fernando Valley, picking the right one to help you buy or sell a residence is a pretty dizzying choice. As usual, however, doing some homework and asking the right questions can help people get through their real estate transactions more easily.
“We should be judged by the service we give,” said Deanna Pearl, vice president and sales manager at James R. Gary & Co. Ltd. in Woodland Hills. “There are unfortunately (agents) who merely list a property and call it marketing. I know too many agents who are too busy to give attention to each client.”
Picking the right agent has very little to do with the agent’s experience or with how many other homes they have listed in the neighborhood, Pearl contended.
“There are brand-new agents who are excellent, and there are agents that sell 30 houses a year and still aren’t very good at what they do,” Pearl said. A good agent is one who is always there for the client, she said, and who keeps on top of the market. “They should know and visit every comparable home that is for sale in the area, and the good agent should speak to his or her clients at least every week and keep them apprised of all the competition.”
That sounds good, but given that 10,000 or so Valley residential properties are up for sale in a sluggish housing market, most agents cannot, or will not, spend that much time with a client. Because an agent may disappoint, it can help if the seller has set up an “out clause” that allows you to get out of the contract with the agent within 90 days.
“Sellers should be able to look back at the marketing plan and get rid of an agent who has performed poorly and failed to keep promises,” Pearl said.
Sellers should interview several agents and ask for a detailed marketing plan, Pearl suggested. This plan should include how often the house will be open, how and how often it will be advertised, and any other ideas the agent has about producing a sale. “The seller should look at the plan and know upfront what the agent is planning to do,” Pearl said.
The marketing plan and the option to get out of the broker’s contract should be in writing, Pearl said. It’s not enough to depend on the representations of agents who put on a good show. “Many times, sellers fall for high-publicity agents or agents who brag about how much business they are doing,” she said. “Their talk is probably bigger than their business.”
Given the market’s declining prices and the likely surge in foreclosures after the recent Northridge earthquake, it can be worth the extra time to uncover those agents who have special skills dealing with a troubled housing market. Some agents, for instance, specialize in finding and selling foreclosed properties, which often have a lower price than the going market.
There are many would-be sellers who don’t have enough equity in their homes to pay off their mortgages--especially after the recent quake. These troubled sellers should find an agent experienced in negotiating with lenders. The right real estate agent can be invaluable in working out a so-called “short payoff,” said Steve Ellis, Los Angeles district office manager at the California Department of Real Estate.
A skilled agent can help get a lender to take less than the full repayment amount on a mortgage if the property sells. This can help an owner whose home has considerable earthquake damage and whose property is worth considerably less than the current mortgage. By arranging a “short payoff,” a seller can avoid foreclosure and still keep his credit rating intact.
As always, the choice of a real estate agent depends on what kind of transaction a buyer or seller is interested in, Ellis said. Buyers who are looking to take advantage of the many bank-owned properties in the Valley should find an agent with experience in so-called REOs, or real estate-owned properties, he advised. “These properties may not be on the Multiple Listing Service, so you want to find a broker who is a specialist.”
“Buyers and sellers need to be able to ask the right questions,” said Alice McCain, president of the San Fernando Valley Assn. of Realtors and a broker at R. R. Gable Inc. in Northridge.
While ‘there are good agents with every company,” McCain said, picking the right one to help find or sell a residence isn’t always easy. There are about 7,000 agents who are part of the San Fernando Valley Assn. of Realtors. Realistically, she estimated, about 20% of them are doing 80% of the business.
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McCain advises people to interview at least three prospective agents. Would-be clients should ask for a list of references and phone numbers, and the client should ascertain the agent’s education and experience in the industry. “It’s no longer the second job for the housewife,” she said.
For sellers, a marketing plan is vital to picking the right agent. The seller should ask about advertising and other marketing efforts that will be undertaken by the agent, McCain said. It’s important to be realistic, though, she warned. “Every house cannot be advertised every week,” she said. There’s no reason not to ask for weekly advertising, however.
And there’s no harm in asking the agent to take a smaller commission. The typical commission is about 6% of the sales price, with half the commission going to the agent and brokerage that lists the home for sale, and the other 3% going to the agent and brokerage that finds a buyer. How willing the agents are to accept a smaller commission is another matter altogether.
Sellers should also ask lots of questions about a particular agent’s approach to having an open house or the use of a key safe so that an agent can get into a home when the seller isn’t there. A recent issue of the San Fernando Valley Assn. of Realtors’ weekly report noted that “the association receives far too many complaints from sellers and listing agents about other ‘less than professionals’ leaving lights on and doors unlocked, entering without knocking and the like. Yes, even the occasional complaint about trampled flower beds, and that someone helped themselves to refreshments when the seller wasn’t home, occur.”
Needless to say, it’s better for sellers to make their wishes known before they’ve hired an agent.
While would-be buyers don’t sign a contract with their agent, there is no reason not to expect professionalism from that agent. That includes being on time and not losing interest in helping just because the buyer hasn’t jumped at the few opportunities presented.
Buyers, and particularly sellers, may also want to check on any disciplinary action against an agent.
The California Department of Real Estate reports that it reviews about 300 written complaints every month and that the office gets about 75 phone calls a day, most of which have some complaint aspect. As with local boards of realty, the most that the DRE can do is take a person’s real estate license away and impose a small fine. The DRE can, however, confirm whether an agent is indeed licensed and can inform consumers about past disciplinary action. The phone number to call for this information is (213) 897-3399.
