Not all real estate representatives are created equal. It is easier than you think to find a qualified, effective, efficient, and agreeable agent. All you really need to do is ask some questions, evaluate the answers and decide whether or not you can trust the steps taken to satisfy your real estate objectives.

13 questions to ask a person you’re considering hiring to help you sell or help you buy your home.

1. How long have you been licensed to practice real estate in the State of Alaska?

   The answer to this question is obvious. If you meet with someone that just received his/her license because they’re a friend or relative, then the chances are high that they don’t yet really know how to get the job done or how to best represent you. And of course, if a person is not licensed or if one doesn’t qualify to waive the license requirement, then it is illegal to present oneself to the public in buying, selling, renting, or managing real estate.

2. What did you do before, and why did you get into real estate?

   Some people just have a "gift" to get into a profession and do a good job from the beginning.

   Others persevered through 4, 6, or 8 grueling years of post-high school education, had another career altogether, and then got into real estate. Those people know how to learn and what to learn and more often than not will do a very good job in representing you and your best interests. Typically, this person enjoys helping people find "just the right home" or bringing in solid buyers to the homes they’ve listed for sale.

   And then there is the person that watched an expert at work (or worse, didn’t watch anyone at all) and because that expert made it all look very easy and smooth, that person now thinks he/she can do a good job selling and buying real estate even with practically no relevant prior experience and make a pile of "easy" money to boot!

3. Are you full-time?

   A part-time real estate person won’t even know how much he or she doesn’t really know especially if they only dabble in this profession making a few transactions per year. It really does take a professional perspective, working full-time, and regularly increasing ones skills, education, and experience to compete effectively on your behalf. Otherwise, you can put yourself at a great disadvantage.

   Also keep in mind that while you’re at your full time job, you need to know that your Realtor is working at his/her full time job and will "be there" or "get the call" when it’s most critical. If you’re relying on a part-timer to show you a house after they get off from their "real" job, then you just might be too late. Just the same, if a buyer is calling for details on your house, you need to know that your Realtor is "open for business".

4. Are you a member of Multiple Listing Service?

   The vast majority of all home purchases & home sales are transacted through a member of the Multiple Listing Service (MLS). The MLS is where members inform all other members about homes in Anchorage. Believe it or not, not all agents are members of the MLS. The status of all listings, Comparative Market (Price) Analysis (CMA), Showing instructions, and Details on the home are all submitted to MLS. If your agent isn’t a member then he/she won’t have access to the most critical information available on home sales in Anchorage, such as pricing, availability, history, terms and conditions, and all the little details about a home that may interest you. Even more importantly, that person won’t have access to the tried and true contracts used in real estate. So, being a member of the MLS is the absolute minimum.

5. Are you a member of the local Association of Realtors?

   Not everyone with a real estate license is a Realtor. As a Realtor, we subscribe and adhere to a higher level of ethics and business practices as we practice our craft. It is through the National Association of Realtors that members attain higher levels of "real estate specific" education and certification. You have seen the letters after a person’s name or the "R" (Realtor Logo) on their business cards. By choosing a Realtor, sellers and buyers can have greater confidence in the level of skill and commitment of their real estate representative. They not only learn how to market effectively, but they also understand and harness the negotiation process to work in your favor to the best of their abilities.

6. Besides the required 20 hours every two years of continuing education, what have you done to make you better at helping me buy or sell?

   Doing only the minimum to maintain one’s license does not an expert make! Without keeping current on what’s happening in fields related to real estate (for example: laws, appraisals, inspections, contracts, terms, conditions, market forces, etc.) an agent’s abilities atrophy. That a person subjects himself or herself to the rigors of advanced education, seminars, and certifications, is a good sign of one’s dedication to their performance on your behalf.

7. How many homes have you actually listed and sold in the last 3 years?

   It’s one thing to shout out and proclaim "…and now for my next trick, I’m in real estate". It is quite another to be able to perform to the level promised as well as required. The only real promise one can offer a seller or buyer is preparedness and understanding gained through education and practice. The only real demonstration of one’s abilities is in the number of clients already successfully represented. How many homes say "Sold" with your Realtor’s name on it?

8. How many homes have you helped buyers actually buy in the last 3 years?

   Again, is your Realtor more skilled at listing homes for sale or is he/she more skilled at helping a buyer find a home? While the skills are related, there are different strategies involved in buying and selling. Ask your agent what those differences are. You’ll see immediately whether or not you’re considering the right person for the job.

9. What makes you qualified to counsel me on pricing my purchase or my sale?

   The answer to this question is simply a reiteration of several of the previous questions. This question, however, keeps everything in the proper perspective. If your agent’s not more qualified about current market factors than you are, then why would you "pay" for his or her counsel? Will they leave money at the bargaining table just to get a quick sale? Are they promising too high of a sales price just to get your business from other agents? Are you offering too much just because the agent doesn’t know the market trends and pressures? You want to know, right?

10. How often, and by what means, will I be communicating with you?

    The best Realtors are the ones that are organized and communicate regularly, completely, and effectively with all parties involved. Most importantly, that keeps you informed regarding your transaction. In fact, your agent has a fiduciary responsibility to you as a buyer, seller, customer, client, or a combination of these. This does not mean you get a call every 15 minutes but nobody likes dealing with people that "hide" whether it’s phone tag, being out of the office, not returning calls, incomplete or untimely information.

    Sometimes an email reporting the results of an Open House or a fax of a document for signature is all that is needed. Other times, you’ll need to meet in person to see the inside of a "brand new listing before everyone else does. Either way you’ll feel much more comfortable with everything if you have at least discussed how the negotiations and updates will be dealt with.

11. What are the steps involved in buying my home?

    As the steps are outlined to you, you’ll not only have a better understanding of what’s ahead, but everyone will have less stress to deal with in their real estate transactions. Keep in mind that your Realtor should have more than one strategy to help you achieve your objectives and that those strategies will be different when buying, selling, or doing both simultaneously.

12. What are the steps involved in selling my home?

    You need to know that your Realtor has more than one specific plan for selling your home. Location, price range, your motivations to sell, the time frame you need to sell within, terms and conditions, advertising, and market forces must all be addressed with your home specifically in mind. What is that Realtor going to do for you to earn his or her brokerage fees? Is that good enough? Is he or she good enough?

13. Which companies do you typically work with? Title? Mortgage? Inspections?

Remember, it takes a professional that continually sharpens his/her skills and that aligns him/her self with an equally qualified team to accomplish this and achieve your objectives. That’s what they do. That’s what they get paid for.

A final note about whether or not you should even consider working with an agent.

Every seller that has the time, understanding, and diligence to sell his/her own house and do it right is to be applauded. I actually encourage people to do just that if it’s what they "need to do". More often than not, a person just doesn’t have the time or experience necessary to pull it off successfully and in a properly documented timely manner.

Sure, if you sell a property by yourself or if you buy a property without a buyer’s agent, then you have the potential to save some money. But what you don’t know is that most sellers of "For Sale By Owner" properties over price, don’t know the process or the proper documentation, get skunked & frustrated, and end up hiring an agent after all. And after spending the time & money on marketing & advertising, they often choose to work with a buyer’s agent anyway, whom they pay "normal" commissions, and which cuts into their "profits". So, one has to ask one’s self "Is it worth it?"

The professional Realtor, on the other hand, sells homes for a living. His/her success depends on your success. He/she doesn’t get paid until you buy or you sell your home. By working with a Realtor the typical worst-case scenario is represented in paying some money for work completed. No telling what the worst-case scenario is for the seller or the buyer without representation. A sobering thought considering that a home purchase or sale is usually the biggest financial decision most people ever make!

Written by:

Ken Jelinek
Associate Broker
RE/MAX Properties, Inc.
Anchorage, Alaska