How to Choose a Real Estate Agent

A colleague, Mike Rohrig of the Sunset Group in Beaverton, wrote a really terrific blog on how to choose a Realtor. Click here to read it. It?s short, sweet and so to the point.

What you?re looking for is integrity and competence. One of the things wrong with the real estate profession is the compensation model, where both the buyer?s agent and seller?s agent are paid their commissions from the proceeds of the seller?s house. Break this down further into (a) commission, and (b) where it comes from.

Since compensation is from a sales commission, no one gets paid until?and unless?a sale occurs. Agents list many homes that don?t sell and work with many buyers who don?t buy. The result is a lot of hours spent for no pay.

Which means that when a transaction DOES close, it somehow has to make up for all those that didn?t. The broker, then, works as much on shinning for leads and getting people to like her or him.? Leads becoming clients depends? more on building a relationship than demonstrating integrity and competence.

Think about it. If you had a colonoscopy, does it matter whether or not you like the gastroenterologist? Of course not. You just want the guy to know what he?s doing. And a successful outcome, whether it?s bad news or good news, has nothing to do with how much he likes you.

When was the last time someone chose a Realtor the same way they chose a doctor? I don?t know, either.

Where the sales commission comes from?the sale of the seller?s house?adds to the problem. If the agent representing you doesn?t get paid until the house closes, whose side is he or she on?

Most agents do as best as they can to work around these inherent conflicts, I think, some better than others. But still, how do you choose an agent?

• Referrals are ok.
• Reviews are suspect, because brokers only post favorable ones
• Does a broker?s expensive car mean she?s successful, or is she guilty of conspicuous consumption?
• Does ?Number One in Sales,? or some similar tag noting how many deals the broker closes good or bad for you? Wouldn?t a broker just starting out wotk harder for you? For that matter, wouldn?t a part-times also be more focused on your transaction than if he had thirty to worry about

Mike answered some of these questions. And Terradigm has some ideas at Habitation Station.

And I?d love to know what you think!

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