Cincinnati Area Board of Realtors®
The best way consumers can protect their interest in a real estate transaction is to educate themselves prior to beginning the process of buying or selling a home. This can be done by attending seminars related to the process, which are often provided by local real estate offices and agencies promoting home ownership, searching for information on the internet, reading the real estate section of the local newspaper, etc. Another way is to use the “interview” as a means of learning the steps involved in a real estate transaction.
Once you are ready to begin the process of choosing a real estate agent, the first thing you’ll want to find out is whether he/she is a member of the National Association of Realtors®. If not, they cannot call themselves REALTORS®. By becoming a member, the real estate practitioner is signifying their intention to abide by the Code of Ethics and thereby enhance the public and professional image of themselves and all other REALTORS®. A real estate practitioner must hold membership in a local board in order to be a member of the state and national associations.
Interview several REALTORS® prior to making a decision on representation. While we all know an individual is on his/her best behavior during an interview, asking the right questions can eliminate some of the risk of hiring the wrong representative. It is important to take your time, learn about the home selling (buying) process, and make sure you are prepared to enter the market prior to entering into any agreement.
Check into the experience of any REALTOR® you are considering. Asking questions can help you narrow the choices when making your decision as to who to work with. The following questions should be asked:
What associations does the REALTOR® belong to, what designations does he/she hold? Designations such as GRI and CRS, which require that agents take additional, specialized real estate training, are held by only about one-quarter of real estate practitioners.
How long has the REALTOR® and broker been in the real estate business? Is it their full-time job? While several years in the business can indicate experience, it is no guarantee of skill. Real estate, like many other professions, is mostly learned on the job. A benefit of using a newly licensed agent is that he/she has more recently completed the required real estate courses and may not have a large number of clients to tend to. Managerial support may be sufficient to overcome the lack of experience. Ask new agents about such support.
How many homes have they/their company sold in the past year, 2 years, 5 years? In what parts of town? How many days did it take you to sell the average home? How close to the initial asking prices of the homes you sold were the final sale prices? How did that compare to the overall market? Does the REALTOR® specialize in a particular type of housing (i.e. new construction, older housing, condominiums, auctions, foreclosures)? Different types of housing require different types of experience. A REALTOR® who has never sold a condominium may not know what to request from the current owner with regard to fees and regulations. Someone inexperienced in the foreclosure process might create frustration for all parties involved in the sale. Different types of housing are like different “products” which require different areas of knowledge and expertise.
Ask about their specific marketing plan for your property. What types of specific marketing systems and approaches will the agent use to sell your home? Look for someone who has aggressive, innovative approaches, not just someone who’s going to put a sign in the yard and hope for the best.
The key is to TALK! Ask questions. Ask each REALTOR® you speak with for details on the home selling (buying) process. What can be expected?
Ask what are your obligations as a buyer or seller? What is agency? Dual agency? Will the REALTOR® represent you exclusively, or will the REALTOR® represent both the buyer and the seller in the transaction? While it is legal to represent both parties in a transaction (with consent), it’s important to understand where the agent’s obligations lie. A good REALTOR® will explain the agency relationship to you and describe the rights of each party. It’s also possible to insist that the agent represent you exclusively.
Ask what types of financing are available? Can the REALTOR® recommend service providers who can assist you in obtaining a mortgage, make repairs on your home, and other things need to be done? Keep in mind here that a REALTOR® should generally recommend more than one provider and should tell you if they receive any compensation from any provider.
Ask what
type of support and supervision the brokerage office provides to the REALTOR®.
Having resources such as in-house support staff, access to a real estate
attorney, or assistance with technology can help an agent sell your home.
Ask the REALTOR®’s to describe
his/her business philosophy. While there’s no right answer to this question,
the response will help you assess what’s important to the REALTOR®—fast
sales, service, etc.—and determine how closely the REALTOR®’s
goals and business emphasis mesh with your own.
Ask how the REALTOR® will you
keep you informed about the progress of your transaction? How frequently? Using
what media? Again, this is not a question with a correct answer, but that one
reflects your desires. Do you want updates twice a week or don’t want to be
bothered unless there’s a hot prospect? Do you prefer phone, e-mail, or a
personal visit?
Ask for the names and phone numbers of the REALTOR®’s
three most recent clients. First-hand accounts of a client’s experience with
the REALTOR® can help you in
your assessment.
And, don’t forget to ask any other questions you have that are not addressed here. Get details and weigh the pros and cons to make an informed decision. Remember, if you don’t feel comfortable asking questions prior to beginning the process, you may not feel comfortable questioning events throughout the transaction. Make certain you have established a confident relationship before making your selection. If you are interviewing a REALTOR® who hesitates when asked questions related to your concerns, consider moving on.
It is also a good idea to check with the local Better Business Bureau or Ohio Division of Real Estate and Professional Licensing [(614) 466-4100] to learn whether there have been complaints filed against the REALTOR® or broker.
For Sellers…Before signing with a REALTOR®, make certain he/she understands your specific situation and fully discuss the terms of the listing agreement and the level of service the REALTOR® will provide. Find out what your responsibilities will be under the agreement. If you do not agree to the terms proposed or services offered, negotiate, or move on. Discuss acceptable access to the property. This would include access for showing the property, inspections or any other valid reason for entry to the property. You will also want to cover any special circumstances, such as pets, alarms, someone who works a night shift and may be at home during the day, etc. If one is a seller of vacant property, address whether special attention may be required. You may want to discuss limiting showing times to daylight hours, so unusual activity after dark would be more apparent. You may want to have a family member, neighbor, etc. keep an eye on the property and notify you (and/or your REALTOR®) of any suspicious activity. All instructions should be agreed to by the REALTOR® and placed in writing to ensure complete understanding. We also recommend that everyone read the entire listing agreement to make certain they understand every aspect of the agreement and to make sure their specific needs are being met.
For Buyers…Before making your final selection on a REALTOR®, make certain he/she understands your specific needs. If you have a desire for a gourmet kitchen, large yard for gardening, close proximity to public transportation, etc., make it known up front. If you will be taking advantage of specialized financing programs, be certain the REALTOR® you choose is familiar with the particular programs you are interested in using. Decide whether you want to enter into a formal Buyer Agency Agreement. Discuss the benefits/limitations of such an agreement. If you do decide to enter into that type of contract, make certain you understand and agree to its terms, your obligations and the obligations of the REALTOR®. You need to work together to ensure a successful home search.
Whether buying or selling, make certain the REALTOR® you choose to represent you will agree to accommodate all your needs. It is also recommended that you consider having an attorney review any agreement you are considering entering into if you have any questions as to how it may affect your legal position.
The Cincinnati Area Board of Realtors® has a process in place for handling complaints associated with a member’s actions. If a situation arises that appears to be a violation of the Code of Ethics, it is suggested that a complaint be filed with the local board with which a REALTOR® holds membership, so the enforcement process can be initiated. Just as with non-real estate related activities, it is the enforcement of existing regulations that serves as a deterrent to those who would consider violating those regulations.
Out of the thousands of transactions facilitated annually, only a small percentage result in activities that prompt complaints.
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