Hank Miller

How Do You Find a Real Estate Agent?

Real estate agents are not held in high regard, that isn’t surprising as the real estate bar isn’t set very high. A good part of the blame belongs with the public – the demand for excellence isn’t there and mediocrity or worse is accepted. The industry is also culpable; this is a field that endorses and embraces part time agents. Brokerage houses, real estate associations, real estate schools, licensing associations and associated supply businesses make money whether or not an agent is full time or productive. As long as the monthly dues, fees and associated expenses are paid, all is well. Most agents are typically independent contractors, brokerage firms would like them to be busy but since they are not employees there isn’t a mandate to do anything – except pay the monthly fees. The fact is, most real estate agents are “opportunity agents” or “DNA agents”; they expect business to come from personal friends and/or family. Friends and family often feel obligated to use them despite concerns about their ability.

In a field with little to no established performance standards, ridiculous self-aggrandizement and bogus production reporting, how are the qualified and high producing agents found? In about 15 minutes with seven direct questions:

1. Are you a full time agent?
The correct answer is yes. If they’re not, will they be available when you need them? The idea that some agents return calls or emails received in the evening the next day is ludicrous; the responsibility of handling the client’s requirements mandates availability. Common sense applies but this business doesn’t close after six or on the weekends and holidays. Part time agents might be wizards in class but most are duds in the real world, especially in this market.

2. How long have you been actively selling real estate and for whom?
Anyone with less than two full time years should be eliminated, that is just not enough time to fully grasp a market like this. A recognized firm is desired as they will typically have a full complement of resources available.

3. What are your personal production levels over the last three years?
To be “successful” in the Atlanta area, an agent should have at least $2 million of annual sales volume. That is about 6-10 transactions per year personally completed, not as part of a team, an office or some other entity. Some agents tie into office or team production – focus on their production.

4. Verify the figure you are provided and request a copy of their report.
Many agents will give company or team stats, not personal stats. This is especially true on listing appointments. Request a copy of their personal production; it’s available to every agent off the MLS in seconds. This is the only way to actually verify what you are told.

5. Is your managing broker on site at your office and responsible for it?
Many discount firms have “broker pools” – not specific managing brokers that guide agents. Brokers that are responsible for agents and production tend to have more interest in their agents as they are rated based on office production.

6. Please provide five references over the last year that I can call.
This will verify experience with past clients and by keeping the date within a year; it will demonstrate experience in the current market. Call the references and ask questions.

7. Please provide a copy of your resume.
Every agent will claim to be #1 at something, and that’s great; it’s also the reason to zero in only on the agent’s personal production as there’s no debating that. Every agent likely has an alphabet of nonsensical designations; most are obtained by writing a check. Note as well the hype surrounding “green” and “short sale” designations; more meaningless alphabet soup and revenue generation for realtor associations.

These are reasonable, direct questions; others can be added as needed. This type of prescreening should be completed ahead of any listing appointments or before meaningful meetings begin. Obviously there are a plethora of additional, more specific questions depending on the circumstances, but a few minutes spent ahead of time will save time and money down the road.

In this market, issues and challenges are the norm, nothing is easy. Smart clients recognize that and will separate business and friendship. Screening prospective agents is fairly easy, and it should be conducted with a business mentality – in short; “what can you do for me and why should I hire you”?  Ten minutes – even less if done via email – can save you money, time and aggravation. It would also help to clean up the real estate business.