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FINDING THE PERFECT REALTOR
Sunday, June 07, 2009
By JOHN KIRKLAND
The Oregonian
Everybody's been saying this is a great time to buy a home. Prices are down significantly from the peak of the 2007 bubble, and interest rates are still low. But if you've never bought before, it can be daunting.
The same goes if you're selling. At a time like this -- a buyer's market -- you want the best advice on how to market your home so you get the highest price.
The key players for both buyers and sellers are good Realtors. They're experts in buying and selling real estate, including ethics, legal issues, market data, financing and much more.
For sellers, the payoff for using a Realtor can be quicker sales and more money.
"Studies have shown that homes of people who work with Realtors sell for a higher price," said Kathy Querin, chief executive officer for the Portland Metropolitan Association of Realtors, also known as PMAR. "They know how to price properly and how to negotiate."
Negotiating power also is important to the buyer. And both sides benefit from a third party who can steer the sale through what can be a very complex process.
With 6,600 PMAR members, there are plenty of Realtors in the Portland area to choose from.
So the question isn't how to find one -- it's how to find the best one for you.
Making a match
Michele Gila, principal broker for Roots Realty, a small firm in Southeast Portland, said one of the best ways to find a good Realtor is to start with friends, family and neighbors. Ask around. If a Realtor did a good job for someone you trust, chances are he or she will do a good job for you, too.
"Our whole business is based on referral," she said. "I think there's a greater degree of accountability when you have a referral network. So one question to ask a Realtor is 'Do you have a lot of referral business, or do you just rely on ads' "
Experience and professionalism are crucial qualities in a good Realtor, said Barbara Nelson, a principal broker with Keller Williams Realty in Hillsboro.
She added that a good Realtor stays on top of changes in real estate law and regulations, and has up-to-date knowledge of the market.
A good Realtor also can recommend other professionals who can smooth the transaction, such as inspectors, mortgage brokers and CPAs, Nelson said.
"This is a team effort, because Realtors aren't experts in everything," she said.
Because the Realtor you choose is going to help manage one of the most important transactions of your life, you'd better have a good rapport with one another.
The personal side of the Realtor/client relationship is one of many topics Melvin Broadous, a Realtor with RE/MAX Equity Group in Beaverton, covers in a class he teaches for first-time home buyers at the Portland Housing Center.
"If you find a Realtor you think you want to work with, take them on a 'date,' " he said. "Go to Starbucks or to lunch and talk about whatever. Find common ground.
"If you don't connect with a person intellectually, emotionally, from a relationship standpoint, then working with them professionally will be difficult," he said. "It doesn't take longer than 15 minutes. You'll know."
That's true, he said, whether you're buying or selling.
Get it in writing
Gila advises people to establish an exclusive agency relationship with their Realtor. The relationship agreement -- which should be in writing -- states that the Realtor is only handling the client's side of the transaction.
"Sometimes you see dual agencies that represent both sides. But that's like a husband and wife hiring the same attorney for a divorce," she said.
If your Realtor is also representing the other side, he or she is required by Oregon statute to disclose that information to you and give you an opportunity to ask for someone else, said David J. Tangvald, a principal broker with Prudential Northwest Properties. "Everyone must understand in writing that this is the situation," he said.
Realtors get commissions for their work. Six percent is the norm in most home sales, with 3 percent going to the listing agent and the other 3 percent going to the buyer's agent.
Discount brokers charge less, and some brokers charge more, and sometimes one Realtor will get more than the other. So determine from the Realtors you're interviewing what their commission is and what you will get for that money.
Typical services run from verifying the lot size and home dimensions to entering the property on the real estate Multiple Listing Service and hosting open houses. A standard listing agreement will include a list of services, but Nelson said it's pretty minimal. Ask your Realtor what more they can do for you, and get it in writing, she said.
If your house is languishing and you want to pull it off the market or go with another Realtor, you could be on the hook for thousands of dollars to the Realtor with whom you signed the original listing agreement -- usually 3 percent commission in a typical 6 percent listing.
Nelson offers her clients an easy-exit listing policy that lets the seller out of the agreement without having to pay a commission. Clients opting for the easy exit pay a $400 marketing fee, which Nelson says barely covers her expenses.
"I started doing it a couple years ago. I just think if you're a Realtor with value, you should back it up," she said.
Get to know one another
If you're looking to buy a house, Nelson said you should choose a Realtor who specializes in the areas that interest you.
Even if your Realtor doesn't know much about the area you're interested in, a well-connected one can refer you to someone who does. It's no loss for the broker; he or she will likely get a referral fee from the person he sends you to.
But not all Realtors specialize. Broadous handles listings throughout the Portland area and in some cases -- including post-foreclosure sales -- as far away as Milton-Freewater.
Regardless of his or her focus, ask your prospective Realtor how many homes he or she has sold in the neighborhoods you like. Are they writing contracts every month? Are they a member of PMAR's Million Dollar Club? Members of the club are Realtors who have $2 million in closed volume or 20 transactions in the last year.
Pick a broker who listens to you about what you want in a house, but who can also present alternatives. Broadous said he likes to take new clients on a tour of homes in their price range, and also show them what houses are like slightly above and below their range. It gives them a bigger picture of what's on the market and gives him an idea of the home features that are most important to the client.
"I can tell if a house is a hot button for someone. I look for the eyebrows to go up and listen for the word 'Wow!' " he said.
Ensure right fit
Realtors often have skills and credentials that you as a buyer or seller might find important. For example, Gila specializes in green building and has earned the EcoBroker and Earth Advantage S.T.A.R. certifications to help buyers find homes with features that save energy and resources.
There are lots of other certifications too, all of which can be found on the PMAR Web site, www.pmar.org. Click on "Consumer Resources" at the bottom of the home page for resources that will help refine your search for a Realtor -- who can in turn help you search for a buyer or help you search for your dream home.
Portland writer John Kirkland can be reached at kirklandjohnr@msn.com.
