Selecting A Realtor
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There are around 5000-6000 real estate agents that are a member of the local Columbus Board of RealtorsŪ. Selecting the best one for you may seem a daunting task, but if you understand how the agents have set up their business, you may be able to narrow your choices ... and reduce the confusion. RealtorŪ vs Real Estate Agent To become a Real Estate Agent, a person must complete 130 hours of specific coursework, then take a state issued test. Every three years they must complete 30 hours of continuing education to stay abreast of industry knowledge.  To become a RealtorŪ, an agent must join the National Association of Realtors which means they agree to abide by a lengthy and specific Code of Ethics. If they violate any of the numerous Codes, they risk fines, suspensions or the possibility of having their license revoked. All RealtorsŪ are agents ... but not all agents are RealtorsŪ. If a higher level of professionalism and ethical conduct is important to you, then select an agent who is a RealtorŪ.Single Agents vs Teams Some agents prefer to "work alone" in order to control the quality of service their clients receive. Usually, but not always, these agents give more personalized service and often are more hands-on in their client relationships. They tend to work longer hours and work most days of the week, so they are more accessible to their clients. Some agents have set up a "team" of agents to work on their business. All the sales volume reporting or advertising is done under the leader's name, even though numerous agents are producing that volume. Usually the team is organized much like an assembly line, with each member having a specific function. The leader is usually the agent who makes the listing presentation. Once the home is listed, it moves "down the assembly line" for another clerical or agent to handle the details. The seller may never see or speak with the leader again. Depending on the Team, there may or may not be a smooth transition as the client moves through the various stages. Teams tend to work more normal business hours so they may be less accessible to clients after hours. Full-Service vs Minimal-Service This section applies more for sellers as it determines the level of marketing or involvement an agent will provide to market the home. With the advent of minimum-service brokerages/agents, several state legislatures, including Ohio, have or are in the process of enacting laws requiring a minimum standard of service from agents, thus, enforcing the Division of Real Estate standards of performance. Ohio's law went into effect October 2006, so the minimum-service brokerages must now have a seller sign a specific form to waive their rights to the fiduciary duties that agents owe a client.  Full-Service Agents: Most people have this type of agent in mind when they are considering an agent to list their home. Full-service agents do everything! They take numerous photos for the internet. They make in-home brochures and create print ads. They hold open houses. They may (or should) maintain a web site. They call agents for showing feedback. They negotiate all Purchase Offers that are received. And they handle all the details required to close on the home. For all this time and out-of-pocket expenses, they charge a commission that is a percentage of the selling price of the home. That commission is then split 4 ways: (1) listing broker, (2) selling broker, (3) listing agent, and (4) selling agent.Minimum-Service Agents: With the internet being such an important aspect of selling a home, some agents are capitalizing on sellers who need to sell their home themselves for financial reason and who can't afford to pay a full-service agent. A minimal-service agent will enter the home in the local Board's MLS system, install a yard sign and charge a flat-fee or upfront fee for doing so. All other aspects of selling and marketing the home are left to the seller. Advertising, setting up showings, obtaining feedback, holding open houses, contract negotiations, and closing details are the responsibility of the seller. If the seller wants the agent to handle any of these other details, there will be an add-on fee structure for doing so. In addition to these fees, the seller will still pay a co-op percentage of the selling price to the buyer's broker, plus, they really should hire a real estate attorney so a professional represents them to ensure they are protected with the required legal paperwork. What a RealtorŪ is NOT! A RealtorŪ is not an employee of the broker with which they are associated. They are what the IRS calls independent contractors. Self-employed is a more common term. All agents are in competition with each other even if they are associated with the same broker. They are not paid a salary nor do they receive expense reimbursements, but rather pay the broker monthly fees to be associated with them. All their expenses are paid out-of-pocket. Their income is derived only from a portion of the commission the broker receives when a home is sold. |