Buyers - Choosing a Realtor

Who is a REALTOR?
The terms agent, broker and REALTOR are often used interchangeably, but have very different meanings. For example, not all agents or brokers are REALTORS.

As a prerequisite to selling real estate, a person must be licensed by the state in which they work. Before a license is issued, minimum standards for education, examinations and experience, which are determined on a state by state basis, must be met. After receiving a real estate license, most agents go on to join their local board or association of REALTORS and the National Association of REALTORS (NAR). They can then call themselves REALTORS. The term "REALTOR" is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS and subscribes to its strict Code of Ethics (which in many cases goes beyond state law). In most areas, it is the REALTOR who shares information on the homes they are marketing, through a Multiple Listing Service (MLS). Working with a REALTOR who belongs to an MLS will give you access to the greatest number of homes.

Understanding The Difference Between a Buyer's and a Seller's Agent
Get the publication from the North Carolina Real Estate Commission titled WORKING WITH REAL ESTATE AGENTS found as an Adobe pdf file towards the bottom of the page.

Recommendation: If you're working with seller's agents, it's a good idea to keep confidential information to yourself. The sellers agent is duty bound to pass any pertinent information (you might provide) on to the seller. The sellers agent has no duty of confidentiality toward you. Hire a buyer's broker who owes his loyalty, confidentiality and obedience solely to the buyer. A buyer's broker in most cases is paid by the seller, regardless of the agency relationship.

How to Evaluate an Agent
Questions you should ask when evaluating a potential agent. The most important question you should ask is whether the agent is a REALTOR. Then ask:

• Does the agent have an active real estate license in good standing? Check for agents with active licenses.
• Does the agent belong to the Multiple Listing Service (MLS) and/or a reliable online home buyer's search service? (Multiple Listing Services are cooperative information networks of REALTORS that provide descriptions of most of the houses for sale in a particular region.)
• Can the agent give you a private online internet site for you to search for homes and communicate with that agent.
• Is real estate their full-time career?
• How long have you been in the business?
• What real estate designations does the agent hold? Have the agent explain them to you.
• Whom does the agent represent--you or the seller? This should be explained early on, at "first serious contact" with you. The agent should discuss North Carolina's definitions of agency, so you'll know where you stand.
• Will you provide references?
• What are the top three things that separate you from your competition?
• How will you help me find other reputable professionals that I will need in the home purchasing process?
• Does your company offer Mortgage Banker (not broker) Services, Home Insurance, Title Insurance, Home Warranty, and Home Maintenance Services all in one convenient place.
• Does your company offer global relocation services.
• What kind of gurantee do you offer?
• In exchange for your commitment, how will the agent help you accomplish your goals? Will he or she show you homes that meet your requirements (size, style, features, location, accessibility to schools, transportation, shopping and other personal preferences) and provide you with community information on utilities, zoning, road construction projects, etc.?
• What have I not asked you that I need to know?

Think About This

Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $200,000. If you had a $200,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $200,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.