subject: How To Determine The Qualifications Of The Real Estate Brokers In Your Area [print this page] Before committing to the services of a specific real estate broker, there are a few details that will have to be cleared up first. These have to do with his personal track record and the services that he is ready to provide for you.
Investigate his Experience
You should not even consider entrusting your concerns to persons with meager experience. They should know how the value of property is calculated. This can differ from one location to another. They should also be aware of the specific values of property in the area you are interested in. How much do sellers usually make? How much can buyers expect to shave off the original list price?
Find out about his Accomplishments
You will need to verify if he is as good in the practice as in the theory of real estate brokerage. It may embarrass you to have to request him to give a documented listing of his track record, but that needs to be done. Remember, you are not asking him to buy or sell a pair of baseball mitts for you, but assets that can be easily worth hundreds of thousands and even millions of dollars. This request is actually one good way to separate the grain from the chaff. Successful real estate brokers are only too glad to show off their accomplishments.
Know how Good he is at Selling
If you are asking his help to purchase property, you have to know how much he is usually able to shave off the listed price of properties he buys. This is referred to as the List-Price-To-Sales-Price percentage. The lower the ratio of his actual expenses for purchasing to the stated price of properties, the better he is at getting good deals. On the opposite side, if you are selling a piece of property through him, ask him how much he usually slashes off the selling price before he can make a sale. For you to realize as much or nearly as much profit as you wanted, this figure should be zero, meaning that he can always sell without having to lower the price. This is, of course, hardly ever met with today.
Know his Strategy for Real Estate
If you are interested in buying property, ask him if he himself is selling and if he is directly connected with the seller of the property. This situation can be a good source of great buys. Avoid purchasing from real estate brokers who are third generation agents or more because you may not get a good price.
Additionally, learn something about his tactics for searching for suitable property for his clients. Does the real estate broker wait until something that perfectly matches the desired criteria comes along? Does he present anything that closely approximates his client's specifications or does he include remote possibilities as well? Ask him how soon he expects to have results for you.
Will he have the right connections with members of the trading community to facilitate and hasten your deals?
If you are transacting a sale, find out where he intends to market your property and how he intends to go about it. Get samples of his advertisements and flyers. It is important to know that your real estate broker's methods are all straightforward. An unscrupulous broker can get you in all kinds of trouble and can lower the price of your house.
Last But Certainly Not Least...
Check if everything he claims that he is and that he can do is true. Ask him for references. These may be past clients or fellow traders. Only after talking with these people should you make your conclusions about the broker.
