All Brokers Are Not Created Equal

Selling your home (or residential real estate investment) is a big deal. In fact for many people it is the largest financial transaction they will ever do. And a good real estate agent is a professional, just like an attorney or a financial advisor. So why would you entrust it to you sister’s mother-in-law’s cousin, just because you know she is an agent and you have this tenuous connection? Would you choose the manager of your securities portfolio that way?

One of the prevailing myths about real estate brokerage is that anyone can do it. For many years, the popular perception in New York City was that all you needed was a mink coat and a bunch of keys.  It is true that the bar for entry is NOT high – passing the New York State real etate agent exam is not difficult, nor is completing the continuing ed requirement. But we are a professional group, with professional standards and expectations. As a consumer, here’s what you should be looking for:

1) Integrity. Nothing else matters if your agent will not deal with you, a co-broker, and the person on the other side with the highest ethical standards.

2) REBNY membership. REBNY (The Real Estate Board of New York) educates its members, provides and enforces behavioral standards, and manages dispute resolution. Any agent with a claim to being a professional is a REBNY member

3) Recommendations. Speak to people who have actually worked with the agent you are considering and see what they thought. If you don’t know an agent but have heard about them (or in the case of the sister’s mother-in-law’s cousin mentioned above), ask for references and call them.

4) Knowledge and Sensitivity. If you are a seller, make sure the agent you are considering understands your neighborhood, your needs, your requirements. Do they listen to you (if not, they probably won’t be listening to prospective purchasers either)? Do they talk too much (ditto the above, and nothing turns a buyer off more than an agent yackety yacking away while they are trying to view a property)?

If you are a buyer, does your agent understand your criteria? Does he both show you what you have described and try to sensitively stretch those criteria to include other options? Does he clearly understand the details of the co-op, condo, or townhouse buying process and fully inform you about what you will need to do?

5) Intelligence. If you are a seller, are you confident your agent will articulately promote your home’s strong points while managing the negatives to minimize their impact? Does she understand your needs so that any negotiation is managed to make sure you can move at the right time, take what you want with you, and leave no money on the table?

Conversely, if you are a buyer, are you confident your agent knows the comps well enough to get you the best price for the property? Do they understand the nuances of the building? Do they have strong quantitative and organizational skills which will enable them to assemble your personal, professional, and financial information into a clear and cogent Board package?

6) Finally, you are going to be spending a lot of time with this person, both face to face and on the phone.  You had better like them.

This list is by no means comprehensive, but it should put you well on your way to choosing a smart professional who will be a partner in making your real estate transaction proceed as smoothly as possible. And that’s what is best for all of us.