Greg McCarvell

If you ever read statistics on how people choose the Realtor and broker organization it would simply amaze you. Typically a person selects the first Realtor they speak to and rarely do a formal search for qualifications and compatibility. Below is an interesting article outlining this strange trend (63% choose the first agent they speak with!): (http://www.homegain.com/press_center/press_releases/show_release?pr_year=1999&pr=1999_08_31)

One of the main reasons people have for not properly qualifying an agent or broker is TIME - or more accurately the lack of time available for the process. This post is intended to give you a VERY basic overview or checklist to follow. It is not intended for someone who wants to invest the required time into this process - it is for someone who would otherwise skip the step entirely.

Qualities to Look for in an Agent

1) Competence - Ask them for a brief "resume" of their experience both in the real estate industry and elsewhere. If they have held prominent roles in other industries, this should be given due credit. Let's face it, some people are hard workers, others are not. A history of job performance can give you a long term picture at personality traits. Would you hire them if you were a business owner?

2) Personality - Do you like them? Well common sense tells you that if you like them than others may as well. Just be sure that they do have a certain degree of "backbone", because in the end you need someone who can put a deal together properly. A totally driven personality may be overkill - look for a nice blend of people skills and determination.

3) Investment - A professional invests in the tools of the trade. Has the candidate given you impressive materials or something that looks like it has been run through the photocopier 1000 times? Are you able to easily contact them through a direct cell phone number? What about a laptop? While the job can be done effectively without some tools, judging based on this criteria can weed out part timers. Remember, this is a knee-jerk decision guide, not a scientific study.

Qualities to Look for in a Broker

1) Presence - Is the brand name recognizable? I would not be worried about an independent brand if the market presence is strong. A familiar name is important. Brand names move products for a reason - trust. The same hold true with the "brand" of real estate firm you have represent your interests.

2) History - Think strongly about using a company that has been in the market for a number of years. Anything over 10 years should be fine, but preferably 15 or more under the guidance of the same broker.

3) Colours - I'm sorry, this is the graphic artist in me! I couldn't possibly hang a sign with putrid colours on my lawn. In reality, I don't think this is a legitimate point, I was just striving to have 3 points in this section as well;)

There you go, a simple three step decision guide, use it wisely!

Realtors affiliated with their local boards across Canada are bound to a strict standard of professionalism and competency. The Canadian Real Estate Association Code of Ethics is a document that outlines and specifically addresses certain issues encountered when buying or selling your home. For a complete reprint, go to: http://www.crea.ca/public/realtor_codes/code_of_ethics.htm

In general, the standards put forth in this document are more demanding than the law itself requires (for instance in the Real Estate and Business Brokers Act - REBBA). While the standards are not necessarily legal requirements, REALTORS who break the code stand to possibly face disciplinary action. Below are some of the topics covered in the CREA Code of Ethics:

- Keeping clients informed an up to date: Upcoming legislation, Financing, Content of Forms

- Obligations to the client and customer: Misrepresentation of market value, misleading customers

- Disclosure of Agency

- Expenses known to all: Explaining fees for services

- Keeping clients informed an up to date: Upcoming legislation, Financing, Content of Forms

- Legal Counsel: Seek legal assistance for self and benefit of others

- Skill: Appropriate level of expertise

- Avoiding Controversies

A common question is "how much is my property worth?". Understand the answer to this question can vary greatly. Many times you will get a "shoot from the hip" type answer that is simply inaccurate. While an experienced sales person many times can give you a rough estimate based on recent experiences, this advice needs to be qualified if it is supporting a major decision.

The complexity and detail behind formal appraisals will boggle the mind of most. Appraisal professionals have a multitude of methods and mathematics to produce estimates of value from a more scientific perspective. The services of an appraiser are rarely (if ever) free, so a well trained salesperson in this area can prove helpful for many purposes.

Specialty courses are available to diligent salespeople teaching more in depth concepts of appraisal. The current licensing training also includes a good amount of background on the process and cautions practitioners to guard clients against poorly researched value estimates.

The concept of Agency spans far beyond the scope of real estate sales. This area of law is very interesting and detailed in scope. Most people recognize the Agency relationship in a couple of common areas: Listing Agreements and Buyer Agreements. These formalized documents serve a great purpose in establishing a clear, well understood agency relationship.

Two things are interesting about this area. The first thing is the fact that in many ways an agency relationship can be created unexpectedly when involved parties perform certain actions. By acting as if an agency relationship is in place, very often it is in place by the concept of implied agency. In my opinion, you are best to clearly define the relationship than to have it take place by default. Doing so will allow you to be more formally aware of the rights, loyalty and duties that an agent should be providing you.

The second thing that is interesting are the bundle of fudiciary responsibilities that are required as soon as this type of relationship is established. The bottom line is that your real estate salesperson is obligated to look out for your best interests (not their own). If they do bring in a buyer client whom they owe the same loyalty, they are required to inform you of this dual agency situation. Your salesperson should be keeping your best interests at heart, providing competent service and keeping confidential information to themselves.

By the way, don't shy away from a dual agency situation. If this is handled by a professional, many times it can lead to a very positive experience. Today's society favours available facts and easily located information with which to make decisions. A dual agency can put more information on the table and make the process very clear and easy. This is all contingent on the fact that your representative is well versed in professional client relationships.

I often consider one of my greatest strengths the ability to keep composure in a tense situation. I can think of many, many situations where my role as a facilitator - a person in the middle - allowed my clients to realize financial benefit because they kept their emotions in check. Unfortunately, on the other side of the deal was someone who lost because they themselves, or their Realtor went over the top with emotions.

Frequently, I hear myself saying to clients: "This is not a grudge match, it's about finances and lifestyle. You can gain in those areas or you can win this argument - but NOT BOTH". Clients are quickly comforted by the fact that this is likely the last time they will ever interact with the buyer or seller on the other side. When things get tense you can gain ground by giving a little (appearing to lose the fight) and then the situation softens, taking all that loss back and winning in the end. Let me give you a few examples:

THE PRICE CONFRONTATION

Eventually the focus of any offer turns to price. It's natural! Price is ALWAYS a discussion point. Discussion point - that is the key phrase. Often when the negotiations wind down to the final stages things can get a little tense. My advice to clients is to remember that winning often involves concessions and letting other think they won. For instance, if the negotiation came down to the last $1,000, logically speaking this agreement is already made. No one on this earth can determine the market value of a property within that range. If the other negotiating party is emotionally charged to win, quite often you can spend that last $1,000 in a much more productive way. Give them the last $1,000 and adjust the closing date to save you a couple mortgage payments. Maybe there is more value in some inclusions (appliances etc). An emotional need to win almost always leads to that person overpaying for the item they are attached to (price or otherwise).

THE NEGOTIATION PROCEDURE CONFRONTATION

This one is priceless! Let's face the facts - modern negotiations in North America are fairly tame. I always appreciate working with buyers or sellers from different parts of the world. Very frequently they have very different expectations and tactics when it comes to bartering. It's a mistake to let yourself get emotionally charged with the sequence of events leading to the agreement. People are different and take different approaches. I've had deals work from $20,000 under list and end up selling quite close to asking price. I've also had deals start at 98% of list and never make it past the first step. Regardless of the fact that they started way too low AND asked for your grandmother's antique wardrobe, getting upset will not help. Take it as a compliment that they are making an offer on your house instead of the others on the market and move forward.

THE LOWBALL OFFER CONFRONTATION

I'll agree with you that it's annoying. There are buyers in the marketplace who consistently start with obscenely low first offers. As a buyer's agent I advise people it can be counter productive. Still, people are told "if you don't ask, you don't get". Don't lose faith - sometimes a lowball offer can be your greatest tool to leverage into other, more credible offers. When an offer is presented on one of my listings guess what I do first? That's right, I call EVERYONE who looked at the property, everyone who says they are going to look and anyone else I can talk to! It's a funny thing how people are attracted to homes they may lose! Maybe the lowball offer can become acceptable offer, maybe it's just fuel for another... getting out of focus can cost you both of these benefits.

My Clients often have a lot of fun during the negotiation process... that's right - FUN! We talk about the likely outcomes, we know where we want things to go many, many steps beyond the current negotiation position. With this information in place when push comes to shove we never need to make a knee jerk reaction, we just laugh and notice where on the map the other party went.

If you have an experienced negotiator on your side you can take a lot of the negative emotion and unpredictability out of the process. Call me! I would be interested in presenting a more in depth negotiation process to you. It's amazing the amount of information we can discuss in the course of 15 - 20 minutes.

Being a facilitator is a key role your Realtor should be playing. Excelling in the midst of confrontation, negotiation break-downs and high emotions is critical to your success. Be sure you are working with someone who handles pressure well.