Let’s be frank, not all real estate agents are equal.
My worst experience with an agent took place in Hong Kong. Recently I was looking for an apartment in Kowloon. I had to reject five agents before I found one that would do more than unlock the door to a home viewing. The worst agent, I interviewed there, was a fellow who kept saying “trust me” after every nonsensical statement he made about the market.
My best experience was here in Singapore when our agent not only negotiated the price down once but twice. He didn't stop after we agreed on the first price even though he would have made more money. Instead, on his initiative, he kept his eyes open and identified an issue that allowed him to negotiate a second price reduction. As a result, he earned a lower commission but gained our gratitude and future referrals.
I often hear disparaging words about real estate agents but the reality is that the evidence points to the opposite. For example, well over 90% of all real estate transactions have at least one agent involved.
Furthermore, at the end 2012, the Council for Estate Agencies (CEA) published a Public Perception survey that found eight out of ten consumers are satisfied with their agents. When agents fell short in the survey, it had to do with their conduct or lack of knowledge, especially when it pertained to financial matters.
A financial asset, like a home, is first and foremast about its value. So, it’s no surprise that consumers are dissatisfied with agents who don’t know their stuff and act in an unethical manner.
If most people are satisfied with their agents, then why are there so many bad words about agents?
The reason is that it takes only a few rogue agents to ruin the reputation of the industry.
Furthermore, the complexity of the real estate market makes it easy for an unscrupulous agent to prey on an unsuspecting consumer who hasn’t done his or her homework.
It’s impossible to legislate or regulate away all the bad agents. Every industry has its bad apples. Therefore, the burden rests with you, as the consumer, to make sure you properly vet your agent beforehand so you don’t place yourself in an unfavorable situation.
When I select a real estate agent, I evaluate that person on four criteria:
The agent must know the market from top to bottom. He or she must be able to identify arbitrage or mismatches in the market.
When it comes to network, I expect my agent to be able to use mobile technology to find buyers or sellers as well as arrange additional viewings on the fly.
In terms of experience, I look at an agent’s marketing acumen and negotiating skills.
Finally, I expect my agent to be my advocate. It’s about me finding the right home at the right price, not about the agent getting the deal done for the sake of getting paid.
Client service is code word for integrity. It’s easy to spot agents who provide clients with great service, and, I can tell you, they are never the one’s that say “trust me”. Trust is established with knowledge and deeds, not words.
A good real estate agent will pay for him or herself so the trick is to find a good agent. In my next column, I will breakdown, in detail, how to evaluate an agent’s level of knowledge.