Choosing a Michigan Real Estate Agent
Experience Really Does Make a Difference?
Today, in the United States the number of licensed real estate agents is staggering! According to the ARELLO - Association of Real Estate License Law Officials website there are currently 3,112,771 real estate licenses, in the US. Out of that number 1,118,083 are REALTORS or members of the National Association of REALTORS as of February 2009.
With that many agents how do you know Who to choose? What questions to ask? Well, if you're like most people, your home is your largest financial investment. So do your homework and be careful when you; hire your next real estate agent!
Real Estate agents are no different than any other profession. There are good and bad. There are full time and part time. There are experienced and brand new. But ask yourself this. Would you hire a doctor that was also a barber? Would you hire a lawyer that has tried only a couple cases? Of course not! So, Why would you hire an agent with another profession or someone who is brand new to handle Your largest financial decision?
Here's a few facts about real estate agents...
Getting licensed - In Michigan, all you need is a 40 hour real estate course, then once you have completed that, you can take the Michigan state exam. If you pass the test you are issued a Michigan real estate license. Now all you need to do is find a broker to work under and you are in the real estate business. Sounds pretty simple! But is that really enough?
What about experience - The truth is most agents receive their license and go right to work. Some companies do offer a little classroom training but beyond that most agents just fumble through the process. The average agent sells 10 sides (houses) per year according to the National Association of REALTORS® - 2006. Make sure you ask your agent how many homes they sell a year and how long they have been in business. Everyone needs to start sometime but most agents do not receive the proper training. Do you want to put your largest investment in their hands? Make sure you hire an agent that has a track record. Verify their license and see how long they have been licensed.
Part Time vs Full Time - a large percentage of agents have a full time job and "do" real estate on the side. Stay clear of these agents. You should hire an agent that is committed to their profession. One that is available when buyers and sellers are available - mornings, afternoons, nights and weekends, if possible. If your agent is at their "job" who is handling the sale of your home? When a problem occurs your agent needs to be available to handle it.
One thing you may not know - real estate agents are independent contractors. That basically means they run their own business and running a business is expensive. It requires "capital". You need money for licensing, advertising, business supplies, equipment, marketing, insurance, taxes, web sites, MLS fees, attorneys, accountants ect. Does your agent have a well established business? Or do they run their business on a shoe string... ready to go out of business?
MLS Systems - In the Macomb County area there are two MLS systems - RealComp and MiRealSource. Basically when an agent places a home on the market they list it in the MLS and offer it to thousands of other agents. This way the Sellers home is exposed to the market place and gives a buyer tons of choices. Members of MLS systems typically are REALTORS®.
Education - most real estate agents finish real estate school, take they con-ed every year and never get any additional education. Could they? Yes, but that is an added business expense. Many agents are just not committed enough to their profession.
Designations - learn more about real estate agent designations, certifications and courses.
Make sure your agent is qualified to handle your largest single investment!