Real Estate Help - How NOT to Pick a Real Estate Agent

Getting the right real estate help is imperative when attempting to sell your home. However, for most Americans finding the right real estate agent is not an easy process.

I can’t tell you how many times over my 15 years in the mortgage industry when I ask potential clients how they decided on their real estate help, I hear, “Oh, my brother-in-law is an agent”.

Yikes!

We all know someone in our circle who thinks making a bundle selling real estate is right around the corner but let me assure you, for 99.99% of them, it is not. Good real estate help is hard to find when many in the industry entered the profession solely for money.

The truth is the average earnings for an agent run about $35,000 per year.

According to the Bureau of Labor Statistics:

“The median annual earnings of salaried sales agents, including commissions, were $35,670 in May 2004. The middle 50
percent earned between $23,500 and $58,110 a year. The lowest 10 percent earned less than $17,600, and the highest 10 percent earned more than $92,770.”

Let’s break that down:

The average home price where I live in the Denver area is $240,000. Let’s multiply that by half of a normal commission or a typical
2.8% for the buyer’s agent. That’s $6720 per closed deal for the buyer’s agent. Now let’s divide $35,670 by the average commission to discover the number of successful transactions the average agent completes per year.

$35,670 ÷ $6,720 = 5.3 deals per year.

Ouch!

Five closed deals per year hardly makes one a “pro”. In my mind, it makes them a rookie and at that pace, they’d stay a rookie for
over 20 years.

My first month as a full-time, commission-only loan officer, I completed 23 closed loan transactions. I was so green then I didn’t know what I didn’t know…but I had the benefit of multiple transactions per month as my teacher. Still, I made mistake after mistake, learning something new from each deal. Now after 15 years and thousands of transactions, I can finally say I’ve earned the title of pro.

Can a real estate agent doing 5 deals a year say that?

I think not.

So, when it’s time to find an agent, you owe it to yourself and your family to get your real estate help from someone other than your cousin with a license.

Ignore referrals from friends and family altogether. Don’t feel obligated to use these sources. Don’t be lazy. Do your own research. A significant chunk of finding good real estate help is getting educated yourself.

Interview a number of agents and find a real pro.

Remember, this is the largest single financial transaction of your life. Give it the respect it deserves. Hire the most experienced
professional you can lay your hands on!

I can hear you now, “Okay, Rob, how do I find the most experienced professional?”

Good question and I will say, as you’ve probably guessed, experience counts. The best way to determine experience is by the number of transactions an agent is handling monthly or yearly. The agent’s production is going to give you the best indication of how committed they are and how much real estate help they’ll provide. Is the agent a part-timer who’s just dabbling in real estate sales - or is the agent a full-time, productive, professional whose livelihood depends on their ability to repeatedly close real estate transactions?

But, I digress. I’m supposed to be advising you on how NOT to pick an agent.

So let’s recap. How not to pick a agent:

Don’t use a family member

Don’t use a family friend

Don’t use one of your friends

Don’t use a referral from a family member

Don’t use a referral from your friends

I hope you actually use this advice on finding professional real estate help. If you don’t, you’ll pay the price.

Click over to

You can find professional real estate help for free!

Good Luck!

Author: Rob K. Blake
Published January 7, 2008

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