Choosing a REALTOR® for a Real Estate Transaction in Calgary

CHOOSING A REALTOR®

Maybe you're buying a home for the first time. Or maybe you're selling your old home to move up to something new. Whatever the reason, the buying and selling of a home is a big event. It's an intricate process involving many specialists. One of these specialists is a REALTOR®, whose job it is to make the transfer of property as easy as possible.

But not all licensed or registered brokers or salespeople are REALTORS. The term REALTOR® is a trademark identifying real estate licensees in Canada who are members of The Canadian Real Estate Association (CREA). REALTORS® adhere to a strict Code of Ethics and Standards of Business Practice. The code of ethics is a firm set of rules, describing what kind of performance you have a right to expect from a REALTOR®. It's your guarantee of professional conduct and the best in service.

That's why many buyers and sellers turn to a REALTOR®. As a member of their local real estate board, REALTORS® have their finger on the pulse of the housing market and are in daily contact with buyers potentially interested in your home.

You can trust a REALTOR® to protect your interests and to look after details. And all the while, you're an active partner in the process, working with a REALTOR®, every step of the way. So the more you know about buying and selling homes, the better your working relationship with a REALTOR®.

A REALTOR’s commitment to high standards of professional conduct works to the advantage of buyers and sellers alike.

A REALTOR® is knowledgeable about developments and trends in real estate. A REALTOR® will get you the facts: comparable prices, neighborhood trends, housing market conditions and more.

A REALTOR® is committed to ongoing education to increase competence and effectiveness in real estate trading.

Every REALTOR® has been trained and tested. And REALTORS® are bound by a strict Code of Ethics and Standards of Business Practice that ensure fairness to all parties in a transaction.

A REALTOR's® pledge is to be honest in disclosing property information and forthright in providing the facts needed to help you make one of the most important decisions of your life.

And remember, only a REALTOR®, a member of The Canadian Real Estate Association, has access to the Multiple Listing Service®, Canada's most powerful real estate marketing system.

Determining which REALTOR® would be best suited to market your property is very often a challenge. On the one hand, the busiest REALTORS® may leave you feeling cold. They seldom handle all the details themselves, and may pass your file off to one of their associates once the contract is signed. The relationship can end up strained and you might end up having to deal with people you don't even know, and have no personal investment in you or your property. They may be too hasty, miss important details, and may not return phone calls as quickly as you'd like. My personal experience with these types of REALTORS® is that they are often adversarial, and have larger than life ego's. Don't be fooled by their flashy presentations.

On the other hand, a REALTOR® without the necessary experience can also be a detriment to your sale or purchase. They may not be adequately prepared to complete the contract effectively, or know how to deal with the many twists and turns that can arise in a complex transaction. They may not be confident enough in their abilities or familiar enough with the regulations to deal with another REALTOR® who comes across in an aggressive manner. Someone might throw them a curve ball and they'll be ill prepared to handle the situation. This can be particularly detrimental when multiple offers are involved. They may not know how to handle these tough situations in a tactful and productive manner, which will be in the best interest of their client. Their lack of experience could end up costing you a bundle.

Agents who sell real estate as a side-line or part time business are seldom knowledgeable enough to handle the task. They usually do not keep abreast of all the latest industry news, rule changes or procedures. They often don't know how to use the technology available to them, have little idea as to the contents of any of the contracts, and often make errors or omissions in the writing of their contracts to the detriment of their client. Dealing with these "back-seat" REALTORS® is always frustrating because the REALTOR® representing the other side often has to hold their hand throughout the entire transaction. They offer little if any follow-up, and the client may wonder if they got much value from their representative.

Your REALTOR® should be technologically advanced, readily available and responsive to your needs. The best REALTORS® are full-time, utilize the latest technologies, and know how to use them for the best results. They should provide you with an in-depth market evaluation in the case of sellers, or have shown you an adequate number of properties for you to make an informed decision.

You should feel comfortable with your REALTOR® as a person, and have a pretty good idea that they are in a good position to handle your transaction. You should never feel like you are being bullied into making a decision. A good REALTORS® primary obligation is to his client. He/She should never put their own interest ahead of your own, and they should provide you with enough information to make an informed decision. Indeed, the best REALTORS® do not attempt to sell you anything! They allow you to explore your options and form your own opinion as to their merits. When they sense that you are approaching that apex, it's their job to guide you through the decision making process, as most people are genuinely afraid of taking that step. Where they really shine is ensuring that you are well represented, and that the contract is well written. Remember, your REALTOR® is working for you. They must always act in your best interest and obey your lawful instructions, unless they so choose not to act on your behalf due to their own ethical or personal beliefs.

The do's &dont's of hiring a REALTOR®

BUYERS

Things to Consider

Choose an exclusive agent as early on in the buying process as possible. You'll want to start building trust as soon as possible and get in on some of the best buys.
Call during office hours, on a weekday if possible to arrange for an interview. It is very difficult to properly represent a client without having spent the necessary time beforehand to educate them and find out their needs.
Be patient. Good agents will return calls promptly, as soon as they are able. They will probably be equally respectful of your time while during the interview.
If a receptionist answers, leave a concise message to be paged out to the agent. In this manner, busy agents can better keep track of their calls.
Have your mortgage financing in place before you start to shop. Your agent can help with this if needed.
Your agent needs to know where you are on your financing. Please don't withhold this from them.
Request to work under a Buyers Agency Agreement. Otherwise you put your agent in an incredibly difficult ethical position that may cause some concern as to conflict of interest.
Sit down with your agent to work out the details of your home purchase.
Make sure they are a member of the Canadian Real Estate Association and can use the REALTOR® designation.
Be loyal to your agent.

Don't get off on the wrong foot by doing these things

Call at dinner time or late at night.
Be distrustful of your agent and keep him in the dark about everything.
Tell them you are parked outside a listing and could they come right over and show it to them.
Tell them you will choose your agent when you find the right place.
Refuse to answer their qualifying questions.
Get defensive and belligerent when asked whether you are currently in a position to purchase the home should you like it.
Wait until after you've been shown the property. Then tell them you already have a REALTOR® but didn't want to bother them.
Be late for your appointment then make yourself unavailable to take their calls.
Not having your mortgage financing in place before you start to shop around.
Call for a showing with no intention on buying anything
Call the listing agent for a showing with no intention of using them to write the offer to purchase
Imply that they are not doing their job because they will not agree to meet you. (Remember, the listing agent IS working for the seller). Some agents I know do not work with buyers at all. They expect that you will get your own agent to represent you in a transaction.
Bring your entire family, including the screaming toddlers. Don't hush them and let the kids run wild & touch anything they want once inside the house.
Don't remove your shoes at the door.
Expect that the agent will fall over himself to show you a property without first properly qualifying you.
Call a different agent every time. Make each agent qualify you all over again, or keep them guessing. They don't mind giving up their family time to chase your dreams. Besides they should consider themselves fortunate to have you as a customer!

SELLERS

Things to consider

Is your agent a member of the Canadian Real Estate Association who has earned the right to use the REALTOR® designation? If so;
Invite them over to view your home and for an opportunity to interview them.
Check out their Marketing Plan.
Check their web site.
Ask about their commission structure.
Evaluate their marketing materials & experience levels.
Ask any questions you may have of them.
If they pass the interview, invite them to do a market evaluation and decide on a list price, or
Hire an independent Certified Residential Appraiser (CRA) if you would like an impartial objective opinion as to value. Share this with your REALTOR®
Remember, an appraisal is only as current as the day it was taken.
A REALTORS® tools may not look like yours, but they are equally expensive, and require constant upgrading and replacement.
A REALTOR® does not sit at the cash register all day ringing in the sales. Each job is challenging and time consuming. From his commission he must pay his salary, and all his expenses! He never gets paid until the house is sold, and only then, after the possession date, several months down the road!

Be careful of the following

Dont choose the agent based solely on market evaluation. This often leads to reductions down the road and wasted time.
Fees are usually proportionate to the service offered. In almost all labour intense occupations, price is seldom and indication of exemplary service.
Don't ask for a detailed evaluation until you have chosen your agent. Instead, check your tax assessment or hire an appraiser if you just want to know what your home is worth.
Don't call an agent to do an evaluation on your home for estate purposes unless you plan on using them. There are many licensed appraisers who do this for a fee.
Don't call an agent to do an evaluation on your home for purposes of selling the home yourself. That's dishonest! Furthermore, it is a theft of someone else's time and expertise.
Be respectful of your agent's time and profession. The experienced REALTOR® brings great value to the table. That does not come cheaply.