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With more than two million licensed real estate agents in the United States, it is no wonder many home buyers and sellers become overwhelmed at the prospect of hiring one. Why do you need a real estate agent in the first place? "Using a professional real estate agent can save time and money," says Toni Sherman, CRS, president of the Council of Residential Specialists. "Professional agents offer sound advice and are responsible for the marketing, negotiating and financing of homes they list. This goes well beyond placing a classified advertisement, hanging a sign in the yard and holding a couple of open houses." The Council of Residential Specialists, the largest not-for-profit affiliate of the NATIONAL ASSOCIATION OF REALTORS®, offers the following guidelines for selecting a real estate agent: Qualifications and Education: Ask real estate agents what recent seminars and courses they have taken. The Council of Residential Specialists awards the Certified Residential Specialist (CRS) Designation to experienced agents who complete a vigorous educational program. Although they constitute only five percent of all licensed REALTORS®, CRS Designees are involved in nearly 25 percent of all residential real estate transactions nationwide. Experience and Productivity: When you select a real estate agent, you enlist the services of the entire firm and are entitled to full use of the company's resources including its marketing and management teams, and support staff. You should know who will work on your behalf, especially if you have limited access to the agent. Feel free to ask the real estate agent the following questions: 1. How many years have you worked in the industry? How many transactions were you involved in during the last six months or year? The number of transactions an agent successfully completes may be more significant than the number of years the agent has worked. 2. How long, on average, does a home listed with you stay on the market? How many of your listings expire unsold? The answers to these questions will determine how effectively the agent will price and market your home. Remember that the market, not the agent, determines your home's value. 3. Do you specialize in homes in my price range? Can you provide extensive information about my neighborhood? Starter homes and upper bracket mansions require different marketing strategies. Look for an agent who is familiar with the type of home you plan to buy or sell. Make sure the agent is knowledgeable about the community and its schools, businesses and other offerings. 4. May I see your testimonial letters or call on three references? It is very important to talk to past clients who have bought or sold a home similar to yours. Professional Rapport: Before you sign an agreement, ask yourself if your agent is aware of your real estate needs. During initial meetings, the real estate agent should listen carefully, ask questions, clarify what you said, and summarize any dialogues. If you feel comfortable with the rapport your agent has established with you, chances are the agent will successfully negotiate with prospective buyers or sellers. The Marketing Plan (for sellers): Ask for a clearly written proposal that describes how the agent plans to sell your home. The proposal should include a comparative market analysis, a profile of the buyer most likely to purchase your home, marketing strategies, financing options and closing information. "Selecting a professional real estate agent based on this criteria may sound difficult, but it's worth the effort" says Sherman. "A Certified Residential Specialist has the training and know-how to help make your home buying or selling experience a success."
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