The following is from Tim Soldati, one of our strategic partners.

Being a mortgage broker, I get the luxury of working with real estate agents of all calibers. I’ve seen the great ones and I’ve seen the not-so-great ones. On a more recent transaction, I am reminded of the importance of working with an experienced agent.

A client of mine decided to by-pass his agent and work directly with the agent of the seller in hopes of saving money. That was problem number one, which I will save for another article.

The property in mind was a foreclosure. That fact alone warrants working with an agent that has experience working with foreclosures and short sales. This particular agent (who shall remain nameless) had no clue what he was doing (ok, it was a guy). When questions arose about time tables to contingency removals, it was clear that this may have been the agent’s first transaction. It was evident that just about every question my client had for the agent had a delayed response as the agent had to go ask his broker for the answer. It became more evident when my client would come to me for answers about the transaction as the agent could not respond in a timely manner, let alone know the answer.

Not once did the agent ever call me during the transaction to see how I was progressing along with the loan side of the transaction (a vital part of the ability to close the transaction). I made a point of contacting him regularly just to keep him in the loop. If it weren’t for that fact, I don’t think I would have ever talked to the agent. A good agent will be the point of contact for the entire transaction.

Then when problems started to arise, the agent made no effort to advise our mutual client. There were issues with asbestos, issues with the quality of the home, and even issues with foundation slippage. But as the agent was originally representing the seller, I think he was more interested in the deal closing rather than fulfilling his fiduciary responsibility to his client. Even the contract itself wasn’t written well that would protect my client’s interest and deposit.

In the end, the deal did close (mainly thanks to me). My client did get proper advice to each issue that arose. The agent was oblivious to most of the issues of the transaction and got to walk away with a commission unearned for the most part. My client was lucky. It could have been a lot worse.

So as you are considering hiring a real estate agent, be sure to ask him/her about their experiences and qualifications. Ask for references. Ask about the number of transactions they assisted on. In tough real estate conditions, it is even more important to be represented by those with experience. While many agents in this market went back to work or secured a day job, be sure you are working with a full time agent that is IN the business. Do not hire an agent that is working part time or on the side. Do not pay full price for part time service. Working with an experienced agent will protect your interest and save you money in the long run!

The client was lucky to have a wortgage broker like Tim, who was willing to take on the burden of assisting in areas where the real estate agent in quesiton should have been serving the client’s needs.

The role of your Realtor or real estate agent basically boils down to seven things:

• Education
• Analysis
• Guide
• Coordination
• Negotiations
• Detail Checking
• Problem Solver

There is a poster that lists about three hundred items involved in the sale of real estate. If you read it, you see things are being stretched a bit for effect, but that does not diminish the fact that an ordinary real estate transaction is an involved, complex and often complicated affair.

Tracey is a contracts fanatic. She has a background in bookkeeping, served as an assistant comptroller for a national builder, and then development sales manager for a national new home builder. She has crossed a bunch of T’s and dotted a lot of I’s.

I have seen her as the listing agent or the buyer’s agent have to handle both sides of the transaction because of incompetence, ignorance or lack of experience on the part of the other agent. I remember one deal last year where the agent on the buy side was also handling the mortgage. This person had their real estate broker’s license and in effect wanted to commit real estate fraud – not because he was a crook, but because he was ignorant of of the law.

When choosing a Realtor or real estate agent be sure to do your due diligence. Many Realtors and real estate agents come from backgrounds with no formal business training or skills. There are still many part-time agents in the business that divide their time between two or more jobs.

Find an agent with the skills, knowledge, experience and time that knows how to focus on you and your needs.

Related Article:

The 10 mistakes home sellers make 

Real Estate Fraud Averted