Gonna be home-hunting again soon! Thanks for the reminders about what to look for in a realtor-partner :)

I would ask to see their current MLS listings. Check out how they advertise people's properties. Do they just have one pic of the exterior or do they have a bunch of pics of the house. As someone who browses the MLS, I tend to assume there's something wrong with the house if they won't show the inside. Do they take pictures that would end up on those "Bad MLS Picture" sites? How is the quality of the pictures they take? Do they do any virtual tours? To me it shows that not only do they put a lot of effort into their work, but they keep up with technology in their field.

Regarding #1: Find a referral-- For anyone in the Philadelphia area, I wholeheartedly recommend Brooke Willmes. She is hilarious, brilliant, and a delight to work with.

This is her site: http://freshquarters.com.

We're not crazy fans, but a relative recommended Dave Ramsey's site for an endorsed realtor. We did and the one that came up has been FABULOUS. She's saved us $500 and endless headaches, even as the listing agent is a jerk. It's been worth it!

Anyone got a referral for Oakland, CA?

We had read a similar list before starting our home & realtor search, and it included being able to be in constant contact - by email and cell phone - as #1 and a deal breaker. Well, we found the best realtor (who is really well known in the area) who didn't really use email, and didn't own a cell. In fact, she would unabashedly ask to use your cell phone while out, even for personal calls. And we totally loved her. It's all about chemistry - we occasionally would cross paths with other buyers and would agree we wouldn't last with their agents - too smarmy. Though in retrospect, I feel like her inspector may have missed a few things, though he pointed out some crucial things too.

In addition to lucking out with our realtor, the single best thing we did was ask to take pictures at each house. It really helped keep houses straight when we'd see 8-10 houses in a single day.

What NOT to do...go house-seeing without an agent that you have (already) vetted/settled on.

We ended up with a Realtor who was a) barely qualified to work and b) was employed by the Seller/Seller's Agent (we ended up buying a flip from a company owned by the seller who also happened to own the agency AND the mortgage company)

It sucked, but we love our house.

As a fairly recent first-time home buyer, I was surprised to find out that a good real estate attorney + the internet can be all need. Real estate agents are great at helping you find places, but if you don't mind searching on your own you can save alot of money. After our realtor completely flaked on us, we got out of our contract and struck out on our own.

Our real estate attorney was great and gave us all the paperwork we needed to prepare an offer and then the purchase & sales agreement. Finding a home inspector online is easy as well.

One thing that a couple of people have mentioned is using the realtor's inspector. My realtor (who's helped me buy two houses and sell the first one) doesn't have go-to people (mortgage brokers, inspectors, etc.) that she steers clients toward. I understand that some agents do and they may get referral fees as a result. Instead, my realtor's company maintains a list of contractors that previous cllients have said they would recommend and provide references for. So when I was buying my house a year ago, I got a copy of the list (which had plenty of names for all kinds of work on it), checked out online reviews and made calls and appointments myself.

Make sure to ask whether a realtor is being compensated with a referral fee or some kind of reciprocity agreement. It helps to know what you're getting into so you can get the best impartial assessments of property condition before buying (or selling). I have friends who didn't have the most scrupulous agents, and it ended up costing them when it came time for repairs. And when I was on the selling end, the buyers' agent tried to railroad me into a lot of expensive changes, but getting inspections and estimates from good contractors saved me a fortune.

if selling AND buying, find a realtor that deals in houses similar to yours...they'll know the ins & outs of that particular style & be able to explain a lot more. If you're shopping for a fixer upper, done get a realtor who only does high end & vice versa

if its possible I would recommend finding a realtor that lives in the neighborhood you are looking to move to. they usually know the ins and outs of who is moving and what is listed and what isn't listed yet.

i moved back to my hometown and now i live next door to my realtor's daughter in a house that wasn't on the market - yet!

If you are selling, don't necessarily go with the Realtor who says he/she will get you the most amount of money (they will probably just come back to you in a few weeks and tell you that you must lower the price in order to sell).

I'd also check out www.redfin.com and www.zillow.com for alternatives to using a real estate agent. As ghunt pointed out, you don't necessarily need a Realtor to buy or sell property!

from experience working in a real estate office for a broker, here's a few additional tips:

1. accessibility - If you place a call or send an email to a potential realtor, you should hear back within 24 hours. They should sound pleasant and calm on the phone. If you don’t hear back, or they sound frantic, you're not interested. A lot of realtors take on too many clients at once, or they bring their stress to work and can't handle the pressure of closings. You want a realtor that can calm your nerves when you're inspection goes awry, and a realtor that is willing to give YOU a call with updates in the process. For any realtor in today's market, their accessibility is the key to referrals and success, so return calls or emails from their blackberry shouldn't be a hassle.

2. browse their website - They should have a website in today's market! It shows they've been around awhile if they have a neat and tidy website. Showcasing referrals and client comments on their site is a fantastic way to gain insight in how they work. Also, check out their listings. Are there any spelling errors? Are their descriptions easy to understand? There's nothing worse than a realtor that can't communicate the style of a home through descriptions and photos.

3. motivation - Determining how motiviated and what motivates a realtor is key in how you fit into their business, and whether they fit in as your realtor. I had realtors in my office all the time, losing their wits about delays in closings because they had bills to pay. There's nothing worse than a realtor that is desperate for a paycheck, and through their manners and tact aside to voice their frustration. When you meet with your realtor, ask what intrigued them about persuing a job in real estate. Ask what they can do to keep you motivated throughout the process. It may catch them off guard, but it's a great way to gain insight.

To elaborate on the 'like your realtor'…I would say, like your realtor but do not be or become FRIENDS with your realtor. There were more occasions than I can count where friends turned to enemies over this. A realtor would bring in a friend that wanted to buy a home, and when something didn't go right, I would have to play mediator. It's a very stressful process, and you need someone that will be there for you and have your best interests, but it's as simple as the old phrase 'don't mix business with pleasure'. Buying or selling a home is a business transaction, and it's hard to keep that separate when you're going out to dinners and movies with your realtor.

Pretty good list, except for #5. I don't know any accomplished Realtor who won't demand to be very involved in your financing. Without that info, they could be wasting your time and theirs showing you things you can't afford or sellers who won't work with your terms. If your loan officer is competent, they'll want to work with your Realtor also.

Spot on with chemistry. I'd also add that availability is essential. Amazing how many Realtors won't let their staff give out their cell number. Things happen fast, and out of the loop is out of the deal.

As far as working solely with a Real Estate attorney, that would only make sense if you were buying a FSBO. The seller is paying commission and E&O insurance covers any contract liability - although any active Realtor worth their salt can usually analyze rings around an attorney who doesn't deal in residential transactions on a regular basis.

#5, our problem was the agent selling the house we put an offer in on (through our very capable and awesome realtor.) She thought she should be privy to our most intimate financial details. When we wouldn't give her more details than she had a right to know, she called our bank and tried to weasel it out of them. When she couldn't get what she wanted, she declared us "unfit buyers" and told her client not to waste his time writing a counter offer.

6 months later, the house is still on the market, currently listed at less than our original offer.

@michelou,

FYI - Redfin agents are real estate agents. They are not agents in the traditional sense, but agents they are.

The problem with the business Realtors are in is the built-in conflict of interest on the buyer-side. They work off of a commission (3%). The more the buyer pays, the more money they make. So as a buyer, one must do their own research to determine what they are willing to pay.

Redfin is a great resource for this type of research. You can search sales histories by zip code or by map, current listings, etc.

If you use a Redfin agent to buy, they will give you a kickback from their commission. Way better than paying a traditional Realtor 3%, imo.

If you're a buyer, you should beware if your Realtor tries to pressure you in any way on any given property. Their motive could very well be that they just want you to hurry up and buy, so they collect their commission check and move on to other clients.

Some tactics they might use include:
--- Location location location! While location is indeed important, some nicer areas are stil linflated as is. Just as neighborhoods gentrify, others might degrade. Financially, it's better to buy in a so-so neighborhood that is improving than it is to buy in a nice neighborhood where many are foreclosing. Look at what the city's planning department has planned for any given neighborhood. This includes transit options, zoning changes, construction projects, etc.

---Interest rates are at historic lows! Buy now before they go up! Most buyers look at how much of a monthly payment they can afford to determine how much house they can afford. When interest rates rise (which they inevitably will), the amount of house a buyer can afford will decrease (given the same monthly payment). Realtors won't acknowledge this, as it's in their best financial interest not to.

---The monthly payment is the same as renting! You might as well buy now and get the tax deduction and build equity! Sure. What about property taxes and maintanence? Property insurance? The liability of owning such a large asset?

---Housing prices are only going to go up! Buy now or be forever priced out! Heard this one before. Even if housing prices stayed flat and you decide to sell, you are not breaking even. Escrow fees (buying) and Realtor fees (selling) easily add up to 9% of the home price. So for a $500K property, you're looking at $45K spent just to buy and sell. Not to mention the money spent on any remodeling done. Ouch.

@joh - I know they are agents, I simply meant they aren't your traditional Realtor! Thanks for providing a breakdown of their services. I found the video on their website really helpful to describe their process too.

FYI - I haven't used RedFin or Zillow.com as they are both not available yet in Canada. But they certainly seem like viable options for buying or selling a home.

"Hire an independent home inspector."

Actually, most lenders would prefer - and some insist - that you use their inspector.

The Bank are the ones with the money and they want someone they know and can count on for an appropriate evaluation of the condition and value of the property...
...whereas Realtor and Mortgage Broker referred inspectors frequently overvalue properties and under-report issues.

Never give your realtor any financial information.Try spending a day with a NYC realtor. Bring Advil or stronger.

west coasters don't use attorneys - we use realtors! so it's different in every state. also, as a realtor, i would never waste my time with cagey clients who won't tell me how much they can afford. it is so frustrating to try to help friends who give you a ballpark figure that really might be less than they let on and you won't know until you calculate the payments that they actually can't afford to buy the house they want to buy!

sharing financial info is NOT sharing social security numbers or anything - it's an essential guide to show the realtor what you can look at and not waste anyone's time.

By the way, the original post says don't discuss "financing" not how much you can afford, but the particulars of mortgages. Of course, one has to tell your realtor how much you can afford, but they are not necessarily the best source for which loan package or bank is best. You can do your own research on that, working with a trusted mortgage broker or bank loan officer... perhaps one referred by a friend.

I know Real estate practices are regional but discussing financing is a problem? Here it's customary to include a bank commitment letter when writing an offer. Now, I just have their lender put down exactly the amount of the offer-definitely not the full amount-but it sounds like in some areas people go under contract without the seller knowing if the bank is going to approve it? That's weird.

i agree...on the west coast, disclosing a figure for the high-end amount you are qualified to spend is important to all parties involved.

in nyc, i'm not sure i would divulge this info.

I agree with most of the list, but as mentioned, it depends on your area.
One of my favorite Realtors in San Francisco is Alex Clark. He writes a very good (and popular) real estate blog that is unlike all of the others. Here's an example from a few years ago: http://thefrontsteps.com/2008/12/15/vote-now-san-franciscos-sexiest-realtor-contest-2008-is-on/

Alex thinks "outside of the box." His new website, pocketlistings.net is another good example of how he wants Realtors to remain a part of this relationship, but to also help the seller and the buyer in the BEST ways possible.

I had to fire my first realtor. If there were a checklist for things a realtor could do wrong he'd score perfectly. Luckily I hadn't signed the contract he wanted me to sign. I held out b/c I had a feeling we weren't going to work out. That said, I wouldn't advise signing a contract early on. Take a little time to get to know your realtor and to see if they are providing the service you want before you sign.

@businessgypsy, Using a real estate attorney makes perfect sense. I'd much rather pay an attorney than a realtor. I haven't found very many realtors outside of the high end market who are worth the 3% that the seller pays (if I am the buyer). With access to and the availability of real estate information on the Internet buyers agents don't do much these days.

Also, I doubt your statement that "...any active Realtor worth their salt can usually analyze rings around an attorney who doesn't deal in residential transactions on a regular basis." The OP said real estate attorney, not family law or environmental. Sounds like a false advertising plug for the realtor club.

First of all, I advise taking a class on buying a house. In Baltimore, there is an organization called Neighborhood Housing Services which gives classes. I went for an all-day class, that I think cost about $20, and you walked away with a spiral bound book with tons of helpful info. They even have online classes, so you can skip the 8 hour crash course, and do it at your own pace. This made a HUGE difference. They covered EVERYTHING. There's so much up front that people should know about the process, otherwise your agent is going to try to school you, and not everyone is a good teacher, even if they may be a great agent. GO TO A CLASS!

I wanted to bring up something about referrals. I was actually referred to someone through a client at work. The agent was his wife. This was a mistake and a great thing at the same time. Advantage of getting a referral from someone you know: the agent can be straight with you and tell you things they wouldn't be able to otherwise. There's this thing called being "shopped" that if you've ever worked in the retail or serving industry, you've come across. They are people who are paid to test people at their job. They write up a review, and send it to the boss. An agent will never know who these people are... UNLESS you were referred by a trustworthy source. Because I was referred by her husband, and work with him frequently, I was able to get some inside info from her about the area, and if she wouldn't have her own daughter live there, she wouldn't show me a house. She did a great job of keeping me in check on what I should be looking for, and wouldn't have been able to do that otherwise.

On the other hand, I was initially hesitant with her and had considered getting a different agent at one point. In the end I was thrilled, but she seems to work with higher budget clients, and wasn't sure that she was appropriate for my very tight wallet. She wasn't going to be making the normal commission for the same amount of work she would put it with another client. But because I was referred by one of MY clients, I felt an obligation to stick with her, and not tell the client that I was not satisfied. Stupid, I know... buying your house is super important and you shouldn't compromise. But I had a friend who was referred to our secretary's son to be her agent, and she stuck with him even though he was awful because our secretary is such a sweet and caring woman, she didn't want to hurt her feelings. Be careful, and weigh the risks and benefits of a personal referral to a relative or loved one.

Also, all of the agents that I found didn't ask you to sign a contract with them until you have found a house, so you are SURE you want to work with them. It's burned them in the past, but you can always say you will not sign one until the end if you're not comfortable.

Full disclosure: I am a real estate broker, and a Realtor.

A few things to mention: About kickbacks from vendors your Realtor may recommend- It is highly illegal to get any sorts of referral fees from loan officers, inspectors etc. Most people that I would refer, I refer because they are good at what they do. Buying a house can be a very stressful process, and in today's market, financing can be a royal pain. I refer people who can assure me that they will get your loan done, problem free. Also, people always assume that a home inspection is only for you to figure out what is wrong with the house. A good home inspector points out the 'potential issues', gives you a ball-park figure on process to fix it, and how much it costs, and really important- they will teach you about your house- what to do for maintenance, what to look out for in future etc.

About financing- a lot of times I will ask my clients about the finances, but more than anything it would be so that I can refer the right loan officers to them. If my client has little money to put down, and needs to do an FHA loan, I would refer them to a Loan officer who has done several similar loans.

One last thing- and this is certainly not industry standard- I personally will not make a client sign a buyer-broker agreement until when we are presenting an offer. If I suck at my job, I should be fired. I still have not been fired.