Choosing the right real estate agent when either buying or selling a home is an extremely important matter. Most home buyers choose the 1st agent  they come in contact with whether from calling a real estate office, meeting someone in an open house or calling from a yard sign. There usually is no interview process and the buyers have no idea who they are dealing with on one of the most important purchases of their lives. It is quite easy for home buyers to fall prey to incompetent or greedy real estate agents. 

Real estate companies often offer real estate agents incentives to direct their home buyers to the company in order to obtain a loan. These in house lenders do not necessarily, and very often do not offer buyers the best loans available. The company and the agent do very well but the home buyer does not.

Most home buyers also do not question their agent about their experience. Real estate is an industry with a high turn over rate and very often buyers are working with a new agent and don't know it. In real estate experience is very important. The more transactions an agent has had the more likely the buyer will receive qualified representation.

The same applies to home sellers. Many home sellers list their properties with the so called neighborhood expert. They see the person's flyers, or calendars or pads on the door and call them to list the house. They very often fail to interview the person carefully and find out what experience they have. They entrust a great deal of their wealth to someone they know little about.

So what should you do whether you are a buyer or seller:

1. All parties looking for a real estate agent should find out how long that agent has been in the business. They should also find if they do it full or part time. Finally, they should find out approximately how many transactions that agent has closed. It is not unusual for a seasoned agent to have closed 1000 or more transactions.
2. Home buyers should be very careful when getting referrals or help for obtaining a loan. An unscrupulous or greedy lender can cost a buyer tens of thousands of dollars more if they are not careful. Very often the worse loan a buyer receives the more the lender makes.
3. Home buyers should find out if their agent is receiving any form of compensation from the referred lender. That includes in-house lenders.
4. Home buyers should also find out if a particular house is being pushed by their agent because the seller is offering a bonus or very high commission to the buyers' agent.
5. Home sellers very often list their home with the so called "neighborhood expert" who they know little about except they drop off calendars and pads on their doorstep. Home sellers should especially look for experience when choosing an agent. Puffed up marketing plans are not the key. The MLS and active websites are the most important marketing vehicles today. Open houses, brokers' opens and print advertising don't get homes sold. Look for an agent with an active website and years of experience. Experience and sharpness are the key. That person is going to be responsible for a great deal of your wealth.