How to Find a Good Agent

Let's be honest. There are a lot of real estate agents out there and finding a good Agent can be difficult at times.  Yes, there is a fair amount of some really good agents and some very good agents, but there are hundreds of average quality agents that know just enough to get by. And of course there are some really bad agents stumbling along out there.

Yes, happy Sally hometown agent may be good at selling a home (single family residence) to your Aunt Martha, but she most likely knows nothing at all about Selling or Listing a Duplex ( or a Triplex and fourplex for that matter). And she will most likely be clueless about the BIG difference between a 4 unit building verses a 5 unit building. See FAQ page for the answer.

First of all, your should always interview at least 3 Real Estate Agents or Brokers. It's sad, but most people just go with the first agent they contact or worse yet, someone who just sends them a free calendar each year.

In finding a good Agent to work with regarding investment property, It's real easy when you interviewing an Agent or Broker. Just ask them this simple test:

1. What does ‘GRM" stand for and how is it calculated?

2. What is a "Cap Rate" and how is it calculated?

3. What does "NOI" stand for and how is it calculated?

If your agent can’t even answer one question correctly or only gets one out of three correct. Stop everything and run for the door. Do not past GO, do not STOP, just run, Because your dealing with an Agent that just knows how to sell houses and knows nothing with respect to working with Investors or Buyers or Sellers of small income properties.

Without knowing the above three financial terms, how can you put a correct value on a property ? Whether you’re a Buyer or a Seller (and most definitely a Listing agent) you need to know these three terms and how to use them in calculating a value for a small residential income property. Ok maybe you don't need to use the Cap Rate method (explained in other sections of this site). But the Agent definitely need to know questions 1 and 3.

If your Agent can answer all three questions, then consider yourself blessed and don’t ever let go of that agent, as he or she is worth their weight in gold.

I don’t mean to be harsh about all Real Estate Agents, (I'm one myself) But over the years I’ve seen a lot of Buyers get stuck in properties, that the Agent was clueless about. All they (the Agent or Broker) were concern about was their commission. I advise you to work with the best people available in your area, as it’s your hard earned money that’s on the line.

Besides, if you’re a Buyer, than your not paying for the Agent's commission anyway, so why not work with the best (unless you hired a Buyer's Broker to work with you, then you will pay a fee for his/her services). Or, if you’re a Seller, then wouldn’t you like to know your getting the best price for your property along with the best service and advice available ?

Anyway, if your in the San Francisco Bay Area and would like to work with an knowledgeable agent in Buying or Selling a 2-4 unit property, please drop me an email with your needs.