Los Gatos Weekly-Times

Homes

Choosing a real estate professional you can trust

By Rose Meily

As the number of licensed real estate agents increases in the state, so has the number of complaints the California Department of Real Estate receives each year. In light of this information, it becomes even more important for buyers and sellers to choose a trusted and knowledgeable real estate professional.

At a recent gathering of Realtors in the Bay Area, California real estate commissioner Jeff Davi said there are 512,000 licensed real estate agents in the state and the number continues to climb at a pace of about 750 each week. The transition to normal market conditions with home prices leveling out doesn't appear to deter applicants.

"We're seeing the number of applications drop somewhat, but we're still seeing a net increase. We may reach 600,000 licensees in the state of California within the next 12 to 16 months. Right now, one in 54 adults in California has a real estate license," said Davi.

Davi indicated his staff of 342 normally receives about 7,000 complaints a year. That number has now increased to 8,453. He projects the DRE will receive 9,000 cases by the end of 2006.

The real estate commissioner's words illustrate the importance of finding a well-qualified real estate professional. More than ever, buyers and sellers need to know their real estate professional is someone they can trust. Whether somebody is buying or selling a home, finding a good Realtor and understanding his or her role should be the first step in what could be the most important transaction in a lifetime.

Not all real estate agents or brokers are Realtors--there is a difference. Of the 512,000 licensed real estate agents in California, only about 191,000 are Realtors.

A real estate agent is bound by certain legal obligations. Traditionally, these common-law obligations include: put the client's interests above anyone else's; keep the client's information confidential; obey the client's lawful instructions; report to the client anything that would be useful; and account to the client for any money involved. A Realtor is bound by these obligations, but held to an even higher standard of conduct.

A Realtor is a licensed real estate agent or broker who is a member of National Association of Realtors, the world's largest professional trade association. The Realtor designation is used by real estate agents and brokers who must adhere to a strict Code of Ethics and actively pursue continuing education to increase their professionalism and skill. The Code of Ethics goes beyond state licensing requirements and sets Realtors apart from other real estate licensees. The Code of Ethics protects all parties to the real estate transaction, not just a Realtor's client. If a local association of Realtors finds a Realtor in violation of the Code of Ethics, disciplinary action can be imposed.

Realtors must complete ethics training by taking at least 2.5 hours of instruction every four years to keep membership in NAR. For a Realtor, living with the Code of Ethics means being honest and dependable, never putting your interests ahead of your client's, and speaking the truth to all parties.

"Few, if any, other professional organizations in the nation have put in place such rigorous ethics training requirements for their members as we have done," said John Tripp, president of the Silicon Valley Association of Realtors, a professional trade association whose over 4,000 Realtors and affiliates are also members of NAR.

Realtors have the training and expertise to help the customer with all aspects of the real estate transaction. Realtors also have access to a Multiple Listing Service. Working with a Realtor who belongs to an MLS will give you access to the greatest number of homes.

"Today's home buyers and sellers want and deserve to know that their real estate professional is someone they can trust and who has their best interests at heart," said Tripp. "You don't have to go it alone."

In recent years, state laws have set up various duties for different types of agents. As you start working with a Realtor, ask for a clear explanation of your state's current regulations, so you will know where you stand on these important matters. When evaluating a potential real estate agent, there are certain questions you should ask. First, ask whether the agent is a Realtor. Then ask the following questions:

* Does the agent have an active real estate license in good standing? To find this information, you can check with your state's governing agency.

* Does the agent belong to the Multiple Listing Service? Multiple Listing Services are cooperative information networks of Realtors that provide descriptions of most of the houses for sale in a particular region.

* Is real estate their full-time career?

* What real estate designations does the agent hold?

* Which party is he or she representing--you or the seller? This discussion is supposed to occur early, at "first serious contact" with you. The agent should discuss your state's particular definitions of agency, so you'll know where you stand.

* In exchange for your commitment, how will the agent help you accomplish your goals? How will the agent show you homes that meet your requirements and provide you with a list of the properties he or she is showing you?