When you decide to hire someone to manage your money, how do you select the person you’re going to hire?
If you need someone to do your income taxes, do you prefer to hire a CPA with a college degree and years in the business? You expect the CPA’s additional experience, expertise and extensive knowledge to save you money on your taxes and keep you out of trouble with the IRS laws. You pretty much know that the more tax forms the CPA must do for your unique situation, the more you will have to pay for the services vs a storefront firm open 4-months of the year. Maybe you also want a CPA that has invested in the training and equipment to be able to give you computer-generated forms to reduce errors and facilitate online electronic filing.
What about your financial planner or stock broker? Your financial well-being, and possibly your secure retirement, will depend on how well the broker manages your portfolio. I’ll bet you try to take no chances here! Just like the CPA, you look for the person to have knowledge, experience and expertise, and a college degree. You might also look for a broker that can give you regular updates via e-mail or provide you with a personalized secure online site so you can check YOUR portfolio as often as you want. It’s probably also important that the broker be trustworthy and follow all SEC laws.
Now let’s talk about how you choose someone to assist you with the purchase or sale of a home – most likely the largest financial investment you make.
Do you choose a Realtor® with a college degree, experience, expertise and up-to date knowledge to make sure you adhere to all real estate laws? Do you select one with the online computer knowledge required to adequately market your home or keep you informed via email or a secure online customized site? You likely select someone that you feel you can trust to follow the laws and competently manage your real estate transaction. You may also want to hire someone with marketing skills to present your home in a positive manner, just as any retail store does with its products. You’re savvy enough to know that the more time and services you want, the higher the fees will be just as with the CPA or a lawyer or a doctor.
Here’s a good check-off list when you start your search for a real estate agent:
- Are they a Realtor® (must follow a specific Code of Ethics) or a real estate agent (just have a license). This equates to the difference of a CPA vs an accountant.
- Do they have a college degree to give them extra skills for managing financial data, personalities (negotiations), understanding economic issues, and language/grammar (preparing contracts).
- What is their experience – how long in the business and how many homes sold. Does the agent’s broker offer on-going training programs to keep their agents up-to-date on the latest technology, laws, or trends.
- What is the agent’s expertise in? For instance, are they experienced in your price range or the locale your home or potential home is located.
- Do they have extensive knowledge of laws, the market, upcoming local development plans.
- What are their computer skills? This skill-set is absolutely critical in today’s world. Are they going to be able to convert documents into pdf files for emailing to you or will they require you to make frequent trips to their office so you can view hard copies. Will they know what is required to maximize your home’s exposure online? Do they have their own web site vs a page on their broker’s site?
- Does the agent seem trustworthy, with a high-level of ethical standards?
Bottom line, select your Realtor® by using the same standards as you would when hiring any other financial professional.
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What a good post. It seems that the buyers who are out there want to know who to choose, and your list provides a good guide post.
Frank, I think some people choose based on the glamour photo, the car they drive, the amount of the diamond jewelry in their photo. I doubt that they would ever select a CPA using that criteria. Personally, I want a CPA who knows “what the heck they’re doing”! I don’t care what they look like.
I’ll bet you’re warmer in Houston than we are here!
I miss the snow sometimes, and the true autumns. The joke in Houston is that we have nine months of summer, and three months of indecision.
Frank, that’s funny. I was in Houston in July a number of years ago. I thought OUR humidity was bad!
It was a business trip for my former corporate career and we were all dressed in our dark navy suits! It was awful … just awful.