Real estate did begin to recover in 2009.  It was widely denied by all the “gurus” as the recovery began, but those of us on the ground, who actually do the real estate business, found ourselves chasing inventory that was being sold faster than we could write offers on it.  Many of us lost clients, lost transactions, almost lost our minds, all the while writing multiple offers on properties that were being bid ever-higher with cash from investors.  Clients and agents suffered together at the hands of banks, of agents who “work for the bank,” of lenders who won’t lend to perfectly good clients, of confusing requirements from the government entities, and discovered that most of our problems came from the entities who originally caused the downturn.  The clients suffered multiple losses of properties they were trying to buy, because they didn’t have the “highest and best offer;” many would-be homeowners were unable to buy because an investor had cash for the property they wanted, and they either became disillusioned and left the market empty-handed, or succeeded only after Herculean efforts.  Agents, who would have had their best year ever with buyers flooding into the market, barely broke even, or lost money.  This is typical for a real estate downturn and recovery.  I have seen it happen now 4 times in my career, and more in my lifetime.  Every real estate agent who has been “at” his business for any length of time finds that real estate is vexing in its ups and downs.  Most of us just get used to it, and expect it.  It is good, in a sense.  It weeds out the inept, uncommitted agents who came to the business only because it was perceived as “easy.” It’s also unfortunate, in the sense that many agents who would be successful don’t have the time or opportunity to do so because of the downturn. However, “the downturn” is now “the recovery,” and many folks will look to buy or sell in 2010.

If you are considering a real estate purchase or sale this season:

Most career agents know that the real estate business is not “easy;” it is challenging, filled with good years and difficult years, and very rewarding.  We get to help people find new homes, invest in something they can touch, buy something that will bring them a good retirement, buy the home in which they will raise their families, live their lives, grow old, and eventually sell to another young couple who will do the same–or pass to their children.  On the owner’s and buyer’s and seller’s side (collectively called “clients”), each must learn to trust someone else with his most important lifetime purchase–and the client’s choice of an agent is his “next most important choice,” because his agent will guide him either rightly or wrongly.  The agent, on his part, must remember that his client is his responsibility, and always do his very best for his clients.

For his part, the agent needs to be like a “Doctor of real estate” to his client, prescribing exactly the right thing for his client’s specific needs, and always keeping in mind that he owes the client the very highest duty, and that he must consider the client’s needs above everything else–above his commission, above his own interests, above every other financial consideration.

The client, on his side, must accept his agent’s help and believe in his agent, or he will lose the benefit of his agent’s experience and intelligence. This means that the choice of an agent is paramount, and the first thing a client ought to do is to spend enough time with his potential agent to know that he’s the right one for the job.  That does not necessarily mean the “most prolific;” if the client hires the “agent with the most listings,” he should realize that he will probably not get that agent’s services, but a “member of his team.”  This is ridiculous.  If your “team” is going to do the work, and nobody gets the benefit of your expertise, and if the members of your team are mostly inexperienced (as is often the case),  then you are not serving the client as you should, and the client would do better to hire a complete greenhorn.  Why? Because he will have some humility if he’s going to become a good agent, and he will be teaching himself while he’s working with you, and next time he will be experienced.  Besides, “we try harder” is a great motto, and often an agent will do a good job just because he works hard, even if he’s not very experienced.

Here are some things to look for in an agent:

1. Knowledge. your agent should understand the real estate market, and he should make it his business to know what’s happening with it.  He should keep up on the laws, on the direction of the market, and on the “basics.”
2. Attitude. Good agents have a “winning attitude.” That doesn’t mean they strut around and proclaim themselves “the best,” it just means they intend to do a good job, and their attitude is reflected in their professional demeanor and careful attention to their work.
3. Work ethic.  Good agents work hard for their money.  They don’t mind longer hours than the “40 hour week,” and they are willing to work at odd hours to help you, the client.  They also expect to be paid well for their work, so don’t be surprised if they are motivated by money.  After all, every person who works for a living expects to do as well as he can, if he has any ambition at all.
4. Competence.  Every good agent seeks to become the most competent he can, in every way.  This is reflected in his knowledge, his ability to communicate his business to others, and in his understanding, not only of real estate, but of finance, of the marketplace in general, of the economy.