Real Estate Articles

Evaluating your real estate agent essential to a successful transaction

Friday, March 21, 2025

Homebuyers can benefit from working with an agent who is a Realtor because they offer services such as finding available homes that meet their specific criteria, accompanying buyers to showings, negotiating on their behalf, and more. The new California law (AB 2992) that requires a buyer's agent and buyer to sign an agreement before the buyer makes an offer on a property is important because it helps consumers have a clearer understanding of the services provided by real estate agents and have more choice in selecting an agent who can help them through a complex transaction. This law is also important because it ensures that every licensed agent - whether they are a Realtor or not, must adhere to this new standard.

"While there are over 430,000 licensed real estate licensees in California, not all of them are Realtors," says Tammie Peters, president of the Silicon Valley Association of Realtors. "A Realtor is held to a higher standard of conduct than other real estate professionals."

Peters explains that a Realtor is a licensed real estate agent or broker who is a member of the National Association of Realtors, the world's largest professional trade association. The "Realtor" designation is used by agents and brokers who adheres to a strict Code of Ethics and pursues continuing education to increase their professionalism and skills.

"The Code of Ethics goes beyond state licensing requirements and sets Realtors apart from other real estate licensees. It 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," explains Peters. "Realtors must take a 2.5 hour Ethics course and a Fair Housing course of at least two hours every three years to keep membership in NAR. Few professional organizations have such rigorous ethics and other training requirements for their members."

Whether somebody is buying or selling a home, finding a good Realtor and understanding their role should be the first step in what could be the most important transaction in a lifetime, says Peters. "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. Homebuyers and sellers need to know that their real estate professional is someone they can trust and who has their interests at heart."

When evaluating a potential real estate agent, Peters advises consumers to 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 on, 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?
     

The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please email or call the SILVAR office at (408) 200-0100.

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