Interviewing a Real Estate Licensee

Before you sign any piece of paper that a licensee offers you, we suggest that you interview that licensee for the following:

• Check to be sure that you feel the licensee knows what he is talking about. Remember that all licensees are not equally knowledgeable.
• Determine if the licensee can explain items you do not understand to your satisfaction.  There are many complicated details to buying a piece of property. You can get the most for your money if you are able to understand the licensee's explanation of those complex details and make any necessary decisions based on that understanding.
• Be sure that the licensee is the type of person you feel you can work with effectively.  Buying a piece of property is an intricate process with much potential for misunderstanding.
• By working with a person with whom you feel comfortable and can communicate well you lessen the possible causes for misunderstandings or problems between you and the licensee.

To get the best representation we suggest that you contact and interview several real estate licensees.  Use the

• Real Estate Professional Checklist (page 2) to record your general  impressions of each licensee contacted.
• Real Estate Professional Questionnaire (page 3) to mark specific questions to ask, then record the answers.

Note:  Make separate copies of both forms for each real estate professional to be interviewed. 

REAL ESTATE LICENSEE CHECKLIST

Name ____________________________________________________
Address __________________________________________________
    _______________________________________________________
Telephone (    )___________________________________________
 

Yes  No    Criteria

[ ]  [ ]   Calls back right away.
[ ]  [ ]   Holds meeting in office.
[ ]  [ ]  Explains how he does business.
[ ]  [ ]   Explains how his method of business helps you.
[ ]  [ ]   Appears knowledgeable about real estate laws.
[ ]  [ ]  Seems to understand national economic conditions.
[ ]  [ ]   Appears to understand local conditions.
[ ]  [ ]  Explains real estate intricacies understandably.
[ ]  [ ]  Makes you feel confident of his ability.
[ ]  [ ]   Encourages your questions.
[ ]  [ ]  Uses the Multiple Listing Service or similar system.
[ ]  [ ]  Cooperates with other brokers.
[ ]  [ ]  Gets a thorough description of your needs.
[ ]  [ ]  Gets a description of your wants.
[ ]  [ ]  Analyzes you financial situation.
[ ]  [ ]  Proposes financing methods.

REAL ESTATE PROFESSIONAL QUESTIONNAIRE

Name ____________________________________________________
Address __________________________________________________
    _______________________________________________________
Telephone (    )____________________________________________

ASK  QUESTIONS

 [ ]  What are your credentials? ______________________________
 __________________________________________________________
 [ ] Who are agents? ________________________________________
 __________________________________________________________
 [ ] Who are brokers? _______________________________________
 __________________________________________________________
 [ ] Explain agency relationships to me.
 [ ]  Single agency - exclusive buyer's broker
 [ ] Dual agency
 [ ] Divided agency
 [ ] How would you prevent divided agency?
 __________________________________________________________
 __________________________________________________________
 [ ] Tell me about the Multiple Listing Service.
 [ ] Does it have a unilateral offer of subagency only?  [ ] Yes   [ ] No  [ ] 
 [ ] Does it have a unilateral offer of compensation only?  [ ] Yes   [ ] No 
 [ ] Will you represent me exclusively during the entire   transaction?    [ ] Yes   [ ] No
 [ ] Will you become a dual agent if the opportunity arises?   [ ] Yes   [ ] No
 [ ] Will you abandon me and represent the seller if the opportunity arises?    [ ] Yes   [ ] No
 [ ] What are the agency disclosure laws in this state?
 __________________________________________________________
 __________________________________________________________
 [ ] How do you plan to disclose agency to me?
 __________________________________________________________
 __________________________________________________________
 [ ] How do you plan to confirm agency?
 [ ]  Immediately _________________________________________
 [ ]  Later, with offer to purchase
 [ ] What would you do if you represent me as a buyer's broker?
 [ ]  In the location of a property? ______________________
 __________________________________________________________
 [ ]  In the negotiation for the property?_________________
 __________________________________________________________
 [ ]  In the closing of the escrow? _______________________
 __________________________________________________________

 [ ] What do you consider your fiduciary duty to me?
 __________________________________________________________
 __________________________________________________________
 [ ]  Will you work for an hourly fee?        [ ] Yes   [ ] No  [ ]  How much do you charge per hour?  $ ______________ 
 [ ] Do you require a retainer?    [ ] Yes   [ ] No
 [ ]  How much?      $ ______________

 [ ]  Will you review a contract for me?   [ ] Yes   [ ] No 
 [ ] Will you work for a flat fee?     [ ] Yes   [ ] No
 [ ] How much is the flat fee?            $ ______________ 
 [ ] Will you work for a discounted fee?   [ ] Yes   [ ] No
 [ ] At what rate?      ___________ %
 [ ] What services do you provide? _______________________
      _____________________________________________________ 
      _____________________________________________________
      _____________________________________________________
 [ ] What is your regular commission rate?      ___________ %
 [ ]  When is the best time to buy?__________________________________________________________
 [ ]  What are the current interest rates for
 [ ]  Fixed rate loan    __________________% 
 [ ]  Adjustable rate loans   __________________% 
 [ ] Tell me about the types of housing
 [ ]  Single family ________________________________________
 [ ]  Multi-family _________________________________________  [ ]  Condominiums _________________________________________
 [ ]  Cooperative apartments _______________________________
  ______________________________________________________
 [ ] What is my income?        $ ______________ 
 [ ] What are my expenses?       $ ______________ 
 [ ] In what price range do you recommend I look for property?
      $ ________________________________
 [ ] What is your estimate of property purchase costs including
 [ ]  Down payment            $ ______________ 
 [ ]  Professional services      $ ______________ 
 [ ]  Inspections        $ ______________ 
 [ ]  Closing costs        $ ______________ 
 [ ]  Moving costs        $ ______________ 
 [ ]  What is your estimate of home ownership costs including
 [ ]  House payment

LOCATION OF PROPERTY

 [ ] How do you screen the listings to show me?
 ___________________________________________________________
 [ ] How do you show me the property?
 ___________________________________________________________
 ___________________________________________________________
 [ ] How much down payment do you suggest?

NEGOTIATION

 [ ] Do you suggest I get a new loan?     [ ] Yes   [ ] No 
 [ ] Do you suggest I assume seller's loan?    [ ] Yes   [ ] No 
 [ ] Do you suggest I take title subject to?    [ ] Yes   [ ] No 
 [ ] Do you suggest I use a seller buy-down loan?
 [ ] Do you suggest I use an escrow?     [ ] Yes   [ ] No 
 [ ] What are the laws regarding transfer disclosure here?
 ____________________________________________________________
 ____________________________________________________________
 [ ] Do you suggest I have a physical inspection of the property?
            [ ] Yes   [ ] No
 [ ] Do you suggest I have a geological inspection?
            [ ] Yes   [ ] No
 [ ] Your estimate for my costs for
 [ ] Assessments?
 [ ] Appraisal fee?
 [ ] Assumption fee?
 [ ] Beneficiary statement?
 [ ] Credit report?
 [ ] Delinquent payments?
 [ ] Demand fee?
 [ ] Document preparation fee?
 [ ] Drawing deed fee?
 [ ] Closing/escrow fees?
 [ ] Geological inspection?
 [ ] Homeowner's insurance?
 [ ] Home warranty costs?
 [ ] Interest?
 [ ] Loan tie-in fee?
 [ ] Loan origination fee?
 [ ] Notary fees?
 [ ]  Pest control inspection?
 [ ] Physical inspection?
 [ ]  Points?
 [ ] Prepayment penalty?
 [ ] Reconveyance deed?
 [ ] Recording fee?
 [ ] Satisfaction of mortgage?
 [ ] Subescrow fee?
 [ ] Title insurance?
 [ ] Transfer fee?
 [ ]  Transfer tax?

CLOSING

 [ ] What are the results of the preliminary title report?
 ____________________________________________________________
 ____________________________________________________________
 [ ] What are the items on the report that might prevent closing?
 ____________________________________________________________
 ____________________________________________________________
 [ ] How do you recommend I handle these items?
 ____________________________________________________________
 ____________________________________________________________

REAL ESTATE PROFESSIONAL QUESTIONNAIRE

Name ___________________________________________________________

(Saul Klein in CEO of Real Estate Electronic Publishing Company, home of RealTown.)