Santa Cruz – Real Estate Brokers

Before you choose a real estate sales broker in Santa Cruz County, call them on the phone to discuss your options. It's good to have a list of questions ready and to write down the answers that the real estate sales broker gives you while you're talking to them. Use the following questions to guide in your discussion:

1. Has your local real estate broker office earned and maintained a Diamond Certified rating?
2. Will you show me all properties for sale, including for-sale-by-owner properties that don't pay a commission?
3. How quickly can you get me into a home that I would like to see on short notice?
4. Is your license in good standing?
5. What services do you offer beyond negotiations and escrow?
6. When am I committed to working with you? (Sometimes once a client begins touring homes they are obligated to work with the broker, contract or no contract.)
7. How many years of education and experience do you have?
8. If I hire you as my real estate sales broker, will I be working with a team or mainly just you?
9. How many sales have you handled in my target neighborhood?
10. Are you a full-time real estate sales broker?
11. How many foreclosure or short-sale transactions have you dealt with in Santa Cruz County, including the larger cities of Santa Cruz, Watsonville, Scotts Valley, and Capitola?
12. What is your fee for real estate broker services in Santa Cruz County and the surrounding area?

It's best to choose a Diamond Certified real estate sales broker in Santa Cruz County, including the larger cities of Santa Cruz, Watsonville, Scotts Valley, and Capitola, because all certified companies have passed an in-depth ratings process that most other companies can't pass. If you want quality real estate work in Santa Cruz County and the greater Bay Area, you can have confidence choosing a Diamond Certified company. Diamond Certified reports are available online for all certified companies. And you'll never be fooled by fake reviews. That's because all research is performed in live telephone interviews of actual customers.
If you can't find a Diamond Certified real estate sales broker within reach, you'll have to do some research on your own. If you do, it's wise to call some references provided by your real estate sales broker. Keep in mind, though, that references provided to you by the real estate sales broker are not equal in value to the large random sample of customers surveyed during the Diamond Certified ratings process. That's because references given to customers from companies are cherry-picked instead of randomly selected from all their customers. So the real estate brokers will likely give you a few customers to call that they know are satisfied.
If you do call references on your own, specifically ask for a list of the company's 10 most recent customers. This will help avoid them giving you the names of only customers they know were satisfied. Do you feel that the real estate broker was pushy when it came to selling or buying?

• Did the real estate broker help you devise a selling/buying plan and help you stick with it?
• Was the real estate broker helpful in guiding you during the offer process?
• If you sold real estate with this real estate broker, did they do a good job of showcasing and showing your property both in person and on the listing sheet?
• If you need a real estate sales broker in the future, will you consider hiring this real estate broker?
• Was the real estate broker helpful in guiding you during negotiations?
• Was the real estate broker knowledgeable about the community, town, and market you were interested in?
• Was this real estate broker respectful of your time and property? Were there any issues of theft or damage during showings?
• Did you feel that the real estate sales broker was working with your best interest in mind? Or did you feel like the real estate broker was influenced by other motivations or brokers?
• Would you recommend this real estate sales broker to your family and friends?
• Was the deal was complete, were you satisfied with the real estate broker?

If you are purchasing real estate, your real estate sales broker my ask you to sign a "buyer's agent agreement." This agreement protects the real estate broker if you, the client, choose to switch to a different real estate broker at the moment of signing a contract for real estate property for the purpose of saving money, etc. This contract ensures that the real estate broker will be compensated for their work. It specifies rights and duties of the buyer as well as how and when the broker will be compensated. If your real estate broker wants you to sign a buyer's agent agreement, here are a list of issues you should carefully consider:

• Geographic area. Make sure the real estate broker is experienced in your area. If it is possible that you will venture outside of the comfort zone of the real estate broker, make a provision in the contract that the real estate broker will refer you to another broker and collect a referral fee. Or that, in this type of case, the contract will be void.
• Term. You can always renew later, so lay down a reasonable time period for working with the real estate broker. Keep in mind that if you purchase a property that the real estate broker showed you a few months after the contract has expired, the broker is still entitled to a commission.
• FSBOs. If you don't want to pay a commission on For Sale By Owner properties in Santa Cruz County, including the larger cities of Santa Cruz, Watsonville, Scotts Valley, and Capitola, make sure to put that in the contract. Keep in mind, however, that the real estate broker may be able to save you money by determining a fair purchase price and negotiating the deal.
• Compensation. Be sure that total compensation is covered in the buyer's agreement. Any commission that is paid by the seller to the buyer's broker will reduce any commission owed by the buyer. Avoid paying a retainer fee. Also check to see how to cancel the contract if you are unhappy with the real estate broker's performance.

The contract should clearly define both the duties of the broker and the buyer. These duties should include:
Real Estate Broker Duties:

• Assists with obtaining financing
• Arrange for properties to be inspected
• Negotiate contracts
• Unless requested to do so in writing, the real estate broker is not obligated to show properties that are not available in the Multiple Listing Service.
• Best effort to identify properties that meet the needs of the buyer
• Discloses any information that would affect the buyer's decision to purchase

Santa Cruz Real Estate Buyer Responsibilities:

• Pays compensation to the real estate broker
• Work exclusively with the broker to find real estate property while the agreement is valid
• Cooperates with the broker in order to fulfill the terms of the agreement
• Be available to view potential properties
• Provide the broker with adequate financial information to research appropriate properties

A Listing Contract
A listing contract is the contract between a real estate broker and a seller of real estate property that gives the broker the right to offer the property for sale. The listing contract must include the following:

• A beginning date and a termination date
• The list price which the property will be offered for sale
• The amount of compensation offered to the real estate broker. This can be in the form of a percentage of the sales price or a flat fee.
• The terms and conditions under which the brokerage fee will be paid by the seller
• Authorizes the broker to cooperate with other brokers as sub-brokers and also details the compensation that will be offered to those brokers in the event they secure a buyer.
• Authorizes the real estate broker to disclose or not to disclose the existence of offers formerly received.

• Signatures by all parties involved in the real estate sales/real estate purchase
• Identification of parties involved: both the seller(s) and the buyer(s) of the real estate
• Identification of the real estate property
• Identification of the purchase price
• Consideration: This is something of value that is bargained for in exchange of the real estate. Usually the form of consideration used is money, but, for example, other property could be used in the exchange.
• Contingencies (conditions) that must be met if the contract is to be performed. Certain types of contingencies include inspection, appraisal, another sale contingency, etc.