REALTOR COMPETITION CAN BENEFIT SELLERS.

Byline: GREGORY J. WILCOX 

With the number of properties for sale increasing and prices at record levels, sellers who do their homework can maximize their profit.

The only thing you have to do is find your comfort level.

And do some research.

Remember that the sales commission isn't necessarily what the real estate agent recommends.

``By law, all commissions are negotiable,'' said Tom Pool, spokesman for the California Department of Real Estate, which regulates the industry.

Commissions generally have been about 6 percent but those seem to be coming down, in part because there is a lot of competition because of the size of the agent pool, he said.

And inventory isn't the only thing that's increased, either. Pool notes that there are now about 500,000 licensed real estate agents in California.

A good place to start the research is the Real Estate Department's Web site, www.dre.ca.gov. Right in the middle near the top is a rectangular box that says ``Check License Status.''

That's the gateway to a single portal that searches four databases related to a home sale transaction. Just type in a name (last, then first) and hit find.

You can find out whether the person you are thinking about doing business with is licensed, how long they've held it and whether there has been any disciplinary action.

``It will give you a sense of who you are dealing with and how long they have been working,'' Pool said. ``It's proven to be a very good consumer tool.''

Once you make sure the service provider is licensed, shop around.

Pool suggests having several of them prepare a market analysis for your property to find out what services will be provided.

Sellers have a wide range of choices, from For-Sale-By-Owner, discount shops, a la carte and full service brokerages.

The Washington, D.C.-based Consumer Federation of America said that it is important to find out what services suit your needs because you can save money once the deal closes.

``That's the key question. There are a variety of real estate services available. Many people want and need a full service real estate person,'' said Patrick Woodall, the CFA's senior researcher.

However, some sellers might benefit from a lower cost company.

For example, someone who wants to sell a home on their own could pay a fee to have it listed on their community's Multiple Listing Service, place ads themselves, pay for some other services a la carte, show the property, then hire a real estate lawyer to handle the closing, he said.

That could save thousands of dollars in commissions.

But you are going to be doing a lot of the work and you will need a thorough knowledge of the home sale process.

It can get complicated.

``Many flat fee and a la carte brokers offer sufficient services for people to sell their homes for hundreds instead of thousands of dollars,'' Woodall said.

Pool also said that California law does offer some consumer protections for sellers.

For example, the law precludes a licensee in a real estate transaction from collecting any fees in advance unless they have a state approved contract to do so.

Service providers are required to put the money in a trust account and not withdraw it until the service has been provided.

The best advice, according to Pool: ``Consumers need to educate themselves.''

greg.wilcox(at)dailynews.com

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