How Choosing the Wrong Real Estate Agent Can Cost You -- Big!

Many choose a realtor based on a reference from a friend and/or co-worker. While this is certainly a great place to start - it should only be a start.

Following are three tips to help you choose the right agent -- and possibly save you from making a major mistake in what is arguably the biggest purchase of your life.

1. Choose a Realtor with Longevity: Longevity as a realtor can be as little as a year or more. Why so little?

The industry has a 45% annual turnover rate according to Christopher Lee, CEO of the Los Angeles-based real estate consulting firm, CEL & Associates. Some industry experts say that within a two-year period, this rate is as high as 80%.

So, if your realtor has been at it for a solid year or more, this can equate to 3, 5, or 7 years in another profession.

2. Assess Your Goals: While referrals are a great way to get started assessing if a realtor is right for you, prioritize your goals, needs and financial situation.

While your friend's realtor may have done a great job for her, she may not be right for you. Some areas to consider when choosing an agent: your financial situation, geographic area requirements, school system, personality quirks, etc.

You may want/need a realtor who specializes in working with first-time homebuyers, who knows a certain geographic area like the back of her hand, and/or whom you like, among other things.

In short, your situation may differ from the person who recommends a certain realtor to you. Make sure that whomever you decide to work with is knowledgeable about what is important to you.

Regarding liking your realtor, while this may not seem important in the big ole scheme of things, this is perhaps the largest purchase of your life. Why wouldn't you want to work with someone you like?

You are going to be spending weekends, evenings and tons of time on the telephone with this person. Not only that, they are going to be delving into some pretty personal aspects of your life - it just comes with the territory. Trust me, it's important that you like them.

This brings me to my last point - trusting your gut.