Selecting a real estate agent to help you buy or sell a home is the first step on your journey, and an important step at that. So keep in mind this is a business relationship and their ability to work on your behalf will determine, at least indirectly, the quality of the home you will be able to buy and how much you will be able to spend. With that being said, make sure that you select from a pool of prospects. To identify prospective agents, you can ask for referrals from family or friends in your new location, the National Association of Realtors or even visit websites like Trulia and Zillow to read over real estate agent reviews. Also, as you begin looking for homes on various websites, feel free to email agents and ask them to help you in your search. The ones that respond in a timely manner and with relevant content should be considered strong candidates. Your new home will be one of the biggest investments that you’ll ever make, so do not be concerned as to whether or not you are a bit picky about whom you select to help sell or buy.
When interviewing the prospective agents, don’t be afraid to ask the difficult questions. You want an agent who is personally and passionately familiar with your prospective community and someone who is willing to go the extra mile on your behalf. If you are selling your home, keep in mind that signing a contract for three to six month is usually the norm. For high-net worth home ($1 million+), agents may request a year.
The Top 10 questions to ask your realtor during the interview:
- What experience and background do you have?
A general rule of thumb is finding an agent with at least five year experience, otherwise they may be learning on your time. While education and energy may compensate for lack of experience, ultimately you should be looking for is someone who is actively engaged in a particular area and with a certain price range. Additionally, just as lawyers specialize in what type of law they practice, so do real estate agents. Below are a few key areas of specialization:
- CRS (Certified Residential Specialist): additional training in handling residential real estate.
- ABR (Accredited Buyer’s Representative): additional education in representing buyers.
- SRES (Seniors Real Estate Specialist): training aimed at helping buyers and sellers in the 50+ age demographic.
- “R”ealtor: a realtor with a capital “R” that implies a National Association of Realtors membership. By hiring a Realtor, you have enlisted the assistance of an agent who formally pledges to support the code of ethics.
- What is the level of support and assistance that you receive from you brokerage?
According to industry experts, it is essential for an agent to have at least one assistant. An established brokerage with many agents may have a team of specialists to assist them in the process, which is also something to consider. Furthermore, advertising a home is more than posting pictures on the MLS, as there are various outlets that a realtor may use, make sure to ask about their marketing plan when selling your home.
- How many clients are you currently working with and for how long?
Apart from giving you some insight into the agent’s background, this will be an important question to ask when you are trying to measure how the agent will prioritize your needs while working on your behalf. An agent that is understaffed and overstretched will be unable to truly provide the assistance that you need, which is why asking this question to a variety of agents and then comparing them will provide you with an understanding of who is best equipped to serve your needs.
- Will you exclusively represent me or will you represent both the buyer and the seller in a transaction?
Though it is typically legal to represent both parties in a transaction, it’s important to understand where the realtor’s commitments reside. The agent should be able to explain his or her relationships to you and thoroughly describe the rights of both each party. Make sure to avoid conflicts of interest.
- What type of communication frequency can I expect from you?
Communication with a realtor is important and establishing expectations early on will avoid any problems in the future. This would entail uncovering what type of news you’ll be updated on, the frequency of the updates and how exactly the agent will communicate with you. Also, if you are a buyer, there will be a number of particulars to handle even after a seller has accepted your offer, such as home inspection, mortgage paperwork, and title search. By establishing clear lines of communication ahead of time, you may avoid a lot of headaches in the end.
- What are the drawbacks of buying or selling this property?
This may seem like a strange question, but asking a real estate agent to assess the flaws of the home is not only a great way to learn more about the value of the property that you are buying or selling, but also about the agent. If the agent tells you what sounds like valid weaknesses, then you know he or she is seasoned and has a sharp eye. Additionally, you’ll be able to assess the honesty of the agent and judge whether or not he or she is just trying to get you to sign a contract.
- Can you provide me with a list of references?
When buying or selling a property, you should always request references from your real estate agent. It is recommended that you contact a few of them, asking previous clients about their experiences with the agent. Was it easy to communicate with him or her? Would they recommend him or her to their family? Were they happy with the end result?
- When will I have a comparative market assessment for the area I am considering?
All real estate agents should be able to provide a comparative market analysis (CMA), which is a listing of homes currently on the market for sale and recently sold properties of similar characteristics within the area. The CMA, also known as the “comps”, will provide the details of a home as compared to similar homes on the market, including key metrics such as price, number of bedrooms and bathrooms, and square footage.
- What are your thoughts regarding the long term trends of the area?
As mentioned previously, your agent should have a command of the issues and trends affecting your community. Apart from being able to point to the price trends, additional information may include things like neighborhood activity, crime rate, street maintenance, new public parks, and the type and number of small businesses in the area.
- How do your realtor fees and commissions work?
Toward the end the interview, you’ll need to talk about money. The majority of agents won’t charge a flat fee, but instead take a percentage of the final sale price. While the percentage varies with each agent, the commission is typically 6% of the selling price. This can be quite large, so if you are selling, you may want try to negotiate, and your ability to do so may depend upon the condition of the market. For example, in a thriving real estate market, commissions may be low because homes are easier to sell. On the other hand, when the market is tough, an agent might be less likely to negotiate.
