Questions To Ask A REALTOR® Or Real Estate Agent

Home buyers and sellers don’t participate in the real estate market on a regular basis. You often go years or even decades without making a real property transaction. Given this, working with a real estate agent can be helpful. The question becomes how to go about finding the right agent. We’ll go over key questions to ask a real estate agent in your hiring process.

Why Use A Real Estate Professional?

Every day, real estate agents assist buyers and sellers in negotiating deals and facilitating many of the key details in their home transactions. They possess knowledge of local markets that the average buyer or seller doesn’t have because this isn’t something they do often. They can align on your goals and serve as your bargaining representative while hammering out the contract.

Real estate agents have the broadest view of what’s available on the market because they have access to the multiple listing service (MLS) where local properties are listed by sellers and their agents. Based on a deep understanding of the market, agents can also help both buyers and sellers with a comparative market analysis, which gives an idea of a fair price for a given home.

REALTOR^® Vs. Real Estate Agent

The terms “REALTOR^®” and real estate agent are often mistakenly used interchangeably by both home buyers and sellers. REALTORS^® are real estate agents who were part of the National Association of REALTORS^® (NAR), a professional membership group for real estate agents that provides resources as well as continuing education to real estate professionals.

All REALTORS^® are real estate agents, but not all real estate agents are REALTORS^®. REALTORS^® must follow a code of conduct. Some of the rules in the code include not deliberately misleading someone as to the market value of a home to secure their business and not lying to buyers as to savings they might receive by working with them.

Just because real estate agents aren’t members doesn’t mean they’re unethical. Agents may choose not to be members for any reason. Many of the practices enshrined in the code of ethics are also part of state licensing requirements and other laws pertaining to real estate.

7 Important Questions That Buyers And Sellers Should Ask A REALTOR^®

There are certain questions that should be asked whether you’re interviewing a buyer’s agent or a listing agent.

1. Can You Characterize Your Real Estate Experience?

Ideally, most home buyers and sellers want someone with experience who has seen every type of market, with the thought that they’ll be able to offer the best representation. That’s not a bad approach, but you want someone who’s not so busy with so many clients that they can’t return your communications in a timely manner.

Newer agents might provide you better terms for their fees or offer extra services to win your business and build up their clientele, so that’s another thing to consider. There might be additional value you can get.

Beyond simply asking about how many clients they have or how long they’ve been doing this, is there something they specialize in? Selling a luxury mansion is different than listing a three-bedroom ranch. If you’re in the military, you might wish to find someone with experience dealing with buying or selling after you’ve received a permanent change of station.

2. What Areas Do You Focus On?

All real estate is local. The trends in one metro area or even neighborhood don’t necessarily generalize to the next. Your agent has to understand the ins and outs where you’re looking to buy or sell. So, it’s important for you to know where they’ve worked in the past and how many transactions they’ve done in the area.

3. Can You Provide Referrals From Past Clients?

No agent is going to give you the name of someone they think is going to speak poorly about them. But speaking with past clients about their experience can give you a good idea for the way the agent works. You can ask their past clients many of the questions that we’re putting here so that you can get confirmation from a third party that their actions match their words.

4. When Are You Available?

Knowing when an agent is available can tell you a few things, from the pragmatic to the more subtle qualification questions. Some good examples of the former include when they would be available to go to showings and open houses with you. When do they like to do paperwork related to offers and purchase agreements and what’s the turn time?

The availability might help you sniff some other things out as well including whether they’re doing this on a part-time or full-time basis. An agent who isn’t committed to this full-time might be slower to pick up on changes in the market.

5. What’s The Best Way To Reach You?

In the event that you find a house that you want to pounce on quickly with an offer, you’ll need to know the best ways of getting in touch with them. Do they respond quickest to phone calls or text messages? Will they be emailing you listings to preview? If they’re not available, can you contact someone from their office as backup?

6. How Are You Paid?

Next, you’ll want to be clear with the real estate agent on how they’re going to be paid. Most agents work on a commission basis, which means they get a percentage of the sales price, which is typically split with the other agent. However, everything is negotiable, so it doesn’t have to be an equal commission split.

As an example, a seller’s agent who has been referred to you might discount their commission for you while giving the other agent their usual portion, still offering the seller a slight savings.

Commissions have been traditionally paid by the listing party on the theory that this attracts a bigger pool of buyers since they don’t have to spend money on representation. It’s included in the seller’s closing costs. But this doesn’t have to be a given. As long as the offer is competitive with the others on the table, a buyer paying for their representation may shoot to the top of the list because it’s always good to keep more of the proceeds from the sale.

Finally, some agents may go with a more à la carte model. Maybe they charge a separate fee to go with you to showings and open houses than they would to do the offers, the comparative market analysis and the purchase agreement. Staging could also be included in a full menu of services. Regardless of how the agent is paid, make sure your clear on what you’re getting up front.

7. Do You Work With A Brokerage Or On Your Own?

Depending on real estate laws in your jurisdiction, a real estate agent may be required to work with a brokerage or be a broker themselves. Real estate brokerages provide a level of supervision to make sure that the appropriate laws and regulations are being followed for your area. They also often provide marketing, office and other forms of support.

Some may have appraisers on staff who help ensure the accuracy of comparative market analyses, so you know you’re getting the most accurate data. Agents may have their preferred mortgage brokers as well, but home loans aren’t small, so you’ll want to shop around and make sure you get the best deal. Be careful of anyone who says you have to work with someone.

6 Questions To Ask A Real Estate Agent If You’re Selling

If you’re a seller looking for a listing agent, you’ll want to ask another specific set of questions.

1. How Many Homes Have You Sold In The Past Year?

Knowing how many homes they’ve sold in the past year will give you a good idea of how active the agent is and how good they might be at what they do. You’ll want to be careful with this metric because it might change based on what the agent specializes in.

It’s fair to expect that there might be more sales for agents who work in typical suburbia than those who specialize in selling luxury castles or even waterfront property.

2. How Well Do You Know My Local Market?

Just as important as how many homes they’ve sold in the last year, you’ll also want to scout out how many they’ve sold in your area or even your neighborhood. If you have a brownstone on the Upper West Side, you may quiz the agent on issues specific to these types of properties. The agent should be able to prove to you that they know what they’re talking about.

At the same time, it doesn’t have to be gotcha questions either. If the agent has done their homework, they can tell you all about the schools, local cuisine and nightlife and the distance to public transportation. If they can’t, they don’t know the market that well.

3. How Do You Form A Marketing Plan?

For most listings, a big part of the marketing plan is simply getting a listing ready and posted on the MLS because it will go from there to the various home search sites. However, not every listing is the same.

Some people wish to protect their privacy. If it’s a luxury listing, there’s already going to be a much smaller market that can even afford the list price. In these cases, having a network of people who can bring in qualified buyers based on word-of-mouth can be helpful.

In many cases, you’ll want to make sure your agent is capable of getting your listing in front of as many qualified buyers’ eyeballs as possible and that means meeting them where they are. Does the agent put their listings on social media? If they do, what’s the strategy? Do they have an email list to other agents within their brokerage?

4. How Do You Decide On A Listing Price?

Beyond evaluating your home itself, are they doing a comparative market analysis? Is an appraiser involved in that process? You can ask them how the strategy changes if they need a quick sale vs. if you can afford to let it sit on the market while people go back-and-forth with their offers.

5. What Do You Recommend For Preparing My Home To Sell?

When you’re selling your home, everything about it is being put under the bright lights. Given that, you’ll want to do whatever you can within your budget to improve your home’s value and curb appeal.

That could be everything from upgrading the backsplash and countertops to something as simple as throwing on a fresh coat of paint and changing the doorknobs. Whatever it is, a good agent should be able to provide recommendations.

6. What’s Your Sale-To-List Ratio?

Understanding how the sale price for a home compares to the list price gives you a good idea of whether the real estate agent priced your home appropriately. If a property is priced right, they should always receive close to or at the price they list.

Additionally, if multiple buyers see good value for the money at the current list price, it can often spark a bidding war, generating more money for the seller.

3 Questions To Ask A Real Estate Agent If You’re Buying

If you are on the other side of the transaction, here are the questions you need to ask. These apply whether you’re a first-time home buyer or looking for your dream home.

1. How Well Do You Know The Neighborhood?

Just as the listing agent should know the neighborhood, a buyer’s agent arguably needs to know it even better. If you want to know the neighborhood is right for you, they need to be able to answer questions about schools, local industries, commute times and routes and entertainment in the area.

Does the neighborhood have families, young couples or retirees? Are there homeowners association dues? What day is trash pickup, and does it include recycling? Good agents will be able to get you answers to these questions.

2. How Can You Help My Offer Get Accepted?

Money matters, there’s no doubt. But there’s also a bit of an art to getting your offer accepted, particularly if you’re in the middle of a bidding war in a seller’s market. Ask your agent what their strategy in this situation would be.

It may involve escalator clauses where your bid automatically goes up when someone goes beyond your initial offer. Some strategies don’t involve money at all. Maybe you give them assurance by waving inspection contingencies or guaranteeing that they don’t have to move out before a certain date. You can ask your agent how they would handle a variety of situations.

3. How Many Homes Have You Closed On In The Past 12 Months?

What To Do When You Pick A Real Estate Agent

Once you decide on an agent, you’ll want to sign a formal contract with them. This contract should spell out the following:

• The services the agent will provide
• When and how the agent will be compensated
• Any period of exclusivity before severing ties with an agent

FAQs About Good Questions To Ask A Real Estate Agent

We’ve gone over the questions you might ask a real estate agent. Before we wrap up, let’s answer a few questions you might have.

Can I switch real estate agents if the current agent isn’t working out?

You can switch real estate agents, but there may be a waiting period. Many agents put an exclusivity window in their buyer’s agency agreements giving them a certain amount of time to buy or sell the home for you.

Can I negotiate with a real estate agent over their commission?

All fees are negotiable. As with anything else, you often get the quality of service you’re willing to pay for. At the same time, you should make sure you’re well aware of the services you’re getting for your money.

How do I pay a real estate agent’s commission?

The Bottom Line: Ask Questions To Find The Right Agent

When the time comes to find the right agent, there are many questions you should ask, ranging from their experience to what areas they focus on and how they’re paid. For listing agents, you want to ask things like what their marketing plan is and how they decide on list prices. Buyer’s agents should be asked how they can help you craft an offer that’s going to close the deal.