7 Questions to Ask a Prospective Real Estate Agent

January 05, 2017

Whether you’re looking to buy or sell a home, one of the most important decisions is who you select as your real estate agent since this will likely be the person you work most closely with during the transaction. You can identify prospective agents by asking family members, friends, and other professionals you work with (financial planner, accountant, lawyer) for recommendations. Then be sure to interview several of them and ask the following questions:

1) Are you a REALTOR®? People often use the terms “realtor” and “real estate agent” interchangeably, but they’re not always the same thing. While all REALTORS® are licensed real estate agents, not all real estate agents are REALTORS®. The main difference is that as members of the National Association of REALTORS®, REALTORS® have to follow an additional code of ethics. While this doesn’t mean that every REALTOR® is more ethical than every non-REALTOR®, it certainly can’t hurt to choose someone who has at least made a commitment to a higher ethical standard and is subject to penalties for violating it.

2) Who do you work for? As a seller, your agent always works for you. But as a buyer, be aware that an agent can also be working for the seller. Even “buyer’s agents” often work for a “dual agency” that represents the seller as well. You can search for an “Exclusive Buyers Agent” here.

3) How long have you been working in the area I’m buying/selling in? This question has two objectives. The first is to screen out agents that may be new and just starting out. You probably don’t want to be their “learning experience.”

The second is to measure their experience in your particular neighborhood. An agent who’s unfamiliar with the area you’re interested in may only be slightly more helpful than one who’s new to the business. After all, much of their value comes from bringing the kind of local, specialized knowledge that you may not be able to find with an online search.

4) How will you work with me? As a buyer, some of what you’ll want to know are how the agent will find prospective homes, how often they’re available to show places to you, and how they would handle multiple offers. As a seller, you’ll want to know how they will market the home and the fee that they’ll charge (which is negotiable but top agents will charge more). In either case, ask if the agent will let you cancel the agreement if you’re not satisfied with their service.

5) Who else do you work with? Agents typically play the role of quarterback with the other professionals that may be involved (mortgage broker or loan officer, home inspector, real estate attorney, and title and homeowner’s insurance agents) and can help you select them. Ask for a list of their recommended professionals, but be aware that if they are labeled as “affiliated,” the agent may be receiving compensation from them.

6) Do you have references? If an agent is experienced and has a lot of online reviews, you may not need to ask this question. However, it can be an important one for a new agent. Not having any references might be a red flag. You may also want to check your state’s real estate regulatory agency to see if any complaints were filed against them.

7) What documents do I need to sign? Make sure you look at them before signing and keep copies. If you’re a buyer, you’ll want the buyer’s broker agreement, agency disclosures, purchase agreement, and buyer disclosures. If you’re a seller, you’ll want the agency disclosure, listing agreement, and seller disclosures.

Finally, don’t’ forget the importance of personal chemistry when choosing a real estate agent. They may answer every question correctly, but if you just don’t feel comfortable with them, you’re probably better off with someone else. Buying or selling a home can be stressful so you’ll want an agent that can help alleviate rather than add to that stress.