9 Questions to Ask Before Deciding on a Real Estate Agent
Roughly 5 million residential real estate transactions were conducted in 2014. Of those, nearly 87 percent involved real estate agents, who can help both buyers and sellers of residential properties save time and maximize the value of their home. Before deciding which real estate agent might be the best fit for your needs, you might want to ask yourself—or your agent—the following questions.
1. ARE THEY LICENSED?
Real estate agents licensed by state property boards are usually expected to complete regular training courses and abide by board-approved practices. Agents affiliated with the National Association of Realtors (NAR) are also bound by the organization’s Code of Ethics, which are intended to make sure real estate agents follow NAR’s approved protocols for home sales.
2. HOW MANY HOMES HAVE THEY SOLD IN YOUR AREA?
Because neighborhoods often have their own unique traits when it comes to advertising benefits like school districts and property values, you’ll want an agent who has successfully completed several transactions in the area you’re considering. For sellers, an agent with experience in the local market will know how best to appeal to buyers most likely to complete a sale.
3. HAVE YOU VISITED AN OPEN HOUSE THEY ARRANGED?
One of the better ways to assess an agent’s ability to move a property is to visit an open house to see how they handle prospective buyers. An impressive presentation means they’re likely to devote a similar amount of energy to your own transaction.
4. HAVE THEY WON ANY AWARDS?
While it’s not necessary that an agent’s office be packed with trophies, third-party recognition for outstanding sales or customer service can be a good sign that the agent is proactive and attentive to their client’s needs.
5. DO THEY HAVE THE RIGHT CREDENTIALS?
Agents often come with designations that might resemble a word jumble until you get familiar with details. An Accredited Buyer Representative has had additional training in representing those in the market for a home; a Seniors Real Estate Specialist has had experience working with buyers over the age of 50. Get to know an agent’s abbreviations and find out if they specialize in your situation.
6. HAVE THEY SOLD A HOUSE SIMILAR TO YOURS ALREADY?
As a buyer, you’ll want an agent familiar with the specific type of home sale you’re interested in. That means experience in navigating the details of federal loan programs, dealing with military financing, or having sold more residential properties than commercial. Buyers and sellers of private properties can also have a variety of special interests depending on the type of home being targeted. Rural homes, for example, have different details to work through compared to historic properties or condominiums. You’ll want an agent who has experience dealing with your specific case needs.
7. HOW MUCH DO THEY COST?
Agents typically receive a percentage of the sale price from the seller. Ask for specific amounts (typically three to seven percent), along with other closing costs. Sellers should also know whether an agent charges a fee for things like staging (dressing the home for viewing), photography, and other attempts to stand out in the market.
8. DO THEY HAVE REFERENCES?
Hiring an agent should be like hiring any other employee: You’ll want to know that they have gotten the job done previously. While you can look at online reviews, it shouldn’t be a problem for an agent to provide contact information for buyers or sellers they’ve worked with so you can benefit from their perspective.
9. WILL IT BE A TEAM EFFORT?
Keeping homes visible in the market, analyzing new listings, and communicating to clients requires a lot of leg work, so many agents have workers who assist them in keeping on top of their workload. At the same time, you don’t want an agent who will use assistants to pass along information. Make sure the agent will make keeping you informed their first priority.