10 Questions to Ask Before Hiring a Realtor

by Patrick Grosser | Sep 12, 2023 | Buyer Tips, Real Estate, Seller Tips

Before you hire a real estate agent, ask these 10 questions to make sure that your agent is the best fit for your needs.

1. How long have you been working as a real estate agent?

Of course, buying a home or selling a home is a big deal. That’s why you should have a professional with plenty of experience in your corner, to make sure that you get the best results and to avoid any costly mistakes. If you’re selling your home, you’ll need help marketing your home and negotiating the terms of your offer. And if you’re buying a home, you’ll need help finding the right home and writing an offer that stands out among the rest. In either case, you’ll also need guidance from contract acceptance to closing. There are several steps in between that can derail the deal and cause tons of stress if not handled properly. Extensive knowledge and experience are required for best results.

2. Are you a full-time or part-time real estate agent?

In the same way that experience is crucial in successfully navigating a real estate transaction, dedication to the profession of real estate agency is something that you ought to require of your real estate agent. If your agent is only part-time, you can’t be sure that he/she is full committed to helping you to achieve your real estate goals.

3. What geographic areas do you specialize in?

Although I wouldn’t consider it a requirement, it’s certainly a bonus if your agent specializes in the specific area (suburb or neighborhood) that you’re buying or selling in. Market conditions vary by suburb and sometimes even by neighborhood, so it helps if your agent has the inside scoop.

4. Can you provide references from past clients?

True real estate professionals will provide client testimonials on their websites and/or third party sites like Google, Facebook, or Zillow. Agents may also provide names and phone numbers of clients who are will to take your call to discuss their first-hand experience. Both resources will help you to understand what to expect from your client experience if you decide to hire that agent and will give you peace of mind that others have had success working with that agent in the past.

5. How will you market my property or find properties for me?

If you’re selling your home, you’ll want your agent to have a detailed marketing plan designed to sell your home quickly for top dollar. The more details, the better (bonus stars if it’s in writing)! And if you’re buying a home, you’ll want your agent to provide you with access to other agents’ listings via the MLS (Multiple Listing Service), as well as any potential listings they may have hitting the market soon.

6. What is your average sale price to list price ratio?

Agents who have a high sale price to list price ratio have proven that they consistently sell their clients’ homes for prices that are very close to the original list price. For example, if a home is listed for $350,000 and sells for $345,000, the sale price to list price ratio is 98.6% ($345,000 / $350,000). It’s become more common over the past couple years for homes to sell for more than the original list price, which would result in a sale price to list price ratio of more than 100%. Agents with career-long ratios (spanning several years) of 95+% are among the best. Numbers like this show that these agents do an excellent job of analyzing the market before listing homes to determine the right price and they market homes properly to sell them for top dollar.

7. How do you communicate with your clients and how often can I expect updates?

Most agents will tell you it’s okay to call/text/email them 24/7. Although that sounds great on the surface, it’s completely unrealistic. Everyone has to eat, sleep, take a shower, etc. No one is actually available 24/7! And if you think about it, would you want your agent to answer calls/texts/emails while he /she is in an appointment with you? Of course not! Experienced agents understand the importance of efficient and effective communication. For best results, you’ll need an agent who establishes realistic expectations and sets reasonable boundaries. Communication doesn’t have to be complicated, but it does have to be clear.

8. What is your fee structure and what services are included?

Buyer’s agent commissions are typically offered by listing brokers through the MLS, so home buyers usually don’t negotiate fees with their agents. Listing agent commissions/fees, however, are often negotiated with home sellers and can vary widely. Some agents offer full-service listing agency and some offer limited service. Even within full-service agency, services can vary based on the brokerage and the agent. As you may have guessed, limited service agents offer a discounted rate in exchange for passing some of the work of marketing and selling the home to the client. Just make sure that you fully understand which services are being offered and which are not. Regarding pricing, most agents charge a commission (percentage of the home’s sale price) while some offer flat fee pricing (a specific amount regardless of the home’s sale price). Ultimately, you’ll have to weigh the pros and cons of each model in order to determine which is the best fit for you.

9. How’s the market?

How agents answer this question will reveal how deeply (or not so deeply) they understand the real estate market. Agents who answer, “It’s hot!” and don’t have much else to say may not be studying the market on a daily basis. The best agents are students of the market and will be able to discuss market stats and share recent client stories to help you understand what’s going on in the real estate market and how if effects you in your situation. Current market conditions impact every aspect of each real estate transaction, so it’s crucial that your agent has a thorough understanding of the real estate market.

10. How do you handle multiple offers or bidding wars?

If you’re selling your home and you receive multiple offers, you’ll want your agent to maximize your leverage in negotiations in order to get the best price and terms possible. Agents may handle this situation differently, so make sure you understand each agent’s approach and which you would prefer. As a buyer, you’ll want to avoid bidding wars at all costs. But if you find yourself in that situation, you’ll need your agent to help your offer to rise above the rest. In addition to price, there are several other terms to consider and you’ll need your agent’s guidance to enhance your offer without exposing you to more risk than you’re comfortable with.

In case you’re curious, here’s how I would answer these questions.