No matter whether you are buying or selling, there are certain questions every real estate agent you consider should answer to determine if they possess the professional expertise and local market knowledge necessary to meet your goals.
Ask an agent which types of homes they sell most frequently. A competent agent should know which features are most valued by buyers in each price range.
1. How long have you been in business?
No matter if you’re buying or selling, real estate transactions can be complex and time consuming. Therefore, finding an agent who possesses professional expertise, market insight and communication abilities is of utmost importance for successful results.
Ask the agent about their success rate and typical timeline for clients to find and purchase homes through them. Inquire if there are any client references you could contact to see their experience working with the agent.
Make sure to determine how many listings your agent is handling at once. If they are handling too many sellers at once, you could run the risk of not receiving their undivided attention. If they work as part of a team, find out who will serve as your point of contact.
2. What’s your experience level?
Experienced agents in real estate are more adept at anticipating problems, using tried-and-tested negotiation strategies, and selling homes more quickly than those newer to the industry.
Some agents specialize in either buyer’s representation or seller’s representation transactions, so it is a good idea to inquire which of these is their expertise. Furthermore, make sure they possess an in-depth knowledge of the local housing market as per Horner.
Ask the agent about his past clients and whether or not they were satisfied with his services. Avoid hiring an agent whose reference list includes friends or relatives as these referrals might not be impartial. Furthermore, inquire as to the average number of homes that they help buyers buy or sell each year; too many clients could indicate an inability to give you enough attention and guidance.
3. What’s your negotiation style?
Dependent upon their response, this question could provide insight into whether agents tend towards competitive or collaborative styles of negotiation. Individuals who lean more heavily towards competitive negotiations tend to focus more heavily on making deals work in their favor and may engage in hostilities with the other party during negotiations.
A knowledgeable agent should be able to demonstrate their understanding of the local market by providing you with a comparative analysis between your home’s current value and recently sold homes (comparables). They should also be able to explain why they believe your house is priced appropriately.
Understanding why your agent recommends a specific listing price can give you valuable insight into their thinking and the strategy they’re employing when selling your home, which could significantly impact how much money you receive in return from its sale.
4. What’s your communication style?
Personal communication styles often depend on body language and eye contact to show how we’re relating with one another, but text messaging and email remove these nonverbal cues, potentially leaving someone else misinterpreting your assertive message as aggressive or vice versa.
Before selecting an agent, ask about their communication style with clients and if they’re available to meet either face-to-face or over the phone. Inquire whether they work as either buyer’s or seller’s agents.
Buyer’s agents specialize in finding homes for buyers while sellers focus on making their property more desirable to potential buyers through open inspections and online listing services. This can make a big difference when selling your home; be sure to ask any prospective agent you interview about their past experience in these areas.
5. What’s your fee structure?
Real estate agents typically operate on commission, receiving 5-6% of the final sale price of your home as compensation. Some agents also offer flat service fees which is important information as it could impact your decision.
Ask your agent how many clients they currently represent; this will give you an idea of the amount of time they have available to dedicate to helping with the home buying or selling process.
If an agent is overwhelmed by too many clients, they may not be able to dedicate enough time and energy to finding or selling your home, which could cause delays and disrupt the experience overall. A reliable agent should be able to provide references from past clients who were satisfied with their services as an indicator of quality work performed by an agent.
6. What are your home sales statistics?
If you’re buying or selling, finding an agent who will guide the process smoothly is paramount to reaching closing day. Consider their number of sold homes or found ones as one metric.
Ask about their average list-to-sales price ratio as an indicator of their ability to negotiate on behalf of their clients.
Pricing your property properly requires the skills of an agent who understands how to identify an ideal listing price that resonates with motivated homebuyers. Be wary of agents suggesting an inflated home price as this can drive away prospective buyers and leave money on the table. They should be able to back up their pricing recommendations with analysis of comparable properties in your neighborhood as well as insight on inexpensive upgrades that will add tremendous value.
7. How will you communicate with me and how often?
Finding an experienced real estate agent can speed up your home search process or ensure you receive maximum value from selling an existing property, but finding a good agent involves more than asking about their track record or experience.
Find out how often they will keep you updated about new listings, open houses, or any other relevant details that could impact the process.
Be sure to ask whether they will handle your transaction personally or delegate it to their assistant, since too many clients could make it hard for your listing to receive enough attention, while too few could lead to not understanding your local market – potentially leading to surprises down the road.
8. What are your goals for my home search?
When buying a home, your agent should help you locate one that suits both your budget and needs. Furthermore, they should offer insight into the neighborhood or area in question to provide insight on its safety.
Experience helping clients sell homes in your price range is often an indication that an agent is right for you. They should also explain how they plan to market and sell the property.
Be wary of agents who make unrealistic property predictions; instead, ask for real numbers and information on what other sellers in your area have sold their properties for to get an idea of its market value. This can provide a sense of what your property might be worth in today’s marketplace.
9. What are your goals for the sale of my home?
Home sellers want their agent to work toward making them as much money as quickly as possible. A good real estate agent will create a plan to attract buyers by advertising on social media, listing it in the MLS database and hosting virtual or in-person open houses.
They should be able to explain the listing process, closing costs and any additional fees associated with selling a home. Furthermore, they should have access to trusted mortgage brokers, inspectors, real estate lawyers and movers they can recommend as part of their network of service providers.
Sellers should ask their agent how many homes they’ve helped sell over the past year, which will provide a good indication of their ability to fetch top dollar for listings. In addition, your agent should be able to give an average list-price-to-sales-price ratio; any homes priced too high will turn away potential buyers and leave money on the table.
10. What are your goals for the sale of my home?
Real estate agents should prioritize helping their sellers achieve a quick sale at a price they are comfortable with. Experienced agents know how to compare your home against similar properties recently sold and come up with an asking price that will capture buyer interest.
An excellent real estate agent should be able to recommend other vendors that will assist in the sales process, from painters and general contractors to mortgage advisors and professional home stagers – potentially saving both time and money along the way. This approach may also save valuable hours during negotiations for your transaction.
A professional real estate agent can also advise on which home improvements are worth the investment and which aren’t, helping to maximize your return on investment. Furthermore, they should also be able to estimate council rates, strata levies and running costs associated with your new property.