Easy guide on finding the right real estate agent for you.
How to select the right
REAL
ESTATE
AGENT
An eBook
How to select the right Real Estate Agent
THE FIRST QUESTION YOU NEED TO
ASK IS, DO YOU NEED AN AGENT?
When trying to decide if you need a real estate agent to sell your house, there
are two ways to think about it: Is it legally required? And is it realistic or practical
to try and sell without an agent?
While many sellers ask themselves these questions, only a small number end
up selling without an agent. Only about 16% of sellers try to sell for-sale-by-
owner (FSBO). And 10% attempt to sell on their own but eventually engage an
agent.
Do I legally need a real estate agent to sell my house?
No, you are not legally required to hire a real estate agent to sell your home.
FSBOs are perfectly legal in all 50 states.
However, depending on the state where you’re selling, you may be required to
hire a real estate attorney to handle the paperwork. States that require the use
of a real estate attorney for closing are Alabama, Connecticut, Delaware,
District of Columbia, Florida, Georgia, Kansas, Kentucky, Maine, Maryland,
Massachusetts, Mississippi, New Hampshire, New Jersey, New York, North
Dakota, Pennsylvania, Rhode Island, South Carolina, Vermont, Virginia and West
Virginia.
These requirements may change as state laws change, so check your state’s
rules when you’re ready to sell.
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How to select the right Real Estate Agent
START BY DOING YOUR OWN
MARKET RESEARCH
1. Check out your local housing market in person.
Drive or walk around your neighborhood and look for repeat agent names on
real estate signs (bonus if there’s a “sold” sign next to them!).
2. Visit open houses in your neighborhood.
Stop by a nearby open house and observe how the agent handles potential
buyers. Take the time to talk with the real estate agent — don’t just take a
business card and leave. Keep an eye out for personality and professional
chemistry.
3. Get a referral.
There’s nothing better than a personal referral from a friend or family member
you trust. According to research, more than one in five sellers find their agent
because of a referral from a friend, relative, neighbor, or colleague.
4. Compare real estate agents online.
Do a quick name search online for the real estate agents you’ve identified.
Online reviews are the next best thing to a personal referral. Read what people
in your area are saying about a recommended real estate agent. And, take note
of how that agent responds to negative reviews.
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5. Meet with at least two agents. Handle it like a job interview —because it is!
When hiring a real estate agent, don’t settle on the first agent you meet.
According to research, 61 percent of sellers only ever contact one agent, but by
talking with multiple agents, you’ll be able to compare and contrast to find
someone who will be a good fit. While you might have a front-runner based on
a referral or local reputation, ask each of the three agents the same questions
and compare their responses.
6. Ask the right questions:
How long have you been working in real estate?
Do you primarily work with buyers or sellers?
How many active clients do you have at a time?
Are you part of a team?
What’s your specialty?
Are you equipped to handle my unique situation?
How will you market my home? Can you put me in contact with some
references?
7. Confirm seller-agent communication plan.
One of the most common complaints from buyers and sellers is about the
agent’s lack of communication. Make sure you’re on the same page from the
beginning. You should expect a minimum of one update per week. Discuss how
the agent will keep you informed and how often you expect to hear from them.
If you prefer email but the agent is most responsive to phone calls, you may
not be a good fit for each other. Or, if you know you’re going to have lots of
questions and expect quick responses, but the agent usually just sends bi-
weekly updates, you may want to find someone who is a better fit.
8. Set clear expectations.
Discuss selling strategy and the marketing plan: Make sure you and your
potential real estate agent are on the same page about their selling strategy.
Will you do open houses? How many showings do you want to do? How much
lead time will the agent give you before a showing? How will the property be
marketed?
Make sure you’ve made clear any requirements that
are specific to your home sale.
Are you on a strict timeline? Need to reach a specific bottom dollar?
Looking to fall within a particular timing window to avoid capital gains
taxes? Make sure to share these details from the beginning so your
agent knows what to expect.
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9. Agree on all the important details.
The best agent-seller relationships are those with clearly defined expectations.
Make sure that, in writing, you’ve agreed upon the commission structure, list
price, and contract length (i.e., what happens if your home hasn’t sold after a
certain amount of time).
10. The thrill of the hunt and the excitement of the deal.
The whole process is enhanced by a good real estate agent who knows the ins
and outs of the market. But with so many brokerages and agents out there to
choose from, finding a perfect fit may be more of a challenge than you
expected. Working with a top agent who is experienced and trustworthy can
go a long way in ensuring your property sells at top dollar, or that you buy for
the best price in the market.
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How to select the right Real Estate Agent
TIPS FOR SELECTING THE RIGHT
AGENT FOR YOU
Contact agents for an interview. Before hiring one, interview several. Ask as
many questions as possible to get a sense of whether an agent is right for you.
Compare agents by ratings, reviews, and referrals.
Ask how long the agent has been in the business. You would prefer someone
with a lot of experience. Ask how many buyers the agent has dealt with. Agents
who work part-time or don't take many clients might not be as adept as others.
Ask what kinds of properties the agent typically handles. You want someone
who buys and sells properties like yours or the kind you're looking for.
Ask the agent how s/he plans to communicate with you. You don't want
someone who's hard to get a hold of or who utilizes only one medium of
communication. Good agents will communicate on your terms. Buying or
selling a home is complicated enough without having to rely on someone
who's hard to work with.
Browse current listings. Once you've conducted interviews, look at the listings
the agent advertises. These can be found on the agent's website, national
websites like Realtor.com., and local advertising.
How closely do the agent's listings match the type of home you want to buy?
Do you see anything right away that's interesting to you? These are questions
to ask yourself while looking over available listings.
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Pay attention to price range. Does the agent typically work within your price
range? If not, you might not get as much attention as you need.
Review an agent's online presence before making a decision. Even after talking
to the agent and past clients, review the agent's online presence. Look for
reviews that the agent cannot control. If a particular client had a very bad
experience, the agent will likely not have used this person as a reference.
2. Visit open houses in your neighborhood.
Online reviews are subjective. People often go to sites like Yelp when very
frustrated or angry and enjoy the anonymity provided by such sites. While you
should have some skepticism regarding such outlets, if there are a lot of bad
reviews and accusations of shady dealings, this is a bad sign.
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WHERE CAN I FIND A
REAL ESTATE AGENT?
Many people looking for a real estate agent rely on referrals from family and
friends.
Buying or selling a house is a big decision — both financially and emotionally.
Working with an agent who’s been referred to you by someone you trust can
help you feel more comfortable with the process.
Plus, you’re going to be spending a lot of time with the agent you choose, so it’s
important to work with someone you like.
Before you start looking for an agent, what type of real estate agent
is available to help you?
“People [that your friends and family] get along with are more likely going to be
people you get along with.
While referrals are a good place to start, that doesn’t mean you should hire the
first agent you meet. Take the time to interview a few candidates to ensure you
find someone who has the professional expertise you need and is a good fit
personally.
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If you can’t find an agent you like through a referral from someone you know,
here are a few other options to consider.
Drive around your neighborhood. Check out “for sale” signs for names of real
estate agents who work in your area.
Open houses. Attend a couple of open houses and talk to the agent who’s
selling the house. You may find someone you click with.
Online search engines. There are multiple online directories that list agents by
ZIP code. Examples include realtor.com and zillow.com.
Buyer's agent
As you might guess, a buyer’s agent represents the buyer in a real estate
transaction. This includes finding listings in the buyer’s price range, scheduling
showings, taking the lead when it’s time to make an offer and guiding
negotiations with the seller to get the best deal for the buyer. When a
contract’s accepted, the agent leads the buyer through the closing process.
Selling agent
Now, here’s where it might get a little confusing. When a seller accepts the
buyer’s contract, the agent representing the buyer becomes known as the
selling agent since that person is responsible for “selling” the home to the
buyer. The terms “selling agent” and “buyer’s agent” are often used
interchangeably. But the important thing to remember is the agent continues to
represent the buyer’s interests.
Seller's agent
On the flip side, the seller’s agent — also known as the listing agent —
represents the seller’s interest. A seller’s agent makes recommendations about
the sale price of a home, lists the property being sold on the multiple listing
service, or MLS, and markets the property. The seller’s agent also schedules
open houses and negotiates on the seller’s behalf.
If you use the same agent to sell your existing home and help you buy a new
one, your agent acts as the seller’s agent on the sale of your current home and
the buyer’s agent on the purchase of your new home.
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So if you are not legally required to use a real
estate agent, why would you want to use one?
REASONS TO WORK WITH A
REAL ESTATE AGENT.
Real Estate Agents are trained in all parts of Real Estate.
Selling a home usually requires dozens of forms, reports, disclosures, and
other technical documents. A knowledgeable expert will help you prepare
the paperwork correctly, and avoid delays or costly mistakes.
They help their clients by handling all the paperwork, legal
formalities, and questionnaires in an easy and hassle-free manner.
They hide confidential information from other competing parties and
other unrelated people.
If you hire a real estate agent then you do not need to know detailed
information about real estate transactions. They are trained licensed
professionals and know all about the technical, legal, and financial
aspects of selling your home.
Handling real estate contracts can be a daunting task if you don’t
have appropriate information about it or some experienced person to
help you out. A real estate agent is familiar with all these contracts
and can handle these with great ease.
Local Market Expertise
Real Estate Agents can provide
local information on utilities,
zoning, schools, and more. They
also have objective information
about each neighborhood. Real
Estate Agents can use that data to
help you get the highest asking
price.
They understand the current
market properly. They know the
comparable properties of your
areas and expertise in getting you
the best suitable price.
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Experience
Most people sell only a few homes in a lifetime, usually with quite a few
years in between each sale. Even if you’ve done it before, laws and
regulations change. Real Estate Agents handle hundreds of transactions
over the course of their career.
A home is so much more than four walls and a roof. And for most
people, property represents the biggest purchase they’ll ever
make. Having a concerned, but objective, third party helps you
stay focused on the issues most important to you.
Property Marketing Expertise
Properties don’t sell due to advertising alone. A large share of real estate
sales comes as the result of a practitioner’s contacts with previous clients,
friends, and family. When a property is marketed by a Real Estate Agent,
you do not have to allow strangers into your home. Your Real Estate
Agents will prescreen and accompany qualified prospects through your
property.
Expert Negotiators
There are many factors up for discussion in a deal. Real Estate Agents will
look at every angle from your perspective, including crafting a purchase
agreement that allows you the flexibility you need to save time and money.
Real estate agents act as mediators between buyers and sellers.
They are the primary negotiator on your behalf, and they are also
experts in negotiation tactics. They can easily attract potential
buyers or sellers with their skills.
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HOW TO SELECT THE RIGHT REAL
ESTATE AGENT FOR YOU.
Buying or selling a property is an extremely tedious process. It requires lots of
complex formalities to be carried out like legal documents, policies, form
filling, assembling many meetings, etc. Hiring a professional real estate agent
can help you avoid such hassles and unnecessary delays in your major
financial transactions. Finding the right real estate agent can also be a long,
tricky process. Take some time to do your research and conduct interviews
before making a selection.
1 Experience Counts. Don't choose an agent based solely on “experience”.
Although it’s good to have, it's not everything. Some agents experience
consists of “time in the business, not success in the business’. Choose
someone relatable and real. Choose for you, not for the house. Choose
someone good at talking and negotiating.
Keep in mind that more experience does not necessarily mean higher
quality since an experienced Realtor will be in demand and may have
less time to devote to you. Be willing to go for a new Realtor who
seems driven and knowledgeable.
2 Results is key. It's best to interview at least two agents before picking the
one you work with. Focus on neighborhood expertise; look for hyperlocal.
Ask yourself, "Is their marketing about them or their properties?" Also, can
you trust them, are they honest?
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3 Referrals First. Despite the technology that seems to take over much of the
searching for a home, the right real estate agent is still a human-to-human
choice. A referral is best. There's no bigger compliment to an agent than a
referral from a past client. Ask homeowners who they would recommend. If
you know the area you want to purchase in or sell your home in, there will
be an expert in that area. If not ask the agents you interview, about their
referrals in your neighboorhood.
4 It IS about you! Ask yourself, "Does my real estate agent have my best
interests at heart?" Be honest and transparent about what you’re looking for,
and if an agent isn’t bringing you the right options, it’s likely they aren’t
looking out for you but rather to benefit themselves. Ask questions upfront
and don’t be afraid to move on to someone else if the relationship doesn’t
feel right.
5 If the agent doesn’t feel right, they probably aren’t. Your brain uses logic
and emotion when making a decision, and that specific feeling you get
when doing so is your intuition — your gut feeling. If you're interviewing a
real estate agent for the job, first look to see that they do a lot of business
and have a lot of raving fans.
Second, go with your gut feeling. If it feels right, he's the guy or gal for
the job. Let’s face it — buying a house is a stressful task, especially if
you are facing a divorce, having a baby, mourning the death of a
spouse, etc. You need an agent who is patient with you and your
circumstances. Interview an agent or broker and see if they have the
same emotions, outlook on life, personality, as you do.
6 Trust matters. As the client, you begin the dialogue — but pay close
attention to the agent or broker and how he/she listens and asks YOU
questions. All agents have access to the technology it takes to make your
property seen or to find options for purchase, but it takes someone you can
trust to always look at your interest first. Take time to find an agent you
trust.
Look for strong core values. Whether it's business or pleasure, finding
a good person all comes down to core values. Core values are
important because you want to work with someone that plays by the
same rules you do.
7 Look for a clear plan of action. Look at the agent’s work. The easiest and
most valuable way is to review how they're marketing other properties. Do
they follow a plan of action? Look at their listing materials, website,
brochures, and signage. Pay attention to their personal appearance. Look
for passion, conviction, and honesty. You want your agent to tell you what
it's going to take to get your home to sell faster and for the best price.
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8 It takes more than one person to do this job. Make sure they offer
adequate support. Are they supported by a team? An agent who is
supported is able to offer a high level of customer service to every
customer. Most agents work with several clients at a time. The logistics of
buying/selling a home are complicated, and it's easy to miss something or
fall short without a support staff.
9 Numbers don’t lie! Find a real estate agent who is honest about the risks of
buying or selling. Throw out the flattery and fluffy agents. You want
someone who is realistic and can proactively mitigate risk. When
interviewing agents, pay attention to those using real data in their answers
when it comes to investment analysis, neighborhood-level market
performance, and long-term impact of your decision to buy or sell.
10 Seek clear lines of communication. First and foremost, you need to feel
completely comfortable talking and communicating with the real estate
agent. If it feels awkward or if there is undue pressure placed on you by a
real estate agent, this is not the right fit.
Buying or selling a home is no small feat, and it’s one of the biggest financial
decisions of your life. That’s why finding a real estate agent with the experience
to guide you through the process is key.
There are many ways to find a real estate agent, but asking someone you know
for a recommendation is probably your best bet.
While there’s no rule that says you have to work with an agent, a real estate
professional can help guide you through what can be a stressful and
complicated process. Plus, a good agent should negotiate on your behalf to
make sure you’re getting the best deal that you can. If you can’t get a referral,
there are other ways to find an agent. Let’s explore a few of them as well as the
type of agent you need and the qualities you’ll want to look for.
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MISCONCEPTIONS ABOUT
REAL ESTATE AGENTS
Like any other field, people do possess many misconceptions about real estate
agents and real estate industries. There are plenty of sources who aim to
criticize the profession by spreading misconceptions about it.
There are certain misconceptions amongst people about real estate agents
and the real estate industry. Out of which, some are enlisted below that might
help clear such misconceptions:
The more you pay for your house, the more the agent makes for himself:
People usually think that if the cost of the house is more than they expect,
certain hidden benefits of the agent.
Agent can tell anything to close the deal: People usually think agents can go
to any extent to complete or close the deal.
Less commission equals to best agent: If the amount of commission is less, that
means the agent is honest and the deal is beneficial for you.
More agents, more options: If you hire more than one, then your chances of
getting the best deal increase.
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QUESTIONS TO ASK
How long have you been in residential real estate sales? Is it your
full-time job?
Like most professions, the experience is no guarantee of skill. But much of
real estate is learned on the job.
How many homes did you and your real estate brokerage sell last
year?
This will touch on how much experience they have, and how up-to-date
they are on the local market.
What designations or certifications do you hold?
Real estate professionals have to take additional specialized training in order
to obtain these distinctions. Designations and certifications help define the
special skills that an agent can apply to your particular real estate needs.
How many days does it take you to sell a home? How does that
compare to others?
The Real Estate Agent you interview should have information about their
performance on hand and be able to present market statistics from their
local MLS to provide a comparison.
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What’s the average variation between your initial listing and final
sales price?
This is one indication of a Real Estate Agent's pricing and negotiating skills.
What specific marketing systems and approaches will you use to
sell my home?
Your agent should have an aggressive, innovative plan and understand how
to market property online.
Will you represent me exclusively, or might you also choose to
represent the buyer?
While it’s usually legal to represent both parties in a transaction, your Real
Estate Agent should be able to explain his or her philosophy on client
obligations and agency relationships.
Can you recommend service providers who can help me obtain a
mortgage, make home repairs, and so on?
Practitioners should be able to recommend more than one provider and let
you know if they have any special relationship with any of the providers.
How will you keep me informed about the progress of my
transaction?
The best answer here is a question. A real estate agent who pays attention
to the way you prefer to communicate and responds accordingly will make
for the smoothest transaction.
Could you please give me the contact information of your three most
recent clients?
Ask their former customers if they would use the agent again in the future.
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WHAT TO LOOK FOR IN A
REAL ESTATE AGENT
Throughout your real estate agent search, consider the following hallmarks of
a good real estate agent:
Don't hire an agent who is a relative or friend but who does not live or
work in the neighborhood. Such situations can quickly turn messy.
Familiarity with the local area and neighborhood.
Takes the time to become familiar with the features of the home
he/she is selling
Approachable and friendly.
Excellent reviews, plus professional handling of negative feedback.
Local reputation of closing deals quickly and successfully.
Creative negotiator and proactive problem solver.
Has experience with your specific selling scenario.
Listens to your needs.
Provides you with an up-front quote.
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TRACK CLOSING COSTS
Be prepared and know who’s responsible for the variety of fees and expenses
at the closing table.
Buyer cost Seller cost Others
Down payment
Loan origination
Loan origination
Points paid to
receive a lower
interest rate
Home inspection
Appraisal
Credit report
Mortgage insurance
premium
Escrow for
homeowner’s
insurance
Property tax
escrow (if paid
as part of the
mortgage*)
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Buyer cost Seller cost Others
Title insurance
policy
premiums
Land survey
Notary fees
Home warranty
Proration* for
your share of
costs (such as
utility bills and
property taxes)
*Lenders keep funds for taxes and insurance in escrow accounts as they are
paid with the mortgage, then pay the insurance or taxes for you.
**Because such costs are usually paid on either a monthly or yearly basis, the
buyers may have to pay a bill for services that you actually used before
moving, or vice versa. Proration is a way to even out bills you may have paid in
advance, or that buyers may later pay for services you used.
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VOCABULARY
Agency & Agency Relationships
The term “agency” is used in real estate to help determine what legal
responsibilities your real estate professional owes to you and other parties in
the transaction.
Seller's Representative
(also known as a listing agent or seller's agent) is hired by and represents the
seller. All fiduciary duties are owed to the seller, meaning this person’s job is
to get the best price and terms for the seller. The agency relationship
usually is created by a signed listing contract.
Buyer's Representative
(also known as a buyer’s agent) is hired by prospective buyers to and works
in the buyer's best interest throughout the transaction. The buyer can pay
the agent directly through a negotiated fee, or the buyer's rep may be paid
by the seller or through a commission split with the seller’s agent.
Subagent
owes the same fiduciary duties to the agent's customer as the agent does.
Sub agency usually arises when a cooperating sales associate from another
brokerage, who is not the buyer’s agent, shows property to a buyer.
Disclosed Dual Agent
owes the same fiduciary duties to the agent's customer as the agent does.
Sub agency usually arises when a cooperating sales associate from another
brokerage, who is not the buyer’s agent, shows property to a buyer.
Designated Agents
(also called appointed agents) are chosen by a managing broker to act as an
exclusive agent of the seller or buyer. This allows the brokerage to avoid
problems arising from dual-agency relationships for licensees at the
brokerage. The designated agents give their clients full representation, with
all of the attendant fiduciary duties.
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