Questions
The real estate agent is part of a team designed to either sell your home at prime market value or help you purchase a home at the lowest possible price. This team should be assembled like an Olympic caliber team, with you as the coach. Like any good coach, you have to scout out the talent pool. Ask questions. You want to make sure you end up with the best team possible.
1. How long have you been in real estate?
You want a real estate agent who has some time on the job, preferably a year minimum.
2. Are you a member of the National Association of Realtors?
This organization requires certain standards from its members, making it far less likely for you to end up with a dubious agent.
3. Are you a member of MLS?
This is the Multiple Listing Service, which gives agents access to houses represented by all agencies, not just their own. For sellers, this means your home will be posted on the list as well, which means more people will see it.
4. Who else will be working with me?
The real estate agent should explain to you whom she works with and why she chooses these professionals. A team often supports an agent, but the agent you hire should do most of the work. Make sure your agent provides you with a written list of referring vendors such as mortgage brokers, property appraisers, home inspectors and title companies. Get an explanation if you see the term “affiliated.” It generally means that the agent is receiving compensation from one or all of the vendors, and you would be paying top price for the service.
5. When am I committed to working with you?
Many consumers start touring homes without realizing this can obligate them to work with the agent, contract or no contract!
6. What’s your fee, and what’s included in that fee?
Get an itemized list of what you’ll be paying for. All real estate fees are negotiable. Real estate agents charge a percentage, typically around 3% to represent one side of a transaction: a seller or a buyer. Get a list of services offered beyond negotiations and escrow. Negotiations, paperwork and contingencies are just the beginning.
7. What is the strategy you are going to use?
As a buyer, some things you will need to know:
- How will you search for my new home?
- Will I be competing against other buyers you represent?
- How do you handle multiple offers?
As a seller, you will need to know:
- Specifically, how will you sell my home?
- Where and how often do you advertise?
- How do you market online?
8. Can I Review Documents Beforehand That I Will Be Asked to Sign?
A good real estate agent will make forms available to you for preview before you are required to sign them. If it’s possible, ask for these documents up-front.
As a buyer, ask to see:
- Buyer’s Broker Agreement (is it restricted or non-restricted?)
- Agency Disclosures
- Purchase Agreement
- Buyer Disclosures
As a seller, ask to see:
- Agency Disclosure
- Listing Agreement
- Seller Disclosures
This is in no way an exhaustive list. Whether you are a buyer or seller, you want a real estate agent who is on your side. The goal you share is the same: to sell or buy your property in the most advantageous way possible.
