A smart consumer would interview potential real estate agents before deciding on whom to hire. Going through this step in your home search ensures that you hire a good real estate agent and a smoother home buying process.
Remember that good agents are selective with their clients, too. You don't want to hire someone just off the street, and the best way of knowing is when agents ask you questions and probe for your motivation. Expect the first meeting to be over the phone or at the agent's office; don't expect a top producer real estate agent to meet you at your home in order to give you free advice before you have made a selection.
The interview should give you an insight of the agent's experience and capacity in the field, and here are some interview questions that you shouldn't fail to ask according to About Home:
How long have you been in the business?
Not to say that you shouldn't hire a freshly licensed real estate agent, in fact, new agents prove to pay very close attention to their clients. It also depends on whether they have access to competent mentors as well as the level of training that they have received. For senior agents who are in the industry for years and years, some stick to the same old methods from their first year in the job while others strive to learn something new every year even after 20 years in the industry. It's just a matter of weighing in on their years of experience and their skills set.
What is your average List-Price-to-Sales-Price ratio?
When asking a real estate agent this question, you have to consider that an agent's average ratio depends on the market. If we talk about a good buyer's agent, they should be able to negotiate a sales price that is lower than list price for buyers; their ratio should fall below 99%. You can tell a competent agent by their track record for negotiating sales prices that are very close to list prices. Listing agents on the other hand should have higher ratios closer to 100%
What is your best marketing plan or strategy for my needs?
As a buyer, you will need to know:
- How will you search for my new home?
- How many homes will I likely view before I find a home I want to buy?
- Will I be competing against other buyers?
- How do you plan to manage multiple offers?
- Do you present offers yourself?
As a seller, you will need to know:
- What specific plans do you have to sell my home?
- Why or why not is a direct mail campaign appropriate?
- Where and how often do you do advertising/marketing?
- Do you have a sample flyer to show me?
- What are your strategies for online marketing?
Will you please provide references?
A real estate agent should have references, even new agents.
- Ask to see references.
- Ask if any of the individuals providing references are related to the agent.
- Ask if you can call the references with additional questions.
What are the top three things that separate you from your competition?
A sign of a good real estate agent is when they don't hesitate to answer this question and is ready to fire off to convince you on why they are best suited for the job. These are what consumers look for in agents:
- Honest and trustworthy
- Assertive
- Excellent negotiators
- Available by phone or e-mail
- Good communicators
- Friendly
- Analytical
- Able to maintain a good sense of humor under trying circumstances
May I review documents beforehand that I will be asked to sign?
You can tell a good real estate agent if they make forms available to you for preview before you are required to sign them. These are some of the documents that you can ask upfront:
A copy of:
- Buyer's Broker Agreement
- Agency Disclosures
- Purchase Agreement
- Buyer Disclosures
Ask to see:
- Agency disclosure
- Listing agreement
- Seller disclosures
How much do you charge?
A top real estate agent may tend to charge more. But typically, they charge in form of percentage, from 1% to 4% either as a buyer or seller's agent. Sometimes, a listing agent would charge 3.5% for herself and another 3.5% for the buyer's agent, for a total of 7%. Also, don't ask if the fee is negotiable as all real estate fees are.
What kind of guarantee do you offer?
Find out what happens if you sign them and later find that you are unhappy with the arrangement. Will the real estate agent let you cancel the agreement? Will the agent stand behind their service to you? Learn about the company's policy on canceled agreements. Did they experience to be ever canceled in an agreement before?
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