11 Essential Questions to Ask Your Real Estate Agent

A home is a substantial investment, and for most people, it’s the largest amount of money they’ll spend at once. Homeownership is often a source of pride as well as a way to build wealth.

Both buyers and sellers are looking for the best deal, and your real estate agent can make a big impact on your ability to do both. Still, most people will work with the first agent they find.

Realtors aren’t all the same; their training, track record, expertise, and fees vary significantly, so it’s essential to treat your agent like they’re applying for a job. Here are 11 essential questions you need to ask your real estate agent before signing with them – and why they’re important to ask. 

11 Incredibly Important Interview Questions to Ask You Agents

If you’re planning to buy or sell your home, you need to think critically about your realtor choices in your area. Use these questions to find the right real estate for your property transaction.

Question 1: Are you a part-time or full-time agent?

Commissions are often lucrative, but oftentimes they’re inconsistent, so part-time agents are quite common. A part-time agent is more likely to juggle another job or kickback for retirement, which can add significant risk to your home purchase or sale.

On the other hand, a full-time agent will have up-to-date knowledge of the market and can quickly attend to your needs.

Question 2: How will you meet your primary obligations?

All real estate agents have to follow specific requirements to remain legally compliant, but these obligations aren’t just for the realtor’s benefit.

Proper real estate compliance improves your chances of a smooth transaction process. After all, a time-bound, loyal, organized, and a responsible agent will keep your wants and needs in mind throughout your relationship.

Question 3: Do you have client referrals?

An experienced agent should have many clients under their belt that they assisted through a real estate transaction.

Getting in touch with these referrals can help you understand your agent better, as well as their strengths and weaknesses. If you haven’t checked online reviews, their website, or social media before meeting with them, do so as soon as you end the interview. 

Question 4: Do you normally work with buyers or sellers?

Inexperienced real estate agents typically take whatever work they can, but experienced realtors have a preference towards buyers or sellers. At the same time, dual agents create a conflict of interest, making your home harder to sell.

There are unique skills to both sides, and you have a lot to lose if you don’t find the right agent, so find a specialist to protect yourself.

Question 5: Do you work solo or with a team?

Many established agents will work with a team to make the buying or selling process easier for the client.

A realtor’s team supports them by ensuring that every client gets exactly what they need in a timely manner. That includes client communication, marketing, viewings, and managing offers. If you choose to work with a realtor with a team, you should meet them first.

Question 6: How do you get paid?

Real estate agents and brokers typically work together to find clients and sell houses, but firms will use different compensation models that involve commission.

The most common model is the traditional sharing split, where both parties agree to split commission 50/50. However, some agents may receive all their commission but have to pay for supplies. Others will get a salary.

Question 7: What are your commission rates?

After asking how the agent splits their commission and you’ve determined the broker isn’t shorting your realtor, ask about their rate.

The average rate ranges between 4.53% to 6.48% of the home’s final sale price, so if your home sells for $500,000, a 6% fee (3% for agent and broker) will result in a $30,000 loss. To save money, find an agent that charges a flat fee.

Question 8: How long have you been an agent?

While hiring someone just starting out isn’t always a negative because they often charge a lower commission rate, an experienced realtor can sell your home faster.

If your agent has sold multiple homes, they likely have great negotiation skills and can evaluate properties quickly. A knowledgeable agent can also point out problems in your home you overlooked.

Question 9: What’s your availability?

Communication is vital between you and your agent because they can update you at a moment’s notice.What if you want information about a potential buyer, but they aren’t answering their phone? What if, as a buyer, you emailed an agent, and they didn’t get back to you after you asked a make-it-or-break-it question? Never hire a realtor or firm that’s hard to contact.

Question 10: What could impact the price of a home?

This question is important to ask for both the buyer and seller because it can impact your many years staying in the home or the cost of the house when you sell it.

New construction, a lack of grocery stores, school closings, and crime can make the neighborhood less attractive, which will affect how many people view your home and how much they’ll pay for the property.

Question 11: What is your list-price-to-sales-price ratio?

Most homes sell for less than their listing price. It’s often necessary for agents to lower the cost of a property to guarantee its sale.

Still, experienced realtors will do everything in their power to either maximize the sellers’ profits or minimize the buyer’s costs. This is another reason why your agent’s expertise in a buyers’ or seller’s market is essential; every home sale is unique!

Authored by Stewart Dunlop, Content Marketer, Paradigm Digital Ltd