10 Questions to Ask Your REALTOR
1. How Long Have You Been in the Business? Are you a full-time professional Realtor®?
The standard joke is there's nothing wrong with a new agent that a little experience won't fix. But that's not to say that freshly licensed agents aren't valuable. Much depends on whether they have access to competent mentors and the level of their training. Newer agents tend to have more time to concentrate on you. Some agents with 20 years of experience repeat their first year over and over. Other 20-year agents learn something new every year. Knowing whether or not your Realtor® practices real estate on a full-time basis can give you a piece of the puzzle in foreseeing scheduling conflicts and, overall, his or her commitment to your transaction.
2. Do you have a personal assistant, team, or staff to handle different parts of the purchase transaction? What are their names and how will each of them help me in my transaction? How do I communicate with them?
It is not uncommon for high real estate sales producers to hire people to work for them or with them. They typically work on a referral basis, and, as their businesses grow, they must be able to deliver the same or higher quality service to more clients.
You may want to be clear about who on the team will take part in your transaction, and what role each person will play. You may even want to meet the other team members before you decide to work with the team overall. If you needed help with a certain part of your home purchase, who should you talk to and how would you communicate? If you have a question about fees on your closing statement, who would handle that? Who will show up to your closing? These are just a few of the many important considerations in working with a team.
3. What is Your Average List-Price-to-Sales-Price Ratio?
Knowing the agent's average ratio speaks volumes. A competent listing agent should hold a track record for negotiating sales prices that are very close to list prices. Therefore, listing agents should have higher ratios closer to 100%.
4. What is Your Best Marketing Plan or Strategy for My Needs?
As a seller, you will need to know:
Specifically, how will you sell my home?
What is your direct mail campaign?
Where and how often do you advertise?
How do you market online?
5. Will You Please Provide References?
Everybody has references. Even new agents have references from previous employers.
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.
6. What Are the Top Three Things That Separate You From Your Competition?
A good agent won't hesitate to answer this question and will be ready to fire off why she is best suited for the job. Everyone has their own standards, but most consumers say they are looking for agents who say they are:
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
7. How will you keep in contact with me during the buying process, and how often?
It's a good idea for you to set your expectations reasonably in accordance with how your Realtor® conducts business. You may be looking for an agent to call, fax, or email you every evening to tell you about properties that meet your criteria which are new on the market. On the other hand, your Realtor® may have access to systems that will notify clients of new properties as they come on the market (which could happen several times a day or several times a week). Asking this extra question can help you to reconcile your needs with your Realtor®'s systems, which makes for a far more satisfying relationship.
8. How Will You Help Me Find Other Professionals?
Let the real estate agent explain to you who she works with and why she chooses these professionals. Your agent should be able to supply you with a written list of referring vendors such as mortgage brokers, home inspectors and title companies. Ask for an explanation if you see the term "affiliated" because it could mean that the agent and her broker are receiving compensation from one or all of vendors, and you could be paying a premium for the service.
9. How Much Do You Charge?
Don't ask if the fee is negotiable. All real estate fees are negotiable. Typically, real estate agents charge a percentage, from 1% to 4% to represent one side of a transaction: a seller or a buyer. A listing agent may charge, for example, 3% for herself and another 3% for the buyer's agent, for a total of 6%.
10. What Kind of Guarantee Do You Offer?
If you sign a listing or buying agreement with the agent and later find that you are unhappy with the arrangement, will the agent let you cancel the agreement? Will the agent stand behind her service to you? What is her company's policy about canceled agreements? Has anybody ever canceled an agreement with her before?
