Why Choosing the Right Real Estate Agent Matters

Learning how to choose a real estate agent, whether you're buying or selling a home, is essential to the home-buying process. Hiring the right agent can simplify the entire process and help you save money.

Before you start looking to hire an agent, it's important to understand that not all agents are created equal, and not all will be the right fit for your situation. Here are some things to consider when choosing a real estate agent.

Key Takeaways

• A good real estate agent can make buying or selling smoother and save you money, so it’s worth vetting them. Confirm they’re licensed in your state, ask about their recent client work, and find out how they handle pricing, marketing, negotiating, and communication.
• The best agents know your local market, explain their strategy with real data, and listen to your goals. Red flags include missed appointments, vague answers, pressure to decide fast, and badmouthing others.
• Start with recommendations from people you know, then compare two or three agents by asking each the same questions. Give more weight to sales history and local activity than to star ratings. And remember, commissions are negotiable. You can usually switch agents depending on your listing agreement.

What Does a Real Estate Agent Do?

Simply put, real estate agents help clients buy and sell property. If you're selling a home, your agent will help you determine the right price based on current market data. This approach helps you get the best possible price and prevents your home from lingering on the market too long.

If you're buying, your agent will serve as a trustworthy source of information. They should understand the local market well and know what homes are selling for. They can help you find homes that meet your needs and arrange showings.

When you find a home you want to buy, they can recommend other professionals involved in the process, such as an inspector or real estate attorney. They can help guide you through the home search, offer, contract, and closing process alongside your lender and other professionals involved in the transaction.

Questions to Ask Before Hiring an Agent

As you start talking with real estate agents, ask a few questions to make sure they're the best fit.

Are you currently licensed in this state?

Real estate licensing requirements vary by state, but agents generally must meet state education, testing, and licensing standards.

How many buyers or sellers have you worked with recently?

A good agent should be able to clearly tell you how many clients they've worked with in the past year. They should also be able to demonstrate experience working with others in your area and with homes within your price range.

What is your strategy for pricing, marketing, and negotiating?

If you're buying a home, the agent should clearly explain how they identify good value, structure offers, and negotiate prices. Sellers should understand how to price homes based on comparable sales and how they plan to market their property.

How will you communicate with me and when?

Good agents should set clear expectations for how frequently you'll hear from them. For example, will they send daily texts or provide weekly updates?

How will you get paid, and who is expected to pay that compensation?

Compensation arrangements can vary and have become more negotiable following recent changes to industry practices. If you are using an FHA loan, the seller can pay your buyer’s agent commission. The seller pays the commission as permitted by local or state law. They don't count toward FHA's 6% limit on seller or other interested-party contributions to your closing costs.

Were past clients satisfied with the results?

Any real estate agent should be willing to provide references from previous clients. This can help you learn from others' experiences and determine whether it's a good fit.

Signs of a Good Real Estate Agent

Here are some signs of a good real estate agent that you should be looking for.

• Mostly good online reviews (checking reviews and what past clients say about their work should be part of the evaluation process).
• They understand FHA appraisals, property standards, seller concessions, and common contract considerations.
• They understand your local area and are able to clearly discuss recent prices and trends.
• They ask you good questions and listen carefully to you.
• They are able to explain their strategy for pricing, marketing, and negotiation.

Red Flags to Watch Out for When Choosing an Agent

When researching real estate agents, watch for these red flags.

• They miss appointments or reply slowly.
• They give you vague answers about their experience or strategy.
• They appear to be more focused on closing a deal than on your goals.
• They push you to make fast decisions rather than giving you time to think about them.
• They give vague or inconsistent answers about pricing, neighborhood comparables, or the process.
• They talk badly about past clients or other agents.

Comparing Real Estate Agents Before Making a Decision

When you start looking for a real estate agent, select two or three options that seem like a good fit. Before arranging meetings, prepare a list of questions. You should ask each agent the same questions. This will help you compare their answers effectively.

Focus on recent experience, local housing market knowledge, strategy, communication, and proven results instead of just personality. Agents who give the clearest, most realistic, data-backed answers are usually the best choice.

How to Research Local Real Estate Agents

When looking for a real estate agent in your area, start with friends, family, and neighbors. Recommendations are usually a great starting point. Once you have a short list, visit sites like Zillow.com and Realtor.com to compare agents side by side.

You should also review the agent's recent sales, reviews, area of expertise, and experience level. This will help you gauge how well they fit your needs. Check their reviews, but keep in mind that although reviews are important, sales history and local activity are generally more useful than star ratings alone.

Frequently Asked Questions

How do real estate agents get paid?

Real estate agents typically earn a commission based on a percentage of the sales price, though the exact amount and who pays it can vary and is often negotiable. Commission is generally paid out of the seller's proceeds at closing.

Can I switch real estate agents if I am not satisfied?

Yes, you can usually switch agents if you're not satisfied, but the timing depends on the listing agreement you signed.

How do you know if a real estate agent is experienced in your area?

Reviewing an agent's past sales helps you determine if they have experience working with buyers or sellers in your area. They should also be able to confidently discuss local trends, such as comparables, typical days on the market, and sales-to-listing price ratios.