Questions You Should Ask Before Hiring a Real Estate Agent

11. Will I be working with you individually or with a team?

If you enter an agent-buyer relationship with the understanding that the agent will be handling you personally, it can be alarming to be handed off to an assistant. Be clear about who you will primarily be dealing with, what your agent will handle personally, and what gets delegated to their support staff.

“It’s very important for an agent to have a good support system behind them to make sure that the buyer is looked after,” explains Monaghan. “Having a good support system sets buyers up to win because we can really dig in and understand their goals and what’s important to them.”

12. What professional contacts do you have?

Mortgage brokers, appraisers, inspectors, real estate lawyers, general contractors, moving companies, and anything else you can think of involving homes should all be things your agent can recommend. Your agent’s network may be just as important as their team.

13. How does your commission work?

As with any financial transaction, get a good understanding of how your agent is compensated before entering into a relationship with them. Most agents follow a real estate agent commission structure.

Typically, buyers do not pay agent commission fees. Fees are paid by the seller to their broker, and then the commission is split with the buyer’s agent. The percentage varies by agent and market but is usually around 5-6% for both the buyer’s agent and seller’s agent commission.

With NAR’s settlement terms expected to go into effect in mid-August, this commission structure may change. Under the settlement terms, the buyer and seller agent commissions will be decoupled, which means the buyer’s agent may have to negotiate commission terms with the buyer upfront or at the time of a purchase offer.

14. How do you help buyers compete in this market?

If you’re looking to buy in a competitive market, breaking through the competition is essential. Ask your prospective agent how they’re going to help you stand out in a potential sea of offers.

3 questions to ask after you hire an agent

You’ve found your agent. Great! There are still some questions you should be asking:

1. Can you explain the homebuying/selling process from start to finish?

The process can be long and complicated, whether you’re buying, selling, or both. Ask your agent to explain the process to you from beginning to end, and take notes, being sure to ask for clarifications you need along the way.

Some good topics to cover are: how showings go, how offers work, what happens during a home inspection, what happens after an offer is accepted, what happens during the closing process, what is the timeline from start to finish — and anything else you can think of.

2. What’s the best way to contact you?

Within reason, your agent should never be out of touch, especially in a competitive market where waiting even an hour for a response can mean the difference between getting and losing a home. According to the NAR, 94% of Realtors prefer to communicate over text messages. But that might not work for you, so let your agent know now before an urgent situation arises.

3. When is your best availability during the day and week, typically?

Confirm that your agent has the availability to show you houses during the hours that you’re available. Most open houses happen on weekends, so if your agent is unavailable on weekends, you may want to take that into consideration.

8 questions to ask once you’re working with the agent

1. Can I see a CMA?

A CMA, or comparative market analysis, basically looks at around 10 properties in the area of a home that are comparable to determine a home’s value. It’s important to see a CMA to determine whether the home you’re looking at is priced reasonably for the market.

2. Do you see any major red flags with this house? What are your concerns?

An agent will often be able to see problems with a home that a buyer or seller may not catch, so take advantage of their experience and expertise.

3. What offer would guarantee this house / that my house will sell?

If you’re in a competitive market, an offer that is too low may not even be looked at by the seller. If you’re in a market where negotiation is possible, you don’t want to make an offer that’s too high and risk overpaying. Experience should enable an agent to give you advice on exactly what to offer for a home / what to ask for.

4. What other concessions should I ask for or expect to make?

A concession with an offer is a request that the seller pays for something as a compromise to the buyer. Concessions can range from the seller paying to fix an issue that was caught on the inspection to paying a home warranty for a year. It’s an opportunity for the seller to sweeten the deal and get it closed, and it’s especially common in a buyer’s market.

5. How much earnest money should I offer/ask for?

Earnest money is a deposit paid when you enter into a contract to buy a home. If you’re in a seller’s market, earnest money can go a long way toward locking in your contract as a buyer. For sellers, a larger earnest money deposit can help weed out flakey buyers.

6. What happens if the inspector finds something?

When it comes to homes, stuff happens. Termites take up residence, foundations crack, water seeps in, and plumbing goes bad. Talk with your agent about how they’ll handle unforeseen problems. Usually, terms can be worked out in the form of repairs or concessions to make up for any issues uncovered during the inspection.

7. What happens if the house appraises under the offer price?

If the appraisal comes in low, you’re not necessarily out of options. Ask your agent for their recommended tactics if the appraisal comes in lower than you anticipated.

8. What are closing costs? How much will they be?

Closing costs are expenses involved in buying a house that doesn’t include the price of a property; they include attorney fees, lender costs, title fees, and more. Getting a handle on how much potential closing costs will be is important so you don’t end up with a gut punch in the end.

Different types of real estate agents

During your initial search for an agent, you may have come across a few fancy certifications and titles that are hard to recognize. Let’s take a look at the most common ones and what they mean.

• Realtor: A Realtor® is a licensed real estate agent who is also a member of the National Association of Realtors. These agents must abide by the association’s Code of Ethics and its governing rules outlining an agent’s duty to their clients, the public, and other real estate professionals. Of the estimated 3 million active real estate agents in the U.S., there are over 1.5 million Realtors. Kauffman says if you work with a Realtor, you’re usually getting “a step up.”
• Certified Residential Specialist (CRS): Agents trained and knowledgeable in buying and selling residential properties. To receive this credential, agents must complete a thorough course on the ins and outs of residential sales.
• Accredited Buyer Representative (ABR): Real estate agents specialize in working with buyers. These agents have an in-depth knowledge of helping buyers during every step of the home transaction.
• Seniors Real Estate Specialist (SRES): Agents trained and knowledgeable in helping buyers and sellers over 50 years old through the home search.

Last word

Whether you’re a first-time homebuyer or selling your second or third house, hiring the right agent is crucial. An agent can make sure you find your perfect home or get the best value for your existing home — and that you are protected every step of the way. But it’s essential you feel comfortable and fully trust them with this important investment. These questions will help you do that and make the process easy and successful.

If everything goes as planned, your agent may even become a resource you use for years to come. 90% of buyers said they would use their agent again or recommend them to others. But if nothing else, a top agent can help make your purchase a little more relaxing and a little less nerve-wracking.

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