How To Hire a Realtor To Sell Your Home: Who Has What It Takes?

What’s the difference between a real estate agent and a Realtor?

Remember the old mind-bender: all squares are rectangles, but not all rectangles are squares?

The same logic applies to real estate agents and Realtors: all Realtors are real estate agents, but not all real estate agents are Realtors. There are over 3 million active real estate licensees, 1.5 million of whom are Realtors.

A real estate agent is licensed by the state and is able to conduct real estate transactions. A Realtor has gone a step further to become a member of the NAR, America’s largest trade association, and is bound by their Code of Ethics & Standards of Practice, as well as subject to additional Code of Ethics Training Certificates. Along with their status as a Realtor comes access to the association’s resources, training, and certifications.

Do I have to pay to talk to a Realtor?

No! It does not cost money to interview agents or talk to a Realtor about selling your home.

In fact, initial consultations and interviews are an integral part of their business-generating process, and agents know that some sellers will end up hiring them and others won’t. Some Realtors will even walk through a home with you and recommend a listing price as part of their listing presentation (aka sales pitch).

Once you decide to hire an agent, you’ll receive paperwork and likely sign a listing agreement. Most listing agreements give the agent the exclusive right to sell the property — meaning that for a designated period of time (usually two to six months), this agent will work with you to sell your property and receive the agreed-upon commission if and when the home sells. We’ll dig into this next.

How much will a Realtor cost me?

Real estate agents are paid a commission — a percent of the property’s sale price — when you sell your home. If there is a listing agent and a buyer’s agent, both of them receive a commission on the sale of the property.

Historically, the average real estate agent commission rate nationwide was 5% to 6%. That’s about 3% each for the listing agent and the buyer’s agent, typically paid by the seller. However, after NAR’s landmark lawsuit settlement, which set new rules for home buying and selling, including decoupling seller and buyer agent compensations, the national average rate is yet to be determined.

With the new commission structure, buyers negotiate their fees directly with their agents, enabling sellers to reduce costs by only covering the compensation for their own agent. However, some sellers still choose to pay the buyer’s agent fees in order to attract more offers or sell more quickly.

Whether you go by the traditional 6% commission structure or cover just the typical 3% listing agent fee, it’s clear that these costs can significantly reduce home sale proceeds. This is why after seeing this number, some sellers decide to take on the task of selling their property themselves, about 7%,

FSBO vs agent-assisted home sale

More than half (57%) of for-sale-by-owner (FSBO) sellers already know their buyer (think selling to a family member) and therefore don’t really need an agent. For others, their goal is often to save the commission fee by selling the home themselves, but is it worth it?

According to NAR’s 2023 report, FSBO homes sold for a median price of $310,000 compared to agent-assisted sales with a median sale price of $405,000, according to NAR data. In the comparison scenario below, we’ll use a 3% commission.

Agent-assisted median home selling price – commission (3%) = amount earned by seller

$405,000 – $12,150 = $392,850

In this scenario, working with an agent results in $82,850 more than the FSBO median home selling price of $310,000.

Still, the commission rate for using an agent is significant, and not all agents are created equal. So, it’s critical to hire someone worth their salt — and the money you’ll pay them.

When should I contact a Realtor to sell my home?

The ideal window for contacting an agent is around three months prior to selling, and no sooner than six months before you aim to list the property. By connecting with an agent early on, however, you can get professional input on which upgrades and repairs to invest in, and which ones to skip so you don’t waste time or money on unnecessary fixes.

For example, an agent familiar with a neighborhood might advise you to focus on curb appeal rather than updating the kitchen countertops, as incoming buyers may be likely to gut and remodel the whole kitchen anyway. But it all depends on area trends and how hot the market is — which is why it’s important to choose an agent that really knows the area and local market.

Another reason you should contact an agent a few months before you plan to sell is so that you have time to interview a few agents and make sure you hire one that’s right for you.

When it’s time to search for a Realtor, HomeLight can help you find a top-rated agent. Our data shows that the top 5% of real estate agents across the U.S. sell homes faster and for as much as 10% more than the average agent. In just two minutes, you can input your address and answer a few questions about your home, and we’ll analyze over 27 million transactions and thousands of reviews to determine which agent is the best match.

Should I interview real estate agents?

Absolutely. Yes. Definitely.

Interviewing real estate agents is the best way to find one that will work for you. While it’s important to get referrals and check an agent’s online presence (including social media), meeting them in person and asking questions is the only way to truly know if your styles will mesh. And you can be on the lookout for signs of a bad agent.

“I would interview at least two to three agents and really talk about your needs,” says Daneault. “You’ve got to feel good with this person. You want to be able to laugh and cry with them. You’ve got to feel that you’re being heard.”

If you’re not outgoing by nature or just don’t have a lot of practice in this role, the idea of interviewing strangers can be a little intimidating. For that, HomeLight has a helpful guide on how to interview a Realtor in a brief 15-minute phone call.

11 signs you should hire that Realtor

Alright, deep breath — it’s time to interview, and ultimately pick, a Realtor. Here are 11 signs that you’ve found the one for you!

1. They get back to you right away

Real estate is a fast-paced business, so who you work with matters. A top agent can best assist with tough but common situations, whether you’re trying to accept an offer on your house or a buyer just rejected your counteroffer.

The best agents will be clear about when they will be available to you. Daneault, for instance, says, “My best attribute is my response time. I’m blessed with not needing a lot of sleep, so I’ll respond early in the morning and as late as midnight.”

You can ask questions like, “What is your window for taking client calls?” and “Do you have staff/assistants who will respond when you’re unavailable?”

2. They’ve got experience in your price point and property type

The right agent with the right experience and knowledge can likely sell your house faster and for more money than the typical area agent. But what qualifies as the “right” experience?

“It’s important to hire an agent experienced in selling within your home’s specific price point, property type, and location,” explains Daneault. “That agent will know what buyers are looking for in homes like yours, and how fast homes are selling in your area. They’ll also know how best to show your home.”

Some agents specialize in single-family homes while others specialize in multi-million dollar condos — some even specialize in selling islands. So, it’s important to find out where the agent’s sweet spot is. If you’re selling your humble starter home, you probably don’t want someone who specializes in selling flashy vacation homes and vice versa.

Asking the agents how many homes they’ve sold in your area and at what price points can give you a feel for whether or not they’re well-versed in your type of property.

3. Their stats reveal the true picture

During the initial consultation, agents will typically highlight their most relevant sales — but don’t just take their word for it. It’s vital that you do your own research and check out their full stats history on sites like HomeLight’s agent directory.

The main figures you need to look at are:

Average sale-to-list price ratio

The sale-to-list price ratio tells you what percent of the asking price a home actually sells for. If a house is listed at $250,000 and sells at $230,000, the sale-to-list ratio would be 92%. If a house sells over asking, the sale-to-list ratio will be over 100%. An agent’s average sale-to-list ratio indicates how accurate they are at pricing homes, and how much of a seller’s list price they’re likely able to deliver.

Days on market

An agent’s average days on market reflects how long it typically takes for their listings to attract an offer. The metric tracks the time between when a house is listed and when it goes under contract with a buyer (the time from contract to close is not included). Most sellers would prefer a faster sale, so if an agent’s days on market is lower than the average for the area, that’s a good sign of their performance.

Number and type of transactions

The number of transactions that an agent does throughout the year is a telling metric of how good of an agent they are. Agents earn what’s called a “transaction side” each time they help a client buy or sell a home — if they are the buyer’s and seller’s agent, they would earn two transaction sides.

An agent’s transaction volume refers to the total dollar amount of homes they sell in a calendar year. While useful in gauging an agent’s overall success, this metric can be a bit misleading.

A high transaction volume does not necessarily indicate a high number of total sales, or sales that would be relevant for your needs. If an agent is selling multi-million dollar properties, their sales would be very high, but they probably aren’t the right agent to give your two-bedroom, two-bath house the attention it deserves.

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4. Their comparative market analysis (CMA) is accurate

Agents won’t just come to their interviews armed with their personal stats; they’ll bring a comparative market analysis (CMA) with them, too, and you need to go over that data with a fine-toothed comb — because the CMA is the data your agent will use to set your list price.

A CMA is a compilation of comps (recently sold homes comparable in size and location) that’s analyzed to provide a value for your house that will help the agent set the list price. That value is reached by looking at both the hard data (square footage, lot size, number of rooms, etc.) and more nuanced factors (upgrades, appliance age, curb appeal, lot positioning, etc.).

It’s the art of putting a value on those intangibles that requires the expertise of a seasoned agent. And the right agent will explain how they came up with your list price. “When I help my sellers set the right list price for their home, I look at the value much like a bank appraiser would — because in the end, it’s not about how much a buyer is willing to pay, it’s about how much a bank will lend on the house,” says Daneault.

5. They’ll be active in preparing the home for sale

The right Realtor will have enough experience and knowledge of the area to offer tips and tricks to help the house sell faster and for more money. One thing that Boswell wishes more clients would ask is, “What should I do to make my house more marketable?” and then act on the advice.

Boswell hires professional stagers for each property she lists — whether it’s a $150,000 single-family home or a $900,000 condo — because she believes that everyone deserves that service.

“I pay for an hour consult for the [stager] to actually go to the house, sit with them, and make them a super-comprehensive list. And then after they get the list, the sellers and I can sit and choose the things that will give them the most bang for their buck,” Boswell says.

A good agent won’t just give you a to-do list and walk away. Instead, with the right experience and knowledge, an agent can transform your home’s flaws and awkward areas into assets or help you maximize value by advising on what projects will increase your home value.

6. They’re well-versed in local laws

Every real estate transaction has legal risks. This is why it’s important to work with a real estate professional who can help you comply with local laws, especially mandated disclosures. Part of preparing the home for sale is reporting on its condition, past repairs, and issues, such as water damage, structural problems, and the presence of hazardous materials, like asbestos or lead.

A good realtor educates you on which disclosures are required and ensures you’re aware of your obligations under state and local laws. With their expertise, you can feel confident moving forward with the sale, knowing you’re covering all legal bases and reducing the risks of future disputes. In addition, they can put you in touch with a real estate attorney who can help clarify any legal issues related to your home sale.

7. Their network runs deep

If you’re going to get your home ready to list on a tight timeline, you’ll need a great crew — and the right agent can help you with that, too.

Every great agent maintains a network of qualified contractors and other home repair experts who know how to meet a deadline and a budget. Boswell recommends hiring someone who has an arsenal behind them, so “they’re not only coming to you with themselves, but they have cleaners, stagers, contractors, photographers, and videographers ready and waiting.”

You should also ask for ballpark figures for all the repairs and upgrades you’re considering making, and how much room these contractors have available to fit your projects in.

8. Their marketing expertise shines through

“Evaluating an agent’s marketing plan is highly important because you don’t want to hire one who’ll just slap it in the multiple listing service (MLS) and that’s it,” advises Daneault.

But how do you tell if an agent’s marketing plan is up to snuff?

Start by looking at the days on market for their listings — as well as some of their competition. If your prospective agent’s listings sit on the market for 60-plus days, yet competing houses sell in a week or two — that agent probably has no marketing game.

The right agent for you needs to have solid answers to marketing questions like, “What is your marketing budget for my house, and what does the marketing plan look like (mailers, open houses, social media posts)?”

Some agents offer different services. According to Boswell, “They can go anywhere from an MLS-only — where there’s a flat fee charge and the client literally does everything except for the entry on the MLS — all the way to the full-service concierge, where they show up to every showing and give you the full beautiful marketing package.”

9. They know the neighborhood

Homebuyers aren’t just evaluating how your house will fit their needs; they’re sizing up your neighborhood, too. That’s why you need an agent who knows your neck of the woods like the back of their hand.

While you’re peppering prospective agents with questions on how they’ll market your house, slip in a few questions that’ll show how well they know your neighborhood. Ask them how they would respond to potential buyers asking about local coffee shops, the location and quality of nearby schools, traffic patterns, and crime and safety statistics.

10. You feel comfortable with the Realtor

This is less dependent on facts and figures and instead relies on how comfortable you feel with the person who will be walking you through a huge financial and emotional transaction — but it’s one of the most important factors in hiring a Realtor.

“Communication is the biggest and most important part of the relationship between a Realtor and the seller,” says Daneault. “Even if you’ve worked with an agent as a buyer, if you’ve never sold a house before, this will be your first time learning how to prep a house to sell. So you need an agent that you’re comfortable with who can explain what the process looks like.”

And it’s not just the ins and outs of the home sale process that you’ll lean on your agent for. Selling a home is an emotional journey that can quickly become stressful.

Boswell understands the need for an agent that you feel comfortable with. “This is the biggest transaction of some people’s lives, and depending on the scenario, it can be scary. It can be related to divorce or selling a parent’s home that’s passed.” It can also be an exciting start to a new adventure. So finding an agent who’s understanding and empathetic and will go on the journey with you is key to a successful relationship.

11. They have glowing reviews

When it comes to great agents, you want one that will go above and beyond.

While combing your prospective agents’ profiles for their stats, run through their online reviews for little nuggets that demonstrate a willingness to go the extra mile for their clients.

At the interview, ask each agent to provide a short list of satisfied clients that you can call or message to get a first-hand account of just how helpful the Realtor was throughout the entire home-selling process.

Remember that you’re hiring them.

Hiring a Realtor to sell your home is exactly that — you’re hiring someone to perform a service and bring their expertise and their team along with them. “A seller has a lot to consider when choosing an agent to sell their house. This is a big decision, and we understand that it’s not personal when a client decides to go with another agent. It just wasn’t a match,” says Daneault.

So when it’s time to sell your home, use this guide to feel confident and ready to choose the Realtor that’s right for you.

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