10 Queries to Pose to Your Realtor

Real Estate

When selecting a listing agent to sell your home, it is crucial to interview several Realtors. See more real estate pictures.
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Buying or selling a home can be overwhelming and time-consuming. For many individuals, it makes sense to engage a specialist to handle the tedious tasks and intricate details. Real estate agents can alleviate your workload and assist you in getting a better deal.

Your listing or seller’s agent will promote your home, guide potential buyers, answer queries, and help you through the negotiation phase. If you are attempting to purchase a property, you can employ a buyer’s agent who is acquainted with your preferred areas. They will recommend neighborhoods that match your preferences and caution you about potential shortcomings, such as a nearby factory that will wake you up every morning at 5:00 a.m. However, not all agents are equal. Some may take advantage of your inexperience and end up costing you a fortune.

Since your home is one of the most significant investments you will ever make, no one should judge you for being selective about whom you hire to assist you in selling or buying it. Find an agent whose ideology and methodology align with your preferences. Be ready to interview at least two or three agents to find the right match, and asking the right questions will help you gain insight into the agent’s capabilities and personality. Of course, he or she should offer excellent references and be thoroughly acquainted with your neighborhood. In this article, we will provide you with several critical questions to help you make the best choice.

First, you need to determine what other people have to say about the agent. On the following page, we will learn how to ascertain if past clients approved of the agent’s work or believe you should avoid them.

10: Could I view your references?

Like anyone in a job interview, a real estate agent is likely to emphasize all of their positives – sales records, qualifications, experience, and so on. However, what he won’t be able to tell you is what it is like to work with him day to day.

For this reason, whether you’re buying or selling your home, you should always ask your real estate agent for references. Get in touch with some of the references and inquire about their experiences with the agent. Were they satisfied with the work he did? Was he easily reachable? Did he keep them informed? Would they recommend him to others?

In the real estate industry, word-of-mouth recommendations are as valuable as gold, so a positive review from a previous client will give you a good idea if the agent is worth your time. However, make sure to ask the references if they are related to the agent – a list of friends and relatives will not provide an unbiased evaluation of the agent’s good and bad qualities.

Aside from information about themselves, the real estate agent should also be able to provide information about the neighborhood where you are buying or selling your home. Next, we will discover how prepared he is to inform you about the current market.

Question 9: Can I get a CMA for the locality?

An experienced real estate agent should come prepared with comps.
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It is expected of every real estate agent to provide you with a comparative market analysis (CMA) that lists homes currently on sale and those recently sold in the locality. The CMA, commonly referred to as “comps,” compares your home’s details with those of similar homes on the market, including the price, square footage, and number of bedrooms. This is the starting point for determining how your home compares to others being sold in the neighborhood and, more importantly, the price at which you should list your house. An experienced real estate agent will prioritize this part of the process.

A CMA can provide you with essential information such as the types of homes and home features that are popular among buyers in the locality, the selling price of homes with similar features to yours, and the duration of time that homes like yours stay on the market before selling. Equipping yourself with this information is an excellent way to develop a realistic view of your home’s value and sales potential. It will also help you monitor whether your agent’s advice aligns with current market trends.

However, knowing the sales figures of homes in the locality cannot reveal everything. Sometimes it takes an expert eye to identify subtle clues to the growth trends of an area. The next question delves deeper into your agent’s intimate knowledge of the locality in which you’re buying or selling.

Question 8: Is this area expanding or contracting?

Real estate agents are at the forefront of identifying trends in the market. They observe a lot of growth and decline in different areas—some areas can change from a swamp into a bustling residential area in just a few years, while others can transform from a highly desirable neighborhood into foreclosure city quickly. As your gateway to the real estate world, your agent should be aware of the growth and decline trends and help you find an area that has a positive outlook.

While it may be easy for most people to identify that a neighborhood with many boarded-up homes is not growing, often the signs are much more subtle, particularly in the early stages, and your real estate agent can identify the clues. Things like neighborhood activity, street maintenance, and the type and number of small businesses in the area can all point to the growth trends of a neighborhood. A good real estate agent can tell you if the home you are interested in is likely to be a good investment based on everything else happening around it.

Your real estate agent should have an in-depth understanding of the neighborhoods in your area—it’s their job, after all, to know the territory well. This type of knowledge often comes through experience, and sometimes, agents work together to share knowledge and expertise. The next question will help you determine who you will be working with exactly.

Real Estate Agent or Realtor: What’s the Difference?

It’s important to understand that while all realtors are real estate agents, not all real estate agents are realtors. Realtors are members of the National Association of Realtors and must hold an active real estate license from a qualified school. They also pledge to follow a specific code of ethics.

7: Will You be Working Alone or as Part of a Team?

Real estate teams are becoming more common. Whether it’s a single agent with support staff or a group of agents under one business name, it’s important to know who you’ll be working with. There are pros and cons to working with a team. While you might receive more personalized attention, you might not always work with the same agent. If your agent is part of a team, find out which aspects of the work she handles and who you’ll be in contact with.

If your agent works alone, find out about her current workload and other obligations. It’s important to ensure that she has enough time to meet your needs and that she’s available when you need her.

6: How Many Clients are You Currently Representing?

While there’s no magic number for how many clients an agent can handle, a significantly high number could mean that her time will be divided and you won’t receive much attention. On the other hand, too few clients could signal an inexperienced agent. It’s important to weigh the pros and cons of working with a busy agent and decide if she can meet your needs.

In order to sell a house, it is important for potential buyers to be aware of its existence. On the following page, we will learn about how to inquire about an agent’s methods for spreading the word.

If you have any doubts about an agent’s abilities, it is always wise to discuss your concerns with them directly. The number of clients an agent has does not always indicate their effectiveness, as other factors may come into play.

A good agent will have a plan for marketing your home, which may include methods such as signs, open houses, and online listings. Although posting a for-sale sign in your yard is a start, it is important to consider how to reach potential buyers who may not pass by your home. This is where an agent’s resources and access to online databases can be beneficial.

During your conversation with the agent, it is also important to inquire about their plans for holding open houses and advertising through print and online media. Additionally, it is important to discuss their fees, which are typically a percentage of the final sale price and may be negotiable.

Overall, it is important to choose an agent who has a solid plan for marketing your home and who you feel comfortable working with.

When it comes to negotiating agent commission, the market plays a big role. In a thriving real estate market, commissions may be lower due to the ease of selling homes. Conversely, in a tight market, agents may be less likely to budge on their fees. However, it’s worth asking if a lower rate is possible. To increase the chances of negotiation, consider offering to reduce the agent’s workload or costs in some way. For example, you could cater your open house or use the same agent for both buying and selling. If the fee negotiation is successful, make sure the level of service won’t be compromised.

Cancellation policy is another important topic to discuss with your agent. What happens if you find a buyer or home on your own? Will the agent still be entitled to the full commission? Find out if there are any early cancellation fees that may apply. Asking about previous experiences with canceled contracts can also give insight into the agent’s professionalism.

When evaluating an agent’s experience, it’s not just about how many years they’ve been in the business. The list-price-to-selling-price ratio is a key factor to consider. This ratio compares the original list price to the price at which the property eventually sells. A ratio close to 100% is ideal, indicating that the agent’s homes usually sell close to the listing price. However, it’s important to understand the reasons behind the ratio. A high ratio may be due to the agent sitting on the market for a long time, while a low ratio may reveal that the agent pushes sales too quickly. Consider the value of time to the agent and how it may impact their approach to selling.

It’s important not to overlook the types of properties a real estate agent has sold in the past. If an agent has only sold condos but you have a large estate, their expertise may not be strong enough for your needs. Similarly, an agent who specializes in commercial property may not be suitable for your residential needs. If you’re a homebuyer, finding an agent with expertise in a particular area can be a big asset, as they will be able to find the neighborhood and property that fits you best.

Communication is key when it comes to working with a real estate agent. You need to know how they will keep you informed about updates, interested buyers, and other important details. Ask about their accessibility and business hours, as well as how they will communicate with you (phone, email, or both). It’s also important to ask about any drawbacks of your home, as this can provide valuable information during the interview process.

Finding the right real estate agent may seem daunting, but it’s worth putting in the effort to find someone who will work well with you. According to the National Association of Realtors, 72 percent of homebuyers would use the same agent again, so word of mouth recommendations can be helpful. Ultimately, you want an agent who is knowledgeable, communicative, and understands your specific needs.

If a real estate agent is open and honest about the drawbacks of your home, it shows that they have experience in the field. This also means that they are not trying to deceive you into signing a contract. If they do not mention existing flaws, it could indicate that they are not fully committed to selling your home. However, knowing the disadvantages of your home can be beneficial in the selling process as it allows you to improve them and have a more realistic expectation of the home’s market value. Ultimately, it is important to hire a real estate agent who prioritizes your best interests and makes you feel comfortable throughout the transaction. If you have any further questions about buying or selling a home, check out the links on the next page.

Frequently Asked Questions for Realtors

Is it possible to ask why someone is selling their house?

You, as a buyer, can ask your Realtor questions about the seller. Knowing why the seller wants to sell their house could help you avoid purchasing a problematic property or give you peace of mind when putting in an offer.

Should you give your Realtor a gift after closing?

Realtors typically do not receive gifts from their clients after a sale. They receive payment in the form of commission. However, if you wish to show your appreciation, there is no harm in giving them a gift.

How do you find a Realtor?

You can ask friends and family for referrals since they have recently bought or sold a house. You can also look online and consider reviews, awards, and references to find a reputable agent.

Do homes sell for more with a Realtor?

Despite paying a Realtor’s commission, statistics show that working with a professional leads to a faster sale and more money for the seller. However, it is essential to discuss commission and marketing strategies with your Realtor to obtain the best price for your home.

What questions should you ask a Realtor when selling your house?

In this article, the top 10 questions to ask your Realtor are discussed. Your Realtor should answer them truthfully.

More Information Available

Related Articles

• How Selling a House Works
• How Buying a House Works
• How Mortgages Work
• How Subprime Mortgages Work
• How Home Equity Loans Work
• How House Construction Works
• How Rent To Own Homes Work
• How Housing Cooperatives Work
• 6 Tips for the Real Estate Closing Process
• 10 Things a Home Inspection Doesn’t Cover
• 10 Things to Do Before You List Your House
• 5 Staging Do’s and Don’ts
• 10 First-time Homebuyer Mistakes

More Great Links

• American Homeowners Association
• FTC Advice for Finding a Real Estate Agent
• National Association of Realtors

Sources

• Evans, Blanche. “Classified Intelligence, Realty Times Partner On Realtor Advertising Survey.” Realty Times. August 30, 2006. (July 25, 2008) http://realtytimes.com/rtpages/20060830_advertisingsurvey.htm
• Fletcher, June. “Negotiating Real-Estate Agent’s Commission.” The Wall Street Journal, Dec. 6, 2010. (Jan. 4, 2011). http://online.wsj.com/article/SB10001424052748703989004575652630596788508.html
• Geffner, Marcie. “The Seller Listing Agreement: What’s It All About?” REALTOR.com. 2000. (July 25, 2008) http://www.realtor.com/Basics/Sell/ListAdvert/Agreement.asp
• HomeGain. “20 Best Questions to Ask a Real Estate Agent Before You Hire One to Sell Your Home (and the Answers You Want to Hear)” (Dec. 28, 2011) http://www.homegain.com/info_center/other/20_best_questions_to_ask_a_real_estate_agent/show_article
• HUD. “Interview with Real Estate Brokers.” U.S. Department of Housing and Urban Development. July 7, 2004. (July 25, 2008) http://www.hud.gov/selling/intrview.cfm
• Inman News. “Top 10 Real Estate Websites in November.” Dec. 22, 2011. (Jan. 4, 2012) http://www.inman.com/news/2011/12/22/top-10-real-estate-websites-in-november
• Joyce, Erin. “6 Neighborhood Red Flags.” Investopedia: Financial Edge, Aug. 27, 2010. (Dec. 28 2011) http://financialedge.investopedia.com/financial-edge/0810/6-Neighborhood-Red-Flags.aspx#axzz1hk4iYhO2
• Lewis, Marilyn. “Find a Super-Star Real Estate Agent.” MSN Real Estate. (Dec. 27, 2011) http://realestate.msn.com/article.aspx?cp-documentid=13108475
• Mullins, Stacy Perman. “The Art of the Deal.” BusinessWeek, Oct. 27, 2003. (July 25, 2008) http://www.businessweek.com/magazine/content/03_43/b3858108.htm

The article titled “6 Signs of a Crummy Real Estate Agent” by Luke can be found on the U.S. News & World Report website. The National Association of Realtors offers a “Field Guide to Quick Real Estate Statistics” which was last updated in November 2011. The Zac Team @ RE/Max Greater Atlanta has a webpage titled “Why Buyers Choose Me” which highlights the reasons why they are a good choice for real estate transactions. The International Real Estate Digest published an article by Pat Rioux titled “Nine Ways A Bad Real Estate Agent Can Cost You Money” back in April 2000. The Wall Street Journal published an article by Aleksandra Todorova on April 8, 2007 titled “Selling A House? Fees Are Negotiable.” Total Real Estate Solutions offers a webpage titled “Ten Questions You Must Ask a Realtor Before You List or….You Could Lose Big!” Yahoo! Real Estate also offers a webpage titled “Selecting An Agent: Questions Every Seller Should Ask.”

FAQ

1. How long have you been a realtor?

A realtor’s experience plays a crucial role in the buying and selling process. You want to work with a realtor who has been in the business for at least a few years and has a good track record. An experienced realtor will have more knowledge about the local market, a larger network of contacts, and will be able to guide you through the process with ease.

2. What is your area of expertise?

It’s essential to work with a realtor who specializes in the type of property you’re interested in. If you’re looking for a commercial property, you don’t want to work with a realtor who primarily deals with residential properties. Be sure to ask about their area of expertise and how it aligns with your needs.

3. What is your marketing strategy?

Marketing is key when it comes to selling a property. Ask your realtor about their marketing strategy, including how they plan to advertise your property, what platforms they use, and how they plan to attract potential buyers. A good realtor will have a solid marketing plan in place and will be able to execute it effectively.

4. How many clients are you currently working with?

Knowing how many clients your realtor is currently working with can give you an idea of how much attention they’ll be able to give you. If they have too many clients, they may not have enough time to devote to your needs. On the other hand, if they don’t have many clients, it could be a sign that they’re not very successful.

5. What is your commission rate?

Realtors typically charge a commission fee for their services. Ask your realtor what their commission rate is and how it’s calculated. Keep in mind that a higher commission rate doesn’t necessarily mean better service, so be sure to weigh the cost against the benefits.

6. Can you provide references?

Don’t be afraid to ask for references from past clients. A good realtor will be happy to provide you with a list of satisfied customers who can vouch for their services. Be sure to follow up with these references and ask about their experience working with the realtor.

7. How often will you communicate with me?

Communication is key when it comes to working with a realtor. Ask them how often they’ll keep you updated on the buying or selling process and what methods of communication they prefer. You want to work with a realtor who is responsive and easy to reach.

8. What is your negotiating strategy?

Negotiating is an important part of the buying and selling process. Ask your realtor about their negotiating strategy and how they plan to get you the best deal possible. A good realtor will be able to communicate their strategy clearly and will have experience negotiating on behalf of their clients.

9. What kind of support do you offer after the sale?

Even after the sale is complete, there may be questions or issues that arise. Ask your realtor what kind of support they offer after the sale, including if there are any warranties or guarantees in place. A good realtor will be there to support you even after the transaction is complete.

10. Can you walk me through the buying/selling process?

If you’re a first-time buyer or seller, the buying/selling process can be overwhelming. Ask your realtor to walk you through the process step by step so you know what to expect. A good realtor will be able to explain the process clearly and answer any questions you may have.