Why use a Real Estate Agent?

It is very important to find an agent who can get the job done. Although your cousin’s friend may dabble in real estate, is he really the person most qualified to help you buy or sell your home. Personal referrals are great but you really have to think about separating personal from business sometimes.  It should be all about you, the client and having a confident relationship with your agent.

Production and abilities matters. You want someone with experience, education and a proven track record of successful closings.

What Questions Should I Ask?

As A Buyer:

If you’re a buyer, you want someone who knows the market inside and out; someone who can help you find the right house. Whether you create your list of candidates through referrals or online searches you must make sure that you can develop a trusting relationship.  If not, get out!

Here are a few questions to ask:

  1. Can you tell me about your real estate experience?
  2. How familiar are you with the area where I want to live?
  3. Do you work with a team of other agents?
  4. Do you work part-time or full-time as an agent?
  5. Do you have additional training or advanced real estate education?
  6. What should I expect when working with you?
  7. What kind of information will you provide me on the homes and neighborhoods I’ll be looking at?
  8. Can you provide references from at least three buyers you’ve worked with in the past six months?
  9. How will current market conditions affect my home sale?
  10. What resources will you use to help me find the right home?
  11. How will you communicate with me throughout the process?

As A Seller:

If you are planning on signing a listing agreement, you may want to ask.

  1. Can you tell me about your real estate sales experience?
  2. How do you plan to market my property?
  3. Do you work part-time or full-time as an agent?
  4. What is the right price for this house? And how did you arrive at that figure?
  5. How long will it take to sell at this price? What are the average days on market for a house like mine?
  6. How will current market conditions affect my home sale?
  7. How much should I expect to pay in commission?
  8. What kind of communication and/or updates can I expect from you?
  9. Can you provide references from three sellers you’ve worked with in the past six months?
  10. What happens if my house doesn’t sell in the time we contract for?

As an Investor

If you will hiring an agent to help you with investments, make sure to ask questions.

  1. Do you have inside access to foreclosures such as RealtyTrac and other foreclosures?
  2. How do you research foreclosures in the area?
  3. Do you have a good relationship with agents representing Freddie Mac, HUD, and Fannie Mae properties?
  4. What do you feel are some good investments currently?

How Is My Realtor Paid?

Like all Professionals in the sales-based industries, the Realtor pay structure is based largely on commissions derived from successful transactions. Here’s how it works:

Agent for the Seller (or listing agent)
The sellers and their agent agree to a commission percentage, in which the agent’s payment is based on the final sale price. The amount will vary depending  on thea area, agent and office policy.

Agent for the Buyer
At the close of the transaction, the seller’s agent splits the predetermined commission with the buyer’s agent as compensation for delivering a buyer. This split is usually about half of the total commission paid by the seller.

For example, if a listing is listed with a 6% commission, the typical breakdown is 3% to the listing broker and 3% to the selling broker.  Then that is split to each agent according to the office policy.  Most brokers and agents spend a tremendous amount of money on marketing every year.  It takes a lot of money to sell a home.