Home Buying: Questions to Ask a Real Estate Agent

Even though many homeowners choose to sell their homes without a real estate agent, there are undeniable benefits to using an agent. For starters, agents are extremely knowledgeable in the buying and selling process. Thus, they can help their clients establish a reasonable asking price, sift through bids, and guide them through the negotiation process.

While agents are helpful, sellers should not assume that all agents are qualified. There is nothing wrong with using an inexperienced real estate agent, or a part-time agent who sells one or two houses every few months for extra cash. Still, home sellers should have a general idea of an agent’s experience or knowledge. For this reason, it is crucial for buyers and sellers to interview agents before agreeing to work with them. Common questions to ask a real estate agent include:

1. How Long Have You Been Working as an Agent?

There is nothing wrong with inquiring about an agent’s experience. However, there are benefits to choosing a rookie agent and a seasoned agent. Agents with years of experience may be juggling several clients. On the other hand, a new agent may have few clients. Hence, he or she is able to devote much time to selling your home.

2. Have You Sold Homes in My Neighborhood?

If possible, choose a real estate agent who has sold homes in your neighborhood or surrounding neighborhoods. These agents are familiar with recent sale prices and can recommend a sensible asking price.

3. Do You Have a Marketing Strategy?

Before a home is sold, the real estate agent must market the property. The most obvious marketing tool involves placing a “for sale” sign in front of the property. To maximum exposure, the agent may list the home on their personal website, the multiple listing service, or advertise the property is real estate magazines.

4. How Much Will I Pay?

Before a real estate agent commits to selling a home, the agent and client must agree on a commission price. Typical commissions are 3%. However, they may climb to 6%. To cover the fee paid to the real estate agent, the home seller will markup the home’s asking price an addition 3% or 6%.

5. How Long is the Listing Agreement?

Home sellers are usually obligated to sign a listing agreement with the listing agent. By doing so, the seller agrees to work exclusively with the agent for a designated timeframe. Typical listing agreements are 60 or 90 days. If the real agent is unable to sell the home, the home seller can select a new agent upon expiration of the agreement.