How to Find and Hire a Real Estate Agent

Choosing a real estate agent is one of the most important decisions you’ll make when buying or selling a home. Your agent serves as your guide, negotiator, advocate, and trusted advisor throughout the entire transaction. However, not all agents are created equal, and finding the right one requires careful research and consideration. This comprehensive guide will walk you through the process of identifying, evaluating, and hiring a real estate agent who truly has your best interests in mind.

Why Your Choice of Real Estate Agent Matters

Real estate transactions involve significant financial commitments and complex legal processes. The agent you choose will influence everything from the price you pay or receive to the timeline of your transaction and the overall experience you have. A skilled, trustworthy agent can save you thousands of dollars, while a poor choice can lead to costly mistakes, missed opportunities, and unnecessary stress. Therefore, taking the time to find the right agent is an investment that will pay dividends throughout your real estate journey.

Step 1: Research Potential Agents Online

Your search for the right real estate agent should begin with thorough online research. In today’s digital age, an agent’s online presence tells you a lot about their professionalism, market activity, and client satisfaction. Start by examining their website, which should showcase their listings, experience, and services. A well-maintained website indicates that the agent takes their business seriously and invests in their professional image.

Beyond their website, investigate their social media presence on platforms like Facebook, Instagram, and LinkedIn. Active social media accounts often reflect an agent’s engagement with their community and their ability to market properties effectively. Look for regular posts about listings, market insights, and client testimonials.

Client reviews are another critical research tool. Check platforms like Google, Zillow, and Yelp for reviews from past clients. While no agent will have perfect reviews, look for patterns in feedback. Pay attention to comments about communication, honesty, negotiation skills, and follow-through. Reading both positive and negative reviews provides a balanced perspective on what it’s like to work with a particular agent.

Step 2: Check Credentials and Qualifications

Not all real estate professionals are created equal, and credentials matter. Start by verifying that your potential agent is properly licensed to operate in your state. Licensing requirements vary by state, but all agents must complete classroom instruction and pass an examination.

Next, distinguish between a real estate agent and a REALTOR®. While the terms are sometimes used interchangeably, they have different meanings. A real estate agent is anyone licensed to buy and sell residential and commercial property. A REALTOR® is a real estate agent who is a member of the National Association of Realtors and has agreed to follow a strict code of ethical guidelines. Membership in the NAR often indicates a higher level of professionalism and commitment to ethical practices.

Additionally, check whether your potential agent has any disciplinary actions or complaints against them. This information is typically available through your state’s real estate licensing board. Some agents also hold specialized credentials, such as certifications for working with seniors, military families, or luxury properties. These additional qualifications can be valuable if they align with your specific needs.

Step 3: Use Data to Evaluate Agent Performance

While personal qualities matter, hard data about an agent’s track record is equally important. Research an agent’s transaction history in your specific area and price range. The best agents will have completed numerous transactions in your neighborhood and with properties similar to yours.

Compare how quickly homes in your price range sell when represented by different agents. An agent who consistently sells homes faster than market averages demonstrates effectiveness and strong market knowledge. Additionally, look at the final selling prices achieved by different agents. Did they consistently sell homes for prices close to the asking price, or significantly below? This information reveals an agent’s negotiation skills and market positioning abilities.

For sellers, don’t be swayed by an agent who promises an unusually high listing price. While the promise might be tempting, homes priced too high typically languish on the market, eventually selling for less than they would have at a competitive price. Agents who inflate listing prices may be more concerned with securing your listing than with achieving the best outcome for you.

Step 4: Interview Multiple Candidates

Once you’ve narrowed your research to a few promising candidates, schedule interviews with at least three agents. The National Association of Realtors recommends interviewing multiple agents before making a decision, as this allows you to compare experience, marketing strategies, communication styles, and local market knowledge.

During these interviews, ask specific questions about their experience and approach:

• How long have you been working in real estate?
• Do you work full-time or part-time as a real estate agent?
• What is your experience with properties in my price range and neighborhood?
• How many active clients do you currently have?
• What is your approach to marketing homes (or finding homes for buyers)?
• How do you prefer to communicate, and what is your typical availability?
• Can you provide references from past clients?
• Are you comfortable explaining your fee structure and commission rates?

Pay attention not just to their answers but to how they respond. Are they listening carefully to your concerns? Do they ask thoughtful questions about your specific situation? A good agent will seek to understand your needs rather than launching into a canned sales pitch.

Step 5: Assess Key Qualities in Your Potential Agent

As you interview candidates, evaluate them based on these essential qualities:

Experience and Local Knowledge

An experienced agent will have deep knowledge of your local market, including neighborhood trends, pricing patterns, school districts, and upcoming developments. While newer agents can still do good work, understand that they bring less experience to the table. Make sure you’re aware of an agent’s experience level before committing.

Communication Skills

Your agent should keep you informed about all aspects of the buying or selling process and respond promptly to your inquiries. Communication is a two-way street—they should also be responsive to lenders, inspectors, attorneys, and other parties involved in your transaction. If an agent is slow to respond during your interview process, they likely won’t improve once you’ve hired them.

Negotiation Skills

Whether buying or selling, your agent should be a skilled negotiator who can effectively advocate for your interests. They should be able to navigate offers, counteroffers, and concessions to achieve the best possible outcome for you.

Trustworthiness and Integrity

Does your potential agent provide accurate information? Do they disclose conflicts of interest? Do they prioritize your interests or seem more focused on their commission? Your agent should be someone you’d be comfortable building a long-term relationship with for future transactions.

Attention to Detail

Real estate transactions involve numerous meticulous details and legal requirements. Your agent should be capable of managing all aspects of the transaction while ensuring full compliance with regulations and requirements.

Step 6: Clarify Expectations and Fee Structure

Before hiring an agent, clearly discuss your expectations and their responsibilities. What level of service can you expect? How often will they contact you? What should you do if a problem arises? Clear communication about expectations prevents misunderstandings later.

Also, confirm you understand your agent’s fee structure completely. Real estate commissions are typically negotiable, and you should know exactly what you’ll be paying. For sellers, commission is usually split between the listing agent and the buyer’s agent and is paid from the proceeds of the sale. Understand whether there are any additional fees beyond the standard commission.

For sellers working with agents from the same brokerage (known as dual agency or designated agency), consider asking for a reduction in commission since the agency will be earning from both sides of the transaction.

Red Flags to Avoid

As you evaluate potential agents, watch for warning signs that suggest they might not be the right fit:

• Lack of experience: Part-time agents or those new to the business without adequate training may lack the knowledge and dedication your transaction requires.
• Poor communication: Consistent delays in responding to inquiries or failure to keep you updated are serious concerns.
• Pressure tactics: An agent who pressures you into quick decisions without allowing time for consideration may be more focused on their commission than your needs.
• Lack of local market knowledge: If an agent can’t speak knowledgeably about your neighborhood and current market conditions, they may not be equipped to serve you well.
• Negative reviews: Look for patterns in negative feedback, especially regarding unresolved complaints or unethical behavior.
• Salesy approach: Agents overly concerned with steering you to expensive properties or those generating higher commissions should raise concerns.
• Inflated promises: Be wary of agents who promise guaranteed results or unrealistic prices without solid justification.

Full-Time vs. Part-Time Agents

One critical decision is whether to hire a full-time or part-time agent. Full-time agents dedicate themselves entirely to real estate, allowing them to maintain deep market knowledge, stay current with regulations and trends, and provide consistent availability to their clients. Part-time agents, while they may be licensed, often lack the time and dedication to serve clients effectively. For a transaction as important as buying or selling your home, a full-time agent is almost always the better choice.

Comparing Listing Presentations (For Sellers)

If you’re selling your home, request listing presentations from at least three agents. These presentations should include comparable sales data from similar properties in your area, the average number of days properties remain on the market, and their proposed listing price for your home.

Compare the numbers from all three presentations. The suggested listing prices, comparable sales data, and market days should be reasonably similar. If one agent’s suggested price is significantly higher than the others, be cautious. This agent may be inflating the price to win your listing, only to have your home sit unsold and eventually list for less.

Trust Your Instincts

After conducting thorough research and interviews, you’ll likely have narrowed your choice to one or two agents. At this point, trust your instincts. Your agent should be someone you’re comfortable with, who listens to your concerns, and whom you believe has your best interests at heart. The credentials and experience matter, but so does the personal relationship.

If something about an agent feels off during the interview process, it’s probably worth paying attention to that feeling. You’ll be working closely with this person through a significant transaction, so compatibility is important. Choose the agent you trust the most, even if another candidate has more sales or awards to their name.

Some agents may offer a trial period where you can work together before fully committing. If you’re still uncertain, this could be a helpful option to ensure you’ve made the right choice.

Frequently Asked Questions

Q: How many agents should I interview before choosing?

A: It’s generally recommended to interview at least three real estate agents before making a decision. This allows you to compare their experience, strategies, communication styles, and local market knowledge to find the best fit for your needs.

Q: What’s the difference between a real estate agent and a REALTOR®?

A: A real estate agent is anyone licensed to buy and sell property. A REALTOR® is a real estate agent who is a member of the National Association of Realtors and has agreed to follow a strict code of ethical guidelines. REALTOR® membership often indicates a higher level of professionalism.

Q: Can I negotiate an agent’s commission?

A: Yes, real estate commissions are negotiable. You can discuss commission rates with potential agents and may find some agents willing to negotiate, especially in competitive markets or for valuable transactions.

Q: Should I work with a full-time or part-time agent?

A: A full-time agent is almost always the better choice. They have more time to serve you, maintain deeper market knowledge, and stay current with regulations and trends. Part-time agents may not have the dedication or availability your transaction requires.

Q: What should I do if an agent promises an unusually high listing price?

A: Be cautious. Agents who inflate listing prices to win your listing often fail to deliver results. Homes priced too high typically sell for less in the long run. Compare listing presentations from multiple agents and choose the one with realistic, competitive pricing suggestions.

Q: How do I verify an agent’s credentials and disciplinary history?

A: Contact your state’s real estate licensing board to verify that an agent is properly licensed and check for any disciplinary actions or complaints against them. This information is typically available online through your state’s regulatory agency.

Similar Articles

Undefined Fair Market Value: Complete Guide To FMV

Emergency Fund: 5 Steps To Build A 3-6 Month Safety Net

Digital Banking Revolution: Understanding Neobanks

60/40 Portfolio Guide: How To Build And Modernize

Stock Market Indexes: 5-Step Construction Guide

Premium Checking Accounts: 5 Key Benefits To Consider

Author

medha deb

 

Medha Deb is an editor with a master's degree in Applied Linguistics from the University of Hyderabad. She believes that her qualification has helped her develop a deep understanding of language and its application in various contexts.

Read full bio of medha deb