Find Me A House: What To Ask Your Realtor Before Sending Them Searching
What do some of the most satisfied homebuyers have in common? Simple: They interviewed multiple real estate agents before settling on the perfect match and saying "Find me a house!" Interviewing several potential real estate agents is key for finding the right one for you. In addition, this gives the agent a chance to get to know you as well and decide whether they can provide the type of service and experience you need. Be skeptical of any agents who don't ask you questions and try to uncover your motivation. Good agents are often just as selective of their clients, since their reputations in the industry are what drives their business. They want to serve you to the best of their ability, and if they don't have experience with the type of home you're searching for, they are usually happy to recommend a colleague who does. We've put together a list of the most important interview questions for you to ask your agent in order to help you find the perfect match that will lead you to your perfect house. 1. How long have you been in business? There's a running joke that there's nothing wrong with a new agent that a little experience won't fix. However, a newly licensed agent can be valuable, especially if they have access to competent mentors and a high level of training. Newer agents also tend to have more time to concentrate on you, since they are still building their reputation and clientele. 2. What are the top 3 things that set you above your competition? A good agent won't hesitate to answer this question and will be ready to list off several reasons why they are best for the job. Although everyone will have specifc answers they're looking for, most consumers say they are looking for agents who say they are honest and trustworthy, good communicators, friendly, organized, assertive, excellent at negotiations, available by phone or e-mail, and able to maintain a good sense of humor under trying circumstances 3. Could you provide references? Everyone has references, and even new agents should have references from previous employers. Ask to see references, if any of the individuals providing references are related to the agent, and if you can call the references with any additional questions. 4. What's your average list-price-to-sales-price ratio? The agent's average ratio often speaks volumes about their skill. Especially in the current market, a good buyer's agent should be able to negotiate a sales price that is lower than list price for buyers. A good listing agent should hold a track record for negotiating sales prices that are very close to list prices and should therefore have higher ratios closer to 100%. Buyer's agent ratios should always fall below 99%. 3. What is your plan or strategy for my needs? As a buyer, you'll need to know how your agent will search for your new home, how many homes you're likely to see before I finding a home to buy, whether you'll be competing against other buyers, how multiple offers are handled, and who presents the offers. 4. Can I review documents I'll need to sign beforehand? Having forms available to you for preview before you are required to sign them is a sign of a great real estate professional.. If at all possible, ask for these documents upfront: A buyer's broker agreement (and whether it's exclusive or non-exclusive), agency disclosures, purchase agreement, and buyer disclosures. 5. How will you help me find other professionals? Have your real estate agent explain who they work with and why they choose these professionals. Your agent should be able to supply you with a written list of referring vendors such as mortgage brokers, home inspectors and title companies. Be wary if you see the term "affiliated". It could mean that the agent and the broker are receiving compensation from one or all of the vendors, and you could end up paying a premium for the service. 6. How much do you charge? Keep in mind all real estate fees are negotiable. Real estate agents typically charge a percentage from 1% to 4%. Don't be afraid to barter with your agent, and make sure to note their rate to compare against others you interview. 7. What kind of guarantee do you offer? If you decide to sign a listing or buying agreement with the agent and later realize you're unhappy with the arrangement, will the agent let you cancel the agreement? Does the agent stand behind their service to you? What is their company policy about canceled agreements? Has anybody ever canceled an agreement with the agent before? 8. What haven't I asked you that I need to know? Pay close attention to the answer for this question, because there is always something you need to know. You want an agent who is willing to take time with you in order to make sure you feel comfortable and secure with their knowledge and experience. The agent should know how to listen and how to counsel you, as well as how to ask the right questions to find out what to do to better serve you. Lender 411 offers many tools and resources to help you not only find the right agent, but also the right lender, the right mortgage, and the right home. Take advantage of these resources, and you'll be on the way to your new home! |
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