10 Questions to Ask Your Agent
It’s important when you decide to buy a home to hire a Real Estate Agent. The benefits of hiring an agent can be found in the Realtor Article, but this post deals with some specific “interview” questions you should ask a potential agent, before you begin to work with them.
After all, Real Estate Professionals work for you - you’re the boss. So even if you don’t remember all these particular questions, ask as many things that come to mind about the home buying process. This will ensure a very pleasant home buying experience for you in the long run.
The following is a list of 10 questions you should ask, along with what I personally would respond with.
- Q: Are you a Full-Time Agent or do you have other jobs on the side?
- A: I am dedicated to helping home buyers as my full-time career. This allows me to be available to clients throughout the entire process, and devote my time to real estate without other distractions getting in the way. Some agents prefer to work in real estate part-time which is Ok for them, but I find that my knowledge of the business increases much more rapidly by focusing on the current market conditions, which are always a concern for new home buyers.
- Q: Do you work with a Team of Professionals?
- A: Absolutely. The Minnesota Real Estate Team has been around for over 5 years, and we have been the #1 Sales Team in MN for the last 3. Through that time we’ve built a great network of professionals in all aspects of real estate. Lending, Accounting, Inspections, Title, and Insurance are just some of the Preferred Partners we have in the business. This makes the experience so much easier for First Time Home Buyers.
- Q: What are 3 things that separate you from other agents?
- A: I’m a very honest, trustworthy, and friendly person. I also take the time to listen to your concerns and needs, so that your questions get answered right away, even if that means going to other sources to get the proper information. I am available to you and have good communication skills with clients and other professionals in the business. Lastly, I keep a good sense of humor throughout the process, because after all – buying a home should be fun too, right?!
- Q: How many other clients do you work with at one time?
- A: I typically only work with 10-20 buyers or sellers at any given time. I may be in contact with several dozen people who might buy or sell in the future months/years, but actively speaking, only about 10-20. Why?? It allows me to devote more time to the individual client’s needs, and helps me avoid cutting off contact to buyers. The “Super Agents” that you may have seen on bus benches and billboards are merely a business CEO. Other sub-agents do most of the hands-on work with clients. But for me, I take the time to walk you through the whole ordeal and make sure you have the chance to ask me questions along the way.
- Q: Do you work with more Buyers than Sellers?
- A: I work with about 80-90% Buyers as opposed to Sellers (or listings, as they are called sometimes). Concentrating on buyers helps me understand the fears and concerns you have with the home buying process. Unfortunately for some agents, they think First Time Home Buyers are a waste of their time and energy, because there is more explaining and educating to do. For me personally, I enjoy helping people become home owners and feel a sense of satisfaction when you find the right home for you. Maybe it’s a bad “Business Move” on my part, but you get to benefit from my excitement in helping first time buyers.
- Q: Are you a member of the National Association of REALTORs®?
- A: Yes. Not all agents are REALTORs®, and having that designation means a little something special, when compared to a regular agent. I wrote another article about the benefits of working with a REALTOR®. I am also a member of the Minnesota Association and Twin Cities Association as well. This adds another level of professionalism and trust that not all salespeople can claim, but most importantly it gives you more peace of mind that I’m working with your best interests at heart.
- Q: Do you have a Buyer’s Representation Contract you need me to sign?
- A: Yes, we will need to sign the agreement to make sure you are represented in the transaction. However, unlike some other agents, I don’t always like to sign the contract up front. See, most agents will ask that you sign the contract with them early on in the relationship, ensuring that you will buy a house using their services. I believe it’s a much more friendly environment to sign the agreement only when writing an offer. The house buying process is hard enough without having feelings of resentment if your agent isn’t working for you as much as you like. So, if at anytime during the house hunting ordeal you are not comfortable moving forward, then we can agree to part ways peacefully without having to sign more paperwork. I short: it’s easier for both sides. But yes, that is an important part of the process.
- Q: What methods will you use to help me search for homes?
- A: We will first meet in person to discuss your goals and time-frame. Some people like to start the process a year out from actually moving. Others wait to start until 2 months from buying. After that initial meeting, we will setup an MLS search for your email account, which will send you properties in your desired areas. We will also tour those homes which you feel are best fit for you. I will also keep my eyes and ears open to the market as listing inventory is always changing. After you tour a couple of homes, you’ll be more in tune to look for problem areas which I will help point out, and after we find the right home for you, we will put in an offer.
- Q: How will you help me determine a fair price for my offer?
- A: Before writing up the offer, we will compare other Sold homes in the neighborhood that match your desired house. This will give us a clear picture of how much money the house is worth. Along with those Comparable Solds, we will look at other listings in the area, and examine the overall market trends (Up, Down, Stable). If prices are going down further, then making a lower offer will protect you from over paying.
- Q: How do you get paid? Will I be paying you directly?
- A: Most agents (like me) work on a Commission Only basis, which means if you don’t buy a house, they don’t get paid. In almost all cases the Seller will pay their Broker/Agent, and they will in turn pay the Buyer’s Agent. This means you don’t have to come up with that cash, which is a nice perk of buying. Some buyer’s agents also have a minimum fee they charge on top of the regular commission structure. Payment only comes upon the successful closing of the deal, so until that point, you won’t have to worry about paying me at all. There may be some fees to other 3rd Party Professionals (Inspectors, Earnest Money, Appraisals, etc) but none to me, your agent. In other words: until you’re happy, I keep working.
If you’ve made it this far, you’ve past the first test of being committed to learning more about the process.
Congratulations and keep going until you realize your goals of home ownership!
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Great article Steve – bottom line a buyer should feel comfortable with whoever they chose to work with! As Realtors, we are building relationships and it makes it alot more fun to work with someone you actually want to spend time with!