How to Choose the Right Realtor: Questions to Ask Before You Hire

How to Choose the Right Realtor: Questions to Ask Before You Hire

The key to a successful real estate transaction is finding the right realtor, whether buying, selling, or investing. A knowledgeable and trustworthy realtor can offer you invaluable insights, handle negotiations, and guide you through every step of the process. With so many agents available, it's hard to know what to look for. Here's a guide on how to choose the right realtor, including essential questions to ask before making your decision.

1. What do you know about this market?

An important decision one has to make is choosing an experienced realtor in your real estate market. While this may seem obvious, nothing beats local expertise. Why? Markets vary widely from region to region, and good knowledge of the market as well as trends, price points, and neighborhood activity is essential. In a National Association of Realtors survey, 60 percent of buyers said that being known and understood by the locals is the most important qualification in a realtor.

Ask prospective agents how long they have been in your neighborhood, the types of properties they commonly work with, and what they know about recent market conditions. A good agent should be able to give you pertinent information and discuss recent sales in the area that are similar to your property.

2. What Is Your Sales Record and Client Portfolio?

You can check the realtor's track record to get a better idea of how well they have done in terms of success rate and what types of properties they have managed. Knowing whether they specialize in luxury homes, first-time buyer properties, or commercial real estate can help determine if their experience is going to align with your needs. The Council of Residential Specialists notes that agents with specialized certifications and a strong sales record often have better negotiation skills and market insights.

Ask the agent to share with you recent sales, average time of stay on the market for your listings, and what percent of listings sell at or near the asking price. This will give you some idea of their performance as well as their closing capability.

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3. What is your marketing strategy?

This therefore is the best strategy of real estate marketing to sell. It will reflect on showing its visibility and desirability to others. Some quality photographs, listings, social media advertising, even virtual tours are the good marketing plans. Zillow's report, as of 2023, states that properties listed with professional photos and virtual tours sell 20 percent faster than those without those elements.

Ask the prospective realtors about their particular marketing strategies and how they would position your property in order to attract the right buyer. Ask about the mediums they use for advertising, if they hire professional photographers, and how they deal with virtual tours and open houses.

4. How Do You Communicate with Clients?

Real estate transactions require time-sensitive decisions. Knowing a realtor's communication style will ensure you get timely updates and have your questions answered. The NAR surveyed and found that 73% of clients considered regular communication as one of the most important factors for satisfaction with a realtor.

Ask your potential agents how they generally communicate (email, phone, or text), how often they check in, and what hours are available to address questions or concerns. The good realtor should be proactive and have a clear plan for keeping you updated throughout the transaction.

5. What Are Your Fees and Contract Terms?

Avoid misunderstandings down the road by understanding what the real estate agent is charging and what the contract says before signing on with them. Most realtors work on a commission basis, about 5-6% commission on residential properties, so terms may vary at times. It's always important to know how long you are locked into the contract, any cancellation policies, as well as other terms in the contract that could help or hinder the transaction in question.

Ask the agent for their commission structure, additional fees, and whether or not they require an exclusive contract. The Consumer Financial Protection Bureau recommends that consumers clarify these terms to avoid surprises and ensure the agent's services align with your budget and expectations.

6. Can You Provide References from Past Clients?

Talking to previous clients would provide firsthand insights into how professional, responsive, and effective a realtor might be. A good realtor should be able to offer references or testimonials from some of their recent clients. In fact, as Real Trends recently surveyed, 88% of buyers and sellers indicate that they rely on referrals and testimonials when selecting a realtor.

Ask the realtor for a referral and then call that client and ask information about their experiences about the services offered. Do not forget to ask if it was hard to face challenges at any moment, whether well-supported at all stages of the real estate purchase process.

Conclusion

Getting a better realtor is done after all the right questions are addressed to his experience, method of communication, and methodology of marketing. A nice realtor should be able to answer any questions that deal with knowledge of the community, his sales record and marketing, and fees.

He is the right individual needed for the task. If you utilize a skilled or fitting realtor, the ease of purchasing or selling gets much smoother, and hence the likelihood of a satisfactory transaction will be higher too.

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References

National Association of Realtors. "2023 Home Buyers and Sellers Generational Trends Report." 2023.

Council of Residential Specialists. "Why Choose a CRS Agent?" CRS, 2023.

Zillow. "The Impact of Professional Photography and Virtual Tours on Home Sales." Zillow Research, 2023.

Consumer Financial Protection Bureau. "Understanding Real Estate Agent Fees and Contracts." CFPB, 2022.

Real Trends. "How Testimonials and Referrals Shape Realtor Selection." 2023.

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