Real estate agents can make the home buying experience a dream or a nightmare. Be sure the agent is right for your house hunt with these real estate agent interview questions.
Transcript:How to Interview a Potential Agent
Hi I’m Nick Jaynes for About.com and this is how to interview a real estate agent. I’ll be providing information from the About.com Home Buying Guide. Agents want your business, and in hot real estate markets, a lot of home buyers and home sellers are looking for agents. But not all agents are the same, and it can be tricky to find the right agent, especially if you’ve never bought a home before.
All agents will play up their strengths, but some might overplay things a bit. Not that they’re necessarily trying to mislead you or anything; it’s just that some agents are stronger than others and they’re all competing for business. You’re the best judge of which is the best agent for you, but here are some tips on how to spot common techniques agents sometimes use to make themselves seem better or more experienced than they really are.
Learn About the Real Estate Agent's Experience
- 1. How Long Have You Been in the Business?
The standard joke is there's nothing wrong with a new agent that a little experience won't fix. But that's not to say that freshly licensed agents aren't valuable. Much depends on whether they have access to competent mentors and the level of their training. Newer agents tend to have more time to concentrate on you. Some agents with 20 years of experience repeat their first year over and over. Other 20-year agents learn something new every year.
- 2. What is Your Average List-Price-to-Sales-Price Ratio?
Knowing the agent's average ratio speaks volumes. Excluding sizzling seller's markets, a good buyer's agent should be able to negotiate a sales price that is lower than list price for buyers.
- 3. What is Your Best Marketing Plan or Strategy for My Needs?
As a buyer, you will need to know:How will you search for my new home?How many homes will I likely see before I find a home I want to buy?Will I be competing against other buyers?How do you handle multiple offers?Do you present offers yourself?As a seller, you will need to know:Specifically, how will you sell my home?
- 4. Will You Please Provide References?
Everybody has references. Even new agents have references from previous employers.Ask to see references.Ask if any of the individuals providing references are related to the agent.Ask if you can call the references with additional questions.
- 5. What Are the Top Three Things That Separate You From Your Competition?
A good agent won't hesitate to answer this question and will be ready to fire off why she is best suited for the job. Everyone has their own standards, but most consumers say they are looking for agents who say they are:Honest and trustworthy, Assertive, Excellent negotiators, Available by phone or e-mail, Good communicators, Friendly, Analytical, Able to maintain a good sense of humor under trying circumstances
Ask What the Real Estate Agent Will Provide for You
- 6. May I Review Documents Beforehand That I Will Be Asked to Sign?
A sign of a good real estate agent is a professional who makes forms available to you for preview before you are required to sign them. If at all possible, ask for these documents upfront.
- 7. How Will You Help Me Find Other Professionals?
Let the real estate agent explain to you who she works with and why she chooses these professionals. Your agent should be able to supply you with a written list of referring vendors.
- 8. How Much Do You Charge?
Don't ask if the fee is negotiable. All real estate fees are negotiable. Typically, real estate agents charge a percentage, from 1% to 4% to represent one side of a transaction: a seller or a buyer. A listing agent may charge, for example, 3.5% for herself and another 3.5% for the buyer's agent, for a total of 7%.
- 9. What Kind of Guarantee Do You Offer?
If you sign a listing or buying agreement with the agent and later find that you are unhappy with the arrangement, will the agent let you cancel the agreement? Will the agent stand behind her service to you? What is her company's policy about canceled agreements? Has anybody ever canceled an agreement with her before?
- 10. What Haven't I Asked You That I Need to Know?
Pay close attention to how the real estate agent answers this question because there is always something you need to know, always. You want an agent to take her time with you -- to make sure you feel comfortable and secure with her knowledge and experience. She should know how to listen and how to counsel you, how to ask the right questions to find out what she needs to know to better serve you.
Hopefully this video has been helpful and you’ll be able to select a real estate agent who is right for you and help you get the best possible deal. Thanks for watching, if you’d like to learn more, please find us on the web at about.com.
