10 Questions To Ask When Interviewing Agents
How long have you been working as a real estate agent?
Experience plays a significant role in understanding market trends, negotiating deals, and handling complex transactions. It's essential to gauge an agent's level of expertise as an agent who lacks experience is a liability that may cost you thousands. Even though it pains me to say it because, like everyone else, I had to start somewhere. Shout out and big thanks to the people who gave me a chance in the beginning! However, mistakes in home sales are rarely cheap and you just don't know until you know, you know? YouTube and classroom education are all well and good until you get punched in the mouth is what Tyson said, I believe, and when it is multiple figures of your money on the line, having an experienced agent in your corner is always a strength, never a weakness.
Are you a full-time or part-time agent?
This business has become the poster child for part-time, easy money. A convenient "side hustle" (as the kids would say) where the only real work is constantly running to the bank to deposit plentiful commission checks. In reality, even if licensed for years, part-time agents are, by nature, only partly committed to the job. They can (and likely do) lack the hours of practice needed to be truly proficient at their craft or to simply understand the current state of the market. In a true Pareto distribution, less than 20% of licensees account for over 80% of all transactions and believe me, those licensees are full-time, experienced, and skilled practitioners. In contrast, around 40% of all licensees in the metro have not been involved in a single transaction in the last 12 months. Which one would you rather hire? Knowing whether an agent is dedicated full-time to their profession can give you confidence in their commitment and ability to meet your needs.
What geographic areas do you specialize in?
I will make a controversial statement - Understanding an agent's familiarity with a specific geographic area is more important on the buying side of the table and less of a concern in hiring a listing agent. The probability of a buyer coming out of the immediate area to buy your listing is very low. Most buyers don't already live in your neighborhood so in hiring a listing agent, I am going to choose the agent that I feel is the best at positioning and marketing property to the masses. On the other hand, if I am buying a home in a particular neighborhood, and I plan to be there for years, I want to know as much as I can about a particular property, the surrounding area, and any peculiarities homes in the neighborhood might have.
Can you provide references from past clients?
Requesting references allows you to gain insight into an agent's professionalism, communication skills, and overall client satisfaction.
How will you market my property (if selling) or find properties for me (if buying)?
A successful real estate agent should have a comprehensive marketing plan for sellers and access to various resources to find suitable properties for buyers. You should know exactly what will happen from day one to closing day. Too many agents rely on hope. That is, they put a sign in the yard and hope something happens or, they set you up on an auto home search and hope you see something you like. Make sure to hire an agent that has a PROACTIVE plan.
What is your average list-to-sold price ratio and your list-to-sold percentage? (sellers)
This one is geared a little more towards listing agents and are specific metrics around an agent's past performance. These metrics can also help shape your expectations because, as we've discussed in previous articles, the outcome is not guaranteed. If you hire 10 different agents, it's likely you'll get 10 different outcomes. The list-to-sold price ratio indicates how much an agent's listings typically sell for in relation to their original list price. Does the agent, on average, sell their listings close to list price or are they cutting deals at deep discounts suggesting poor negotiation skills? A low list-to-sold price ratio may also indicate that an agent isnt great at pricing property or that they "buy listings" by initially creating false expectations to get a sign in the yard. The list-to-sold percentage can be viewed as a probability of success. How many of the agent's listings actually sell? While it's true that not every listing will sell, high numbers of expired, canceled, and withdrawn listings in an agent's portfolio hint at underlying problems not limited to client service, marketing, pricing, communication, negotiation, etc.
How do you communicate with your clients, and how often can I expect to hear from you?
Communication, or the lack thereof, is the number one customer complaint, year after year against Realtors. Clear and consistent communication is vital throughout the buying or selling process. Ensure that the agent's communication style aligns with your preferences and make sure they have an actual plan.
How can I be sure you will negotiate to the best of your ability on my behalf?
While holding a license means you swear to negotiate in good faith and to the best of your ability on your client's behalf, be sure that you are confident that the agent you select has the ability to do this. I am in no way suggesting that bad actors are intentionally undermining their client's wishes. However, I've seen this crop up if an agent has no other production and is very attached to the potential paycheck, lacks experience, or just wants to get a deal done. Ideally, an agent's value proposition to you should put skin in the game for them as well. That way, both agent and client have a vested interest in producing the best outcome.
What is your fee structure, and what services are included?
Understanding an agent's commission structure and the services they provide will help you evaluate their value proposition. Price is what you pay, value is what you get. With all things in life, cheap isn't always better and the crack negotiator, the guy or gal you want handling your home sale, probably isn't found in the clearance aisle. Any agent you interview should be able to clearly articulate what you receive in return for payment.
How do you handle multiple offer situations?
Although the market is changing, it's crucial to have an agent who can navigate multiple offers effectively and advise you on the best course of action. Multiple offer situations can become complex very quickly. Making sure you have an agent that knows how to handle these situations will keep you from leaving thousands on the table.
