Questions You Should ASK YOUR REALTOR^®

1. Are you a full-time professional REALTOR^®? Or do you work part-time in the real estate business?

Working with a full-time REALTOR^® is one way to assure yourself that your transaction will be followed from beginning to end. Knowing whether or not your REALTOR^® works on a full-time basis can give you an idea of his or her overall commitment to your transaction.

2. How long have you been a licensed active REALTOR^®?

Experience does count in the real estate business. The number of years a person has been in business is not a perfect indicator of the level of service you can expect from them, but it is a good starting point in your discussion. In terms of evaluating a REALTOR^®’s experience, you might also want to know how many transactions they have done in the past year and other statistics about their success.

3. What professional designations do you hold?

Professional designations, such as ABR, e-PRO and others, require effort, experience and demonstrated skills on the part of the holder. REALTORS^® who hold professional designations have demonstrated their commitment to keeping themselves educated about the effective practice of real estate.

4. Do you have a personal assistant or a team with which you work?

It is not uncommon for high real estate sales producers to hire people to work for them or with them. They typically work on a referral basis, and, as their businesses grow, they must be able to deliver the same or higher quality service to more clients. In many ways, working with a REALTOR^® who has a personal assistant or team is like getting more people working for you without any additional cost to you.

You may want to be clear about which team members perform certain duties. For example, if you needed help with a certain part of your home purchase (or sale), with whom would you talk and how would you communicate with them? Who will be attending the closing with you? These are just a few of the considerations you will want to keep in mind when working with a team.

5. Do you and your company each have a website that will provide me with useful information for research and real estate resources?

Many homebuyers prefer to search online for homes and home buying information. There are certain privacy and comfort levels that you might appreciate in starting a preliminary search this way, and often it is just a matter of convenience having 24-hour access to information. By searching the REALTOR^®’s and the company’s websites, you will get a clear picture of how much work you will be able to accomplish online, and whether or not that suits your preferences.

6. Will you show me properties from other companies’ listings?

Some real estate companies do offer their buyers’ agents a higher commission if they are able to sell “in-house” listings. In such circumstances, there can be added incentive to show you a more limited selection of homes than you might prefer. If this is the case with your REALTOR^®, you should be very clear on how this will impact your home search. You also should determine if this affects how much your buyers’ agent fee will be.

7. Will you represent me or will you represent the seller?

The purpose of this question is to ascertain to whom your REALTOR^® has legal fiduciary obligation, which may vary from state to state or even by locality. In the past, REALTORS^® always worked for the seller. Then the listing broker was responsible to pay the agent or sub-agent who brought a suitable buyer for the home.

It is important that you choose an experienced agent who is there for you. Your agent should be actively finding you potential homes, keeping you informed of the entire process, negotiating furiously on your behalf, and answering all of your questions with competence and speed.

If you are buying a house, always find an agent who represents you and not the seller. This is beneficial during the negotiation process. If you are working with a buyer’s agent, he or she is required not to tell the seller your top choice or price. He or she is also focused on getting you the lowest price.

In most jurisdictions, buyers’ agency is established by a written contract, often called a “Buyer’s Agency Agreement.” This agreement, which should be executed before you begin your home search, outlines your agent’s responsibilities to you and yours to the agent. Your agent should explain any such agreements to your satisfaction.

8. Who pays the REALTOR^®’s commission?

The seller pays all REALTOR^® commissions through the listing broker. Sometimes, REALTORS^® will have other fees, such as administrative or special service fees that are charged to clients, regardless of whether they are buying or selling. You should ask your agent if there are any additional fees that they charge for their services.

9. What distinguishes you from other REALTORS^®?

It is important to know that your REALTOR^® has unique methods of overcoming obstacles and is an effective negotiator on your behalf, but most importantly that your REALTOR^® can advocate for you in the most effective ways.

Interviewing a REALTOR^® to help you buy a home can be very similar to interviewing someone to work in your office. Contacting a REALTOR^®’s references can be a reliable way for you to understand how he or she works, and whether or not this style is compatible with your own.

10. Are commissions negotiable?

Yes. By law, real estate commissions are negotiable. The pricing of real estate service varies by level of service and consumer needs.

11. If I sign a Buyer’s Agency Agreement and I am not satisfied with your performance, can I terminate our Buyer’s Agency Agreement?

Yes. If you are not completely satisfied with the REALTOR^®’s services in any way, you may cancel at any time. In many states and localities, however, if the REALTOR^® has shown you a property that you purchase within a certain period of time after canceling the agreement, the REALTOR^® may still be entitled to a commission on the sale. The agreement protects both parties, so be sure you understand any commitments which survive cancellation before you sign the agreement.

12. How will you keep in contact with me during the buying process, and how often?

It is a good idea for you to set your expectations reasonably in accordance with how your REALTOR^® conducts business. You may be looking for an agent to call, fax, or email you every evening to tell you about properties that meet your criteria which are new on the market. On the other hand, your REALTOR^® may have access to systems that will notify clients of new properties as they come on the market (which could happen several times a day or several times a week). Asking this extra question can help you to reconcile your needs with your REALTOR^®’s systems, which makes for a far more satisfying relationship.

13. Will my REALTOR^® be at the closing?

All good REALTORS^® attend each of their closings. This is one of the most important parts of the transaction. Your REALTOR^® should attend the closing in order to be there to represent you while you are signing the final papers.