Finding the right real estate agent can feel like a daunting task.
With that much money on the line, why is it that some home buyers sign contracts with the first agent they speak with?
How to Find a Good Real Estate Agent
When looking for a good real estate agent, ask for referrals from friends and family who have had positive experiences. Research potential candidates online to gather more information about their background and track record.
Ask for referrals from friends and family
Your friends and family can be great resources when searching for a real estate agent. They might know a trusted realtor who has helped them before. People you trust often give the best recommendations because they want what’s good for you, too.
Make sure to talk with anyone in your network who recently bought or sold their home. They can share their experiences and suggest reliable professionals. Checking an agent’s credentials and reputation through these personal connections adds an extra layer of confidence before you make your choice.
Research potential candidates
When researching potential candidates for a real estate agent, seek referrals from friends and family to gather recommendations. Also, take the time to evaluate agents’ online presence and read reviews to get an understanding of their reputation and work style.
Checking references by reaching out to past clients will provide valuable feedback about the agents’ performance and reliability.
Meet with at least three agents
When interviewing potential real estate agents, it’s crucial to meet with at least three different agents before making a decision. This allows you to compare their experience, communication style, and knowledge of the local market.
Positive online reviews and referrals can help narrow down your options, but meeting them in person is essential for determining who you feel most comfortable working with.
As an important step in finding the right real estate agent, meeting with at least three candidates gives you insight into their expertise and personalities before making a final decision on who to work with.
Ask questions about their experience and knowledge
Assess their familiarity with the local real estate market. Inquire about their background and expertise in the industry to evaluate their knowledge and experience compared to other agents.
Discuss their understanding of local market trends, seeking details about their successful transactions and what sets them apart as a real estate agent. Request examples of past successful deals they have handled and inquire about any additional training or certifications they have in the real estate field.
Request references and check them
Once you have asked questions about their experience and knowledge, it’s important to request references and check them. Inquire about past clients and verify credentials. Investigate the professional background of potential agents by seeking recommendations, exploring client testimonials, contacting former clients, investigating work history, researching agent reputation, and getting client feedback.
This step will provide valuable insight into an agent’s past performance and client experiences.
Before making a decision on which real estate agent to work with, it’s crucial to gather as much information as possible by requesting references and checking them thoroughly.
Pay attention to how they communicate and make you feel
Observe how the real estate agent communicates with you. Look for clear and respectful communication that makes you feel comfortable. Consider their body language, emotional intelligence, and professionalism in order to build a personal connection.
Additionally, don’t forget to check customer testimonials and reviews to gauge client satisfaction and reputation.
Trusting your instinct when it comes to choosing a real estate agent is crucial. Pay attention to how they make you feel during interactions – this can indicate whether they are the right fit for your needs.
Consider their availability and responsiveness
Availability and responsiveness are key traits to look for in a real estate agent. Make sure they are accessible when you need them, whether by phone, email, or in person. A responsive agent shows that they value your time and concerns.
This is crucial for the smooth progress of your property transactions.
Ensuring availability and responsiveness from a real estate agent ensures seamless communication and timely updates throughout the process of buying or selling a property. These factors enhance trust and confidence in the agent’s ability to effectively represent your interests.
How real estate agents get paid
Real estate agents are usually paid through a commission, which is a percentage of the property’s final sale price. This commission typically ranges between 3% to 7% of the home’s selling price and is paid by the home seller.
The standard rate for realtor fees in Ontario is around 5%, and this fee is divided between the buying agent and selling agent equally. It’s important to note that while the seller traditionally pays the commission, there may be room for negotiation on the rate with some agents offering discounted commissions.
Moving on to “Questions to Ask Potential Agents” let’s explore how you can ascertain key information during your interviews with potential real estate agents.
Tip: Hold on Don’t Sign Right Away
There is a procuring cause in real estate that basically means that agents get paid as buyer’s agents once the buyer has signed the document stating that “this is the agent who made my home purchase possible.” Technically, this is the buyer’s agency agreement.
By signing this agreement you are locking yourself into a contract with the agent. It can be quite difficult to divorce yourself from an agent who has this signed document, even if you decide that you want to use another agent. This can come into play particularly if you buy a home what was shown to you by the ex-agent that showed it to you first. At some point, you will be asked to sign this agreement, but before doing so:
• Ask the agent to work without an agreement for a short time, but spell out how long that will be.
• Determine the length of time for this agreement and shorten it if possible.
• Find out if there is an “escape clause” included in the contract that allows you to get out of it if you are not satisfied with the service the agent provides.
• Get everything in writing, particularly any requested changes.
• At the end of the day, in all fairness, if you finally buy a home shown to you during this trial period be sure to purchase it through this agent.
Researching an Agent
Not long ago, it was difficult to learn about an agent without having some first-hand experience with them. Other than getting personal references or calling the Better Business Bureau, little could be done to get inside information about the performance of any agent.
This has all changed in a very short time. Today, researching an agent is easier than ever. We have provided some online resources for doing this.
• Yelp.com: This is a site where customers can submit ratings and reviews of businesses and that includes real estate brokers and agents.
• Google: See what is out on the Internet about an agent by placing their name in Google’s search bar.
• LinkedIn: This is a professionals networking site where many agents have profiles. This is a good way to find out about their connections with other professionals and where colleagues and clients have the opportunity to post testimonials.
• MLS Licensing Board: There is a lot that can be learned about agents by going to the MLS Licensing Board of the province/city in which they operate. Information displayed there varies, but you should be able to find their license number and status and the name of he real estate agency they work with. Some real estate boards also have information about continuing education credits and any disciplinary action that has been taken against any agents that do not respect the MLS code.
Questions for a Real Estate Agent
Prior to agreeing to work with a real estate agent or real estate broker, you should make every effort to ensure that you can work with them. Here is a list of questions that you should and an agent before actually signing a contract to have them work on your behalf.
Is This Your Full Time Job?
Do you do this full time, and if so, how many clients do you work with per year on average? An agent who does this sort of work day in and day out will almost certainly be familiar with current market trends and current laws.
How Many Transactions Have You Dealt With In My Chosen neighbourhoods?
Ideally, you want to use an estate agent who is familiar with the local property market in the various neighbourhoods where you are willing to buy.
All Businesses Have Unhappy Customers, How About You?
If a real estate agent says they’ve never had an unhappy client, they’re most likely being dishonest. Don’t fret too much if they tell you they have had sour clients, but at least ask them what caused those clients to be unhappy.
Have You Ever Had An Official Complaint Filed Against You?
Many people feel a little uncomfortable asking this sort of question, but if that’s the case, then you can inquire at the State Licensing Board.
How Are The Fees Determined?
Pay close attention to the answer you get to this question, bearing in mind that the seller is responsible for paying the agent, using the money you will be paying for the property. While there isn’t any risk for you, you can still help to ensure the agent is treating the seller fairly. To do this, ask the agent what his commission will be if you buy. This will also give you an idea if the agent is trying to sell you a particular property purely because he’ll be getting better than average commission.
Apart From Negotiations And Escrow, What Other Services Do You Offer?
You might even want to draw up a list at this point, bearing in mind that their services should include all negotiations; all necessary paperwork, as well as contingencies. This is the minimum you should be willing to accept.
At What Point Do I Become Obligated To Work With You?
Numerous people get involved in the buying process without actually realizing it could make them legally obligated to work with a particular agent. This can happen regardless of whether there’s a contract or not.
Who Else Will I Be Dealing With?
It’s not unusual for an agent to be supported by a team, but the person you are dealing with should do most of the work.
Am I Obligated To Work With Other People, Including Lenders And Inspectors?
A “Yes” answer to this question should immediately set your alarm bells ringing. Many agents can recommend top class lenders; inspectors and other service providers, but they should never pressure their clients into using people they recommend. It is also illegal for any real estate agent to force their clients into using a service provider recommended by them.
Do You Represent Both The Buyer And The Seller?
When an agent represents the buyer and the person selling the property, it’s known as a “dual agency” and it’s a situation which is best avoided. If your agent is representing the seller, their job is to get the best possible price for the seller, so how can the agent then also try to get you the lowest possible price?
What Qualities Do You Have That Other Agents Don’t?
Many clients tend to get swept away by the enthusiasm of a real estate agent, but in fact, they should rather look for expertise. Ideally, you need an agent who has experience in your preferred neighbourhood, and also a long list of satisfied clients.
What Options Do I Have If I’m Unhappy With Your Service?
Virtually all real estate agents get paid once you’ve bought the property, so it stands to reason that they want to finalize the deal as soon as possible. Once you’ve signed the papers, you’re pretty much at the mercy of your agent, so it’s a good idea to ask them if they can guarantee your satisfaction. Also ask them what sort of recourse you will have in the event of a bad experience.
Can I See Reviews And/Or Client Testimonials?
Nearly all agents have some clients who think the world of them, but really good agents will deliver an outstanding service consistently, and therefore have more than just a handful of happy clients. Reading through a few handpicked testimonials is not going to tell you much. You want to also see the not-so-good testimonials. A good agent has nothing to hide, and they should be more than happy to share some of their negative experiences with you as well.
Is This Your Full Time Job?
Do you do this full time, and if so, how many clients do you work with per year on average? An agent who does this sort of work day in and day out will almost certainly be familiar with current market trends and current laws.
How Many Transactions Have You Dealt With In My Chosen neighbourhoods?
Ideally, you want to use an estate agent who is familiar with the local property market in the various neighbourhoods where you are willing to buy.
All Businesses Have Unhappy Customers, How About You?
If a real estate agent says they’ve never had an unhappy client, they’re most likely being dishonest. Don’t fret too much if they tell you they have had sour clients, but at least ask them what caused those clients to be unhappy.
Have You Ever Had An Official Complaint Filed Against You?
Many people feel a little uncomfortable asking this sort of question, but if that’s the case, then you can inquire at the State Licensing Board.
How Are The Fees Determined?
Pay close attention to the answer you get to this question, bearing in mind that the seller is responsible for paying the agent, using the money you will be paying for the property. While there isn’t any risk for you, you can still help to ensure the agent is treating the seller fairly. To do this, ask the agent what his commission will be if you buy. This will also give you an idea if the agent is trying to sell you a particular property purely because he’ll be getting better than average commission.
Apart From Negotiations And Escrow, What Other Services Do You Offer?
You might even want to draw up a list at this point, bearing in mind that their services should include all negotiations; all necessary paperwork, as well as contingencies. This is the minimum you should be willing to accept.
At What Point Do I Become Obligated To Work With You?
Numerous people get involved in the buying process without actually realizing it could make them legally obligated to work with a particular agent. This can happen regardless of whether there’s a contract or not.
Who Else Will I Be Dealing With?
It’s not unusual for an agent to be supported by a team, but the person you are dealing with should do most of the work.
Am I Obligated To Work With Other People, Including Lenders And Inspectors?
A “Yes” answer to this question should immediately set your alarm bells ringing. Many agents can recommend top class lenders; inspectors and other service providers, but they should never pressure their clients into using people they recommend. It is also illegal for any real estate agent to force their clients into using a service provider recommended by them.
Do You Represent Both The Buyer And The Seller?
When an agent represents the buyer and the person selling the property, it’s known as a “dual agency” and it’s a situation which is best avoided. If your agent is representing the seller, their job is to get the best possible price for the seller, so how can the agent then also try to get you the lowest possible price?
What Qualities Do You Have That Other Agents Don’t?
Many clients tend to get swept away by the enthusiasm of a real estate agent, but in fact, they should rather look for expertise. Ideally, you need an agent who has experience in your preferred neighbourhood, and also a long list of satisfied clients.
What Options Do I Have If I’m Unhappy With Your Service?
Virtually all real estate agents get paid once you’ve bought the property, so it stands to reason that they want to finalize the deal as soon as possible. Once you’ve signed the papers, you’re pretty much at the mercy of your agent, so it’s a good idea to ask them if they can guarantee your satisfaction. Also ask them what sort of recourse you will have in the event of a bad experience.
Can I See Reviews And/Or Client Testimonials?
Nearly all agents have some clients who think the world of them, but really good agents will deliver an outstanding service consistently, and therefore have more than just a handful of happy clients. Reading through a few handpicked testimonials is not going to tell you much. You want to also see the not-so-good testimonials. A good agent has nothing to hide, and they should be more than happy to share some of their negative experiences with you as well.
Conclusion
When choosing a real estate agent, start by getting preapproved for a mortgage. Ask friends and family for referrals and research potential candidates online. Interview at least three agents to get a feel for their experience and work style.
Finally, trust your instincts and consider the agent’s credentials, reputation, and expertise in the local market before making your decision. Working with an experienced and reputable agent sets you up for success in buying or selling a property.
