Choosing a realtor, whether you are a first-time home buyer or an avid real estate investor, is a crucial first step in any property buying venture. It can often be an overlooked aspect in the process. Some people just use the seller agent for a potential home you found on a Zillow. Please don’t do that. ALWAYS find your own real estate agent. The seller of a house is working for the SELLER and not you. Some people blindly find one from your mom’s best friend’s nephew. Please don’t do that either.
I want to explain some key tips to consider when electing your real estate agent. Personally, when I became a real estate agent I realized how important this step was just based on all the aspects I learned about the job. I don’t think I would have known these things had I not become an agent! So let’s begin…
1. Interview Interview Interview!
I have a rule that applies anytime I have to hire or work with a professional that I have not previously worked with; vetting a minimum of three different people who are qualified for the task. This applies to realtors, plumbers, electricians, potential investors and even catering services for events. You will be amazed at the variety of people who are qualified but just simply aren’t a good fit. Remember that buying property is among the largest investments you’ll make in your lifetime. It only makes sense that it should be with someone you vibe with, respect and feel comfortable working with. Essentially, you are looking for someone working for YOU and not working for the commission.
2. Ask Your Friends Who They Have Used.
Referrals are my favorite way to find professionals. If you have a friend or family member who had a great experience with someone then that’s likely a great place to start. Keep in mind that you shouldn’t just blindly trust a referral. Use referrals to find the three people you are going to interview. Just because your Uncle likes his realtor does not mean that you will as well which is why we always talk to more than one. Often I find that most people who have only used one realtor don’t have the knowledge of what a good realtor actually is with only having one person to base experience off of. And because they likely didn’t make that three person list I’ve been nagging about!
3. Friends & Family Realtors.
This one might upset some people but I am here to tell you the truth… You should still be interviewing family and friend realtors. Just because you are buddies does not mean they get a free pass to throw your six figures around. It is okay to use them but only if they prove they are qualified to help you. I’ve seen plenty of times where friendships are ruined by a bad experience or when the agent did not meet the expectations of their friend client. Once again, it is okay to use them but vet them just like you would any other potential agent
4. Do They Actually Care About You Or The Commission?
It’s no secret that agents make more money when the house price is higher or when the agent negotiates a higher commission with the seller. Due to this, it encourages some slimy buyer agents not to recommend lower or even fair offers for their clients. Here’s a tip! Once you sign a buyers agreement with an agent, they have a fiduciary responsibility to YOU. Not the seller. Not the seller’s agent and NOT themselves. They need to have your best interest at heart. If they don’t have a valid explanation as to why they recommend certain offer prices or if they are pushing you to buy something that makes you uncomfortable…run. These are bad people that see you as a number. Realtors are service people and should act accordingly. It is your right to terminate buyer or seller representation for cause at any point– just be sure to look over the terms in the contract!
5. Look For Someone On A Team.
This tip is a little controversial but I believe that having a realtor who is on a team helps eliminate a lot of problems. Often you are being represented by one person but that realtor is leaning on the experience and expertise of several other realtors. If you have a question that your specific agent is unfamiliar with then instead of waiting several hours for an independent agent, a team agent would respond quicker by just calling the other team members for their input. It’s better to have over a dozen seasoned eyes on your largest investment rather than just two.
6. Response Time.
I remember emailing several agents when first looking to buy and only hearing back from ONE. This was infuriating until I realized that they saved me a ton of trouble. Anyone who is unreasonable in their response time or doesn’t communicate promptly with potential clients should be excluded from your list. These are lazy agents. If they can’t be bothered with a warm lead trying to make them money, then I can assure you they will not fight for you when the time comes. Let their silence speak volumes!
7. Honesty Is The Best Policy!
I took a poll on my Facebook page and found that many people knew they found their agent when the agent exposed some level of honesty regardless of how it impacted sales for them. As an agent myself, I found this to be true in my own practice as well. Clients are incredibly grateful when I point something out that’s potentially harmful to them when touring houses. If they are unwilling to be honest with you then they are there for a commission and not you. Hiding disclosures or leaving out details are also huge red flags that should make you cautious about moving forward with that agent. Go with your gut and make sure you’re getting a good read on them.
8. Find Yourself An Expert.
If you are looking for an investment property then your realtor should either consistently work with investors, be able to show you some knowledge they have on it or actually invest in it themselves. Every agent is different and while many people are full service agents, it does not mean that they know your target area or the building type you’re looking for. If they typically only work with first time homebuyers then asking them to help you find a vacation home in deep creek will require you to do some interviewing on their knowledge of the area as well as second homes. This goes for investors, divorcees, first time buyers, luxury listings and even condos or mobile homes. Find someone with knowledge on your specific needs.
9. Professionalism.
The Realtor showing up to meet you in gym clothes and steps out of a car filled with garbage is not typically the person you want representing you in a large transaction. Now I know you were told to never judge a book by its cover but come on… this person is representing you and should dress and act like they take their job seriously. They don’t need to drive a Benz or wear an expensive suit but they should at least dress the part. As long as their car is clean and their pants don’t scream “I youtubed how to iron out wrinkles twenty minutes before I left to meet you” then you’re probably good. Another telling sign of unprofessionalism is being late…you are meeting them at the first showing and they show up AFTER you without giving you the heads up, that’s not a good look my friend. Although, definitely give them a pass if it’s some kind of emergency or some unforeseen road accident.
10. Do they pick up the tab?
Ok so this one is not really a must but it bothers me when people do it so I am including it anyway! If your realtor asks you out to drinks, coffee or lunch…. They better pick up the tab. Any good realtor should know they can write it off as business expenses come tax season. They are there for your business, not the other way around.
“you are the one who holds the power in this relationship”
The key points to remember are that you are the one who holds the power in this relationship because without you, the realtor won’t make a dime. One of the big things I tell myself in any new professional relationship is to do your due diligence! Follow your gut, read the signs I mentioned and hopefully this will lead you to an enjoyable and seamless real estate transaction!
