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Buying and selling a home is a major decision, so be sure to choose a real estate agent who will guide you through the process. Look for an agent or broker who is experienced, knowledgeable about your housing market, and always acts in your best interest. Use these tips as a guide.
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Tips for choosing a real estate agent or real estate broker:
Ask for referrals. Ask friends and family members who have recently bought or sold their home for recommendations. Ask if they were satisfied with their experience and if they would use the agent or company in the future. Be sure to also look for negative feedback and ask if there are agents or companies to avoid.
Meet with candidates. Once you have identified at least four possible agents, schedule a time to meet with them in person. If you are selling your home, each agent should make a listing presentation. This presentation lets you become familiar with their background, marketing plan, and market analysis, which includes information about similar houses in your area that have recently sold. Many agents assemble a team to support them, which can include less experienced agents and/or non-agents working together to market your property. Consider whether you prefer working with a solo agent or a team, as they have different strengths. Ask the agent to provide a list of references who have previously used their services to buy or sell similar types of properties.
Ask the right questions: Make sure to find out how long the agent has been practicing, how many transactions they’ve done in the past year, and when they are available. Agents who have more transactions and years of experience will be familiar with guiding you through the buying or selling process and handling any problems that may crop up. If you work a 9-5 job, you may need to choose a real estate agent who is available on weekends and evenings. And be sure your agent is familiar with your area.
Choose a real estate agent who acts in your best interest: Whether you are buying or selling a home, be sure to choose an exclusive agent based on your role. This way the agent will act in your best interest for the sale. Also, ask whether your agent is a REALTOR®. This means they are a member of the National Association of REALTORS® (NAR) and are held to a specific code of ethics while practicing real estate.
Discuss compensation. Agents are usually compensated through commission. The commission fee is usually around five to six percent of the selling price, but it can vary from area to area. The commission fee percentage can sometimes be negotiated depending on the housing market. The agent receives a commission regardless of who finds the buyer but receives no commission if the property doesn't sell. The commission is usually divided evenly between the listing agent and the buyer’s agent. Important to note in the U.S.: Recent legislation could change the way home buyers and sellers pay to hire a real estate agent (a court decision is expected in July 2024). Previously, home sellers typically offered compensation to the buyer's agent. Starting in the summer of 2024, this practice may no longer be the case, so buyers may need to pay their buyer's agent directly, adding additional costs to the home-buying process. Details on whether commissions can be rolled into a home mortgage are still pending as of July 8, 2024. Remember that commissions can be negotiated, so consider this when deciding who to hire to represent you during the purchase process.
Carefully read the contract. Do not choose a real estate agent who pressures you to sign documents immediately. Carefully and completely read the documents and make sure the agent clearly answers any of your questions. If you are selling your home, usually you sign a contract granting the agent exclusive rights to sell your property within a period of time. Make sure to ask about the length of that period of time.
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BBB Serving Eastern Massachusetts, Maine, Rhode Island & Vermont contributed to this article.