There are more than two million licensed real estate agents in America, so how do you find someone who understands your needs and will work hard to make your transaction a success?
One tip is to start by asking family and friends to recommend a broker who they’ve worked with recently.
When it comes time to interview a shortlist of potential brokers, these are some of the most important questions you should consider:
What does the broker offer
Some colleagues represent only sellers or buyers, while others negotiate a transaction as a neutral party. Be satisfied that you understand how the broker model works.
Local experience
Ask about the broker’s success in negotiating the purchase of homes in the local area. You want them to cite examples of the types of property you are selling or buying. If you’re in the market for a two-bedroom apartment, knowing they’ve sold a $2 million mansion is not helpful to you.
Market conditions
Quiz brokers on their knowledge of the local market. Drill down on price trends, and the average time it takes to sell a house, condo or apartment. Test agents on why some properties sell faster than others. Various factors come into play, such as list price, mortgage cost changes and the health of the local economy.
Pricing question
You should be satisfied that your broker has a sound approach to pricing a property whether you’re trying to decide on a listing price or making a bid for your next home. Agents can differ on specific property values but are usually in the same ballpark. Ask your broker if they’ll provide a written report as part of their service.
Bottom line
There are several fees incurred when selling a home. Ask the broker for their brokerage fee or commission rate. Be clear on whether there’ll also be an early cancellation fee if you withdraw the property from the market, an MLS fee and any other costs that are not included in the commission rate.