Experienced agents are exposed to hundreds of property deals every year, so they know how to read the mood of the seller and negotiate the optimum deal.
A good agent will guard against you overpaying for a property because they will know the price trends in the area and understand the future value your property investment will deliver.
With more than two million licensed real estate agents in America, the key for buyers is to find someone who understands your needs and will work hard to make your transaction a success.
These are some important questions you should ask when interviewing agents:
What’s on offer
Some colleagues specialize in representing only sellers or buyers, while others will negotiate a transaction as a neutral party. You may even find a firm that will represent both the buyer and seller. So, be satisfied that you understand how the agent works.
Local experience
Ask about the agent’s success in negotiating the purchase of homes in the local area. Make them double down on 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 $2m mansion is not a lot of help to you.
Market conditions
Quiz agents 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 an agent 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 property values but are usually in the same ballpark. Ask an agent if they’ll provide you with a written Comparative Market Analysis (CMA).
Sales approach
One of the most important aspects of hiring an agent is to understand how they will market your home to prospective buyers in a sales campaign.
Bottom line
There are several fees incurred when selling a home. Ask an agent for their brokerage fee or commission rate. Be clear on whether there’ll also be an early cancellation fee, an MLS fee or any other cost that isn’t included in the commission rate should you withdraw the property from the market.