10 Questions to Ask Your Realtor Before Buying a Home

Whether you're a first-time buyer or a seasoned homeowner, finding the perfect abode can be both exhilarating and daunting. One crucial factor that can make or break your experience is the real estate agent you choose to guide you through this intricate process. So, before you sign on the dotted line, let's dive into the top 10 questions you absolutely need to ask your real estate agent, ensuring that you're well-prepared and confident as you unlock the door to your dream home.

How long have you been in the real estate business, and how many homes have you sold in your career?

Experience matters, but the number of years in the industry doesn't always equate to expertise. It's essential to dig deeper and ask about the number of homes an agent has sold throughout their career. An agent with five years of experience who consistently sells 20 to 30 homes per year likely has a better grasp of the market, changing laws, and negotiation tactics than a part-time agent with 20 years of experience but only one sale per year. Think of it like choosing a surgeon—you'd prefer one who has performed the procedure 150 times in three years rather than someone who has done it once a year for twenty. Unless the agent is supported by a highly competent team, it's best to avoid being their first transaction. After all, in any profession, experience is something that can only be gained through practice and active participation.

What motivated you to pursue a career in real estate?

Understanding your agent's personal reasons for entering the real estate field can offer valuable insights into their character and motivations. While there's no definitive "wrong" answer, it's crucial to be attentive to any potential red flags. For instance, if an agent seems to rely solely on their next deal to make ends meet, this could raise concerns about their stability and dedication. On the other hand, an agent who speaks passionately about their long-term goals and how their career in real estate helps them achieve these aspirations is more likely to be committed, driven, and focused on your best interests.

How many clients are you currently working with, and do you have a support system in place to ensure a high level of service for each client?

There isn't a one-size-fits-all answer when it comes to the ideal number of clients for a real estate agent. In general, a seasoned agent can effectively manage between 4 to 8 buyers at a time, especially when the housing market inventory is limited. With this number of clients, it's unlikely that you'll face scheduling conflicts when trying to view a home. However, you also don't want to be an agent's only client, as their sole source of income for the month might pressure them into pushing you towards a deal that isn't in your best interest.

Some agents have a well-established support system, such as showing assistants, which enables them to provide exceptional service to 15 or even 20 clients simultaneously. When buying a home outside their area, many buyers prefer working with agents who have ample experience in the local market and can help them avoid potential mistakes during the purchasing process.

Will I be working directly with you or with a team?

In recent years, the team-based model has gained traction in the real estate industry, offering distinct advantages to both agents and clients. While an experienced individual agent may successfully manage over 100 closings annually, a team of specialized professionals can function like a well-oiled machine, handling an even greater volume of transactions. With each team member focusing on their area of expertise—such as marketing or listing and closing coordination—issues can be addressed efficiently while keeping clients updated multiple times per week throughout the process. This arrangement enables the lead agent to focus on meeting their clients' needs.

Neither the team nor the individual agent approach is inherently superior; the key is to understand the working arrangement from the beginning. Open communication at the outset helps set expectations and paves the way for a seamless home-buying experience.

What area do you primarily focus on in your real estate business? Can you show me on a map?

It's essential to work with an agent who is knowledgeable about the area you're interested in, and one way to ensure this is by asking them to demonstrate their focus areas on a map. Most agents can do this easily, as platforms like Zillow track this information. There are two main reasons for posing this question:

1. Ensuring the agent's expertise in the area: An agent familiar with the local market will be aware of factors such as floodplains, radon levels, and specific infrastructure issues, like decaying wooden sewers. An agent lacking this knowledge might not advise their clients on essential inspections, potentially leading to costly problems down the line.

2. Accessibility for appointments: If the agent is located too far away from your area of interest, they might not be able to attend all appointments. For example, an agent located two hours away may struggle to facilitate showings, which could result in a disservice to the buyer.

By choosing an agent with the right knowledge and proximity to your desired location, you can ensure a smoother, more informed home-buying experience.

What sets you apart from other real estate agents?

With so many real estate agents in the market, it can be challenging to discern what makes one stand out from the rest. This question encourages agents to highlight their unique qualities and expertise. For example, an agent might have deep-rooted connections to their service area, having been born, raised, and continuing to reside there. This local knowledge offers a distinct advantage over agents who have recently moved to the area.

Another differentiating factor could be the agent's dedication to researching and sharing information about the region. An agent who has created numerous videos or articles showcasing local attractions, towns, and cities demonstrates a commitment to their clients' best interests and an extensive understanding of the area.

Lastly, an agent who lives centrally within their service area can provide better accessibility and a more personalized experience, as they're likely to encounter their clients in everyday settings like restaurants, grocery stores, or the gym.

When discussing their unique qualities, an enthusiastic agent should be eager to share what sets them apart and how these factors will benefit you during your home-buying journey.

How do your fees work, and how are they structured in the event of non-standard commission rates?

When buying a home, it's essential to understand how your agent's fees work. Typically, the buyer's agent commission is covered by the listing agent, with an average rate of about 2.9% in many areas. However, what happens if the commission offered by a particular listing is lower, say, 2.5%? It's crucial to clarify whether your agent expects you to make up the difference or if they're willing to accept the lower fee. While a half-percent may not seem significant, it can amount to thousands of dollars.

Ask your agent if they can include a provision in the contract stating that the commission offered on the MLS will be accepted as full payment for their services. Some agents have this pre-printed in their contracts, while others may insist on a fixed percentage. There's no right or wrong approach, but it's essential to understand your agent's stance and ensure it aligns with your expectations.

After discussing my preferences, timeline, and desired locations, what is the best strategy for moving forward in my home search?

An effective home-buying strategy should go beyond simply setting up an automated search and waiting for you to express interest in a property. After your initial conversation with your agent, they should establish a clear timeline that includes several benchmarks, such as viewing homes, submitting offers, closing dates, and occupancy dates—all in alignment with your goals.

While automated searches can be helpful, they shouldn't be the sole approach. Your agent should also actively monitor the market for new listings, as you may miss an email or not have time to check daily updates. If the housing inventory is limited, your agent could take additional steps, such as reaching out to homeowners in your target area, door knocking, or sending mailers to uncover potential opportunities.

By working with an agent who employs a proactive, multi-faceted strategy, you'll be better positioned to find your dream home in your desired location and price range.

What will be our primary mode of communication, and how frequently will we be in touch?

Effective communication is the foundation of any successful relationship, including the one between you and your real estate agent. It's crucial to establish a clear understanding of which communication methods your agent prefers, such as phone calls, text messages, emails, or even instant messaging apps like WhatsApp, which has gained popularity, especially among international clients.

As the client, if you have a preferred mode of communication, make sure to set that expectation upfront. Additionally, discuss how often you can expect updates from your agent during the home-buying process. Some clients may prefer a comprehensive weekly call, while others might appreciate more frequent, brief updates via text or phone calls when necessary.

By establishing a communication plan tailored to your preferences, you'll be better equipped to navigate the home-buying journey together with your agent.

What questions do you have for me?

Remember, finding the right real estate agent is similar to conducting a job interview. Your potential agent should be eager to ask you questions, as it demonstrates their interest in understanding your needs and preferences. They may inquire about how long you've been searching, which properties have caught your eye online, or any other aspect of your home-buying journey.

An agent who doesn't ask questions during your initial meeting could be a sign of disinterest or lack of engagement. Just as job seekers should ask questions during an interview to show their enthusiasm, your real estate agent should do the same. By engaging in a thoughtful conversation, your agent can better understand your needs and ensure a more successful home-buying experience.

Asking the right questions is an essential step in finding the perfect real estate agent to guide you through the complex and exciting journey of buying a home. By engaging in open and honest communication, you'll gain invaluable insights into your agent's experience, strategies, and commitment to your success. Keep these ten questions in mind as you interview potential agents, and remember that a strong partnership is built on trust, transparency, and mutual understanding. Armed with the answers to these crucial questions, you'll be well-equipped to choose the right real estate professional who will expertly navigate the home-buying process and help turn your dream of homeownership into a reality.