How to Interview a Real Estate Agent

Any real estate agent you're considering hiring is bidding for the job of helping you buy or sell a home. Thus, you should interview every agent you're thinking of working with to ensure you see eye to eye with her and trust her professionalism and judgment. Real estate professionals identify several crucial questions you should always ask when you interview a potential agent.

Difficulty: Moderately Easy

Instructions

1. Ask the agent how long he's been in the industry and whether or not he's a real estate agent or an actual realtor. Realtors are veteran professionals who adhere to a regulated code of ethics. You also want to hire someone who has extensive experience brokering sales in the specific neighborhood in which you're interested.

2. Find out how much the agent charges. You can expect that your half of the agency fees will total between 1 percent and 4 percent of the home's final sale price. Many people also overlook the fact that real estate agent fees are always negotiable, so don't be afraid to ask for a better deal, particularly if you've been offered one elsewhere.

3. Ask the agent whether or not she's had any canceled transactions or agreements in the past, and whether or not her company provides a service pledge or guarantee. You want to make sure you have some form of recourse in the event you become dissatisfied with the agent's performance.

4. Find out if there is a big discrepancy between the agent's list prices and sale prices. If you're selling and interviewing a listing agent, you want an agent who boasts a 100-percent (or very close to it) ratio. If you're buying, hire an agent whose record reflects a proven ability to negotiate a sale price that's lower than the list price.

5. Learn more about the other real estate professionals with whom the agent is aligned. Most agents and agencies have certain mortgage brokers they refer customers to, for example. Find out which professionals each agent prefers and why.

6. Ensure that the agent is comfortable providing you with documents you will be asked to sign ahead of time, so you can have them reviewed by an independent third party if you so choose. Agents who pressure customers by presenting forms for the first time when a signature is required should be avoided.

7. Discuss the agent's plan for you. If you're selling a home, talk through the marketing strategies the agent will use to get you a good price in a short period of time. If you're buying, ask the agent how she plans to go about finding you a suitable property.

8. Choose the agent with whom you have the best rapport among those agents whose references and responses satisfy you. Your gut instinct is usually right, so listen to it.

Tips & Warnings

• Ask for references so the agent you interview has a chance to back up the claims he makes. Contact industry professionals known to the agent, as well as satisfied previous customers. Even brand-new agents should be able to provide you with references you can contact.