9 Questions to Ask While Interviewing a Buyers Agent
This blog post is focused on how to find a perfect BUYERS agent. We also have advice for those looking for a SELLERS agent which you can find HERE.
Real Estate agents wear a lot of hats- advisor, number cruncher, navigator, therapist, consultant, communicator- you name it, if you need it, we do what we can to provide. The best Realtors® are able to do all of these things while making it appear easy as they guide you through your home buying and/or selling process. We know what you might be thinking; ‘Don’t I just need someone to get me into the houses I want to see and then write up the offer?’ That is part of it, yes! And in addition, there is also a whole lot of ‘behind the scenes’ stuff going on too. You can think of your agent as your partner/collaborator/co-conspirator of your home search- your teammate. The more you share with your agent, the better they will be able to help you map the path to your goal and get you into your dream home.
Here in the Grand Rapids Metro Area there currently around 2,520 Real Estate Agents to choose from, so how do you go about finding an excellent Real Estate Agent who is the perfect fit for helping you find your dream home? Let’s start by talking about titles. There are generally three titles that you’ll often see on business cards in this industry: Realtor®, Real Estate Salesperson, and Real Estate Broker. All Real Estate Agents have to be licensed, but not all licensed agents are Realtors®.
Clear as mud? Let’s break it down like this:
A REALTOR® is a broker or agent who belongs to the National Association of REALTORS® (NAR), the largest trade group in the country. A REALTOR® commits to following a strict Code of Ethics intended to protect buyers and sellers; for example, REALTORS® pledge themselves to protect and promote the interests of their client.
Agents and brokers who are not NAR members can’t call themselves REALTORS®.
A REAL ESTATE BROKER is a professional who has additional education beyond the agent level, as required by state law, and who has passed a broker’s exam. In some cases, brokers also have more years of experience than agents. Here in Michigan, a person must be licensed as a salesperson for a minimum of three years before being able to take the brokers exam. The biggest difference between a broker and an agent (aside from experience) is that a broker may work independently. An agent must be overseen by a broker. It is worth mentioning at this point that Santiago is indeed a Broker and Realtor® member of NAR, Michigan Association of Realtors® (MR) and Greater Regional Alliance of Realtors® (GRAR).
Now that we got that part out of the way, what are some other questions you should ask potential agents?
FIRST: IS THE AGENT ASKING ABOUT YOU?
In order to properly address your questions, the agent is going to need to know a little bit about your specific situation. If the agent comes in talking about only themselves, that should raise a red flag.
MARKET KNOWLEDGE
Is this person knowledgeable about neighborhood home value trends, local shops and restaurants, schools, commute times, and geographic factors such as floodplains? These are all important. If you’re looking for a home in a new city or town, you could ask the agent to show you around town, this will give you a good idea of how much they truly know about the area. Another good question to ask is “Would you recognize the difference between an overpriced home and a competitively priced home?” A good agent will be able to estimate roughly how many offers will there will be on a home and what a good competitive offer would be without over paying. This takes skill. Ask this question and use your gut to tell you whether they seem to be winging it on their response, if so, red flag.
RESPONSIVENESS
During your home buying process you’re going to need to be timely with submitting documents and signatures to various people and you want the person on your side to be responsive and prompt. There are many blog posts out there that suggest that one way to determine an agent’s responsiveness is by how quickly they respond to you the first time you reach out. We disagree with this method. If an agent is quick to respond to POTENTIAL clients that usually means one of three things: a. they are not very busy with existing clients b. they are busy with existing clients but they are prioritizing potential sales over actual current clients (no bueno for the the current clients) or c. they have an assistant handling all the sales leads. Granted, there are situations in which any one of those things may make complete sense, but generally speaking, we don’t see an immediate response to your first time reaching out as a good gauge for how it will be during the actual process. That being said, how can you gauge an agent’s responsiveness? Read reviews on trusted sites like Zillow which qualifies all reviews be requiring a legitimate email and home address for every review. Secondly, during the interview you can ask the agent for some follow-up material. Ask them when you can expect to see this material and then pay attention to whether that material shows up when they say it will. THAT IS KEY. What you need is an agent who knows how to manage their time and be realistic about how long things take and consistently delivering. Over promising and under delivering is always a disappointment. Look for an agent who does the opposite of that.
REPUTATION
Do you know someone who has worked with this agent? Ask that person what they liked about working with the agent. Ask them about the agent’s knowledge and support throughout the entire process. Sadly, there are plenty of agent’s out there who care more about making a sale than they do about helping their clients. When you go through a home with your agent they should be pointing out things that you may not have noticed and answering any questions you might have (sometimes they may need to look further into something and you should expect that feedback in a timely manner) Don’t settle for someone who just lets you into the home and follows you around the house with nothing but positivity. You need to know the good AND the not so good things about a home in order to make an informed decision.
Here are a few more questions that will help you gauge an agent:
How many years have you been in the business and how many houses have you sold in the last year?
We’re going to get these two questions out of the way first because we do think there is some value in knowing this information, after all, much of the real estate business is learned on the job. Keep in mind, however, that having more experience doesn’t necessarily guarantee that someone is a great real estate agent, and selling a lot of homes could mean that they’re good at it, or it could mean that they focus on volume but not necessarily VALUE provided to each individual client. An agent with a good balance of both is what you’ll want to look for.
How will you help me determine my needs and priorities?
The agent’s first task is to help you identify your list of “musts” and “wants” — the home features that you need. Knowing what you need is half the battle and the more clear you are, the smoother your process will go because then your agent knows your priorities and is able to advocate on your behalf at every step of the way.
How will you stay in touch with me?
It’s no secret that there are a ton of ways to communicate these days. Ideally you want your agent’s communication style to align with yours. Most often if you tell your agent how you prefer to be contacted and how frequently, they will adhere. If not, move along.
How many other clients are you working with?
You want your agent to give you quality, one-on-one customer service when you buy your home. If the agent seems spread thin, it’s probably because they are and you may want to consider this a red flag. At the same time, if they don’t have any current sales going on, that could also be a red flag. A good agent will have a steady stream, but won’t be overloaded.
How are you a good agent for first-time buyers?
This is a great question if you are a first-time home buyer because first-time home buyers often face specific challenges. Good agents have patience and are happy to explain what you should expect and how they’re going to help you navigate your circumstances.
How will you help me find homes that match my criteria?
Seasoned real estate agents don’t just use the local Multiple Listing Service (MLS) — a regional database of registered property listings — to help home buyers find homes. They also keep track of listings through colleagues, connections, other clients and canvassing neighborhoods to find the right properties for their buyers. Sometimes they may have a pocket listing (a property that is for sale but is not being listed on the MLS due to some circumstance).
Have you ever recommended that a buyer not buy a property?
A good agent will be honest with you about when to pass on a house that will not meet your needs — even if you’re starry-eyed about it. In the end it is always your choice, but they should have your best interest in mind and empower you to make a sound decision.
Do you have any lenders that you can recommend to me?
Most agents have a good handle on which lenders are great and which ones often lead to delays. Having a good lender is important in a competitive market because when it comes down to a multiple offer situation if it’s between two similar offers and one is working with a great lender and the other not so much, the seller is likely to choose the offer with the lender who is known for smooth transactions. An experienced agent has relationships with reputable pros, and should provide you with a few references, and then it’s ultimately your decision to choose who you want to work with.
How much do you charge for you services?
While some agents may charge a retainer and additional admin fees, you should look for one that only charges a commission which comes from the sellers proceeds- meaning there should be no money coming out of your pocket for the services of your buyers agent.
That’s it! Now you’re armed with some solid questions, get those interviews set up and we’d of course be honored if you’d include Santiago in your interview process. He can be reached by phone or text at 616.337.0564 or email him at Santiago@kw.com