Buying a home is a big decision that involves a lot of research, planning and negotiation. One of the most important steps in the process is finding a good real estate agent who can guide you through the market and help you achieve your goals. But how do you know if an agent is right for you? Here are the top 10 questions to ask your potential real estate agent before you sign a contract with them.
1. How long have you been in the business and what is your track record?
You want to work with an experienced agent who has a proven record of success in your area and price range. Ask them how many homes they have sold in the past year, how long they typically take to sell a home, and what percentage of their listings sell at or above the asking price. You can also check their online reviews and testimonials from past clients to get a sense of their reputation and professionalism.
2. What is your communication style and availability?
Communication is key when it comes to working with an agent. You want someone who is responsive, attentive and transparent. Ask them how often they will update you on the progress of your home search or sale, what methods of communication they prefer (phone, email, text, etc.), and how quickly they will respond to your inquiries. You also want to know their availability and schedule, especially if you have a tight timeline or specific needs.
3. What is your marketing strategy for selling my home?
If you are selling your home, you want to know how your agent will market it to potential buyers and agents. Ask them what tools and platforms they use to advertise your home, such as online listings, social media, flyers, open houses, etc. You also want to know how they will showcase your home’s best features and make it stand out from the competition. Ask them for examples of their previous marketing materials and results.
4. How do you determine the market value of my home or the homes I’m interested in?
Pricing is one of the most crucial factors in buying or selling a home. You want to work with an agent who has a solid understanding of the current market conditions and trends, and who can provide you with accurate and realistic pricing advice. Ask them how they conduct a comparative market analysis (CMA), which compares your home or the homes you’re interested in with similar properties that have recently sold or are on the market. You also want to know how they factor in other variables, such as location, condition, features, demand, etc.
5. How do you handle multiple offers or bidding wars?
In a competitive market, you may encounter situations where there are multiple offers on a home or where you have to compete with other buyers for a home. You want to work with an agent who knows how to handle these scenarios and who can advise you on the best strategies to win the deal. Ask them how they negotiate on your behalf, what tactics they use to make your offer stand out, and what contingencies or clauses they recommend to protect your interests.
6. What are the costs involved in buying or selling a home?
Buying or selling a home involves more than just the purchase price or the sale price. There are also various fees and expenses that you need to be aware of and budget for. Ask your agent for a breakdown of all the costs involved in the transaction, such as commissions, closing costs, taxes, inspections, appraisals, legal fees, etc. You also want to know who pays for what and when.
7. What are some of the common challenges or risks in buying or selling a home?
Every real estate transaction comes with its own set of challenges and risks that you need to be prepared for and avoid. Ask your agent what are some of the common issues that they encounter in their practice and how they resolve them. For example, how do they deal with low appraisals, inspection problems, financing issues, title defects, etc.? You also want to know what are some of the red flags or warning signs that you should look out for when buying or selling a home.
8. How do you handle referrals and recommendations?
A good agent will have a network of trusted professionals that they can refer you to for various services related to your home purchase or sale. For example, you may need a mortgage broker, a home inspector, a lawyer, a contractor, etc. Ask your agent how they select their referrals and recommendations, and whether they receive any compensation or incentives for doing so. You also want to know if you are obligated to use their referrals or if you can choose your own.
9. What are some of the current trends or opportunities in the local market?
The real estate market is constantly changing and evolving, and you want to work with an agent who is up-to-date on the latest developments and opportunities in your
