4 Questions to Ask Before You Hire a Realtor
Because a realtor represents the buyer in the process of finding and purchasing a home, making sure you have competent representation is always at the top of any buyer’s mind. Or at least it should be. Your home is likely the most expensive purchase you will make in your lifetime, and a mistake in the process can lead to financial ruin. Because the real estate agent works for the buyer, it is important to interview them to make sure they will actually earn their commission in the process of representing you. Here are some questions to ask a potential agent during the interview:
How long have you been a real estate agent? In the business of buying and selling real estate, there are always unexpected situations that can come up. This is why you want someone with some experience so they can help you overcome the unexpected hurdles that are sure to come up. Even though a new agent may spend loads of time with you, they may not be able to accomplish the same thing an experienced realtor could do in a fraction of the time. Experienced realtors often come with an full Rolodex of contacts and potential buyers and sellers. This could be the difference between finding the home of your dreams or settling for whats left over.
It is easy finding a home but make sure your agent can draft a contract, negotiate the best terms for you and perform all the necessary and required documentations. Make sure the real estate agent is experienced, educated and knowledgeable in the purchase of homes because a small mistake can cost the buyer a lot of headache, time and sometimes money. Always ask for your realtor’s background, education and experience.
Another question to ask a potential real estate agent is what their strategy is for finding or selling homes? Ask to see something in writing to make sure they have a solid plan. This is important and will help you feel out your realtors level of competence. Also make sure to ask what the realtor expects from you in the process. If he says you should just sit back and do nothing, choose someone else. Buying or selling a home is a lot of work and requires the attention of both parties.
How do you negotiate the best deals for your buyers? Ask your agent if he or she will help you decide on a price to offer after you’ve found the home you like. The negotiation is a give and take situation between you and the seller but will your real estate agent be involved? Is your agent knowledgeable and creative enough to make the deal work?
For example, if the buyer wants the seller to pay closing costs and a home warranty, the seller may agree to pay one and deny the other. Rather than walk away from the deal, the agent can suggest that the buyer pay for the other cost by either paying cash or increasing the offer price to include that cost. There are different ways to construct a transaction but the agent needs to be knowledgeable on what can be done.
Can you please provide references? References and testimonials are important because they tell you how your realtor will work with you. References come from past clients so when a real estate agent has the knowledge, ability and patience to help families and individuals, they will say so. Good references should say more than just, “great job” or that Tom is a wonderful real estate agent. Look for references that actually say what the real estate agent did that makes them different from others. If the agent is new ask for references from their broker or past employers and colleagues.
Grace Ojuka is a real estate agent focusing on Provo homes for sale. She has been helping home buyers for in the Provo and Orem Utah real estate market for over 11 years. Check out the list of provo foreclosures currently available.
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