How to Interview a Real Estate Agent

Buying or selling your home is one of the largest financial transactions you will make in your life, so it is important to find the right real estate agent to guide you throughout the process. One way to feel more confident about your choice is to interview several candidates using the same questions and then compare their answers.

In this article, we will provide you with 12 questions to ask that can help you make an informed choice. You should think about this interview process like you are interviewing someone for a job. Buying a house is an investment, and you are trying to hire someone to represent you in your search for a new place to call home.

How to find real estate agents

Before you can begin the interview process, you will need to collect a list of quality real estate agents. The best way to get started is by asking your lender about their agent connections. Some lenders may even be able to provide you with access to an entire network of preferred real estate agents. This is one of the reasons why choosing the right lender can make a huge difference in your homebuying process.

You may even be offered exclusive deals and savings if you choose to work with your lender’s preferred agents. They will also be able to steer you toward an agent who has experience in handling real estate transactions that involve the specific loan type you are using. For example, if you qualify for a Veterans Affairs (VA) loan for your home purchase, it will be important to work with a real estate agent who specializes in VA real estate transactions due to the property requirements. 

Questions to ask a real estate agent

Once you have narrowed down a list of possible candidates, it is important to know what questions to ask. These questions should remain consistent and be posed to every real estate agent you interview. That way, you can compare their answers to ensure you hire someone you feel comfortable placing full confidence in.

Here are some suggestions on what to ask your potential real estate agent:

1. How long have you been in real estate and are you a full-time real estate agent? Agents can become certified in just four to six months, and some agents work in real estate part time or as a side job. As a result, their experience is a very important factor to consider when choosing the right one for your homebuying journey. Ideally, you want an agent who is knowledgeable and experienced. 

2. What property price range do you most often work with? Real estate agents are similar to a number of other professionals, in that they specialize. Make sure the agent that you choose has extensive experience working with, and closing, homes in your price range.

3. How many deals have you closed in the past 12 months? This question can help give you a sense of how many clients the agent is working with. If the number is low, it could be that the real estate agent has several houses sitting on the market, but it could also mean that the agent takes on fewer clients and spends more time with each of them. Likewise, a very high number may point to an agent with a high volume of clients, or it may be an indicator that they have a large support team. 

4. How many deals have you closed in this neighborhood? Real estate is a highly localized profession. If your agent has closed 100 deals in another city, or even another area of your city, that does not mean they will be equally successful in your neighborhood. Ask them about the pros and cons of working in your neighborhood and listen for thoughtful answers that show an understanding of the community and properties.

5. What is your list-to-sale ratio in this neighborhood? Not only do you want to know that your real estate agent is familiar with the neighborhood, but you also want to know how effective they are at getting you the most value for your money. If you are buying a home, the best deal you can get is below the asking price. As a seller, though, you will be looking for an agent who secured deals higher than or the same as the listing price, where possible. It is also important that they understand how market conditions and even past listing prices all affect how successful these metrics can be.

6. Are most of your clients buyers or sellers? Ideally, you will be able to find an agent who has worked with both groups, because such real estate agents have a deeper understanding of each party’s needs and may be able to negotiate a better deal for you. However, you will at least want to make sure that your real estate agent has worked with others in your position. If you are buying a house, for example, working with an experienced buying agent reduces the potential for surprises.

7. How many days on average are your houses on the market? The answer to this question depends on your timeline. If you need the deal closed in a matter of weeks, then be sure that the agent’s track record shows an ability to do so. If you would rather take your time to find the right house or buyer, you will want to avoid agents looking to close deals too quickly for you. Any timeline between a couple of weeks and a few months is ok, but if a real estate agent is routinely closing deals in less than two weeks or more than six months, you may want to ask follow-up questions or look elsewhere. Remember this down the road when it is time to sign the contract. If an agent asks you to sign a contract for more than six months, think twice. You want to retain the ability to switch agents after a period of time if yours is not bringing you any worthwhile deals.

   It is important to also understand that the data involving time on the market can also be reflective of market conditions. There are times when it is a seller's market and other times when it is a buyer's market, as well as times where things are not selling at all. Use your judgment to understand what possible conditions may have been causing delays in sales and discuss this with the agent.

8. What other services are in your network, and how did you choose them? A good real estate agent can connect you with a broad network of professionals who will help you get ready to buy or sell your home, from mortgage brokers to home inspectors. It is important to check not only that the real estate agent has a wide network of these professionals, but also that they have thoughtfully chosen them, focusing on those who will do quality work for you at reasonable rates. This will also make your entire homebuying process simpler. Do not take all their suggestions outright as you may want to shop around for each of these services or professionals as well.

9. What is your strategy for my home? If you are selling your home, how does the agent plan to market it? Do they have access to marketing platforms, or do they have a robust social media presence that can help get your house out to the right audience? Similarly, if you are buying a home, does the agent have some properties in mind already? How will they negotiate on your behalf? There is no perfect answer here, but an experienced real estate agent should be able to provide you with a strategy or examples of successful strategies they have used in similar situations in the past.

   Take a look at what the agent has done for other homes and ask how your home will be marketed. How many open houses do they expect, and what are the contingency plans if the house does not sell quickly?

10. How do you prefer to communicate with clients? The most important factor here is that you are in agreement. If you want to receive a text update every day, ask if the real estate agent can do that. If you would prefer to touch base over the phone once a week, ask for that instead. Whatever your preference is, discuss your expectations ahead of time so you feel comfortable communicating throughout the process but do not become overwhelmed by communication that is too frequent for you. 

11.  What are your fees and commission rates? Are there any additional costs I should be aware of? Whether they are working for a homebuyer or seller, real estate agents earn their income on commissions and fees. Typically, an agent will earn a commission between 2.5% to 3% of the home’s sale price. Though the exact number will not be set in stone until you sign a purchase agreement, the agent you are interviewing should be able to provide a reasonable estimate of what their commission and fees will total at the end. If you find that they are being evasive or anything other than upfront about the cost of their services, you may want to move on to a different real estate agent.

12. Can you connect me with some references? Always ask for references. Ask for the contact information of at least three past clients, ideally recent clients who worked with the agent within the last year or two. When you contact them, be sure to ask about the negatives as well as the positives, and if there are any reasons they would not recommend the agent to you.

How to prepare for a real estate agent interview

Aside from the questions above, you will also want to be prepared to answer any inquiries the agents may have for you, including:

• The type of home you are interested in purchasing

• Your home purchase or sale price range

• The location you are interested in buying or selling in

Understanding what you want or need in a home will help you better set the expectations you have of your agent. As important as it is to thoroughly interview potential agents, pay attention to the questions they ask you in return. A great real estate agent will be equally invested in learning about what you need so they can act in your best interest throughout your homebuying or selling experience.