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How to Interview an Agent

Posted November 23rd, 2012 under smart buying, smart selling, myths and truths.

A few years ago, I wrote an article titled How NOT to choose a Realtor, poking fun at the empty gimmicks some agents use in an effort to get you to list with them.

But how should you choose an agent? Which questions will help you figure out if an agent is right for you?

First, let's talk about a few common questions that everyone suggests.

“How long have you been a licensed real estate agent?”

This question is a red herring, because length of service does not equate with quality of service. Being knowledgeable about legal language and the meaning of terms in a contract is important, and even a new agent who is sharp can provide this skill better than a veteran agent that hasn't kept up their knowledge.

“How many homes have you sold in the last 12 months?”

Most people think that more sales mean a better agent. In reality, you probably want an agent who has sold between 5 and 30 homes in the last year.

An agent selling 50+ homes per year will likely not have the time to give you personal service, unless they work with a team—in which case you'll want to check which tasks are handled by the agent and which tasks are handled by an assistant.

Meanwhile, an agent selling fewer than 5 homes in the last year will probably be a bit rusty, though it depends on the individual.

“How will you market my property?”

I can't emphasize this enough: there are no secret marketing techniques.

The only technique your agent needs is the ability to position your home properly in the market place by accurately assessing its value and using the right pricing strategy.

This is accomplished through diligent work—assessing the location, market trends, and any upgrades—not through flashy online advertising or other gimmicks.

Knowing how to present the home itself also matters, but again, this is a skill the agent practices, not a 'secret' technique.

“Are you a tough negotiator?”

Effective negotiation has nothing to do with 'toughness'. You can't force somebody to buy your home, you can only convince them.

Successful negotiators start by knowing their position in the market and the goals of their clients. Then they use insight to find sale terms that will be appealing to the buyers, while preserving the best overall deal for the sellers.

So What's the Secret?

It seems that out of the 4 common questions we've discussed, only one is really useful to ask. So how does this help you interview a potential agent?

The secret is don't focus on the agent.

Instead, ask the agent if you can contact their 3 most recent clients. If they resist, treat that as a red flag. It's possible one of their clients might not want to speak to a stranger, but most people are happy to sing the praises of a professional who has given them good service. If the agent tells you that none of their clients are willing to speak to you, that's probably a red flag too.

Now Interview the Clients

Now that you have some references, contact them and ask questions like the following:

• Did the agent start by explaining the process of buying and selling?
• Was the agent knowledgeable about your home and surrounding area?
• Did the agent explain the concept of market value, and how your property fits into the market?
• Did the agent build their pricing and negotiation strategy around your personal goals (e.g. quick sale or highest price)? Or was their strategy generic?
• Did the agent warn you of possible pitfalls and help you avoid them?
• Did the agent clearly explain the legal terms and conditions of all offers, counter-offers, and other documents in a way you were totally able to understand?
• Did the agent always work for your interests, never their own?
• Did the agent follow your instructions at all times?
• Did the agent make you feel comfortable throughout the process, never rushing or pressuring you?

If you interview several recent clients and they answer yes to all of these questions, then you've found a true professional.

Now ask yourself whether you get along with the agent; do your personalities seem compatible? If so, then it's likely they would be a good choice for you.

But if past clients raise any red flags, or if you find the agent pushy, abrasive, or off-putting, consider looking somewhere else.

Want to know more about choosing an agent? Just ask me, I'll be happy to help.