Related: <\/strong>Don\u2019t Ignore These 11 Bad Real Estate Agent Red Flags<\/a><\/em><\/p>\n If you are considering using a family, friend, or neighbor new to the business, ask yourself if supporting them is worth at least $1,000 to you\u2014and that\u2019s probably a conservative number. Screw-ups during the home purchase process can put a significant dent in your bank account.<\/p>\n Seasoned agents know their market\u2014what the value of the house is, how to negotiate an inspection, and which professionals you may need post-close. New agents don\u2019t have that confidence or those resources.<\/p>\n To help prevent you from working with the wrong agent (and potentially losing money), ask any potential agent these questions.<\/p>\n Buying a home is intimidating, especially if it’s your first purchase. You’ll make lot of decisions very quickly\u2014with a lot of money on the line. It’s really important that your agent is in constant communication. You should always know what the next steps are. And if you have questions about real estate terms, they should be able to thoroughly explain.<\/p>\n When you’re ready to put in an offer, will they run a comparative market analysis (CMA) to make sure you’re offering the best price?<\/p>\n Additionally, a savvy agent will have insight into the other party’s thought process, because they’ve been on both sides of the deals so many times. When you’re dealing with inspections, closings, and offers, it’s vital to choose an agent that can walk you through the process.<\/p>\n If you have to hunt down your agent, that\u2019s not a good sign. Remember: You are paying them, and your relationship should reflect that.<\/p>\n Okay, so that\u2019s three questions, but they\u2019re all getting at the same general info: how experienced your agent is and what that experience looks like. Obviously, more experience is better, but someone with 10 or more deals should at least have a good understanding of the process and patterns. You don’t necessarily need a full time agent, but make sure a part-time agent has enough time and experience to dedicate to you.<\/p>\n You also want to make sure the agent understands the neighborhood in which you’re buying or selling. Markets can vary dramatically, even in the same city. Look for a seller’s or buyer’s agent who has expertise in your desired area.<\/p>\n This is particularly important if you’re looking for a listing agent<\/strong>. You need to know how often your seller’s agent has actually sold their own listings.<\/p>\n Anybody can throw a listing on the internet and wait for another agent to swoop in with a buyer, but this is a very limited marketing strategy. When a realtor creates a good listing AND finds the buyer on their own accord (and they’ve done it on multiple occasions), this is a strong indication that they’re probably doing something right.<\/p>\n Of course, there are many variables at work here, and the answer to this question isn\u2019t entirely conclusive, but an agent\u2019s ability to drum up new business and make things happen is something that can help you decide whether you\u2019re talking to the right realtor for your situation.<\/p>\n This is the most important question you can ask an agent. It will tell you two things:<\/p>\n An agent’s job is to help you make a responsible financial decision\u2014which includes how much you pay for the property and how much you get back in negotiations. A realtor who is hesitant to push back during inspections isn’t the best choice.<\/p>\n In manny cities, real estate agents and their clients formalize the relationship with an \u201cExclusive Right to Buy\u201d contract. This states you are working together, and not with any other agents. Most agents want them signed. In fact, an agent who doesn\u2019t want one signed is probably not very experienced.<\/p>\n It can be difficult to want to commit to someone when you are just getting acquainted. Many agents sign contracts in three-month intervals. That’s enough time for both sides to establish if they like working together and if they should continue to work together.<\/p>\n![\"\"](\"https:\/\/www.biggerpockets.com\/blog\/wp-content\/uploads\/2021\/01\/SOLD-banner.jpg\" "\\"\\"")
<\/p>\nThe Right Questions to Ask Potential Realtors<\/h2>\n
1. How do you communicate?<\/h3>\n
2. How many deals have you done in the past year? Where? And what type of property?<\/h3>\n
3. How did your last three home inspection negotiations go?<\/h3>\n
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4. How long is your contract?<\/h3>\n