A Step-by-Step Guide to Vetting Your Real Estate Agent

Summer is on the horizon which means prime house hunting season is as well; you'll likely be making moves on investment properties. As a buyer, in what is primed to be a summer seller’s market, you’ll need the expert services of best real estate agent in your target area in order to find the most elusive listings, hit the right open houses, and make the most competitive offers to move fast.

Agents are easier to find today than ever, but the question still remains: how do you ensure that your agent is great at what they do, is an expert in your specific needs, and has your best interest at heart? As a savvy consumer, it is up to you to do your due diligence before committing to work with any agent, regardless of whether you are buying or selling – or both.

Here is a step-by-step guide to help your thoroughly vet you real estate agent and ensure they’re the right person to help you:

Investigate the neighborhood.

Get a good feel for the prices, availability of homes, and types of buyers before even interviewing an agent. Even stop by an open house or two. Getting a sense of the market yourself, before interviewing your agent, will give you a better idea of red flags come interview time. For example, should an agent offer to list your house significantly higher than similar open houses you’ve seen, you’ll know they’re just trying to win your business, not advise you in a sound real estate decision. “You have to take responsibility for your own transaction in order to make sure you’re being treated properly.” says Monique Rad-Stein, a Los Angeles real estate attorney of The Rad Firm APC.

Verify the Agent’s Real Estate License.

Before you finalize the shortlist of agents you plan to interview, save yourself time and verify those prospective agents’ licenses. “We warn consumers to do their due diligence and recommend that everyone verify the agent’s license.” says Lisa Stratton, spokesperson for the California Bureau of Real Estate under the Bureau of Consumer Affairs. It’s an easy step to ensure the agent has the years of experience they advertise, has no previous infractions on their record, and is in good-standing with their state. You can verify that the agent is licensed by checking with your state’s Department of Real Estate. Stratton also suggests going one step further, “always ask to see the [real estate] license ID card and make sure that it matches their DMV ID,” misrepresentation is the #1 violation in her state.

Verify the Brokerages’ Credentials.

“Make sure that the brokerage has credentials in good standing as well,” advises Rad-Stein. Regardless of how reputable the brokerage may seem, it is always a smart choice both, to verify their credentials with your state’s Department of Real Estate, and also to look up the brokerage’s name with the Better Business Bureau. Don’t think that it is only individual agents who can be cited for infractions.

Interview At Least 3 Real Estate Agents.

After finding the real estate agents in your neighborhood you think are a great fit, it’s still important to make sure you and they are on the same page. You’re not ever given a job without an interview, why should a real estate agent be any different? Especially since you’re trusting their advice on such a big financial commitment. Make sure they have the time to commit 100% of their attention to your search.

There are certain baselines that buyers should follow no matter what kind of home they’re buying, or where. Shelley Barnett, a homeowner, recently sat down with three prospective agents before committing to one in Houston, Texas. “We asked how many transactions they had in the neighborhood in this price range?” Comparing each agent’s answer to this question and others like it can help you decipher if they really do have the experience and contacts required in your desired neighborhood. These contacts can be vital, particularly in higher priced markets where not all listings may be placed on the local market’s listing service, or MLS.

Look up County Court Records.

Homeowner Bill Seavey of Cambria, CA “could never verify anything on the internet” about a particular previous agent. A check with his local court, though, might have revealed some unseemly details. Records that could have given him, and other homesellers like him, insight into agents with criminal histories and the questionable morals that allow them to work both sides of a deal. Going the extra step to look up court records can prevent your pending home sale from blowing up, leaving you carrying an unwanted mortgage and forced to start the whole process over again.

Speak with Past Clients for References.

After interviewing prospective agents, ask to speak with some of their past clients – preferably those who have similar homes to you. Talking to a past client – in person or over the phone – can speak volumes about an agent. Steve Jones has bought and sold nearly 100 homes as founder of Los Angeles residential real estate development company BetterShelter, and notes that in his experience, “90% of failed deals are the result of a crummy agent.” To avoid running in those situations a full vetting, that includes references, is just good business.

Ask Your Agent’s Position on Presenting Every Offer in Written Form.

If your prospective agent is against it, that’s a red flag that they won’t have your best interest in mind through the process. As a buyer or seller, if you request to see an offer or rejection in writing, your agent is obligated to show you. However, some agents will present only a verbal rejection to their clients as a stalling tactic. “One of the biggest problems I see is that not all of the offers get presented to the client [...] some agents will try and hold on to their listing until they can sell it on their own to one of their other clients and get double commission, or get commission from within their own brokerage,” notes Rad-Stein.

With this plan, you will be able to find a real estate agent who is great at what they do, and also someone you’ll be able to trust. A trustworthy realtor is imperative when there are hundreds of thousands of dollars at stake. “I know a lot of people tend to get swayed by discounted commissions,” says Jones. “But I think that a good real estate agent is worth their weight in gold.”