How to Know if You Can Trust Your Real Estate Agent – 5 Tips
A good real estate agent is instrumental when you are considering buying or selling a house. Not only do they negotiate on your behalf and guide you to make the best decision, but you will also spend a significant amount of time contacting them to ask for updates or information regarding the real estate deal. In many cases, it can feel as if you are married to them – and as in any good relationship, trust is paramount.
Some real estate agents have a terrible reputation. Since compensation is based on commissions, some home buyers and sellers are concerned that their agents will push them to accept a transaction that may be too high or too low, leaving considerable amounts of money on the table. Therefore, it should come as no surprise that anyone involved in a real estate transaction has many questions and concerns regarding how to find a realtor you can trust – whether they will be acting as a buyer’s agent or as a seller’s agent.
The good news is that licensed real estate agents must obey a strict code of ethics and requirements to be able to operate. They also need to follow classes, including refreshing courses periodically and passing an exam. Therefore, the first step before deciding to hire a potential candidate should be to verify whether the individual you are considering is up to date with their licensing requirements and whether they are part of any professional organizations – if they are members of the national association of realtors, for example.
Here are five valuable tips for identifying and picking a real estate professional who is honest and trustworthy so you can buy or sell a property with confidence.
Get in Touch with Your Personal Network for Referrals
How to find a realtor you can trust often starts with casting a wide net so you can have many potential candidates to choose from. Thankfully, there are probably many people around you who have been involved in real estate transactions and can give you their opinion – whether it is good or bad – regarding local realtors.
Word-of-mouth is invaluable when it comes to evaluating whether a real estate agent does a good job or not. If they live locally, your friends and family are often a precious resource. You may also use Google to verify your sources – however, keep in mind that online reviews can be skewed by very good or very bad experiences and may not provide the complete picture of a real estate professional’s work.
If you do not know anyone in the area you are considering moving – if you are relocating for work, for example – finding a realtor you can trust can be trickier. You may need to rely on directories and listing services such as Zillow to find the name of real estate agents working in your location. You can also reach out to your soon-to-be community via Facebook groups or using local chatting boards such as Nextdoor to find the right real estate agent and get direct feedback on the candidates you are considering.
If possible, you may also want to attend open houses in your preferred neighborhood to meet directly with real estate agents and see them in action – whether you are considering buying a home or are looking for a listing agent yourself. However, keep in mind that the individual who will be present during the showing will be acting as a seller’s representative. If you are interested in buying the home being shown, the agent will have a dual agency and will have to protect both the buyer’s and the seller’s interests throughout the transaction. Although it is legal, this situation could lead to a conflict of interest, especially during the negotiation process.
Finally, it is also helpful to ask other real estate professionals, such as your title company, mortgage lender, or other real estate agents (if you are relocating), if they have feedback on potential contenders or if they have names they could recommend.
Find a Realtor Knowledgeable About Your Local Market
Real estate is all about location, location, and location. If you want to trust your real estate agent, they must have very precise local knowledge – an experience that can only be acquired by living and working in an area for a long time. In other words, although you may have very warm recommendations on a specific candidate or if you had a great experience with your previous realtor, it could be useless unless they operate in the area you are interested in.
They should have access to specific real estate data: for example, how long properties typically stay on the market or the average price range for comparable houses in the area. However, the most important part should be to find someone who can provide guidance on other, more subjective topics. For example, parents of young children may want to know which schools are the best rated and offer an excellent afterschool program with a wide range of extracurricular activities, or if the neighborhood they are considering have access to playgrounds or are family-friendly.
They should be aware of the local trends – which areas are up and coming and which ones are the most desirable, for example. There can be significant price differences between properties depending on factors that are not always obvious for the uninitiated eye. A trustworthy real estate agent should be able to explain why so sellers can price their home accordingly or offer a caveat if you are looking into buying a home that seems particularly cheap for the area.
This insight is indispensable in an excellent real estate agent, especially if you are not intimately familiar with the area.
Interview Several Real Estate Agents
If you have followed the two previous steps, there are good chances that you may have found a couple of potential real estate agents who may be a good fit and have an excellent standing within your local community. You may be tempted to hire one of them on the spot, either to take the easy road or because their glowing reputation stands out from the rest. However, picking a realtor you can trust requires more legwork – keep in mind that any extra effort you put in at the beginning will likely payout in the long run and that any mistakes made in haste could have dire long-term repercussions.
The best course of action is to interview several of the most highly rated contenders in person. While professional reputation is a must, you also need to find a real estate agent you can confide in at a personal level. They will be privy to your family situation, aspirations, financial details, and so on. A realtor who may be the perfect fit for a buyer or seller may not click with another party.
You will want to give extreme attention to their communication style. Someone who is direct and all business may not be the right fit for a first-time homebuyer who needs extra information and reassurance on the steps to follow, for example. On the contrary, experienced house buyers and sellers may prefer someone who does not waste time. You may also have specific needs that few real estate agents can fulfill. For example, if you are looking to settle an estate or are dealing with an aging seller, it may be best to deal with a seniors’ real estate specialist who can help you throughout the process.
A trustworthy real estate agent should also be very reactive from the get-go. If you are already feeling frustrated trying to get in touch with your agent before the home buying or selling process has started, you will be very uncomfortable once the stakes are higher and time is of the essence.
Ask Precise Questions During the Interview Process
The best way to find a real estate agent that may be the right fit for your goals is to ask very detailed questions that will allow you to evaluate whether the candidate is trustworthy and reliable.
Ask specific questions about their professional background and experience in the local market. How long have they been working as a real estate agent? Are they exercising full-time or part-time? What are their certifications? Do they specialize in a particular type of home buyer or sellers (investors, first-time buyers, or military relocation, for example?)
It would be best to investigate their local expertise, both as a real estate professional and as a resident in the area. How long have they lived in the location you are considering? Do they have any personal experience with the local school system? Which neighborhoods would they recommend based on your priorities and your price range? Are some areas safer than others? What does the local commute look like?
You will also want precise information about how they are planning to help you in the home buying and selling process to reach the most successful outcome. Which listing systems do they use besides the local MLS? How will they market your property? Are they planning to organize open houses? What is their pricing strategy? Will they send you properties you may potentially be interested in, or will you need to check new listings periodically?
Be Honest About Your Expectations
Establishing trust between a client and their real estate agent must go both ways. If you want your realtor to conduct the real estate transaction in a way that feels comfortable and allows you to be entirely satisfied with the outcome, you will need to be very clear about your expectations, your goals, and your limitations. For example, if you are overestimating your budget, you will feel frustrated if your real estate agent only sends listings that are outside of your price range. By being honest – even if you are not confident you will find a house satisfying all your criteria within your mean – you can work more efficiently with your agent. For example, they may suggest alternative locations that better fit your budget.
You should be wary of real estate agents who promise you the moon. A trustworthy realtor should be able to support their claims with factual data and help you recalibrate your expectations if they are unrealistic. You should be upfront about your situation if it may influence your decision during the home buying and selling process – if you need to move by a specific date, if you are in the process of divorcing, or if you are at risk of foreclosure, for example. By keeping your real estate agent in the loop, you can find a solution together and use their expertise on the local market so you can find a way out that is satisfactory for all parties.