Questions are Only as Good as the Reasoning Behind Them
In the previous article, "Questions for Interviewing a Real Estate Agent", we provided a series of questions. But questions without a purpose or reason behind them aren't good enough in assisting you in knowing why these particular questions are important or to know how the Real Estate Agent should respond. Thus, now that you have the questions (from the previous article) and the foundation of why interviewing real estate agents before working with one is important, here are the backgrounds for the questions and some follow-up questions to help guide you when conducting your interview. You may be interested in a great book about Body Language by Gregory Hartley.
Admittedly, this is a lengthy article, so bookmark it or otherwise save it for reference later if needed. We welcome the insights of others, especially other Real Estate Agents and related real estate professionals, and most particularly, the views of you the consumer.
Interview Questions:
1. When did you obtain your Real Estate License?
Knowing how long an agent has held their real estate license provides the foundation of other questions. An experienced agent will be able to answer other questions, not only with an answer but with facts and materials to support them. Yet, there are many agents with years in the business but may not have grown into being a capable and reliable person to represent your specific needs. A new agent may not have the experience, but they may have better training, a reliable mentor, and a supportive Broker. Thus, if the agent hasn't been licensed long, ask these questions.
- Does your Broker provide oversight and mentoring to assist you?
- What can you offer that a more experienced agent may not offer?
- Is your Broker available if there are questions or situations you cannot answer?
- Why are you interested in working as our real estate agent?
2. What types of technology do you use in your business?
Other questions ask about the agent's personal communication preferences, if they used particular mobile devices, and this question delves deeper and serves as the foundation for knowing what other questions to ask or what to look for when the agent answers another related question. Today there are many types of software, technology devices, and services that assist in making everything simpler, or at least easier and faster. Some key follow-up questions are:
- Do you provide technology for Digital Signatures?
- How does this technology assist you in performing better?
- Will we be required to sign-up or use the technology?
3. How many clients have used your services more than once?
Real Estate Agents that have built a good referral business, will be able to answer this question with ease. An agent with clients that work with them more than once, could be a good Real Estate Agent; but beware that this isn't just a case of friend hiring friend. Combined with the other questions, you'll be able to determine the personality of the agent and discern why others would return to use this particular Real Estate Agent. If the Agent hasn't worked with a client more than once, the agent may be new or more likely a bad agent who is only concerned with their personal agenda not yours.
4. Can you refer reputable Mortgage Lenders, Appraisers, Real Estate Lawyers or other real estate service providers?
Please see the explanation for the question #31 "What other professionals will you be working with and why?" before proceeding, as it explains more about why you should ask this question. This question asks about the Real Estate Agent's relationship with other professionals that are key to every successful real estate transaction and the Real Estate Agent should be well acquainted with these other professionals and able to work with them on your behalf. Follow-up questions should be:
- Why can you not provide referrals to these professionals?
- How long have you worked with these other professionals?
5. In which neighborhoods do you primarily work?
Knowing an agent's primary areas of focus will help you determine if they can represent you fully in your area. If the agent is more involved in other areas or neighborhoods, then you may want to inquire as to how they would be able to represent you given your interests lie outside of their normal areas of work. Is there are of their focus similar to your area, is your area within a reasonable distance from their area of focus, and would the Real Estate Agent be able to manage showings and other events at the home.
6. How many clients have ended a contract with you to work with another Agent?
This won't be an easy answer for most Real Estate Agents, as they do not want others knowing how many clients have fired them. Honest and respectful agents will answer this question and in doing so should also provide the reasons why the clients left. The answers the agent provides here should be balanced with their answers of other questions. If the agent isn't willing to answer this question, then they may have something to hide, so be careful of any agent that doesn't answer this question. Strongly consider the agent that actually answers this question in a forthright manner, as they are being honest, which is the strongest quality you should desire.
7. Is Real Estate your Full-time career?
You are hiring someone to work for you, so they should be invested into their career by working full-time. There are some exceptions, such as a new agent that may hold a part-time position while they are getting started. By asking this question, you're asking if the agent is committed on various levels and is also available for questions at convenient times. The other questions presented here can serve to assist you in making the best decision about a particular Real Estate Agent's capabilities, whether they are full time or part time, of representing your best interest and in a manner in keeping with your desires.
- As a part-time agent, what times of the day are you available to work with us?
- How quickly can you respond to our phone calls and emails?
- Is there any reason that your part-time status could cause challenges?
8. Do you communicate via e-mail and text, and do you use a smart phone or other mobile devices?
Another question asked of the agent's personal communication preference and when combined with this question will provide insight into how the agent communicates. Your Real Estate Agent should be equipped to communicate with you fast and efficiently. There are many times that either you or the Real Estate Agent may not be able to meet in person (especially if either is traveling) when important decisions have to be made. You may have questions at odd hours and should be able to at least send an email knowing that the agent will respond. A good Real Estate Agent will respond to your concerns in a timely manner. This also allows for you to discuss if the Real Estate Agent will inform you if they are leaving the area and who will handle communications while they are traveling. Require your Real Estate Agent to inform you when they will be traveling for more than a day.
9. How many clients have you represented in the last 12 months?
An active agent is more likely to be up-to-date on the current real estate market and laws, but also may simply be busy working with so many people that they don't have the time to keep up with important real estate trends. This question allows you to also discover how much time the Real Estate Agent will be devoting to you personally, as some agents may be too busy to effectively communicate directly and timely. Ensure your Real Estate Agent has the time to work with you personally as you need them.
10. Will I be working with you directly?
Many agents have assistants that handle most of the work or team members that handle various aspects of a transaction. A good Real Estate Agent will be available to work with you directly when you desire and also inform you who else will be doing the actual work. A knowledgeable and capable assistant can be invaluable, but you want to make sure you can connect with your agent regularly and that they are personally handling negotiations.
11. Do you provide copies of any legal documents beforehand for review?
As a buyer, ask to see a sample purchase agreement and ask the agent to point out your cancellation rights in this document. Ask to see the Buyer's Broker Agreement (is it exclusive or non-exclusive?), Agency Disclosures, Purchase Agreement, and any Buyer Disclosure documents and have the agent explain every aspect. If the agent hesitates to explain the purchase agreement to you, hire another agent.
As a seller, ask to see the listing agreement. Ask about reserving the right to sell the home yourself or how to exclude certain people if they have already expressed interest in buying the home before you hire the Real Estate Agent Ask to see the Agency Disclosure, Listing Agreement, and Seller Disclosure forms and have the agent explain the details of each.
If you see a fee you do not understand, question it. A sign of a good real estate agent is a professional who makes forms available to you for preview before you are required to sign them. If at all possible, ask for these documents upfront prior to your interview in order to review them to ask more detailed questions.
12. What do you enjoy most and least about your job as a Real Estate Agent?
Time to laugh for a moment as you learn the agent's reasons for being in real estate and potential areas of challenge. Listen carefully and you'll quickly hear what is hype and what is serious. Pay closer attention to the aspects that they like least about their job. If they state, "the long hours" or "dealing with paperwork" or even "negotiating with others" then such answers will tell you which areas they are the weakest in. When an agent answers the "Least Liked" portion of the question, write down their comments and compare these answers to other questions being asked later.
13. Do you work alone or as a Team? If as a Team, who else will be involved and what role do they play?
An agent may be part of a team or may work independently. If the agent is part of a team, then request to meet the various team members that may have direct interaction with you (Note: If the agent is part of a Team, the whole team should be present for the interview, if they are not, inquire as to why they aren't present). Request to know what each team member's role is. Inquire if one team member works only with buyers and the others only with sellers, then pay close attention to how they answer the Dual Agency question. This is a good time to ask if the agent has an assistant and how often you will interact with the assistant.
14. What percentage of your clients are buyers and sellers?
This is the lead in question that will help you see what the agent's focus is, either that of working with buyers or sellers. There are many agents that prefer to only work with sellers, and just as many that only work with buyers. Other agents maintain an equilibrium between working with buyers and sellers, which keeps them active and more knowledgeable to represent a wider selection of clients. If the agent indicates they work mostly with sellers and you are in the market to buy, then perhaps this agent may not be the best agent for your needs. If you're looking for a Buyer's Rep or a Seller's Rep, then our next article will highlight questions directed to these specialties.
15. How quickly do you respond to phone calls and emails?
Relevant and timely communication is not only required, but is the very acknowledgement of a great Real Estate Agent Communication must be relevant, at the frequency at which the client achieves peace of mind, and by a method the client wants. If you want to be called, then the Real Estate Agent shouldn't send an e-mail. If you want to hear from the Real Estate Agent every day, then they should contact you every single day. As a client, silence, bad communication, and not receiving the form of communication you desire and when you need it all equates to a Real Estate Agent not performing to your expectations and could also show a severe lack of value to you as the client, not to mention could result in delays or lost opportunities. Possible follow-up questions might include:
- Will you communicate with me based upon my needs and desires?
- Do you return phone calls and emails within an hour?
- Do you have an assistant to help when you're not available?
16. Will you personally handle contract negotiations?
Your Real Estate Agent should be active in the negotiations, not simply acting as a conduit between the buyer and seller or their agents. The Real Estate Agent should have excellent negotiation skills and be able to handle these negotiations in person and in a manner to ensure your best interests are served. It’s a good idea to follow-up the above question with these questions:
- How has your negotiation skills saved other clients money, hassles, or helped a transaction come together?
- Do you use email and text message to negotiate?
- Have you had any special training in negotiations?
Ensure the real estate agent actually handles offers and other negotiations either in person or on the phone, not via email and text, as expert negotiators know that in order to negotiate effectively they have to be able to read the subtle nuances of the others involved, which is often overlooked in an email or text message.
Frederick W. Peters, President, Warburg Realty, recently provided a great article about this very topic and stated "I don’t negotiate real estate transactions via e-mail. At least, not if I can avoid it. E-mail is a wonderful tool for conveying facts, but the lack of tone makes it a highly dangerous medium for the communication of complex thoughts. And negotiations are, by definition, complex. The nuances inherent in the back-and-forth of getting to “yes” don’t lend themselves to the reductive reality of words on the page. The interesting deals, the challenging deals: they are all about color. And color comes only in voice to voice conversation. E-mail is black and white. Which leads me precisely to my point of concern: even in spoken exchanges, tone can easily be misinterpreted. But the likelihood of such a misinterpretation is exponentially higher when e-mail is involved."
17. Has anyone ever filed a complaint against you?
An honest agent will be forthcoming about any complaints or challenges. Even though the agent may say 'No' to this question, it is always good to check the Real Estate Agent's standing with the local Real Estate Board, with your state’s Department of Real Estate Licensing, the National Association of Realtors, and even with the Better Business Bureau. Many states provide this information online. Search for "(your state) Real Estate Board" or "Real Estate Commission".
18. Will you provide references of previous and existing clients?
Providing references is part of every interview process and the Real Estate Agent should be no exception. Any real estate professional that cannot or will not provide references may not be reputable. If the agent says that they cannot provide references, then ask them why. Some of an agent's clients may not desire to disclose their contact information with strangers, so inquire if the agent can provide an anonymous form of contacting such clients. The best agents have solid reputations for ensuring their clients' needs are met, and providing references is part of doing business. Obtaining references for previous and existing clients will give you a more balanced picture of agent's ability. Call at least two clients and ask them some additional questions.
- When did this Real Estate Agent work for you?
- Were they available when needed, and did they communicate effectively?
- Are you related to the Real Estate Agent?
- What challenges did you have with this Real Estate Agent?
- Would you work with this Real Estate Agent again?
- Do you have any advice to assist us in working with them?
19. What are the last five real estate transactions you've completed?
Knowing if the agent was working for the buyer or the seller will confirm or conflict with the previous question asked earlier pertaining to this topic. Be sure to ask if they worked as a buyer or seller's rep for each of these transactions. You may also inquire further of each transaction to compare them to similar sales in your city or neighborhood. Inquire as to the List Price and the Sale Price of these transactions and how the agent negotiated a good price for each customer?
- If as the Listing Agent - inquire the original price, how many price reductions, and what the final sales price was.
- If as the Buyer's Agent - inquire as to the List price and how the agent negotiated the best price for the buyer.
20. Do you act in a Dual Agency capacity where you would be representing both buyer and seller?
Dual Agency, or in some states Intermediary, is a relationship in which the brokerage firm or real estate agent represents both the buyer and the seller in the same real estate transaction. Dual agency typically arises in the following way: a real estate broker employs two salespeople, one who works for the buyer as a Buyer's Agent and the other who works for the seller as a Seller's Agent. The real estate broker and associated salespeople are "one and the same" entity when analyzing whether dual agency exists. As soon as the buyer's agent introduces the buyer to property in which the seller is represented by the seller's agent, dual agency arises.
When you employ a real estate broker or salesperson as your agent, you are the principal. "The relationship of agent and principal is fiduciary in nature, ‘...founded on trust or confidence reposed by one person in the integrity and fidelity of another.' Because dual agencies represents a conflict of interest for the buyer and seller, some states don’t allow them. In states where dual agencies are legal, however, the law requires that a dual real estate agent must inform both the buyer and seller of a dual real estate agency and the Buyer and Seller must also sign consent forms indicating that they understand the concept of dual agency/Intermediary, as well as the restrictions imposed on the real estate agent by this type of agreement. If either the buyer or seller refuses to sign the agreement, the transaction cannot continue. Once the dual agency agreement is executed, the real estate agent becomes known as the disclosed Dual Agent or the broker as the Intermediary.
Thus, ensure that your real estate agent will fully disclose any possible Dual Agency or Intermediary aspects regarding your real estate transaction, which could happen if the agent is part of a team.
21. Are you involved in Civic or Charitable organizations?
Although such involvement is not required, it is beneficial, as having an agent that is actively involved with nonprofit work shows that their work isn't solely about earning money, but also about giving back to the community. Civic involvement can reveal further concern for the welfare of others and can shed light into the inner-truths of an agent's motivations. Weight this question with the combined answers to the other questions and you'll gain a broader view of who the agent is as a person and what they really represent.
22. What is your commission and how is it split with other agents?
All real estate fees are negotiable, but typically, real estate agents selling a home charge 6%, of which 3% is for the Listing Broker and 3% for the Selling Broker (the agents may receive various cuts of these percentages based upon their relationship with their Broker. Many brokers do not allow their agents to negotiate commissions. However, some agents will negotiate a commission of from 1% to 4% to represent one side of a transaction and offer a the remaining commission for other agents involved. So always ask about the details and negotiate the best fee and don't be surprised if some seek a higher commission.
23. How long have you been with your current Broker?
The essence of this question is to learn what company the agent is working for and to determine some level of stability in their career. There are many reasons for an agent to move from one broker to another, and by asking this question, you can learn more about the agent's motives for their career. The reputation of the company the agent is associated with provides knowledge into knowing how well the agent may perform, as more well-known brokerages usually only keep the best agents, and may also assist the agent through networking for your benefit.
24. What designations do you hold and what is their significance?
If you look at most Real Estate Agent's business cards or email signatures and you'll see a group of letters, these are professional designations derived from completing a particular level of training or that they are part of a particular organization. REALTOR means they are members of the National Association of Realtors, ABR Accredited Buyer Representative; ABRM The Accredited Buyer Representative Manager; CIPS Certified International Property Specialist; CRB The Certified Real Estate Brokerage Manager; CRP Certified Relocation Professional; CRS Certified Residential Specialist; CSP The Certified Sales Professional; GRI Graduate, REALTOR Institute; QSC Quality Service Certification; and there are many others, so ask the Real Estate Agent to explain the education and training they received to obtain the designation and how it will help you. Find more designations on Realtor.com.
25. What percentage of your business comes from referral?
Competent, well-known and trusted agents get a large portion, if not all, of their business from direct referrals. Any agent not receiving business through referrals may lack in key areas or may be new to real estate. In either case, inquire as to why the agent isn't receiving referrals, but don't dismiss the newer agent based upon this question.
Key points to consider if the agent isn't receiving referrals:
- Were your previous clients not satisfied with your service?
- Did you fail to provide the type of marketing you promised?
- Are you developing a client communication system to keep in touch with previous clients?
26. What method of communication do you prefer personally?
Everyone has different desires and preferred forms of communication. By asking this question of the Real Estate Agent you are learning how they will communicate with you during the time of their representation. If you prefer phone calls and the agent says they communicate mostly via Email, then be prepared not to receive phone calls. The agent's communication style is important for you as the consumer, as the agent should communicate with you in the manner you desire. Thus, ensure the agent you hire is capable of communicating on your level.
27. Did you have another career prior to Real Estate? If so, why did you change careers?
Today, many agents choose real estate as their main career early, while other agents changed careers later in life. Experience from a previous career is often helpful if such experience is aptly applied to providing higher levels of customer service. This also guides you into knowing the agent's approach, as other professions usually require a particular level of training and a particular personality type. Example: An agent that previous worked as a Nurse will more than likely be reactive in their responses, instead of proactive, because the nature of being a nurse is to always deal with the problem when it is presented. An agent that worked as an Accountant will more than likely be more detailed and structured and be able to provide financial data easily.
28. How many sales have you personally handled in my local area?
You want a Real Estate Agent that knows the local market and hopefully has had a few recent deals in your target neighborhood. The key here is also knowing if the Real Estate Agent is capable of representing you. If the Real Estate Agent hasn't had any deals in your area, inquire what similar areas they have had deals in. If you live in a Metro Area, there may be particular Real Estate Agents that "farm" certain areas and you may see their signs throughout your area, but this doesn't mean they are a good Real Estate Agent as many people see the sign and assume the agent can do a good job. To assist you, here are some follow up questions.
- How did you obtain these deals in my area?
- How many sales in similar areas have you handled?
- Can you compare your recent sales to the recent sales in my area?
29. What kind of guarantees do you provide?
In real estate there are many variables, many of which the Real Estate Agent has no control. This question mainly works to learn if you can cancel an agreement with the agent if you are unhappy with their services and what the process will be. Be sure to have the Real Estate Agent clearly identify the cancellation details, as even if you fire the Real Estate Agent you may still be liable to pay for their services when your transaction closes. A Real Estate Agent s failure to perform is due cause to find another Real Estate Agent but what is failure to perform? If an agent promises to perform certain tasks and they fail to do so, that is failure to perform. For instance, if the Seller's Agent says they will advertise the property every week and in certain publications and you, as the consumer, discover that no advertising has been done, then they have failed to perform. Before you sign any agreements, either as a buyer or seller, ensure the agent will release you without any further obligations.
30. What is your average List-Price to Sales-Price ratio?
This ratio is the final Sale Price (what a buyer pays for the home) divided by the last List Price expressed as a percentage. If it's above 100%, the home sold for more than the list price. If it's less than 100%, the home sold for less than the list price.
Knowing the agent's average ratio speaks volumes of their negotiation skills and of their ability to appropriately price your home for the current market.
- When hiring a listing agent, expect to see List-to-Sales ratio within 90% to 100% in a buyer's market; in a seller's market: 100% to 120% of List Price.
- When hiring a buyer's agent, expect to see List-to-Sales ratios within 90 to 99% in a buyer's market; in a seller's market: 100% to 105%.
Excluding periods of strong seller's markets, a good buyer's agent should be able to negotiate a sales price that is lower than list price for buyers. A competent listing agent should hold a track record for negotiating sales prices that are very close to list prices. Therefore, listing agents should have higher ratios closer to 100%. Buyer's agent ratios should fall below 99%.
31. What other professionals will you be working with and why?
This question is designed to not be specific, as other questions here allow this question to be a catch-all. The Real Estate Agent should explain who they work with and why they choose these other professionals. Your agent should be able to supply you with a written list of referring vendors such as mortgage brokers, home inspectors, painters, handymen, title companies, and other services needed to complete a real estate transaction.
- Do you or your broker receive any compensation from any of vendors?
- Does the Title Company you work with charge competitive fees?
- Do you or your broker receive a referral fee from any of these professionals?
- Do we have to use your recommended vendors or can we select our own?
All agents develop strong professional relationships, from title companies to escrow officers to mortgage lenders, home inspectors and appraisers. Such strong relationships can provide you, as the consumer, a better deal. If the Real Estate Agent cannot or will not provide you with a list of such other professionals, then they may not be effective in dealing with any challenges that may arise or be able to assist you in repairs. Please note that in some states such referral fees are against the law.
32. What are the Top Three things that separate you from your competitors?
A good agent shouldn't hesitate to answer this question and will be ready highlight their strengths. Write these down and compare them to other answers to develop your own follow-up questions. Everyone has their own strengths and weaknesses, so use this question to determine if the Real Estate Agent is one that provides you the strengths you need or desire. Most consumers indicate they desire a Real Estate Agent that is:
- Honest and trustworthy
- Assertive
- Excellent negotiator
- Available when needed
- Good communicator
- Friendly
- Analytical
- Able to calmly handle challenges
Are these the same aspects you need in the person representing you?
33. What professional organizations are you affiliated with?
Connections and networking are two of the most valuable assets of any successful real estate agent. Active membership in professional organizations, whether real estate related or not, allow for greater networking and improving skills. Such memberships also indicate the agent's commitment to ensuring they have the knowledge, and often access, to provide their clients with the best services possible. The connections a Real Estate Agent makes through these associations allow them to promote their clients throughout the community by being regularly visible. Many brokers provide their agents with memberships into various real estate related organizations, all of which can be beneficial to you when seeking to buy or sell real estate.
34. Do you work primarily as a Buyer's Agent or a Seller's Agent?
A direct question that addresses your specific needs for either a Buyer's Agent or a Seller's Agent. If an agent isn't primarily focused in the area of representation you desire, then they may not be the most suited to your needs. However, this doesn't mean that a good agent cannot provide the services you need. Use the other questions here to determine if the agent has the requisite skills you desire and then make the determination for yourself as to whether they are the best fit for you.
35. What haven't I asked you that I need to know?
Pay close attention to how the real estate agent answers this question because there is always something you need to know, always. The agent be willing to invest time with you:
- to make sure you feel comfortable and secure with their knowledge and experience.
- to show they know how to listen and how to provide counsel.
- how to ask the right questions in order to know how to better serve you.
You might ask the agent to reiterate your goals and objectives. Use this question to see how the Real Estate Agent uses this opportunity to explain areas that may not have been addressed. If, for any reason, the agent doesn't use this question to show they have a thorough understanding of what you want, despite their answers to other questions, then hire another Real Estate Agent Some agents have not developed good listening skills and may not be able to hear your desires expressed throughout the process of the interview. You deserve an agent who will listen to you and communicate with you, and in the communication style you need, not theirs, but hopefully the best fit will be when you find a Real Estate Agent that communicates in the same style as yourself.
What's Next?
Now that you have a firmer understanding of the questions and the reasons for asking them, our sincerest hope is that this information will assist you in finding a Real Estate Agent that is best suited to your real estate needs. If you have questions about any of our explanations, please feel free to contact us or post a reply below.
Sign-up for email notifications of the upcoming additions to this series. Next will be “Questions for a Buyer's Agent” and “Questions for a Seller's Agent”
Read second article in this series:
Ease of Use.
Read the third article in this series:
Questions for Interviewing a Real Estate Agent
Written by Sebastian Barrett St.Troy
(Personal note: I would like to express gratitude for the many people who participated in the refinement of this article, including all of those who shared their insights through our professional discussions on LinkedIn.)
Real Estate Concierge Services previously Austin Market-Ready Services
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