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How do you know if you are working with an agent that you are ultimately going to be able to work with? (These tips work whether you are buying or selling real estate, with a few small changes between the two).


Trust your gut. If you don’t have a good feeling after a five minute meeting with that agent, you are NOT going to work well with them once you add in the stress and strain of what might be the largest purchase or sale you ever make. Money can do ugly things to people, regardless of who they are and what role they are playing. You have to be able to trust that this person you are getting ready to hire is looking out for your best interests only. If you don’t feel it, keep looking.  


Ask about experience. You are likely going to want to work with someone that has several years of experience representing both buyers and sellers under their belt. You may get lucky and find a new agent who has the right transferable skills from another field that will do very well for you, and again, this is where you have to listen to your gut. If the agent is a go-getter enough to ask you for your business, they are probably going to do the same thing with every person they show a house to, and if you are a seller, this is exactly what you need. Not enough agents ask a buyer if the house they just looked at is the right one. Some buyers need permission from their agent to buy a house. If the agent never asks, the buyer never volunteers it, and that agent can show another 20 houses before finding out that the buyer liked a house they saw 2 weeks ago. By then, maybe that house is still available, maybe not. At any rate, you want the right combination of an agent that is assertive without being aggressive in their representation of you, and you will be most likely to find this in a seasoned agent.


Interview several agents. Everyone should have their best foot forward when they meet with you. Are they well-groomed and dressed professionally? Did they bring materials with them or did they come with nothing? (What they bring may depend on whether you are a buyer or a seller) but at a minimum, they should have a business card and something to take notes on. Ask what kind of an action plan they have for you, what you will be obligated to in terms of payment to them, whether you will be under an exclusive contract with them (and importantly, for how long) and what remedies you have if you become unhappy with their service during the contract period. Every agent does business differently, so the faster you understand the nuances of the agent you are meeting with, the better off you will be. Remember that in real estate, EVERYTHING is negotiable!


Know also that cheaper is not necessarily better when it comes to real estate commissions. A good agent, while they may charge more for their services will not give away the farm when it comes time for negotiating. An example: You complain that you cannot pay more than 5% for a total commission, and you hire someone that you are able to get for 4%. Good for you, right? Not necessarily. First of all, if you are selling a home, you are responsible for paying the commission for both the listing and selling agents. If your listing agent does not offer at least a 2.7% commission to the selling agent, you will not get many showings as most sellers offer at least 2.7%. 

They will show those homes rather than yours. So, if this agent you have hired for 4% DOES offer a 2.7% commission to the selling agent, they are left with a listing agent commission of 1.3%. Most agents have to split their commission with their broker, which backs them down to .515% - just a little more than one half of a percent. The agent also has to pay their advertising and all of their costs for licensing, insurance, etc. from this meager commission they have negotiated from you. 

Honestly, what are the chances that this agent is then going to dig in his heels when a low offer does come in, and negotiate a higher offer for you? Most agents who negotiate like this are going to cram the offer they have down your throat rather than going back and forth 2 or 3 times in an attempt to get as much for your property as they can…they cannot afford to provide you with the excellent customer service that someone who is being well paid for a transaction will give you.  So…while everything in real estate IS negotiable, trust your agent when they give you their advice on commissions, pricing, etc. (that is why it is so important that the person you hire is someone you trust, because they are helping you make decisions that could be critical to your family and your family’s future).