1. How long have you been active in residential real estate? If the agent has not been active in the local real estate market for several years, he or she has not been involved in the cyclical market that has defined our market to date. Along with this, ask approximately how many transactions the agent has closed. One agent may have been in business for 10 years and closed 10 transactions, while another agent may have been in business just 5 years, yet closed 50 plus transactions. Experience is relative to the amount of business the agent does.
2. What is your procedure for assisting a buyer from beginning to closing? Make sure that the agent can explain to you the steps required and how he or she can help you, with everything from locating a house, to writing an offer to purchase, and then guiding you through the steps (inspections, selecting a title company, getting insurance, etc.) to get you to the closing table and purchase the home of your dreams.
3. What is your experience with financing alternatives, and what might they be in my situation? Each buyer's situation is different. Often, a lender can put you in a much better financial situation with the same monthly payments simply by adjusting the financing. You might have many alternatives. Your agent can refer you to a lender who is familiar with situations such as yours, one who is knowledgeable of transfer fees and closing costs specific to the area where you plan to buy.
4. How do you determine my qualifications and when? You would be shocked at how rare it is for an agent to ask that you become prequalified by a lender before you even look at any houses. It is very important to have this done early (as a first step) in the process. This way you know exactly what your price range is and just how much home you can (want) to afford. You will also find out early on if there are glitches on your credit report that could take time to get cleared up and keep you from getting the home that you really wanted. Taking this first step will prepare you to make a strong offer at a moment's notice and increase your chances for not only finding, but buying, the home of your dreams.
5. How do you provide me with information on new homes for sale? Your agent should have a system that automatically emails you updates you when new homes meeting your criteria come on the market.
6. How do you find the best value for me? How do you make sure it is a good value? This is important because the agent should be able to explain to you that he or she will make you aware of several homes in the same price range that you have chosen so you will be able to compare and evaluate how much more or less you can get for your money within the same range. Value becomes obvious based on these comparisons.
7. How do you protect me from the extensive costs that lenders, title companies, inspectors and others charge a home purchaser? The typical answer is that these charges are normal. Make sure that your agent has a good relationships with companies that can offer you exceptional services. The agent can refer you to several providers, if you want, and you can personally decide who is best for you. Also make sure that the agent has an immediate knowledge of what typical transfer taxes are for the area where you are buying.
8. Can you sell me either a new home or a resale home that is listed with any company? Most agents will answer affirmatively to this question. You should follow up with specific questions based on your needs. It is of utmost importance that the agent make you aware of all homes available in your market area in your price range. If you select an agent and then find out that the agent is making you aware of only his or her personal listings or only properties listed with that agent's company, find yourself another agent. You should be getting MLS information about "all" homes on the market, in your price range, in your area of interest.
There are many more questions to ask, this is just a sampling. Do you have a specific question you would like answered? Let us know by clicking here!