I have built a good portion of my wealth through real estate, and have completed a number of transactions as the buyer, seller, or landlord. One of the things I have learned is that it is imperative to work with a good real estate agent if you want to have success with your transaction. This post will include the major qualities you want to look for to find the best real estate agent in town!
Sometimes people get this idea that they can save money and get a better deal by not using an agent at all, or worse if you’re the buyer, going straight to the listing agent. This is a terrible idea! If you are the buyer and you think working with the listing agent is going to get you a better deal, you are sorely mistaken. The listing agent works for the seller and their singular focus is selling the house for as much money as they possibly can. They will not have your best interest in mind.
Different states have different practices when it comes to how a real estate agent gets paid commission. In my home state of Massachusetts, the seller is responsible for paying all the agent fees at closing, which is a great deal for buyers! But even if the agent’s fees ultimately come out of your own pocket, I’ve found that working with a good real estate agent will more than pay for itself in the value they can bring to you.
So how do you go about finding the best real estate agent?
Referral
Whenever possible, always work with a real estate agent that has been referred to you by someone else. Ask the savviest friends or family members you know in the area about who they’ve worked with and if they would work with that agent again. Despite the internet’s best efforts to convince you otherwise, word of mouth is still the best way to figure out who the premier real estate agents are.
The bar is set pretty low in terms of who can become a licensed real estate agent, and unfortunately, this means that there are a lot of crummy agents out there. Getting an enthusiastic referral is one of the most promising ways to avoid substandard agents.
Full Time
Because the barrier to entry is so low, you get a lot of folks who are real estate agents only part-time. Unless you live in a super tiny town where there’s simply not enough transaction volume to support full-time agents, you automatically should not work with anyone who isn’t dedicated to real estate 100% of the time. If they aren’t living and breathing the real estate market every day, they are likely to be less informed than someone who is.
It will pay off to work with an agent who is a true, full time real estate professional.
Closed Deals
Always ask an agent how many deals they’ve closed in the last 12 months. Ideally, the number should be 6 or more.
This is important to know for a few reasons. First, it lets you know that the agent can get deals closed. Second, being active in the market and closing deals tells you that they have a good feel for what’s happening out there and are aware of market conditions. Third, if they’ve closed at least 6 deals in the last year, they aren’t desperate for a paycheck. An agent only gets paid if they close a deal, so if they’re in a drought and need cash, they likely will be more motivated to push a deal along, even if it isn’t in your best interest.
Interview
When you’ve identified an agent or two that you’re considering working with, don’t be afraid to interview them. Ask questions about their business, and get to know them as a person. You’ll be working with this agent for a few months at a minimum, and the whole process will be smoother if you have a level of rapport. You obviously don’t need to be best friends or even feel like you want to hang out socially, but you should feel comfortable communicating with them and confident you’ll have the ability to express your needs.
There’s a good chance that your agent will have to tell you no or deliver less than ideal news at some point during your transaction, so having a certain degree of respect and admiration for your agent will go a long way.
Bonus Points
Finally, one thing that I always recommend people look for in an agent is that the person works as part of a team. My agent is part of a larger team of 6+ people in her office, and that group of folks have been invaluable to me in ways I could never have expected.
One of the advantages of the team approach is availability. I don’t know how many times I only had a few hours during the day to go check out a potential home, and my agent was already booked up for something else. Instead of her having to completely rearrange her life for me, she just called upon a team member to come meet me and make sure I got to see the property.
Another advantage is that you multiply the amount of knowledge and experience that is available to you. Instead of relying on just one person’s expertise, you suddenly get the benefit of multiple people who all have years of real estate experience. This can be incredibly helpful when those random issues or questions crop up during a negotiation or home inspection.
Each of these agents also has a wider network of real estate adjacent professionals. I have come to rely on countless referrals from my agent for everything from quick home repairs and major renovations to mortgage financing and lawyers. Tapping into an agent’s network is so valuable because most of those other professionals are quick to respond when they know you are a referral from a real estate agent.
A good agent is worth their weight in gold, especially if you are an inexperienced buyer or seller, or if you are buying or selling a high value home. Not only can a good agent end up saving you a lot of money, they can and should make the transaction as seamless as possible by staying on top of contingency dates and managing the entire transaction. A bad or lazy agent can literally cost you tens of thousands of dollars if they miss a deadline or push you to waive contingencies.
My real estate agent has saved me thousands of dollars by being diligent and persistent on my behalf in addition to having a solid understanding of the transaction process and the local market. I have walked away from so many deals thanking the heavens that she represented me and not the other way around. I would recommend her to anyone and everyone, except she’s already really busy and I need to make sure she’s available for my next transaction!