It’s no secret that buying or selling a home – or sometimes doing both simultaneously – is a massive undertaking. Where you live determines where your kids will grow up, where they’ll go to school, what type of neighborhood you’ll live in, and more. With so much at stake, you need to have a real estate agent you trust – one who is knowledgeable, who cares about what’s important to you, who works hard and knocks it out of the park. But how do you know who’s trustworthy?
Here are nine Red Flags to look out for when choosing a real estate agent:
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They’re not a local expert. Choosing someone who knows the area you want to buy or sell in is crucial. In some neighborhoods, moving just one block down can increase or decrease a home’s value by $100,000. Only local experts are privy to that type of information. You need someone who knows about schools, shopping, public transportation, and crime rates. They should be knowledgeable about the current price value (and historical trends) of homes from neighborhood to neighborhood, and have relationships with sellers whose homes aren’t on the market yet, and buyers who might be interested in a property like yours.
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They don’t specialize in the property type you're buying/selling. For example, if you’re looking for an investment property, you need to choose an agent who specializes in investment real estate.
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They promise the highest price for your home = huge red flag. You want someone honest, and any honest real estate agent knows that an overpriced home sits on the market because buyers won’t come near it – the longer it sits there, the more concern buyers have that something is wrong with the listing – the higher likelihood that you’ll have to drop the selling price well below what you’d ever want to sell it for. A top real estate agent knows the sweet spot for listing a home to maximize the sale price and will show you at least three comparable homes in the neighborhood that have been sold recently so that you can get an accurate expectation for what your home will sell for, and how long it will take to sell it.
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They have a questionable commission rate. (I.e., their commission rate is too low, too high, or variable.) If it’s too high, you know they’re only in it for the money. If it’s too low, they’re probably desperate. If it’s variable, it’s probably because they’re working with a dual agency which allows the agent to represent both the buyer and the seller which can lead to a conflict of interest.
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They hesitate to provide you with a list of former clients. It’s always wise to check with prior clients before hiring a real estate agent regardless of your history with him/her. If the agent doesn’t want you to get references, it might be because they don’t have them.
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They’re a friend or family member. Unless your relative is a proven top agent, do not risk hiring them. If things go south, you may harm the relationship for years to come.
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They’re a part-time real estate agent. While they may be good, they won’t have the time or resources to give you 100%. And you deserve 100%. A full-time real estate agent has full-time access to new listings, market trends, and prospective buyers.
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They don’t stick to your budget. Again, you want someone who gets you. They need to value and respect your time, your budget, and your desires. If you have someone who’s consistently showing you homes outside of your price range, move on.
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They don’t often work with buyers in your price range. The reality is that you want to work with an agent who values where you’re at. If you’re looking for an entry-level home for $250,000, find an agent who’s passionate about helping first-time buyers. If you’re seeking a luxury home, find a luxury real estate agent.
