Wealthy Living has given permission to republish this post on the questions homebuyers and investors should ask their realtor.
Buying a property can be a stressful experience. For many, hiring a professional to handle these time-consuming tasks makes sense. Realtors can relieve you of effort while also assisting you in obtaining a better deal.
As a real estate investor, purchasing an investment property is perhaps the largest financial transaction you can ever make. Working with a realtor is essential because investing in a property is expensive and complicated.
If this is your first investment property, an investor-friendly realtor can guide you through the process and help you identify the best properties available.
It is, however, essential to interview multiple agents before selecting one. This interview can be conducted over the phone, by email, or in a face-to-face meeting.
6 Questions for Your Realtor
No one should judge you for being picky about who you select to help you sell or purchase your house because it’s one of the most important investments you’ll ever make.
Find a realtor whose philosophy and techniques are similar to yours. To find the right person, interview at least two or three realtors.
By asking the right questions, you will be able to know the realtor’s abilities and personality. Of course, the realtor must have excellent recommendations and be well-known in your community.
In this article, we will go over some key questions to ask the realtor so that you make the best possible decision.
1) Can I see your references?
A realtor, when spot interviewed, is inclined to tout all his strengths — sales records, qualifications, experience, and so on. But he would not be able to tell you how it feels to work with him on a daily basis.
Hence, when buying a property, you must always ask for references from your realtor. Call some of these references and inquire about their customer experiences with the realtor.
Were they satisfied with his work? Was it easy to get in touch with him? Did he keep them up to date? Will they recommend him to others?
A positive review from a previous client will offer you a decent indication of whether the agent is worth your time in the real estate sector.
However, make sure to question if the references are related to the agent; a list of friends and relatives is unlikely to provide an unbiased appraisal of the agent’s positive and negative characteristics.
2) Is it possible to get a CMA for the area?
A comparative market analysis (CMA), which is a list of homes now for sale and previously sold in the area, should be available from any realtor.
The CMA (also known as “comps”) compares the specifications of your house to similar homes on the market and comprises information such as price, square footage, and the number of bedrooms. An experienced realtor will make this aspect a priority.
As new businesses open, schools are established, and demographics shift, communities evolve. A realtor maintains track of the local community and can tell you whether an area is more family-friendly or better suited for a retired couple.
They can direct you to the community that best suits your lifestyle, whether it’s based on walkability or good schools.
3) How many clients are you working with?
While it is impossible to predict how many clients a realtor can efficiently handle, keep an eye out for excessively high numbers.
If a realtor is representing 50+ clients at the same time, their time may be divided. As a result, you may not receive as much attention as you would like.
Working with a realtor who is difficult to contact or who is always busy with other clients might be a frustrating experience for you. An agent with too many clients may not ensure all your needs are taken care of and may even rush the process.
Few clients could indicate a realtor with little experience or who has not come highly recommended by previous real estate investors. Because word of mouth is essential in the real estate industry, the best realtors are likely to be in high demand.
4) How many real estate deals have you completed?
One of the most crucial questions to ask a realtor is this one. Just because a realtor operates in your target neighborhood doesn’t mean they’ve helped clients buy homes there before.
Find a real estate agent in your target zip code who has a demonstrated track record of closing deals.
The majority of real estate agents specialize in assisting property sellers or buyers. Because you’re buying an investment property, you should hire a realtor who specializes in property purchases.
However, a realtor who specializes in both can still be useful because they are familiar with both aspects of the process.
5) What experience do you have?
When interviewing a real estate agent, inquire about his or her experience in the industry. Find someone who has been a full-time realtor for at least five years, and stay away from people who do it part-time.
The realtor should also have prior expertise buying homes in the area you prefer. For example, if you’re looking to buy a house in California, it’s not a good idea to engage a Nevada-based realtor.
If you’re looking to buy a house, choosing an agent who knows the area well will help you narrow down your options. A qualified buyer’s agent will be able to consider your current and future demands to choose the best neighborhood and home for you.
If you have children, for example, you’ll want to look for an area with good schools.
6) What’s your commission?
Realtors charge a percentage of the final cost of the investment property as a commission. The commission is usually 5-6% of the final cost; however, it might vary depending on the situation. It is why one of the first things you should ask a realtor is this one.
Final Word – Questions to Ask Your Realtor
Remember, working with a realtor entails a lot of communication back and forth. Poor communication leads to frustration and lost time.
Do you prefer to communicate via text or email? Or are you more at ease making phone calls? Whatever approach you select, make sure you pick a realtor who can work with it. Some realtors even use smartphone apps to keep their clients up to date on essential information.
The above are the most crucial questions you should ask a realtor before investing. While it’s vital to interview realtors before purchasing a property, don’t go overboard. Also, don’t make the blunder of interviewing multiple realtors from the same firm.
Pay attention to the realtor’s response to this inquiry. A professional realtor will take the time to provide you with essential information so that you feel secure and comfortable. They’ll also ask the right questions so they can decide how to best assist you.
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Disclosure: The author is not a licensed or registered investment adviser or broker/dealer. They are not providing you with individual investment advice. Please consult with a licensed investment professional before you invest your money.
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Tim Thomas has investments in real estate.
This post was produced and syndicated by Tim Thomas / Timothy Thomas Limited.
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