Buying or selling a home is likely the biggest transaction of your life, and you want to do it right. But where do you begin? For a growing number of people, buying or selling a home is something they think they can handle on their own, without the help of a real estate agent or REALTOR®. However, in the end, most people will enlist the services, expertise, and time of a professional real estate broker or agent to get the job done. A job well done by a real estate broker can mean more money in your pocket, whether you are the buyer or the seller.
Note that if you are the buyer, you most likely won’t have to pay any commission to your real estate agent. Your agent is generally paid by the seller. The homeowner pays a sales fee or commission to the seller’s agent, which is then split between the buyer’s and seller’s agents. For this reason, it’s an obvious advantage to enlist the services of a real estate professional when you are in the market to purchase a home or property.
Understanding the Difference: Agent vs Broker vs REALTOR®
To be clear, a real estate agent is someone who holds a license to facilitate real estate transactions. A real estate broker, on the other hand, is typically a manager within a real estate firm who employs agents. Brokers generally have additional training, especially in real estate law. While some brokers still practice and sell homes, others strictly manage offices of real estate agents. A REALTOR® is an agent who holds membership in an organization such as the National Association of Realtors or the Canadian Real Estate Association, and as such, adheres to the REALTOR® Code of Ethics.
Ultimately, what’s most important in your search for a real estate agent is finding one that’s the right fit for you. Doing a bit of research will strengthen your choice and the trust you place in your real estate broker. A great way to do this is by “interviewing” them without them realizing it. There are often many open houses—attend them and observe how agents interact with you and others. Do they seem caring, attentive, and supportive? Are they listening to your needs? Or are they simply trying to sell the house they’re currently in and move on to the next lead?
Sometimes, looking for an agent who has listings in the neighborhood where you want to buy or sell can be helpful. This ensures they’re familiar with housing values in that area, as well as schools, shopping, crime rates, the local community culture, and other factors that may influence your decision. If you’re selling a home, an agent with listings in your neighborhood may already have a pool of potential buyers, which could work in your favor. If you’re selling, you might also consider calling an agent to show you another listing so you can experience them as a mock buyer before enlisting their services.
It’s important to interview more than one agent to understand the value they bring to the table. Don’t hesitate to ask for references. Are they tech-savvy? What’s their marketing plan? How will they help you keep money in your pocket? A real estate agent may have a solid marketing plan and deep technical knowledge, but they also need to be a strong communicator. Evaluate their communication methods by not only talking with them but also reviewing their marketing materials, website, and social media (Facebook, LinkedIn, etc.). They need to be timely with responses, effective in conveying information, and skilled at helping you navigate the next steps (inspections, financing, etc.).
Keep in mind that a real estate agent is obligated to tell you everything they know, and they earn a commission for doing their job. You can request them to break down the steps and explain what they’re doing. Be clear about your expectations—especially if you are a first-time home buyer or seller. Are they actively working every day, responding to calls, and available for showings? Are they full-time agents or part-time, busy with other commitments?
You’ll also want to know the fees your broker charges if you’re selling. Do they receive a commission, or do they work on a fee structure? Commission is generally negotiable, but good agents are worth their fees, as they can save you thousands by doing their job correctly—whether you’re selling a home or negotiating the best price when buying.
An agent with several years of experience brings valuable expertise. They understand market fluctuations and have likely seen down markets. They can help you navigate these situations if needed. Experienced agents know how to adjust their strategies depending on whether it’s a buyer’s or seller’s market. They should be able to share trends, explain why certain things are happening, and predict where the market may be headed. However, remember, if they truly had a “crystal ball” to see into the future, they would probably be retired from winning the lottery!
In your search for a real estate agent, you need someone who can convert calls of interest into showings and, ultimately, into sales. Most people hire an agent because they specialize in dedicating time and skill to the complexities of home or property sales. The real value of a real estate agent is in closing the transaction and ensuring all financial and legal aspects are covered. There are many more things to consider when purchasing a home today than ever before. Real estate agents are aware of issues like radon gas, marijuana grow ops, caveats on title, land easements, building compliance issues, and so much more.
If you’re not confident in your ability to handle these complexities, it’s highly recommended to rely on an expert. The process will be much more enjoyable, and you’ll have peace of mind knowing that the important details are covered. Happy house hunting or selling!
