Questions to Ask a Realtor When Buying a Home

Unless you have gone through a real estate course yourself, it's always best to use a Realtor when buying a home. However, like many professions that is based on a commission, it's not a given that whomever you select is working in your best interest. Some Realtors have gone through some extensive training. Some Realtors have more training than others. Nevertheless, it's the hands on experience and how the Realtor handles an outcome that will ensure you their competency.

There is an observation made in real estate, "20 percent of Realtors do 80% of the real estate transactions." That means, you have a lot of "wanna be" real estate agents that are doing this on a part time basis. So it is important that you are not working with Uncle Joe who just wants to earn a little cash here or there with his license.

Also, be aware that there is a distinction between a Realtor and a real estate agent. Both have their real estate license; however, only the Realtor has the tools that can afford you more information that will lower your risk when purchasing a home. Yet, there are Realtors that are part time workers, too. A Realtor pays dues to a local board of Realtors and that is how they get some of those tools they use.

Interview Process

You are hiring a Realtor for their service. So, there needs to be some scrutiny to see how good they have been in their profession. Remember, this is for your welfare and to lower your risk when buying a home. Be firm and take control always of the Realtor by interviewing them. Here are some questions to ask:

1. Do you work full time? The answer needs to be - yes.

2. Will you be representing me and negotiating on my behalf? Depending on your local board of Realtor's rules, you might sign an agreement stating what type of representation the Realtor will be giving you. Have them explain it to you.

3. When was your last transaction? It's important to know how often they are closing their deals. If it is frequent and you are in a market like today which is very slow, then you have an enthusiastic and productive Realtor.

4. Do they suggest that you get yourself pre-approved by a lender? It is important to get pre-approved for two reasons - to know if you are going to have any problems qualifying for a specific dollar amount and it's a good tool to bring to a seller for negotiations. You can get yourself prequalified by a lender; however, that just means they will assume everything you are saying is in line. When you get pre-approved, you will receive a commitment letter from a lender showing you have gone through the process of being approved by an underwriter. Then, all you need to do is find the house that suits you up to that approved price. Furthermore, check with 3 independent lenders for rates and ask for a "Good Faith Estimate" which is something by law lenders are suppose to give you. A good Realtor can help you with the rest.

5. What type of extensive training or ongoing education have you had? This doesn't mean they need a lot of training or education because if they have diverse experience it can be just as beneficial as training or education.

6. What is your schedule like for giving me the necessary attention? You want someone who will allow you to call them even if they are off of work. Timing is everything in real estate. You could find a home before the Realtor does and you want to be able to feel the freedom to call them any time.

7. Could you give me 3 references of your most recent buyers? This is the best way to find out how good they are. And make sure you do follow through and call them.

8. Will you be with me all the way from start to finish? Top Realtors could have assistants that help them after they get you on board with them. That is a personal decision for you. If you have a busy Realtor and always have to deal with the assistant, it could become a problem.

Choosing a good Realtor is like selecting a good wine. There are a lot of wines out there, but unless you know something about where it came from and the quality of its substance, you wont' know how it tastes till you uncork it. Furthermore, choosing the right Realtor creates a better risk to reward scenario when buying a home especially if this is your first time buying a home or new to an area. After 18 years of experience in being a real estate broker/investor, I have come across a lot of bad Realtors. However, it really is no different than any profession - mortgage lender, lawyer, financial planner. In my opinion, I would choose a diverse experienced Realtor who is familiar with the area I am interested in versus one that is not.