5 Red Flags to watch for when hiring a real estate agent
In today’s real estate market there are a lot of BAD things out there that can cost you tens of thousands of dollars, put you in a home you just do not like, and/or cause conflicts between families and friends. Below is a list of 5 Red Flags to watch for when hiring a real estate agent.
1) The agent is PART-TIME
It does not matter if you are a buyer or a seller, you want an agent who is living, breathing, and sleeping real estate everyday, all day. If you are a buyer you want an agent who can jump on a new listing and be able to show you a hot listing immediately, especially in a sellers market. If you are a seller you want an agent who is always available to schedule showings for prospective buyers and their agents, and also have time to properly market your home.
2) Agents who charge a LOW, or NO, commission to sell your home
In the majority of the United States commissions run between 5 and 7 percent of the sale of the home. This commission is split between the seller and buyer agent. If the commission on your home is low very few buyer agents may not want show your home to their clients. If the selling agent is making a very low, or no, commission on the sale of your home they may not spend the time needed to properly market your home, and/or, do not have the funds to fully market your home. This does not mean you cannot negotiate a slightly lower commission, but don’t use this as the sole reason in choosing an agent. It’s just a good bargaining tool to create a “win-win” for you and the agent.
3) Agents who pop-up on ONLINE listings that do not belong to them.
Agents who show up on these ONLINE listing are paying to be there, because this is a way they may generate lead sources. Keep in mind that they may, or may NOT, be a good fit for your needs and wants. Do NOT go solely on the online portals information that states the agent is the neighborhoods expert. Interview the agent and find out yourself if that agent is the right fit for you.
4) Hiring an agent who is a relative
Unless your relative is one of the top agents in your area who specializes in your neighborhood/town, that agent will unlikely represent you as well as another full-time agent. This may also cause negative feelings/resentment as well as create hiccups in your real estate transaction.
5) Last, but not least, the agent does not know the real estate market in which you live in
Finding an expert agent in your area is very important, especially where moving a block away can lower, or raise, the value of a home buy thousands. An agent who specializes in your area will not only know the market inside out, but they may already know of a buyer who is looking for a home like yours, or a seller who is ready to sell a home that you are looking for. It is very important you hire an agent who knows the local area and market.