6 Important Factors to Consider When Hiring a Real Estate Agent

Buying and selling real estate property can be cumbersome and complicated, considering the numerous requirements and complex paperwork. To this end, working with a real estate agent becomes more of a necessity than an option for ordinary buyers, sellers, and even novice investors.

Fortunately, there are plenty of real estate agents, and finding one should be quick and easy. However, some agents are better than others, and their scope and quality of services can considerably impact important elements of your real estate transaction, such as the property’s location, size, and price. To this end, you should only settle for the best real estate agent.

6 Factors to Consider When Hiring a Real Estate Agent

Here is an overview of six factors to consider when looking for the right real estate agent:

1.      Experience

Education and training give agents a theoretical understanding of the industry. However, mastering the market takes hands-on experience of working with buyers, sellers, and other real estate professionals. For example, experience helps agents to sharpen negotiation skills, grow their networks, and easily identify and leverage trends in the market, all to their clients’ benefit.

As such, an agent with at least several months or years of experience is recommendable. It is also worth noting that personality matters as much as experience, so go for an agent that is easy to work with.

2.      Expertise

Expertise and specialization also affect a real estate agent’s skill set. For example, some agents specialize in residential property while others focus on residential property. Ideally, the agent’s expertise should align with your needs and preferences.

It is also worth noting that some agents have no specialty and can handle diverse property types and real estate niches. However, working with a specialized agent is better than working with a general agent, especially when buying or selling exclusive property types.

3.      Availability & Communication

The process of buying or selling property involves many activities, such as property appraisal, inspection, and tours. Moreover, you may have many questions about the transaction. To this end, you may need an agent’s services on short notices. However, some agents have too many clients and portfolios to meet all of your needs, leaving you stranded.

Ideally, your real estate agent should be available whenever you need them. Moreover, they should have good communication skills to keep you updated on new developments and the transaction’s process.

4.      Reputation & Goodwill

A real estate agent’s reputation reflects the quality of their services. Ideally, your real estate agent should have a good reputation characterized by trustworthiness, reliability, and quality services. You can gauge an agent’s reputation based on their past clients’ honest reviews.

Additionally, goodwill also matters because your agent should have your best interests at heart. For example, they should negotiate the best price for your property to save you more money if you are buying or make you more money if you are selling. Interestingly, you can also gauge an agent’s goodwill based on their reputation and personality.

5.      Commission & Fees

One of your main goals as a seller or buyer should be making or saving as much money as possible on your real estate transaction. To this end, you should take all opportunities to minimize transaction fees and costs. Notably, the agent’s commission is one of the largest costs in real estate transactions, reaching up to 6% of the property’s price.

Fortunately, agents’ commissions vary slightly from one company to another. Moreover, some agents are open to negotiations. As such, go for an agent with a reasonable (not necessarily the cheapest) and negotiable commission rate, and avoid agents and brokers with hidden fees.

6.      Networking

Real estate transactions involve working with different professionals, such as property appraisers, home inspectors, attorneys, and lenders. It can be a logistical mess, especially if you are new to the market. Fortunately, real estate agents regularly work with other professionals in the industry, enabling them to expedite and streamline transactions. As such, go for an experienced agent with a large and reliable professional network.

Conclusion

A good real estate agent should be available to help with all aspects of a real estate transaction, from finding buyers or sellers to closing the deal. As such, ensure that an agent satisfies the six factors discussed above before hiring them.