Buyer Agent Interview Guide
Many people think that all real estate agents do the same things to help buyers find homes.
This could not be further from the truth! Interviewing an agent is not something you should take lightly. Your home is one of the biggest financial transactions that you will ever make. You owe it to yourself to hire someone that will treat it that way.
There are many questions that you might want to ask a buyer agent, and whatever those may be, you should not hesitate to ask them. A good agent should be willing to take the time to answer any of your questions so that you can feel confident in the person you are hiring.
No matter what you choose to ask a potential buyer agent, the questions below should be included in your interview in some form or another. In many cases, you will find that the best agents will answer most of these questions before you even ask them.
In the end, remember that the best indication for whether an agent is a good fit for you boils down to one simple thing – your gut! No matter how great the agent may be, never let credentials or experience take precedence over whether you feel like an agent is trustworthy and someone that you can have a good working relationship with.
You can download this guide, including the interview Evaluation forms using the link!
1. HOW LONG HAVE YOU BEEN WORKING WITH BUYERS?
Experience is very helpful but doesn’t necessarily mean that a newer agent couldn’t be a rising superstar. This question is really more about creating an opportunity for you to gauge their negotiating and sales skills. A good agent, regardless of how much experience they have, will recognize this question as an opportunity to demonstrate these skills in their response.
2. DO YOU LIVE AND WORK IN THE COMMUNITY?
While it is certainly not a requirement that your buyer agent live in the same town as you, this question opens the door to gaining insight into how familiar the agent is with the market in which you want your home to be located. This is crucial for both an agent’s ability to determine the true market value of a home and whether the agent will be available when needed. If an agent has to drive 45 minutes to collect your signature on a form or show you a property, that might not be ideal, no matter how well they know the market. What’s more, if your agent cannot provide you with guidance on what a home is actually worth, you may end up under contract on a home for which you cannot get financing to purchase because the lender’s appraiser determines the value to be lower than the offer price.
3. DO YOU WORK EXCLUSIVELY WITH BUYERS? WHY OR WHY NOT?
A great majority of agents help clients both with buying and selling homes. However, some agents work exclusively with buyers, and others exclusively with sellers. There are various reasons for this choice, but most agents will tell you that agents with solid experience with both roles tend to be more competent. The reason is simple: these agents have a deeper understanding of both sides of the transaction, which allows them to help guide their clients through the process more competently. To that end, if a buyer agent works exclusively with buyers, they need to be able to explain why that is so. The best exclusive buyer agents will also have a track record of working with sellers, even if that experience was not recent.
4. ARE YOU PART OF A REAL ESTATE TEAM? IF SO, WILL I BE WORKING EXCLUSIVELY WITH YOU?
Real estate teams are a collection of agents within a brokerage who are managed by a team leader. While not always the case, the team leader is usually a high-producing listing agent who hires newer and/or lower-producing buyer agents and provides leads to them in exchange for a cut of their commissions. For new agents, joining a team is appealing because it provides the opportunity to receive leads and start making money faster than they would otherwise be able to do on their own. If a buyer agent is part of a team, this should by no means be a singular reason to not consider hiring them, but it is important that the agent be able to demonstrate an understanding of the market and the home-buying process, as well as to understand whether your relationship with the buyer agent is exclusive. Otherwise, you may end up hiring a great buyer agent, only to be passed off to one of the less competent members of the real estate team. If a buyer agent cannot guarantee you in writing as part of their agreement with you that you will be working exclusively with them, you need to be sure that the entire team is competent, not just the agent you are interacting with now. Finally, be aware that should you hire a buyer agent that is part of a team and then end up writing an offer on a home that is listed by another agent on the same team, serious conflicts of interest may arise because there is a strong possibility that the listing agent is not only the de facto managing broker for your buyer agent, but your buyer agent will be obligated to pay a portion of their commission to the listing agent as part of their agreed upon split with the team leader. While there are licensing laws which prohibit these types of conflict of interest and stipulate what teams must do in order to ensure any such conflicts are addressed, there is no guarantee that the members of the team will abide by them.
5. OF THE HOMES YOU HELPED CLIENTS BUY LAST YEAR, WHAT WAS THE AVERAGE RATIO BETWEEN THE LISTING PRICE AND THE FINAL SELLING PRICE?
This question boils down to two things; An agent’s ability to establish fair market value for a home and the agent’s negotiating skills. If a buyer agent’s plan for success is simply pressuring you to offer over list price and/or waive inspections, not only are you going to end up overpaying for a home, you’re going to end up buying a lemon. A great buyer agent should have a track record of negotiating for the benefit of their buyers whether that be through price reductions, seller concessions or competitive offers that rise about the rest.
6. WHAT KIND OF MARKET SHARE DO YOU AND YOUR COMPANY HAVE?
Everyone can rattle off the real estate signs they see most often when they drive around their town, but unlike listing agents, buyer agents don’t get to enjoy the “free advertising” that comes with a yard sign. To that end, there are many agents who work only with buyers who close many deals every year that you’ve probably never heard of. While it’s not imperative that your agent have the #1 market share in the region, remember that brokerages with more market share have it for a reason.
7. DO YOU HAVE AN ADMINISTRATOR OR PERSONAL ASSISTANT?
Busy agents can have a hard time doing everything well on their own. When an agent invests in their business to hire a personal assistant you know they care about personal service. An agent can’t be in two places at once so an investment in a helping hand and great teamwork speaks volumes about a skilled agent. You should also find out how you will interact with an agent’s support staff and to what extent.
8. TELL ME ABOUT THE LAST THREE HOMES YOU HELPED YOUR CLIENTS BUY.
Any agent will be able to provide you with references that you can get in touch with. But beware, they are going to want to provide you with a hand-picked list of people that they know will say wonderful things about them. So instead, ask the agent for the last three homes they helped someone buy and look up the owner’s names and try to contact them yourself. This will give you a better understanding of the client’s real satisfaction level.
9. HOW WILL YOU HELP ME FIND HOMES FOR SALE?
Most every agent pays monthly fees that grant them access to a multiple listing service (MLS). The MLS is the primary repository for all homes listed for sale in an area, but it is by no means the definitive source for available homes. Countless other sources of available homes exist, from websites like Zillow, Craigslist, and Facebook Marketplace, to off-market and pocket listings. Good buyer agents have vast networks of both data and people that allow them to find potential homes for you. Any good buyer agent should be able to talk with you about the resources they have developed and provide you with examples of how they have leveraged this network to help their clients find homes that they would have otherwise not been aware of.
10. DO YOU WORK FULL TIME OR PART TIME AS AN AGENT?
This may be one of the most crucial questions to ask a buyer agent. There are over 1.5 million licensed agents in the U.S. and a great number of those agents work part-time. The reason is simple: it’s incredibly easy to get a real estate license and many people use that low barrier to entry to put extra money in their pocket each year completing one or two deals. The reality is, it is extremely difficult, if not outright impossible to become a top-producing, highly competent agent working part-time. Competence aside, as a buyer the last thing you want is to find out that your agent is unable to show you a home, write an offer, or attend your home inspection because of the obligations of another job. Simply put, a part-time role as an agent should always be a major red flag for anyone you are considering hiring.
11. HOW MANY BUYERS ARE YOU WORKING WITH RIGHT NOW?
While it might be concerning to be the only client your buyer agent has, it should be equally concerning to be one of 150 clients. While having 150 clients could be seen as a testament to how competent and agent is, it’s more likely a testament to how ineffective they are at actually helping their clients find a home. And that’s to say nothing of how hard it will be for a buyer agent to make your home search a priority when it is competing with 150 other buyer’s needs. A good buyer agent should have a manageable list of active clients that demonstrates consistent business without being overwhelmed. What’s more, the best agents will be able to provide you with concrete examples of situations where they declined potential business because. Why? Because the best agents know not only how many clients they can reasonably manage at once, but also whether the needs of one client might conflict with the needs of another. The most successful people in life are the ones who have learned to say, “no” when it matters, and the same is true for agents.
12. WHAT PROFESSIONAL CONTACTS DO YOU HAVE THAT CAN HELP ME WITH MY HOME PURCHASE?
Your buyer agent needs to have a well-developed network of professionals that will be crucially important to your success. This includes not only the typical people involved in the transaction like home inspectors, lenders and title companies, but also professionals beyond the scope of the transaction, such as movers, plumbers and roofers. What’s more, having access to an array of reputable professionals is crucial in your agent’s ability to determine the severity of any defects in a property. If the roof needs to replaced, you need to know with certainty how much that will cost; if the foundation has cracks, you need to know if the cracks are cause for concern; if you want knock out a wall after you buy a home, you need to know if that can be done safely and affordably. Does zoning allow you to use the property as a short term rental? Does the school district offer bus service where the home is located? How do you adjust the sprinkler system? Is the finished basement permitted? How much could you rent the property for and would the HOA allow it? Is the sewer line cracked? Is there any active horizonal oil/gas drilling occurring under the home? Can I use the well water to irrigate the lawn? The list goes on. In effect, your buyer agent needs to be equipped to serve as the resource for just about anything you might need along the way and their ability to do that is directly tied to the size and scope of their professional network.
13. HOW MANY HOMES HAVE YOUR HELPED CLIENTS BUY AT THE PRICE POINT I AM LOOKING AT IN THE LAST YEAR?
Whether by choice or happenstance, many agents tend to specialize more in a handful of areas and/or clients over others. Some agents work primarily with first-time buyers, others with luxury sellers. Some on the west side of town, some on the east. It’s important that your buyer agent have a track record of success helping clients buy a home that is similar in price and location to what you want to buy because the skill set required can be vastly different depending on the needs of the client.
14. CAN YOU EXPLAIN THE HOMEBUYING PROCESS TO ME FROM START TO FINISH?
The process can be long and complicated for first-time homebuyers. Ask your agent to explain the process to you from beginning to end, and take notes, being sure to ask for clarifications you need along the way.
Some good topics to cover are: how do showings go, how do offers work, what happens during a home inspection, what happens after an offer is accepted, what happens during the closing process, what is the timeline from start to finish — and anything else you can think of.
15. HOW WILL YOU COMMUNICATE WITH ME REGARDING YOUR EFFORTS?
One of the biggest complaints nationally towards agents is a lack of communication. You will want to find out how the agent will keep in contact with you and how they will update you about their marketing efforts. Additionally, an agent should be flexible and communicate in the manner the client desires. Above all else there should be regular communication.
16. HOW LONG DO YOU TYPICALLY WORK WITH BUYERS, FROM THE FIRST HOME YOU SHOW THEM TO THE CLOSING TABLE?
The answer to this question gives you insight into how well-equipped a buyer agent is at helping their clients establish their criteria, leveraging their network to find the right home, and negotiating with sellers to close the deal. It also helps you to get an idea of how long it will take you to find the right home for you in the current market. There is no right or wrong answer here, but if you have first-hand knowledge of others who have recently bought a home, and their experience was much quicker and/or less tumultuous, you might consider why that is the case and whether it might be worth talking to that buyer agent as well.
17. HOW READILY ACCESSIBLE WILL YOU BE? IF I CALL/EMAIL, WHEN CAN I EXPECT A RESPONSE?
Real Estate is a business that people should be able to reach the person they hired to help them buy a home. It’s impossible for an agent to be available 24/7, but if you attempt to reach out to your agent and leave a voicemail or send an email, your agent should be able to give you a reasonable timeframe that you can expect a response.
18. ONCE THE OFFER IS ACCEPTED WILL YOU BE ATTENDING THE INSPECTIONS ON MY HOME?
A full-service agent should be at the home inspection, bank appraisal, etc. You are paying this person a lot of money. Make sure they earn it! They have a fiduciary responsibility to you and as such, they should be present for major events such as these.
19. HOW DO YOU DETERMINE WHAT THE FAIR MARKET VALUE IS ON A PROPERTY SO THAT I CAN FEEL CONFIDENT THAT I AM NOT OVERPAYING? HOW MANY LOW APPRAISALS HAVE YOU HAD ON BUYER CONTRACTS IN THE LAST YEAR AND WHAT WAS THE OUTCOME?
Sometimes, it’s easy to look at a home and say that it is overpriced. Likewise, we all like to think that we know a good deal when see one. But problems arise when emotions come into play. Buying a home is an emotional roller coaster at times, even when the deal goes smoothly. It can be easy to justify paying more when the home has everything you really want. A good buyer agent will be empathetic to the emotional nature of the process, but also brutally honest about the real-world value of a home. After all, if you are like most people, your home will account for the not only the largest financial transaction you ever make, it will also become one of your greatest potential sources of wealth in your lifetime.
To that end, don’t tend to sell so much for what people are willing to pay, but often what banks are willing to loan, a figure which is determined by the appraisal. A bank will only loan a buyer as much money as the appraiser determines the home is worth, so if a buyer wants to pay more than that, the bank will require the buyer to make up the difference as part of their down payment. Your buyer agent needs to be able to guide you in making an acceptable offer that is competitive, but also needs to be highly skilled at knowing when the threshold between market value and appraised value diverges so that you can prepare for how to address this issue.
20. HOW MUCH DO YOU CHARGE TO HELP BUYERS FIND A HOME AND WHO PAYS FOR IT?
Contrary to popular belief, there is no universally-accepted amount or percentage that all agents charge for their services. However, no matter the amount, an agent should be able to explain why they charge that amount and how that amount is split up amongst parties. Traditionally, the seller pays the commission of the buyer’s agent, but that may not always be the case. Just remember, whatever the fee charged, only a portion of that money actually goes to your buyer agent.
21. CAN YOU HELP ME BUY A HOME LISTED “FOR SALE BY OWNER (FSBO)” AND IF SO, HOW WILL YOUR COMMISSION BE PAID AND BY WHOM?
In a typical real estate transaction, a seller hires a listing agent who charges the seller a fee. That fee is then split when the home sells, with the listing agent’s brokerage and the buyer agent’s brokerage each receiving whatever amount has been agreed to. However, when a seller does not have a listing agent, a buyer agent must negotiate their commission directly with the seller. This can be a surprisingly difficult task, and usually requires exceptional negotiation skills. As such, it is not a task most buyer agents enjoy and even fewer are skilled at. In the event the buyer agent is unable or unwilling to negotiate with a seller, they must negotiate with their buyer to get paid a commission on the sale, and if they cannot or will not do that, they are working for free. Even if you do not plan to look at a FSBO home, you need to make sure you understand how your buyer agent will negotiate their commission and who will be paying it should you choose to purchase one.
22. WHEN DO YOU REQUIRE ME TO SIGN A BUYER AGREEMENT WITH YOU? WILL YOU ALLOW ME TO TERMINATE THE BUYER CONTRACT IF I AM NOT COMPLETELY SATISFIED?
Unlike a listing agreement, which must be signed before a home can be listed for sale in the MLS and have a sign placed in the yard, a buyer agent can opt to work with a potential buyer without a formal agreement until such time that a buyer wants to write an offer on a home. Some buyer agents want a buyer to sign a buyer agreement immediately but be aware that doing so may entitle that agent to a commission even if you ultimately use a different buyer agent to purchase a home. In either case, always clarify the nature and extend of any agreement with any agent. An agent that is confident they will get the job done should have no problem agreeing to terminate a buyer agreement with a client who is unhappy with their services.
23. HOW WILL YOU PRESENT MY OFFERS TO SELLERS? DO YOU ENCOURAGE YOUR BUYERS SUBMIT “LOVE LETTERS” WITH THEIR OFFERS?
Your buyer agent is your representative and as such, needs to present you in the best way possible to potential sellers. To that end, the manner in which they present your offer to a seller should be professional and impactful. Your buyer agent should be in direct communication with the listing agent before, during and after you submit an offer, have insight into what the seller is looking for in a strong offer, and be capable of operating within the confines of the interests you want represented without having to reach out to you for guidance on every minute detail of the negotiation along the way.
In recent years, buyer letters (aka, “love letters”) have become a popular tactic used to attempt to give buyers an advantage over other buyers in a competitive market. Unfortunately, they also open buyers and sellers to incredible potential liability. Even when they don’t, their risks outweigh the benefits almost always. A good buyer agent does not need to rely on their client’s ability to charm a seller with a letter because they possess the skills necessary to negotiate effectively for their clients.
24. ARE YOU A MEMBER OF THE NATIONAL ASSOCIATE OF REALTORS®?
A real estate agent is someone licensed to buy or sell real property in their state. A REALTOR® is a real estate professional who is member of the NATIONAL ASSOCIATION OF REALTORS® and subscribes to its strict Code of Ethics, designed to ensure that the interests of the client are always placed above all else. If your agent isn’t a REALTOR® you might want to ask why.
25. WHY ARE YOU THE BEST PERSON TO HELP ME BY MY NEXT HOME?
If an agent can’t answer this question succinctly, it’s time to move on.