How to Choose a Real Estate Agent
How to find and interview a buyer's or listing agent, questions to ask, how commissions work after the 2024 rule changes, and red flags.
A skilled agent can save you money, time, and stress, while a poor fit can cost you all three. Whether you're buying or selling, it's worth interviewing several candidates before you commit.
Agent, Realtor, broker: what's the difference?
A real estate agent is licensed by the state to help people buy and sell property. A broker has additional education and licensing and can run a brokerage; agents work under a broker. "Realtor" is a trademarked term for members of the National Association of Realtors, who agree to follow its Code of Ethics.
How agent compensation works now
Following NAR's 2024 settlement of commission lawsuits, practice changes took effect in August 2024. Offers of compensation to buyer agents can no longer be published on MLS listings, and buyers working with Realtors generally sign a written agreement before touring homes that states how much the agent will be paid. Commissions have always been negotiable. Sellers can still choose to offer compensation to a buyer's agent, and buyers can ask sellers to cover their agent's fee as part of an offer.
Where to find candidates
- Recommendations from friends and family who recently bought or sold
- Agents whose names appear on signs and sold listings in your neighborhood
- Online reviews and brokerage websites
Questions to ask
- How many clients have you represented in the past year, and in which neighborhoods?
- Are you full-time?
- For sellers: what price would you list at and why? What's your marketing plan?
- For buyers: how do you help clients compete in multiple-offer situations?
- How do you communicate, and how quickly do you respond?
- What is your fee, what does it include, and how long is the agreement?
- Can I talk to recent clients?
Red flags
- A suggested list price far above other agents' with weak supporting data (sometimes called "buying the listing")
- Pressure to sign a long exclusive agreement right away
- Little knowledge of your specific neighborhood
- Poor responsiveness during the interview stage
Verify any agent's license on your state's real estate commission website. And remember: you can negotiate terms, including the length of the agreement and the conditions for ending it.
This article is for general educational purposes and is not financial, legal, or tax advice. See our disclaimer.