Finding a realtor is not just about hiring a professional to help you buy a home; it’s about choosing a partner for one of the most significant financial decisions of your life. I used to be a realtor with Royal LePage, then later Sutton Group. I was a consultant at the Ontario Real Estate Association. I’ve done many deals both as a listing agent and a buyer-broker agent. With this experience, and as a licensed mortgage agent, throughout my career, I have worked with hundreds and hundreds of different agents. They are not all the same. I understand the intricacies of the real estate market, and I’m here to guide you through the process of finding a realtor who not only meets your needs but also matches your personal buying style.
Knowing Yourself: What Kind of Buyer Are You?
Most Agents Don’t Do Much Business
Strong Social Media and Online Presence
Don’t be Afraid to Try a New Agent
Most Agents Don’t Do Much Business
Strong Social Media and Online Presence
The Two Kinds of Realtors
In real estate, there are real estate agents that focus on residential real estate, and that’s the vast majority, and a small few who work in commercial real estate, which is a completely different business. I am talking about the two kinds of residential realtors; listing agents and buyer broker agents.
Listing Agent
A listing agent is a realtor who tries to list your house and sell it, either as an exclusive listing or on the MLS system. A listing agent goes over the Listing Agreement with you and signs you up with them to list your house. You negotiate the commission and other details of the agreement. They, through their brokerage, put your house into the system, run open houses, give you advice on how to de-clutter and present your home, they may stage your home, and market your property. They do a market analysis, create a selling strategy, and negotiate the best price for the seller.
Buyer Broker Agent
A buyer broker agent is a licensed real estate professional who specializes in representing the interests of the buyer in a real estate transaction. Unlike listing agents who primarily serve the seller, buyer agents are dedicated to helping the buyer navigate the complexities of buying a property, ensuring that their client’s needs and interests are prioritized.
A good buyer-broker spends a lot of time educating prospective buyers. Buyer agents assist clients in finding properties that match their specifications by using advanced search tools, their knowledge of the local market, and their professional network. Today, many buyers do their own online searches and tell their agent the homes they would like to see.
One of the most critical roles of a buyer broker agent is negotiation. They negotiate price, terms, and conditions on behalf of the buyer, aiming to secure the best possible deal while managing risks.
As a former listing and buyer-broker agent, I generally found it was more work and required a lot more of my time to be a buyer-broker agent than a listing agent.
Knowing Yourself: What Kind of Client Are You?
Before you start looking for a realtor, it’s crucial to understand yourself as a client. Are you a first-time homebuyer feeling unfamiliar with the process, or are you a seasoned investor looking for new opportunities? Do you prefer a hands-on approach, or would you rather have someone guide you through each step? Identifying your comfort level, expectations, and the type of service you desire will help you narrow down your choices to find a realtor who aligns with your personal and financial goals.
What to Look for in a Realtor
There must be a thousand sites, articles, and blogs blathering on about what you should be looking for in a realtor. Most of them are just cookie-cutter yarns about experience, knowledge and unwavering customer service. Don’t get me wrong, those things are important. But let me tell you what you don’t know.
Speed & Hustle
Doing real estate is a lot like being a pilot flying a Boeing 747, it is long periods of calm followed by moments of sheer terror. You spend a lot of time marketing, following up, checking out the local inventory, and so on. When a client does decide that this is a house, they want to put an offer on you have to go from 0 to 100 in seconds. If your client likes that house, you can bet someone else does too, so you have to move fast to make this house theirs. This speaks to your realtor’s efficiency and professionalism.
Look for a realtor who demonstrates all those little traits of professionalism from how they dress, to how they talk, and just how they carry themselves. Are they on it or are they laid back and relaxed? When you call, do they call you back immediately?
You want to look for hustle, not to be confused with a pushy salesperson, but someone who is focused and working hard. Pay attention to that vibe, it’s all about the hustle.
Most Agents Don’t Do Much Business
When it comes to real estate sales, it feels like 20% or less of realtors sell 80% or more of homes.
Real estate is a tough gig!
The numbers adjust from year to year, but generally, about half of all those realtors you see on brokers’ websites don’t do any business at all. The brokerage may look like they have lots and lots of agents working for them (NOT!), but the truth is many of those people are just ‘parking’ their license. They may have had intentions of being an active real estate agent, discovered it took too long to build a business, or that it was too hard. Given the costs of just holding a license, and paying regular fees to the brokerage, they’ll likely be out of the business soon.
Another 30% of agents do about 1 or 2 sales during the year, and another 17% or so were involved in less than 5 deals as either a listing or a buyer-broker agent.
That doesn’t leave many experienced agents for you to work with!
Don’t be Afraid to Try a New Agent
The fictional character Gordon Gecco said, “Give me guys who are poor, smart, and hungry. You win a few, you lose a few, but you keep on fighting”. Don’t be afraid to give a new agent the chance to compete. They want to get their career going and they don’t take any client for granted. Often you’ll discover they have the most hustle.
Strong Social Media and Online Presence
This is a tricky one because of the generational divide. Many realtors have been in the business for a long time. In the old days, you didn’t need to have a strong social media and online presence because many of their clients were not ‘online’. Today is different and many older realtors just don’t have the skills for today’s digital world. They struggle to relate to today’s digital generation.
On the other hand, real estate is a business about buying and selling physical property in the real world, not the digital one. You may be able to buy stocks, mutual funds, and ETFs online through your discount broker, but to buy and sell a house you actually have to go into the house, walk around in it, and feel the carpet beneath your feet. You can check out pictures and videos online but the house in real life is often quite different. Because real estate is about the real world not the online world, older realtors have up to now been largely able to avoid having a significant online presence.
The other problem is that building a strong social media and online presence not only takes a modicum of technical ability and skill, it also takes a lot of time. But that’s why you need to look for it. It demonstrates the amount of effort the realtor is willing to put into their business. If they won’t work hard on their business, you can be sure they won’t work hard for you. Look for that strong social media and online presence.
When you don’t do much business, you don’t know very much.
How to Interview a Realtor
To re-iterate, it’s all about the hustle. And be prepared to be disappointed, but when you find it, you’ll know; it just might take a bit of work.
I would take the same approach to interviewing a buyer broker agent if I was looking to buy, as I would a listing agent if I was looking to sell.
How to Interview a Realtor:
1. Contact a number of brokers and ask them to introduce you to an agent in their firm who they feel would be the best match for you. Tell them who you are and what you are looking for. Let them know you are going to interview several agents. You may already have a relationship with a realtor. Remember, past performance is no guarantee of future performance.
2. Talk to each realtor, tell them what you want and what you are looking for. This way you level set the playing field and give each one the chance to win your business.
3. Make an appointment with each realtor during regular working hours, Monday through Friday, between 10 and 2. This way, it will be more likely that you will be talking to a full-time agent.
4. At each appointment, ask the same set of questions about properties, their market analysis, negotiating strategies, marketing approaches and so forth.
5. They should each come to the appointment with a prepared presentation. This includes a personalized report or a PowerPoint presentation (not a cookie cutter brochure) that shows they have done the work to understand what you need and that they are ready to represent you. If all they come with are words and empty hands, move on.
6. Take notes during your interview appointment, ask questions, and when you thank them for coming, inform them that you will make your decision shortly, usually in a few days.
7. Choose your realtor. Promptly call the agents or their brokers back and thank them again for their interest.
Again, you’d be surprised how many agents show up empty handed and think they can get your business with just a sales pitch. You may find you have to do a few rounds of interviews before you discover the realtor who is right for you. You will be paying this agent a fair amount of money; it is only prudent to shop around.
Summary
In conclusion, finding the right realtor is a nuanced process that requires careful consideration and a clear understanding of your own needs and preferences. As someone who has navigated both sides of the real estate transaction, I can attest to the significant variation in skill, commitment, and effectiveness among agents. Whether you’re a first-time buyer or a seasoned investor, it’s crucial to choose a realtor who not only understands the market but also resonates with your personal approach to buying or selling property.
The reality is that the real estate industry is saturated with agents of varying degrees of competence. A strong online presence, hustle, and professionalism are key indicators of an agent’s dedication to their craft. However, these should be complemented by a robust knowledge of the market, the ability to move quickly when necessary, and a genuine commitment to serving your best interests.
Interviewing potential realtors gives you a clearer perspective on who is best suited to meet your needs. It’s about finding that balance between someone who is technically proficient and someone who you can trust and feel comfortable working with. Don’t shy away from giving a new, hungry agent a chance, as they might bring a fresh, eager approach to the table.
Ultimately, the right realtor for you is one who not only brings expertise and a proven track record but also aligns with your personal and financial goals. This decision is as much about finding a skilled professional as it is about securing a supportive and understanding partner for one of the most significant transactions of your life. Take your time, do your due diligence, and choose someone who truly represents your interests and with whom you can build a trusting relationship. This will set the stage for a smoother and more successful real estate experience.
