7 Questions to Ask a Real Estate Agent Before You Commit

The number of homes an agent has sold is a good indicator of their experience and success in the current market. If they’ve sold multiple homes, it means they’re actively working and understand market conditions. On the other hand, if they haven’t closed many transactions, it could be a red flag that they lack experience or are struggling to attract clients. This is one of the most critical questions to ask a real estate agent when buying a home, as their track record can give you confidence in their ability to close deals.

#5. How Many Homes Have You Sold in the Past Year?

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Marketing plays a significant role in attracting potential buyers and maximizing property exposure. That ‘For Sale’ sign on the front lawn is great but only scratches the surface regarding selling strategies. Will the home be listed on the Multiple Listings System? What about social media marketing, like Facebook? Online virtual tours? Print advertising, like newspaper ads or flyers? Open houses? The more eyes see your property for sale, the better. Different properties and markets may require tailored marketing strategies. Discussing the agent’s marketing plan lets you determine if they take a personalized approach to each property they represent. A good real estate agent will assess your property’s unique selling points and develop a strategy highlighting its features, amenities, and value proposition. This will help attract qualified buyers and increase the chances of a successful sale.

#6. How Will You Market My Home?

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The sold-to-list ratio measures how close a property’s final sale price is to its initial list price. Asking a real estate agent about their sold-to-list ratio can provide insights into their ability to effectively price properties and negotiate on behalf of their clients. In short, this number will tell you how close the agent has come to the asking price and gives you an easy number to compare real estate agents. Aim high on this one, folks!

#7. What’s Your Sold-to-List Price Ratio?

7 Questions to Ask a Real Estate Agent Before You Commit

#4. Do You Have References?

Getting references from a potential real estate agent allows you to gather additional information and insights about their past performance.

#3. How Many Other Clients Are You Currently Working With?

Inquiring about the number of clients a real estate agent is currently working with can provide insights into their workload, capacity, and ability to provide personalized attention.

#2. Are You a Full-time Real Estate Agent?

Someone dabbling in the business part-time to make extra money might lack the knowledge and time to market, show your property, and negotiate the best deal on your behalf.

#1. What is Your Area of Focus?

By “area,” we mean city or neighbourhood, but also the type of property: condo or detached, recreational, luxury, investment, fixer-upper or brand new.

Do You Have References?

Getting references from a potential real estate agent allows you to gather additional information and insights about their past performance. Hearing positive feedback from past clients can provide reassurance that they have a track record of delivering satisfactory results and providing a positive client experience. They can also offer insights into the specific strengths of the agent or identify potential concerns. Ask for a few names and numbers of past clients and clients with similar real estate needs, and call them to help determine if the agent is worth the commission they charge. This leads us to the next question…

How Many Other Clients Are You Currently Working With?

Inquiring about the number of clients a real estate agent is currently working with can provide insights into their workload, capacity, and ability to provide personalized attention. If it’s a high number, question whether the agent will have the time to devote to you and your needs. On the flip side, if the answer is zero, that could be a red flag that this agent may not have the experience or level of success you’re looking for. Inquiring about an agent’s workload can also prompt them to share feedback so that you can gauge how effectively they can manage multiple clients without compromising quality.

Are You a Full-time Real Estate Agent?

Someone dabbling in the business part-time to make extra money might lack the knowledge and time to market, show your property, and negotiate the best deal on your behalf. Real estate transactions often involve time-sensitive tasks that require prompt communication and action. If an agent works full time, they are more likely to be accessible and have greater flexibility for scheduling. Full-time real estate agents are committed to their profession and provide dedicated service to clients. They are also more likely to stay updated on market trends, industry regulations, and changes that can impact your transaction. These can be invaluable when navigating the home-buying process.

What is Your Area of Focus?

By “area,” we mean city or neighbourhood, but also the type of property: condo or detached, recreational, luxury, investment, fixer-upper or brand new. Also, some agents specialize in sales, while others focus on purchases or rentals. Just like in medicine, a general practitioner can probably handle a typical transaction, but some specialists may be better equipped to help you seal the deal. By understanding a real estate agent’s area of focus, you can determine if they have expertise and knowledge in the market or property type you seek and ensure you receive accurate information about the local market. In addition, agents who focus on a particular area will have strong networks of professionals within that locality, such as lenders, home inspectors, or contractors.

Guide to Securing a Mortgage

Speak with a Financial Advisor First

It is estimated that the total household debt of Canadians is in excess of $2.5 trillion, with mortgage debt representing more than 68 per cent of this total figure.

#3. How Many Other Clients Are You Currently Working With?

Inquiring about the number of clients a real estate agent is currently working with can provide insights into their workload, capacity, and ability to provide personalized attention.

#2. Are You a Full-time Real Estate Agent?

Someone dabbling in the business part-time to make extra money might lack the knowledge and time to market, show your property, and negotiate the best deal on your behalf.

#1. What is Your Area of Focus?

By “area,” we mean city or neighbourhood, but also the type of property: condo or detached, recreational, luxury, investment, fixer-upper or brand new.

Speak with a Financial Advisor First

Before you go house hunting and apply for a mortgage, it would be prudent to book an appointment with a financial advisor or speak with a mortgage broker. By doing so, you can receive professional advice from someone who can help you determine if you’re eligible for a mortgage. This will save you the stress and headache of a barrage of mortgage applications.

Budget What You Can Afford

In today’s sizzling real estate market, many prospective homebuyers may feel defeated by rising valuations, tempted to abandon their budgets and purchase whatever is available, even if it is beyond what they can afford. But is this fiscally responsible? Could you afford an emergency, if something came up? Prioritize your finances, be it for your retirement or your child’s post-secondary education. Budgets are a necessary tool to accomplish long-term prosperity. Work with a professional real estate agent who can point you to housing types and locations that are aligned to your budget. And if you still can’t afford it, you may choose to wait until you’re in a better financial position.

What’s In Your Credit Report?

Have you checked your credit report lately? If not, perhaps it is time to take a look, even if you are not in the market to buy a residential property quite yet. Take some time to check your credit score and if needed, improve it. Your credit score ranks your financial health on a scale between 300 and 900, and indicates the level of risk you pose to the lender. The higher your score, the lower the risk and the higher the chance you’ll secure a better mortagage rate or terms. Unfortunately, your credit score could become a victim of identity theft or fraudulent behavior among unscrupulous individuals. For example, somebody might take out a loan in your name. Or as another instance, your first and last name could be used for a new credit card. Whatever the case, your credit rating could take a hit if you are not being vigilant and proactive.

Ensure You Have A Sufficient Down Payment

One of the biggest hurdles to buying a home is saving a sizable down payment. Since home valuations have surged considerably in recent years, it has become harder to gather enough upfront cash, especially in pricey markets such as Toronto, Vancouver or Montreal. That being said, this is a critical part of the home-buying process. Unsure of the dollars and cents? Here is what you need to know ,based on your home-buying budget: - Less than $500,000: A five-per-cent of the purchase price in the minimum down payment - $500,000 to $999,999: Five per cent of the first $500,000 and 10 per cent of the purchase price above $500,000 - Over $1 million: 20 per cent of the total purchase price Moreover, if your down payment is less than 20 per cent, you will be required to purchase mortgage loan insurance, which can be paid up-front or added to your monthly mortgage payment.