What to know about working with a REALTOR®
When working with a REALTOR®, it’s important to find the right fit in terms of both credentials and compatibility. Hiring a licensed Realtor will ensure that they have undergone a thorough training program and are bound to the highest standard of ethics and business practices. You’ll also want to make sure you’re hiring someone who you trust and who cares about your needs.
Hiring a Realtor
So, you’ve been looking at property listings online and have decided it’s time to hire a Realtor. The first step is to prepare a shortlist of candidates. Ask for recommendations from your contacts and do your own research. Look for Realtors who are familiar with the neighborhood you’re considering and experience with the type of property you’re looking to buy or sell.
After preparing a short-list of candidates, contact them directly to set up an interview. Here are some points to consider:
- What commission fees do they charge?
- Look into their track record; how many homes have they sold this year? How long have they been working in real estate full time? How many listings do they currently have?
- Consider their availability; do they work set hours or are they available anytime? What is their response time like? Will you be working with them directly or with members of their team?
Now that you’ve interviewed candidates, it’s time to sign an agreement with the Realtor of your choice.
Understanding the agency relationship
Realtors work within a legal relationship called agency. In an agency relationship, you are the principal and the agency is the real estate brokerage under which the individual Realtor is licensed. In this relationship, the agent has the authority to represent the principal in dealings with others.
As a buyer, many Realtors will have you sign a buyers agency agreement at the beginning of your working relationship. This legal document details the services provided and the period you’ll work together exclusively. As a seller, you’ll sign a listing agreement with the brokerage your agent is licensed with. This agreement includes the property details and listing price, the commission you’ll pay, and the period of the contract.
Buying or selling property is complex. Interviewing multiple candidates and thoroughly understanding your working relationship will ensure you hire a Realtor that’s the right fit for you.
