How to find a real estate agent
- Ask friends, neighbors and coworkers who recently bought or sold nearby.
- Look at who lists and sells homes in the neighborhood you want.
- Ask your lender or a local real estate attorney for names.
- Meet agents at open houses, but don't feel you have to hire the first one you meet.
Agents must work under a broker; brokers can run their own firms. A Realtor is an agent or broker who is a member of the National Association of Realtors. See broker vs agent vs Realtor.
Check the license
All states require real estate brokers and sales agents to be licensed. Each state has a real estate commission or licensing agency, and most offer a free online lookup by name or license number. Check that the license is active, which brokerage it's held under, and whether there are any disciplinary actions. Search the agent's name and brokerage online for reviews and complaints too.
Questions to ask in the interview
- How many buyers (or sellers) have you represented in the past year, and in what price range and neighborhoods?
- Do you work full time? Who covers for you when you're unavailable?
- How will you find homes for me, including ones not yet on the market?
- How do you decide on an offer price? Walk me through a recent deal.
- How do you handle multiple-offer situations, inspections and low appraisals?
- What exactly is your compensation, who pays it, and what happens if the seller offers to pay some or all of it?
- How long is the agreement, and how can either of us end it?
- Do you represent buyers and sellers in the same deal? How do you handle that?
- Which lenders, inspectors and attorneys do you work with, and do you get anything for referrals?
- Can I speak with two or three recent clients?
Buyer agreements after the 2024 NAR settlement
Since August 17, 2024, agents who use an MLS must sign a written agreement with a buyer before touring a home, including live virtual tours. The agreement must include:
- the amount or rate of compensation the agent will receive, or how it will be determined, stated clearly;
- compensation that is objective, not open-ended;
- a term barring the agent from receiving more than the agreed amount from any source; and
- a statement that commissions are fully negotiable and not set by law.
Offers of compensation to buyer agents can no longer appear on the MLS. Sellers can still offer to pay a buyer's agent outside the MLS, or offer concessions toward a buyer's costs. So ask how your agent's pay will be handled if a seller offers something, and whether you'll owe the difference if they don't. Run the numbers with the real estate commission calculator.
For sellers
- Ask each agent for a written pricing analysis using recent comparable sales, and how they arrived at the number.
- Ask for their marketing plan: photos, listing description, showings and open houses.
- Negotiate the listing commission and ask what you'd offer, if anything, toward a buyer's agent.
- Check the listing agreement's length and cancellation terms.
Estimate your net proceeds at different commission rates with the home sale calculator.
Red flags
- The agent pressures you to sign an agreement or make an offer on the spot.
- Vague or open-ended compensation terms, or reluctance to put pay in writing.
- A listing price far above the others with no comparable sales to back it up. It can be a tactic to win the listing.
- Pushing one lender, inspector or title company without explaining why, or not disclosing referral arrangements.
- Poor communication during the interview: slow replies rarely improve once you've signed.
- No active license, or a license with disciplinary history you weren't told about.
- Telling you to skip the inspection or other contingencies without explaining the risk.
Ready to buy? Follow how to buy a house, step by step.
Sources: NAR: what the settlement means for buyers and sellers; U.S. Bureau of Labor Statistics: real estate brokers and sales agents (licensing); NAR: Membership Marks Manual.
Every worked example on this page was checked with Calcist's own engine and an independent reference.