Interviewing Buyer's Agents

8 Questions To Ask Related To An Agent's Experience

• How Long Have You been Selling Real Estate?

  How Long Have You been Selling Real Estate?

  With real estate, the 80/20 rule comes into play. If you are unfamiliar with the 80/20 rule, it is simple. 80% of the transactions will include agents who are within the top 20% of the agents in the market. For example, Mitch is in the top 5% of all the greater Indianapolis Agents.

  This concept is true regardless of if we are talking about Listing agents that work for Sellers, or the Real estate agents who represent buyers that are commonly known as Buyer's agents. Some agents only represent Sellers and others only represent Buyers. However, most agents like Mitch, represent both Sellers and Buyers. Unlike most of the agents though, Mitch will not represent both a Seller and a Buyer at the same time, on the same property. Mitch shares a lot about why many states have made this concept of representing both Buyers & Sellers at the same time, on the same property, known as limited or dual agency illegal. While not illegal in Indiana Mitch considers this practice to be very unethical! You can read Mitch's Top 10 Reasons to work with an agent that only represents you as a buyer here.

  When interviewing REALTORS®, your goals should always include being represented by a REALTOR® who has great Experience & Expertise, that is relevant to your needs, and an agent who will be Available to serve you best! The best place to start your search is with a REALTOR® who is also among the Top 20% Producers both within their brokerage and within their local community of Agents.

• How many Buyers & Sellers do you help each year?

  How many places do you typically sell (Sellers & Buyers) per year?

  The average REALTOR typically only handles 12 transactions per year. By comparison Mitch averages 30-35 transactions per year. The optimum skill sets for listing agents are different from buyer's agents.

  So, a great buyer's agent will handle at least 10 or more Buyer transactions per year!  Stated another way, an ideal Buyer's agent will typically have 40% to 60% of their annual transactions helping Buyers. So, it is possible that a Top producing Agent,  who handles 20 to 40 transactions per year, where only 10%-20% of all the transaction are working with buyers, may not be an ideal buyer's agent.

• Are You A Member Of MIBOR & A REALTOR®?

  Are You A REALTOR®?

  A REALTOR® is a licensed real estate salesperson who belongs to the National Association of REALTORS®. Every agent is not a REALTOR®. While most Agents are also REALTORS®, you should always confirm if the Agent is also a licensed REALTOR®.

  As a REALTOR® the agent is held to a much higher ethical standard than just licensed agents.  You can see the National Association of REALTORS® Code of Ethics here.

• Do You Mostly Work With Buyers Or Sellers?

  Do You Mostly Work With Buyers Or Sellers?

  Many agents focus on Buyers only or Sellers only.  While you may think it is great to find someone who specializes in only buyers, an agent who does both could offer some great insights into the process. Specifically, part of the role of a great Buyer's Agent is to highlight concerns that while maybe not important to you as the buyer, could ultimately impact either the resale value or the days on market when it is your time to sell. Those who also work frequently as Listing Agents can sometimes offer more clarity in this area.

  NOTE: You do not want an agent though who will represent both a Seller and a Buyer at the same time, on the same property. Mitch shares a lot about why many states have made this concept of representing both Buyers & Sellers at the same time, on the same property, known as limited or dual agency illegal. While not illegal in Indiana Mitch considers this practice to be very unethical! You can read Mitch's Top 10 Reasons to work with an agent that only represents you as a buyer here.

• How does your brokerage compare, within your local real estate community, in terms of market share?

  How does your brokerage compare, within your local real estate community, in terms of market share?

  When you hire representation, you should be more focused on the Agent than their brokerage. However, even the most experienced Agent will from time-to-time encounter something that is very atypical or unusual. Being part of a larger brokerage gives the agent the ability to speak with fellow agents easily and confidentially in their office to determine the best and most effective path forward.

  Additionally, a larger brokerage almost always will mean more listings in the marketplace. So, when your buyer's agent is part of this environment, that means your agent may hear about properties coming on the market even before they are listed. While you cannot typically see a property before it is available to the public, this advance knowledge may allow you to arrange your schedule to be among the first to see the property. In a seller's market, this can often be a huge advantage for you as a buyer?

• What was your typical sales price for the last 12 months? Also, what was the most/least expensive sale?

  What was your typical sales price for the last 12 months? Also, what was the most/least expensive sale?

  Frankly, the steps representing a Buyer are basically the same regardless of if it is a $200,000, $400,000 or $2,000,000 property!

  What does change though, are the expectations of the Buyer and the locations, neighborhoods/developments where the potential homes exist.  So, if you are looking at homes with a price point that is well above (or Below) the agent's “typical buyer,” then the agent may not be as aware of properties about to hit the market, as well as the good and bad points about the neighborhoods, and the developments, you are most likely to buy in.

  Additionally, if an agent's typical client is spending much more than your budget, then you may find that the agent is not spending as much time working on your search as you would need and expect.

• Can your clients critique and review your services through an independent survey?

  Can your clients critique and review your services through an independent survey process?

  Great Agents want to be even better! They typically understand that the real value of a sale is more about how happy the buyers or sellers are, and who these clients can refer to the Agent down the road, versus focusing on the commission from each individual sale. Without a doubt, the best way for an agent to improve is to get independent 3rd party reviews that are specific to both Buyers and Sellers.

  These surveys will usually include reviews, good and bad, about the agent.  Being able to see these surveys and reviews allows you to identify specific past clients that you might want to speak with in person, to gain even better clarity on their experiences in working with the agent. So, as part of this question, you should also ask if these reviews are published online where you can see them.

  Lastly, you should confirm if the Agent would be willing to request permission, from 2-3 of these past clients, based on your review of the surveys, for you to be able reach out and speak directly with the past clients regarding working with the agent

• If your buyer wants to purchase a property, that you have listed, will you also represent them as a buyer?

  If your buyer wants to purchase a property, that you have listed, will you also represent them as a buyer?

  In Mitch's opinion a great agent cares more about providing the best representation vs just making more money, and will NOT represent both a buyer and seller at the same time. Mitch shares a lot about why many states have made this concept of representing both Buyers & Sellers at the same time, on the same property, known as limited or dual agency illegal. While not illegal in Indiana Mitch considers this practice to be very unethical! You can read Mitch's Top 10 Reasons to work with an agent that only represents you as a buyer here.

  Frankly, any agent who says yes, they will still help you as a buyer, is not likely a good option for you since these agents are probably more interested in making the commissions as both a Seller’s agent and a Buyer's agent vs fulfilling their fiduciary role to you as a Buyer!

  As an example, with Mitch, he will give you 2-3 options depending on if you, or the Sellers, are willing to represent themselves. Self-representation is not an approach Mitch encourages; however, Mitch understands that many Buyers and Sellers would prefer this approach, and this does decrease the commissions being paid, making your offer more competitive than offers from other agents.

  If neither you nor the sellers want to represent yourself then Mitch will refer you to a fellow agent who typically who will represent you for less than they typically would which also makes commissions less, although not as low as they would be with only one agent. Lastly with Mitch the buyer can always find an independent agent to represent the Buyer for the offer on Mitch's listing. Since this agent will typically be compensated the same as any other agent though, this means any competitive advantage the buyer may have had is lost.

  While every Agent may have a different approach, it is important that you know what this scenario will look like. It is also important to keep this potential outcome in mind when you view the listing Agent's own listings to avoid sharing too much info about your level of interest with the Listing agent since that insight can and likely will be also shared with the seller.

12 Questions To Ask Related To An Agent's Expertise

• Do you have a niche? Do you focus on a part of town, or type of property?

  Do you have a niche? Do you focus on a part of town, or type of property?

  If are looking for a somewhat typical for the area, single family residence, and you are open to all parts of town, then it is likely most Top Producing Agents that also represent a good number of Buyers can help you with your search. If, however, your options are limited to a specific part of town, or even a particular neighborhood or development, then an agent that is known as the neighborhood/development expert may be your best choice. This type of focus can also be critical if you are looking for a lakefront home, a home in a golf course or country club community and even if you are looking for a condominium or a townhouse. An Agent that understands these unique and specific types of developments can be critical!

  Note, if you have a specific neighborhood or development in mind then many Buyers think working with an Agent who literally lives in the neighborhood or development is the best option. While it is true agents who live in the development will have great knowledge about the development, these agent's also have a vested interest in the area and the sales prices. So, unfortunately these agents may not be able to be as objective as the next most prolific agent for this specific area who though will have similar expertise!

• How do you help your buyers be more competitive in a seller’s market?

  How do you help your buyers be more competitive in a seller’s market?

  This question could have a lot of different answers depending on the local market. While we will share a couple of examples the initial response is what is most revealing. Very experienced and great Buyer's Agents will likely say this is a great question AND they will have at least a couple of examples they will share. Keep in mind that getting access to the Agent’s multiple strategies will likely require you to commit to working with the agent.

  As an example, Mitch tries to keep from 3:00 PM on each weekday so that active Buyers have a better chance to get in to see the new listings within a few hours of going live.

  Mitch encourages Buyers to make use of Escalation Clauses as part of most multiple offer scenarios. The Escalation Clause Addendum allows the Buyer to increase the offer to the seller based only on the best offer the seller receives from another Buyer. The escalation Clause includes both a cap which is the most the buyer is willing pay for the property, along with an escalation amount that is the increase over the other best offer. As a simple example if a place is listed for $325,000, your initial offer might be $327,000 with an escalation amount of $2000 and a cap of $338,000. If the best other offer was $329,500 and did not include an escalation clause then your offer would  automatically become $331,500. if the other offer also included an escalation clause with an escalation amount of $1,000 and a cap of $336,500 then your offer would cap out at $338,500. This is a simple example and the determination of the starting offer amount; the escalation amount and the cap are all based on critical strategies.

• How many of your annual sales, typically fall out of contract, and why?

  Typically, how many places per year, fall out of contract, and for what reasons?

  This is a bit of a trick question. The issue is not how many transactions fail to close but why they fail to close! The most typical 3 reasons a deal will die in today's market include The Inspection, The Appraisal and The inspection (And No this is NOT the same reason twice!)

  The key point with all three of these issues is the deal dying should NOT be a real surprise for the buyer if the Buyer's Agent has truly done their job of educating the buyer.

  A great and experienced Agent should be able to spot and share red flags about a property that could indicate issues with an inspection. While your Agent is not likely an expert inspector nor a structural engineer, and you will always want to have appropriate qualified inspectors evaluate the property, great agents can typically spot rot for example which could mean more substantial damage may be hidden forcing more costly repairs. Similarly, visible settling cracks or unlevel floors could potentially indicate structural issues that may not have been properly stabilized. Properties that have had a lot of cosmetic updates, that are not done well should concern buyers since if the most obvious repairs were poorly done, you can/should expect the repairs that you cannot see are likely to be even worse!

  In a seller's market Appraisals that come in too low can often kill a deal. This is where it is first very important to encourage Buyers to work with a quality local mortgage lender, who makes use of a smaller extremely well qualified panel of appraisers’ vs a regional, national, or online lender who will more often than not use an Appraisal Management company where the appraisers are paid less, and have less local expertise. The 2nd problem with Appraisals typically comes back to the quality of the comparative Market Analysis (CMA) by the Buyer’s Agent or the lack of any CMA even being completed before an offer was submitted! A great Buyer's Agent should be able to reasonably predict that a place will not Appraise or have the data at least to show an Appraiser where or how an appraisal was flawed. As part of that conversation the Buyer's agent should have already talked with you, as the Buyer, about your willingness and/or ability to cover any gap between the Appraisal and the Sales price. In an aggressive Seller's market, the seller is less likely to make any concessions on the sales price if they had multiple offers. The sellers will more likely feel others will either get the home to appraise or will be willing to cover any gap between sales price and Appraisal.

  The last issue with Inspection is not that defects may exist! It is that just like an appraisal that is too low, in an aggressive Seller's market, the seller is less likely to agree to make repairs. While buyers may feel paying top dollar means they can ask for anything and everything, great agents should have shared with you that especially with less serious defects and/or defects that were, or should have been apparent, the seller may reject requests and just take their chance with the next buyer!  Again, a Seller that had multiple offers in hours or days, vs weeks or Months, is likely to feel the next buyer will be willing to accept the property and address the repairs themselves.

  Mitch understands that truly the worst case is placing a property under contract, having it not appraise and/or not make it out of inspection after you, as the buyer, spent $600 to $1,000 for inspections and the appraisal and then you have nothing to show for your money! And to be even worse, while you were tied up literally waiting on the wrong property to die, the right place may have hit the market, and you were not able to act on it before it was gone!

• Is your commission typically paid by the Sellers or by the Buyers?

  Is your commission typically paid by the Sellers or the Buyers?

  Most Buyer's Agent get paid a commission based on the sales price of the property. While commissions are considered a Seller's expense, since the sales price typically includes the commission, the Buyer is paying the commissions as part of the purchase price of the property.

  The amount of commission typically varies based on the sales price of the property and is determined in Indiana by the Seller & the Seller's Listing Agent. Historically, a property listed for sale in the greater Indy area at $300,000 or less would pay a total commission of 7% that would be shared equally (3.5% & 3.5%) between the Seller's Agent's Brokerage and The Buyer's Agent's Brokerage. Depending on each Agent's contract with their Brokerage each Agent would then be paid a portion of, in this example, the 3.5% commission. Again historically, places that sold for over $300,000 typically paid a total commission of 6% shared equally at 3% & 3%. Plus, properties that historically sold for substantially more than $300,000, like $800,000 or more, would pay a total commission that was even less than the 6% like 5.8%. However, typically this would still be split equally between the Listing Agent's Brokerage & the Buyer's Agent's Brokerage. While this 7%, and 6% or less, has historically been typical, each Listing Agent Brokerage and Seller ultimately decide what the total commission will be, and the Listing agent typically suggests what the split with the Buyer’s Agent will be. NOTE: A Buyer's Agent's has a fiduciary responsibility to show you as the Buyer, any home you want to see regardless of what the commission is.

  Understand that more often than not any comparable sales used by an Appraiser to set value for a home, also included commissions for the Listing and Buyer's Agents and their brokerages. So, if a Seller is trying to base their List and Sales price on these comparable sales, without also paying comparable commissions this would create an additional "unrealistic" net gain for the seller.

  In seller's Markets, where demand for places can generate multiple offers, some Seller's may negotiate with their Listing Agent to pay a lower commission percentage. Still, if a seller is justifying their sales price based on comparable sales and then also wanting to pay less in commission than was reflected in the comparable sales, then that seller is effectively asking Buyers to pay "too much" for their property.  Additionally, in these same Seller markets, the Listing Agents may also decide not to share the total commission equally. This would mean that the Listing Agent and their Brokerage are keeping a larger portion of the total commission for themselves.

  Similarly, each Buyer's Agent together with their brokerage, determine what their minimum acceptable commission will be to represent you as a Buyer. As an example, Mitch and his brokerage typically expect commissions to be 3.5% for properties that sell below $300,000 and 3% or less for places that sell for $300,000 or more.  Again, every Buyer's Agent, together with their brokerage, determine how any gap between what was expected and what is being offered is addressed. 

  For Mitch with his Buyers, only New Construction and foreclosed/bank owned home sales, typically require a minimum commission because of the amount of extra time required with both types of transactions. With these sales, the minimum BAC is at least a 3% BAC for places that sell for $300,000 or more, or 3.5% BAC for places that sell for less than $300,000. To help clarify why these two types of sales have a minimum BAC let’s talk about new construction sales. Builders do not typically have (and are not required by law to have) a licensed real estate agent representing the builder. This means the builder does not even have the limited responsibilities or ethical obligations that REALTOR's must follow! Since builders would prefer that Buyers NOT have a REALTOR negotiating to get the best deal or remaining involved throughout the process during interior and exterior selections, to protect the Buyer's interest, one of the easiest ways Builders can discourage real estate agents from being involved is to reduce the amount of Buyer's Agent Commissions. Additionally, be aware that if you contact a builder (walk into a model or email, text or call a builder) directly without your agent then many, if not most, builders will refuse to pay your agent any Buyer's Agent Commission whatsoever.  

  For all other places Mitch, in his Buyer's Agent Agreement, will typically accept the BAC being offered by the seller. The only exception is if the Listing Agent negotiated a typical or lower total commission with the seller, say 6% vs 7% for a home listed at $275,000 and then the Listing Agent does not share the commission equally with the Buyer's Agent. For example, instead of accepting 1/2 of the 6% that the Seller is paying in total, the listing agent keeps their typical 3.5% and then offers BAC of only 2.5%. In this scenario, if the BAC is lower than Mitch would expect, Mitch reaches out to the listing agent typically even before the showing. Mitch asks the listing Agent if, in this example, the total commission is twice the 2.5% BAC or if the total commission is greater than 5% meaning that Listing Agent is keeping more than 1/2 of the total commission. While there are no guarantees the listing agent will be truthful, it would be unethical for the Listing Agent to lie about the total commission. If for whatever reason the Listing Agent agreed to a lower total commission and is splitting the commission equally or even paying a BAC that is higher than the Listing commission, they will easily share that. If that is the case then Mitch will waive any gap, and the buyer is not obligated to pay more than the seller is already offering even though it might be less than Mitch's typical BAC. This is the case 95% of the time.

  In the instances though where the BAC is not equal to or greater than the listing Agent commission, then often the Sellers likely did not even realize there is a difference. Regardless though, Mitch will include as part of any offer that we ask the Seller to pay the BAC per your Exclusive Buyer's Agent Agreement.  So, the only time you would have to cover any gap is if the Seller refused, and you wanted to still buy the place.

  As an extra step to minimize the risk to you that you will need to cover any gap, Mitch will, in multiple offer scenarios, wave up to 1% of any gap to both help increase your odds of getting the property that you want and to minimize the likelihood you will have to cover any gap in the BAC!

• Are your Buyers ever required to sign an Exclusive Buyer Agent Agreement, and if yes when?

  Are your Buyers ever required to sign an Exclusive Buyer Agent Agreement, and if yes when?

  Since Indiana does not require Buyer's Agents contracts, it is up to each Buyer's Agent and their Brokerage to determine when, and if, a contract will be used. Keep in mind that Buyer's Agents only get paid for their time if the Agent is successful in helping you close on a place. So, it is understandable that most agents will only commit to helping a buyer, if they know the buyer is working only with them, as the buyer's Agent, vs multiple Buyer Agents.

  Beyond the reasons a Buyer's Agent feels the need to know you are working only with them, working with a single Buyer's Agent can and most often will save you as the Buyer substantial time and money! Feel free to ask your Buyer's Agent the reasons why working with only one Buyer's Agent is in your best interest. As a real-world example, be sure to ask Mitch about the Buyers who showed up repeatedly at Mitch's Open houses for almost a year before finally deciding to work with only Mitch. These Buyers for months had avoided working with just one agent and the Buyers had even given up on finding a place in their preferred location thinking that what they wanted did not exist within their budget. Yet, on the first time out with Mitch a few days later, after looking at the 1st 5-6 places, Mitch was able to suggest that they look at one more place on their way home. Mitch showed the Buyers a new listing that was their perfect home, in their preferred location and within budget! And, with Mitch's help, the buyers put their dream home under contract literally within less than 7 hours after first looking at places with Mitch. These Buyers, like most of Mitch's clients, went on to become long term clients calling on Mitch repeatedly for their future real estate needs.

  So, what is an Exclusive Buyer Agent Agreement ("EBAA"?) These are the Buyer's side of the real estate sales process. Sellers are required by law to have a written and signed Listing Contract that defines how and when a listing Brokerage will get paid. Many states also require Buyers to have a similar contract with their Buyer's Agent as to how and when the Buyer's Agent will be paid. However, Buyer's Agent Agreements are not yet required by law in Indiana.

  While one of the reasons for an EBAA is to confirm the Buyer Agent's Expectations on compensation, keep in mind that virtually every listing already includes some compensation for the Buyer's Agent Commission ("BAC"). Again, it is possible though that the amount being offered by the Seller will not fully meet the Buyer Agent's expectations which means there could be a gap. For example, if the seller is offering 3% commission and the Buyer Agent's Brokerage is expecting 3.5% this would create a 0.5% gap in commission.

  To confirm that you are only working with one agent, the Indiana Association of REALTORS' Exclusive Buyer Agent Agreement states that the "Buyer employs Broker for the purpose of exclusively assisting Buyer to locate property described below or other property acceptable to Buyer, and to negotiate terms and conditions acceptable to Buyer for purchase of property." The key word here is Exclusively, which means you are only working with one Buyer's Agent versus several Buyer Agents. If a Buyer is working with several Buyer's Agents, and more than one Buyer's Agent sends the Buyer the same property that the Buyer ends up buying, then this contract clarifies which agent is legally entitled to the Buyer's Agent Commission for that purchase.

  This agreement typically has a termination date that covers a 6-to-8-month period. Many agents take the approach that once you start working with them as your agent, that you must continue working with them till either you purchase a place, or the agreement ends based on the termination date. Mitch gives his Buyers the ability to terminate the agreement for any reason with 14 days’ notice either by email or other similar written notice. Note that in Mitch's agreement, the termination ends the Buyer's obligation to Mitch on any properties seen after termination. However, the obligation though continues on places seen by the Buyer before the contract ended for 90-240 days depending on if the property is a resale vs new construction respectively.

  Another recent change, that will likely prompt more use of Exclusive Buyer's Agent Agreements by Brokers, is that Zillow has become an actual real estate brokerage in most locations. So, now when you request any info from Zillow online, as you may have already noticed, Zillow notifies you that you have initiated a Buyer agency relationship with Zillow. This could mean if you don't have an Exclusive Buyer's Agent agreement in place with your Agent, that Zillow could make a claim to the Buyer's Agent Commission related to your purchase if you looked at the property online.

  For Mitch with his Buyers, only New Construction and foreclosed/bank owned home sales, typically require a minimum commission because of the amount of extra time required with both types of transactions. With these sales, the minimum BAC is at least a 3% BAC for places that sell for $300,000 or more, or 3.5% BAC for places that sell for less than $300,000. To help clarify why these two types of sales have a minimum BAC let’s talk about new construction sales. Builders do not typically have (and are not required by law to have) a licensed real estate agent representing the builder. This means the builder does not even have the limited responsibilities or ethical obligations that REALTOR's must follow! Since builders would prefer that Buyers NOT have a REALTOR negotiating to get the best deal or remaining involved throughout the process during interior and exterior selections, to protect the Buyer's interest, one of the easiest ways Builders can discourage real estate agents from being involved is to reduce the amount of Buyer's Agent Commissions. Additionally, be aware that if you contact a builder (walk into a model or email, text or call a builder) directly without your agent then many, if not most, builders will refuse to pay your agent any Buyer's Agent Commission whatsoever.  .  

  For all other places Mitch, in his Buyer's Agent Agreement, will typically accept the BAC being offered by the seller. The only exception is if the Listing Agent negotiated a typical or lower total commission with the seller, say 6% vs 7% for a home listed at $275,000 and then the Listing Agent does not share the commission equally with the Buyer's Agent. For example, instead of accepting 1/2 of the 6% that the Seller is paying in total, the listing agent keeps their typical 3.5% and then offers BAC of only 2.5%. In this scenario, if the BAC is lower than Mitch would expect, Mitch reaches out to the listing agent typically even before the showing. Mitch asks the listing Agent if, in this example, the total commission is twice the 2.5% BAC or if the total commission is greater than 5% meaning that Listing Agent is keeping more than 1/2 of the total commission. While there are no guarantees the listing agent will be truthful, it would be unethical for the Listing Agent to lie about the total commission. If for whatever reason the Listing Agent agreed to a lower total commission and is splitting the commission equally or even paying a BAC that is higher than the Listing commission, they will easily share that. If that is the case then Mitch will waive any gap, and the buyer is not obligated to pay more than the seller is already offering even though it might be less than Mitch's typical BAC. This is the case 95% of the time.

  In the instances though where the BAC is not equal to or greater than the listing Agent commission, then often the Sellers likely did not even realize there is a difference. Regardless though, Mitch will include as part of any offer that we ask the Seller to pay the BAC per your Exclusive Buyer's Agent Agreement.  So, the only time you would have to cover any gap is if the Seller refused, and you wanted to still buy the place.

  As an extra step to minimize the risk to you that you will need to cover any gap, Mitch will, in multiple offer scenarios, wave up to 1% of any gap to both help increase your odds of getting the property that you want and to minimize the likelihood you will have to cover any gap in the BAC!

• Do Buyers complete a survey or questionnaire to help confirm what they are looking for in a new place?

  Do Buyers complete a survey or questionnaire to help confirm what they are looking for in a new place?

  A great agent will have tools like a questionnaire or survey for buyers to fill out to help the buyers focus on all of the Buyer's potential needs and desires. Then the agent will use this info to both create searches as well as start to set expectations as to how realistic the wish list and budget are..

• Do you track the percentage of your annual business that’s from prior clients and referrals from prior clients?

  Do you track the percentage of your annual business that’s from prior clients and referrals from prior clients?

  Great Agents understand that the real value of a sale is more about how happy their clients are so that these clients refer others to the Agent down the road, versus focusing just on the commission from an individual sale.

  These Agents understand that Buyer's will look back on the entire buying experience and things like the Agent's communication style, the Agent’s ability to listen and to NOT waste the Buyer’s time, along with the Agent's ability to educate the buyers all help the buyer become more comfortable and more confident with the Buyer's ultimate decision.

  These “elated” Buyers tend to tell their friends, neighbors, work colleagues and frankly even the person they hear who is just talking about buying or selling in a coffee shop, about their Agent!  This is the real  test of how great an agent is!

  Be very cautious If the agent cannot tell you, or they minimize how much of their annual business is generated by prior clients and their referrals! Also keep in mind that the industry wide average for referral business is only 45-50%. So, if the Agent's answer is less than 75%, the agent is not likely the best match for you even if they are a Top 20% Producing Agent it's likely due to a lot of marketing vs elated clients!   

• Do you have Local Lenders, Inspectors, and home contractors etc., that you refer your clients to?

  Do you have Local Lenders, Inspectors, and home contractors etc., that you typically refer your clients to?

  Great Agents understand that regardless of if it is a buyer's first house, or it's been five years since they last purchased, or it's just the first house in a new area, that many buyers don't have established relationships with Lenders, inspectors, roofing, HVAC contractors, electricians and plumbers etc.

  Mitch finds himself not only helping to get the home purchase closed, including connecting Buyers with great contractors but Mitch is also often recommending restaurants, vets, painters, interior decorators and much more, to his buyers!

• Do you feel it is your obligation to raise any red flags or concerns about places you show buyers?

  Do you feel it is your job to raise any red flags or concerns about places you show?

  You might presume the answer is an obvious yes! However, Mitch's experience is most agents are more interested in making a quick sale vs taking more time to look for the best place for the Buyer.

  Mitch tells his clients that one of his biggest complaints against REALTORS, before he became one himself, was that he never heard all the reasons he should not have bought a place till he called the same agent, who sold him the house, and asked the agent to sell the place. At that point Mitch was told all the many reasons Buyers would have a problem with the property that the same agent had never previously shared.

  Mitch's commitment to his Buyers is he does not ever want to be explaining why he cannot sell a place for you, that he also sold to you!

• Are you also an active appraiser, mortgage lender or do you have any other full or part time professions?

  Are you also an active appraiser, mortgage lender or do you have any other full or part time professions?

  Frankly, it is hard enough for a great agent to keep themselves available to fully meet your needs and schedule as a Buyer, when their only job is being a full time REALTOR!

  If the agent is also working as a mortgage lender, an appraiser or even just working part time in any other profession, the risks are real that the agent may not be available when a property hits the market and/or when you can get free to go check it out.

  Plus, if the Agent is proposing that they also be your lender etc., along with being your agent, I would discourage you from working with that agent. Additional expertise from a PAST professional life can be a great asset for your agent! However, other current obligations are a terrible distraction from helping you find your new home.

• What are a couple of things that separate you from other REALTORS® that I may talk with?

  What are a couple of things that Separate You From other REALTORS® that I may talk with?

  There really is not a right or wrong answer here. You should just be looking for something that rings true and seems sincere and will, from your perspective as the Buyer, add real value.

  If you asked Mitch, or even his clients this question, their response would likely include…

  First, from a communication perspective, Mitch is an extremely open and direct Agent. Probably more so than 99% of the other agents you could work with.

  Second, when you as a Buyer are looking for your Agent’s perspective on a property, the only thing worse than being told “it’s your decision,” is being told what the Agent thinks you want to hear! Mitch has the experience, expertise, and track record needed to tell Buyers and Sellers what they need to know, so that they can make the best-informed decision.

• How many places do you typically show buyers before they have a property under contract?
  1. How many places do you typically show buyers before they have a property under contract?

  Many people will tell you that if a Buyer's agent must show a buyer more than 10-12 places before the buyer writes an offer, then that agent is not very good at understanding what the client wants. Unfortunately, this may not be an accurate statement. For example, once Mitch looks at 6-8 properties with a buyer, he can usually identify places that will seriously interest the buyers.

  However, the comfort level of the Buyer in submitting an offer has as much or more to do with how particular or specific the Buyer's wish list is, how much the buyer has been following properties online before starting their search in person, how realistic their budget is, and the buyer's sense of urgency.

  For example, if the Buyer does not have a specific part of town in mind, then it could take 2-3 trips, looking at 5-6 homes per area, for the buyer to just decide on the compromises they want to make, based on how far their budget goes, in each area.

  An honest answer here would be that the agent has had buyers who bought one of the first 10-12 places, as well as buyers who took several months to find the right place. Absent that type of a response, it is likely the agent will be more aggressive in pushing you to choose a place, even if that means you feel you are settling vs being ready to make certain compromises.

  Lastly, the price point and the type of market (Seller's, Buyer's or Balanced) can have a huge impact on your timeline & success in finding the perfect place. If your budget is at or below the average sales price for the area you are searching in, then you will also likely find less options and greater demand from fellow buyers.

5 Questions To Ask Related To An Agent's Availability

• What Are The Typical Hours and Days you are Available?

  What Are The Typical Hours and Days you are Available?

  A lot of Agents will tell you that they got into Real Estate to be able to control their hours which frankly is a ludicrous concept although many agents will push back about being available evenings and/or weekends.

  As REALTORS our job is to help you find the perfect place realizing that we must be available when our clients are available! Regardless of when you will be free to talk or look at places, it is important to make sure that your Buyer’s Agent can also make themselves available.  Again, this is true both for seeing places in person or virtually, as well as being available to answer questions or to address concerns.

  The bottom line is you know your schedule. If that means you are only free to talk late evenings or early mornings or only on weekends or at lunch time, then just confirm your Buyer’s agent can match your availability to meet your needs.

  If you are relocating to a new city, then make sure the Agent will also be willing and able to block out the majority of the time that you will be in town and available.

  For most agent’s there will be times, although hopefully rare, that they are out of town or just not available. Great agents will always have other great agents that cover for them if they are not available. Typically, if Mitch is out of town, he has agents available to show you places that you want or need to see, and Mitch is still typically available to talk with you, including many times while you are literally walking through the property with the agent that Mitch has arranged to show you the place.  Sometimes Mitch may ask you to text him after you have seen the place and he will get free and call you right back to see if you have questions or want to write an offer.

  There is an idiom with REALTORS, that if you want to sell a place just go out of town! Mitch has prepared and negotiated numerous offers while traveling!  So, be sure to ask what the process will look like if your Buyer’s Agent is out of town and if the Agent has any trips planned or other reasons why they will not be available to work with you.

• What is your preferred way for Buyers to contact you?

  What is your preferred way for Buyers to contact you?

  While this is a question that great agents should be asking you, many salespeople will tell you what they think you want to hear and may even respond “whatever works best for you.” The problem with this answer is that Great agents have busy schedules and yet the best Buyer’s Agents want to be even better including being as responsive to you as they can be. So, if their answer to this question is whatever you prefer works, or shoot me an email, or leave me a voicemail, then this agent may not be the best fit.

  Mitch asks his clients to text him knowing that it is the easiest and fastest way to respond even if he is in the middle of showings, at a closing or he is just watching a movie in the evening. Likewise, Mitch tells his clients that he is typically up late, as well as up early, so texting Mitch lets you reach out 24/7 knowing that if Mitch is up, and he is free to talk, then Mitch will call you right back. If Mitch is up but not immediately free, he will text you that he should be able to get back with you in 10 minutes or 30 minutes or whenever. If Mitch is already asleep, then once Mitch is up, he will text you back to see if you are available to talk.

• Typically, how much advance notice is required before you can show a place?

  Typically, how much advance notice is required before you can show a place?

  In the question earlier about ways to help buyers succeed in a seller’s market, Mitch shared that he tries to keep from 3:00 – 6:00 PM open Monday through Friday just to show new listings. So, Mitch uses this time to help his most active buyers get in to see the newest daily listings, that are immediately allowing showings, to hopefully allow his Buyers to see the property and consider an offer before these new listings are put under contract. While most listings are taken live Wednesday through Friday, they can be taken live any day. However, very few listings seem to be taken live on Saturdays and Sundays.

  Beyond a similar approach, most top producing agents will of course be busy. Mitch tells his Buyers that while he can typically accommodate any day and time for showings, with advance notice, that his schedule is typically full 24 hours out. Also many listings will require 24 hours’ notice to get a showing approved. So, Beyond the 3-hour showing window from 3:00 to 6:00 to see brand new listings, its best to give Mitch and most agents as much notice as possible, and at least 24 hours’ notice. If you have a specific day and time in mind to go and look at places also mention that to your agent as soon as you know!

  Of course, this would also be true if you are relocating to a new city and you will be traveling to look at places.

• Do you have set times during the day to respond to emails, text messages and calls?

  Do you have set times during the day that you respond to emails, text messages and calls?

  Many times, you will hear voicemails or an get email bounce back that indicates an agent returns all calls, or responds to emails, between certain times of the day. With some agents they seriously let every single call go to voicemail and then they will respond at times that are good for them.  Believe it or not, this process is taught by many real estate coaches as a tool to help agents be more organized and productive.

  Mitch believes that , great agents work for you and they should accommodate your needs vs asking you to work around their schedule. If you think like Mitch does, and you will not be ok with an agent responding during limited times of the day, it is best to find this out early on.

  As part of this question,  you should also confirm if you as a Buyer call or email the Buyer’s Agent will you typically get a response from, the agent, an assistant, or office/team member?

  Many top producing Agents have Showing Agents or Buyer’s Agents, Transaction coordinators, Assistants etc. While these professionals may be very experienced and in roles that highlight their individual strengths, it is safe to say that if these team members were as good as the Top Producing Agent, they would have their own team vs being on someone else team!

  Although Mitch does not make use of this business model, many top producers will. So, if this is the business model for the agent you are interviewing then, at the very least, you should also interview those team members that will be your primary points of contact.  

• If a Buyer wants to see a place, and you are not available, do you have someone else that can show the place? How often does that typically happen?

  If a Buyer wants to see a place, and you are not available, do you have someone else that can show the place? How often does that typically happen?

  For most agent’s there will be times, although hopefully rare, that they are out of town or just not available. Great agents will always have other great agents that cover for them if they are not available. Typically, if Mitch is out of town, he has agents available to show you places that you want or need to see, and Mitch is still typically available to talk with you, including many times while you are literally walking through the property with the agent that Mitch has arranged to show you the place.  Sometimes Mitch may ask you to text him after you have seen the place and he will get free and call you right back to see if you have questions or want to write an offer.

  There is an idiom with REALTORS, that if you want to sell a place just go out of town! Mitch has prepared and negotiated numerous offers while traveling!  So, be sure to ask what the process will look like if your Buyer’s Agent is out of town and if the Agent has any trips planned or other reasons why they will not be available to work with you.