Whether you are buying a home or selling a home it is important to choose the right real estate agent because if you choose the wrong agent the transactions can be botched leaving you without a home to buy or the inability to sell your home.
Although the real estate agent may work for a company they may still be considered an independent contractor. The reason is that they are paid a commission based on how many homes they sell. The commission is paid from the proceeds of the sale but it has to be split equally between the agent that listed the house and the one that sold it but this is not the end.
Each agent will usually have to pay a share of their commission to the broker who owns the office where they are affiliated. Most are conscientious real estate agents who will do their best to make sure that their customers are satisfied and have the house they want or sold their home because their commission is dependent on the sales.
Unfortunately there are some real estate agents who are not conscientious about their dealings and should be avoided. Here are some red flags that can help you determine whether or not to hire a particular real estate agent.
* The real estate agent suggests the highest price for your home
If you are selling your home you should get listing presentations from other agents which will tell you how long a comparable home took to sell and what they sold for. If your house is priced too high it will take a longer time to sell and many times it will sell for less because the home owner needs to sell it for a variety of reasons and does not have time to wait for it to sell at the price listed.
* The real estate agent does it part time or on the side
It does not matter if you are selling or buying a home you want to make sure that the real estate agent is following the market actively every day. One reason is that if you are a buyer you want to have a real estate agent that can immediately tell you about any new listings that fit what you are looking for and get you a viewing immediately. If you are selling your home you want to make sure that your real estate agent is available to show your home to prospective buyers when they want to see it, not when the real estate agent has time to do so.
* The real estate agent charges a lower commission than other real estate agents
Most commissions are traditionally five to seven percent. If the commission on the house you are selling is lower than these percents there will be fewer agents that show your house to prospective buyers because the commission when split between the selling and buying agent is too low and not worth the trouble.
Do your research before choosing the real estate agent to sell your home or find you a home.