How To Find The Best Realtor: Questions to ask when interviewing Realtors!

Wait, you mean I'm supposed to interview Realtors?  

Oh trust me, yes you are! Consider it an investment; both in terms of peace of mind, as well as in financial terms. Fringe benefit? It's often an eye-opening and entertaining process!

Keep this Miles Kington quote in the back of your mind as you read on. I'll bring it back up at the end of the post.  "Knowledge is knowing that a tomato is a fruit. Wisdom is knowing that a tomato doesn't belong in a fruit salad."  Knowledge, without the wisdom to apply it...is useless. 

When interviewing a Realtor, it's wise to have a list of questions to help you make your decision.  Don't be shy.  Write 'em down and keep 'em by your side.  The fact that you are prepared will make some agents shake in their boots.  Knowing that you're prepared makes this agent (me) confident that we're ready to proceed to the next step in the listing or buying process!

I was recently interviewed by a prospective client who, with the greatest of intentions, decided to grill me with a canned set of questions that he had pulled from About.com.  There are dozens of sites that list questions that your often unsuspecting Realtor ought to be able to address, swiftly and comprehensively.  I'll list several for you to look through at the bottom of this page. 

As you read, keep these points in mind: 

1. The quality an interview is based on the quality of questions asked. Answers, and the questions that prompt them, need to be important, relevant, and easy to understand.  Simply put...they need to matter. Without clear communication and understanding, the interview process is a complete waste of everyones' time, so know what you want to know...and don't end the interview until you've got your answers.
2. The answers you receive from various agents are circumstantial and are based on his or her unique strengths, weaknesses, and professional experiences.  Different responses don't mean that they're wrong.  Sometimes the odd answer is the right one! 
3. Always ask "Why?"  I call that part "the juicy part."  I'm less concerned about what occurred, and more concerned with why. That's the answer we really need to know.
4. Don't get freaked out by all of the 'jargon.' If you don't understand a term, phrase or idea...STOP!  Interrupt and ask for clarification!  Remember, you are the boss!

Q1: What is Your Average List-Price-to-Sales-Price Ratio?

A1: Huh? 

Yep!  That's a good one!  Wait! What does it even mean?  If an agent lists a property for sale at $500,000 and sells it for $510,000, the List-Price to Sales-Price Ratio is 102%. That's awesome...isn't it?  Maybe!  This might sound ridiculous, but one could effectively argue that a property's list price might as well be completely erroneous. A home will sell for what the market will bear.  I can say that if you're asking a true Real Estate professional, your property will sell for exactly what the market will support... under those market conditions...and that seller’s unique circumstance.  They always do, and they always will.   

Example: I recently saw a really desirable property listed for $228,000.  It closed almost instantly at nearly $100,000 over the asking price!!!  Obviously $228,000 was not the market value! So why would a listing agent do that?  I can only speculate that the sellers needed an immediate offer to keep their property from foreclosing. They immediately received several offers, took the best offer, then closed.  OR...I could completely be wrong.
*Notice that I remarked that the seller "took the best offer."  "Best" might have been the one which could close the fastest.  Perhaps this property could have sold for even higher if the seller's circumstances were different.  

NEXT..., and does this actually matter? 

Q2. What is the average number of days that your listings remain active?
A2. 19 days! 46! 107!

What's best?  What's ideal? What should I expect?  If we don't know what the data means, we can't know what the best answer is.  Historically, the actual median Days on Market is around 45 days.  If you sell on the first day, you might have been under priced.  If you're sitting on the market 4 months after your listing date...you may be over-priced.  "All else aside, shouldn't my Realtor sell my home as quickly as he or she can?" We'll never know the answer to that question until we know the factors that are motivating the seller.  

Example: A young family decides that Dad is going to take the promotion and move to a new city while Mom keeps the home fires burning and gets the home sold for the highest possible price.  Dad leaves. Mom lists the property at the top of the market and they wait for the right offer to come.  After a few weeks the family decides that being apart isn't as easy as they thought and they decide to sell the house as quickly as possible so they can be together again.  How long a house stays on the market is, for all intents and purposes, is up to the home sellers.  How motivated are they to sell?  Are they waiting for the perfect buyer? Are they trying to avoid foreclosure?  Are they trying to get moved into their new place before the baby gets here? Days on Market is not an indicator as to how effective an agent is, but an indication of how long it took the seller and the open market to meet.

Q3. How Long Have You Been in the Business?
A3. 4 Weeks, 4 Years, 40 Years. What's the right answer?

I wish it was that easy.  In a market like today's, a new agent might not yet be equipped to handle on the spot negotiation, nor will he or she have the strong reputation that gives listing agents and their sellers the security they are looking for to go into contract.  That said, I have met many, many brokers and agents that have been in Real Estate for decades, yet they can't find their respective backsides with both hands!  The question "How long have you been in the business?”   ought to be changed to “Could you please explain what makes you an effective buyer’s agent or listing agent?”  It's not one's ability to close a deal, or to sell quickly that matters. It's your agent's ability to work, effectively and efficiently, representing his or her clients' unique needs, wants, budgets, and timelines. 

Q4: If I wasn't going to use you...who should I use?

A4:__________________(crickets) 

If this questions doesn't elicit an intelligent and sincere response, you've got room for doubt.  If it elicits some canned, smarmy, 'used-car-salesman' response...

...RUN!!!!!!

Looking back at the quote at the top of the post: "Knowledge is knowing that a tomato is a fruit. Wisdom is knowing that a tomato doesn't belong in a fruit salad." is really a perspective I want you to hold onto when you're looking for your next Realtor.  Market knowledge isn't what's important.  What you do with it is!  

Below are a few links to sample questions you might choose before you interview at least 3 agents.  It's important to note that each site you find with similar questions will have a self-serving agenda.  Remember to use these questions to suit YOUR agenda...not theirs.  

Interview Questions from Realtor.Com
Interview Questions from the National Association of Realtors

Realtor Interview Questions from About.Com

As always, please feel free to e-mail, call, or text your questions to my contact information below.  I hope this post leaves you with the understanding that real estate isn't a mystery. You don't need a crystal ball.  You only need the truth. You need the facts, strategies, and discipline to follow through. I'll sit with you, side by side, while we discover the facts that pertain to a property you're thinking of selling or are interested in buying.  No gimmicks. No games. Just insight, foresight, experience, strategies...and the truth.

Thank you in advance for remembering my name and this site, when the topic of Real Estate comes up.  I'm happy to help in any way I can.  Also, if you enjoy what you find on my blog, please share this post and "like" and comment on my Yucaipa Real Estate Trends Facebook page.

Until next time,

Andy Blasquez ~ The last Realtor you'll ever need to look for.

Cell ~ 909.539.3292

Andy.Blasquez@gmail.com