The Top 5 Questions to Ask A Realtor

This post is sponsored by one of our Trusted Partners, REC Canada. To become a contributing editor, please contact our Real Estate Investor Solutions Specialist, David Maxwell at david@reincanada.com

The world of real estate is vast.

Unless you’ve taken the time to do thorough research, it can be easy to become overwhelmed and end up purchasing a property that doesn’t suit your investment strategy. Fortunately, a good realtor should take a lot of the load off your shoulders, but that doesn’t mean that you no longer have a place in the process. Having a realtor on your side will get a lot of the legwork taken care of, but communication is critical for them to work most effectively on your behalf. One of the easiest ways to do that is by asking your realtor questions.

Here are a few of the most common questions you should be sure to ask your realtor.

How do they help investors compete in this market?

Before you even consider hiring a prospective realtor, you’re going to want to find out which kinds of clients they typically work for and how they will help you as an investor competes in this market. This is an essential question, as it will tell you their strategy to make you stand out in a potential sea of offers.

If they don’t have much experience with this side of real estate, they’re not the realtor you’re looking for.

How much experience do they have?

Experience isn’t always everything, but it definitely counts for something. The difference between an experienced realtor and one who’s still finding their footing is like night and day in the real estate industry. It’s essential to differentiate a realtor with experience from someone who has been in the industry for an extended period. To do that, asking for a little more detail on their background is necessary. Ask about previous deals they’ve made or how they got their start in real estate. Often, their approach to answering questions alone will be enough to tell you how they’ll handle the negotiation process.

As an investor, you ideally want to work with a realtor who will be able to anticipate the types of problems you’re likely to run into before they arise and have tried and tested negotiation techniques for this specific category. Likewise, you’ll want to find someone who has established relationships with other real estate professionals. This is the kind of realtor that will know how to run a financial analysis and guide you through their local market using the appropriate data.

Do they work alone or with a team?

You always want to know exactly who it is you’re working with. Whether your realtor is working independently or as a part of a team can make a big difference in how they operate and how you’ll work with them. Depending on what you’re looking for, both options come with their own set of pros and cons.

When it comes to independent realtors, the best thing is that you have their full attention. They know you, your investment goal, and the kind of property that you’re most interested in. At the same time, working independently means that your realtor has a lot more work on their hands. On top of that, there’s always a chance that you’re not your realtor’s number one priority if they’re juggling multiple clients.

If your realtor is a part of a team, you’ll be able to rest easy knowing that you’re in for a more well-rounded experience with no chance that your realtor will be overworked. When it comes to realtors, teams tend to have a more organized structure, leading to more opportunities to
communicate with you and let you know exactly how things are going. While this might make working with a realtor on a team sound like the obvious choice, it also comes with its drawbacks. When working with multiple people, not everyone will have the same information. You might find yourself speaking with someone about a property they have never seen. Likewise, working with a team doesn’t always guarantee that you’ll be working with a realtor who has the most experience. Depending on the
size of the team, you may end up being a fresh realtor’s first client.

Do they have references?

Sometimes, you’re not going to be able to get the most accurate read on a realtor simply by speaking with them. In these situations, references will help fill in the gaps significantly. Unlike the realtor describing, references will have no issue bringing up any problems or negative experiences. Ideally, we’d recommend checking in with up to three references who have worked with your chosen realtor for a similar investment deal. Asking for references and following up with them can save you a lot of time and money.

Ask for recommendations

If your realtor is experienced, there’s a good chance they’ve formed several strong relations within the real estate industry. Whether you’re talking about mortgage brokers, appraisers, inspectors, or real estate lawyers, your realtor should be able to think of at least a few people they can recommend for the job. Asking for recommendations will not only give you a better sense of your realtor’s standing in the industry, but it could end up leading you to add another member to your investment strategy roster. Your realtor’s network can be just as important as them and their team.

Never be afraid to learn more about your selected realtor before you commit to working with them. If there is anything that you’re unsure about, feel free to ask to find a realtor that understands the investment strategy you’re pursuing and makes you the most comfortable.