Questions to Ask Your Realtor in a Hot Market

What questions you ask your agent in a hot real estate market are critical for getting the right agent to help you navigate.

According to survey data from the National Association of Home Builders, 64% of active homebuyers in the first quarter of 2021 had been searching for more than three months — and 45% of those buyers say being outbid has kept them from buying a home. According to financial expert Dave Ramsey, inventory was down 30% in the early months of 2021, compared to the previous year, and homes sold 20 days faster. In addition, home prices rose by nearly 20% over last year.

Since buyers and sellers are not in control of the market, it is important to focus on what you can control One of the most important decisions you will make when buying or selling in a hot market (and any market!) will be selecting your agent.

Here are some questions to ask your real estate agent before entering the market: 

• How Much Experience Do You Have?

A hot market means there are less homes available for the buyers who are looking for them. As a result, sellers often get multiple bids, and homes sell quickly. In this environment, it is critical to have an agent with experience, preferably one who has been working full-time in your market for at least four years. As a result, they will know the community inside and out and will have negotiation experience.

This is important because they will know where to look. In addition, they will have better expectations about how long you can expect to be looking. Also, with solid relationships with other agents in the market, they can alert you to listings as soon (or before) they hit the market. In addition, they will know other neighborhoods you could consider to get the house and price you want.

On the seller side, an experienced agent will have extensive pricing knowledge. Ask for their sale-to-list ratio. You get this by dividing the final sale price by the asking price. The closer to 100% the better. Over 100% means they are able to sell houses for more than the asking price.

• What Training Do You have?

You may gloss over the initials that come after a person's name on their business card. Often, they indicate additional training, experience, testing and certification. With many of these designations, agents agree to abide by certain standards and ethics. Here are a few to watch for:

• Realtor® is a member of the National Association of Realtors (NAR). Real estate agents have a professional license to help people buy, sell, and rent real estate. A Realtor is a licensed real estate agent or broker (or other real estate professional) who is a member of the National Association of Realtors (NAR). Members must comply with NAR's strict Code of Ethics.
• CRS (Certified Residential Specialist) is the highest credential awarded by NAR to residential sales agents, managers and brokers. Only top-performing agents get this distinction.
• ABR® (Accredited Buyer Representative) are agents who have completed specific training in representing buyers in a real estate transaction by NAR.
• SRS (Accredited Seller Representative) are agents who have completed specific training in representing sellers in real estate transactions by NAR.
• SRES® (Seniors Real Estate Specialist) are agents who have completed training by NAR in helping buyers and/or sellers who are over the age of 50.

Is your agent passionate about real estate? For example, I hold licenses in several states and continually work to understand real estate trends at the global level. What is happening in one neighborhood is not happening in a vacuum. Understanding what pressures are influencing the market nationally and internationally gives me an edge.

• How Many Deals Have You Closed?

Financial guru Dave Ramsey says the agent you choose should have a history of closing home sales. His recommendation is at least 35 closings per year. Ideally, your agent will close more homes than 90% of the agents in your markets.

Expert agents will know how to make and get the best offer, which may not always be the first or highest offer. Considerations such as rent back, which gives the seller flexibility to house hunt can make an offer stand out. They will know if it is advantageous in the market to suggest an informational inspection only or suggesting limiting post-inspection fixes to a certain threshold. Also, they will know if suggesting an escalation clause in an offer might be advantageous.

Also, a knowledgeable agent can communicate with the listing agent to get information that might help your offer stand out. For example, is the seller concerned about finding a new home after selling or looking for a fast closing?

I began in real estate in Florida in 2002, and within 3 years, I topped $100 million sales. I have broken sales records, and in 2004, I ranked No. 1 for new-construction sales in the state after selling more than 300 homes.

• How Can We Work Together?

Hiring an agent to represent you will involve a contract, so it is important you understand the terms. Look for an agent who will allow you to cancel the contract without penalty if you are not satisfied with their service. Will you be charged a termination fee to cover marketing expenses?

Also, be sure to discuss costs, including commissions, at the front end, so there are no surprises. In addition, find out in advance the most effective ways to communicate.

Real Estate is not just a job to me. I feel like I am not selling property, but helping people build their lives. I especially love when I can help a single mom buy a home who did not think she could. To me, that is my greatest accomplishment.

Let me answer all your questions to see if I am a good fit for your needs.