The real estate market is dynamic, with various agents and brokers, but not all of them are the right one for you. Therefore, you need to know questions to ask a real estate broker to assess their experience, reputation, commissions, and fees, thus deciding which one to work with.
About the Broker
Here is a list of questions to ask brokers when you meet them.
1. What Area Do You Cover?
It’s important to check if the broker is specialized in your desired area.
2. What is your availability like?
A broker who has a lot of time to devote to his job and a flexible schedule is likely to help you with your request faster.
3. What is your ratio of buyers to sellers?
Knowing the ratio of buyers to sellers allows clients to consider pricing and negotiation strategies and make well-informed decisions about purchasing or selling properties.
4. Can you provide references?
References can somehow help clients understand the abilities and skills of the broker they are working with.
5. Do you have a list of recommended vendors?
A list of recommended vendors is helpful for clients to analyze, compare, and find the most suitable option.
6. Are you part of a team?
Once clients know they are working with a broker from a trusted team or agent, it will be easier for them to research and consider the feedback. It will give clients peace of mind if they are working with a reliable team.
7. How long have you been in the real estate industry? How much do you know about Vietnam industrial policy?
An expert broker tends to be more sensitive to the market and information on available properties.
8. What is your strategy for marketing the home?
To maximize potential buyers’ attention, a broker should implement various marketing strategies such as virtual tours, social media posts, professional photos, listing descriptions, open houses, print advertising, and networking to market your home effectively.
9. How are your realtor fees structured?
Clear information on the realtor’s fees can provide transparency and open communication between clients and brokers. Clients can compare between agents and have better financial plans to prepare for the transaction.
10. How long do your typical listings remain on the market?
A house for sale often stays on the market for around 67 days from the listing date to the closing date. Depending on the house’s features, demand, and market conditions, the period can be as short as one week or much longer (3-6 months).
About Commissions and Fees
Questions to ask real estate broker should also be about commissions and fees.
1. What are the commission splits?
The question is to confirm if the broker receives 40% of the commission and if you will keep the remaining 60%.
2. Are there any franchise fees?
Many real estate brokerages apply a charging fee (or franchise fee) of 3-8% on top of the commission split. Let’s take the above example. If the franchise fee is 5%, the broker will earn 40%, and you’ll get 55%.
3. Do you offer lead generation technology?
Lead generation technology helps real estate agents and brokers find potential sellers, buyers, and investors. Tools for effectively converting leads include customer relationship management software, real estate websites and landing pages, email marketing platforms, and social media advertising.
4. What are the typical expenses for an agent?
The expenses will be defined by the industry type and operating level. Some common ones include marketing and promotion, licensing fees, utilities, technology, and software.
5. Is there a cap on commissions?
A commission cap is the maximum annual commission a brokerage will keep. For example, if a brokerage has a cap of $20,000 and a gross commission of $200,000, the net income would be $180,000. If no agent cap is offered and the 60 / 40 commission split is applied, the broker would receive $80,000, and a net of $120,000 would go to you.
6. What are the company’s policies regarding commissions and fees?
The company may charge the following common fees:
– Monthly MLS fee
– Monthly office fee
– Education fee (often charged for the new licensee course they offer)
– Errors and Omissions Insurance (E&O)
– Desk fees
– Start-up fee
About the Agent
Don’t forget to mention the agent in your list of questions to ask a broker.
1. How long have you been in residential real estate sales?
The more years working in the field does not equal skillfulness. However, much of what it takes to become a competent real estate agent is acquired via experience.
2. Is real estate your full-time job?
Real estate professionals frequently work full-time, advertising, showing properties, negotiating contracts, and monitoring transactions. As a result, they can expand their customer base, solidify their brand, and acquire a market advantage.
3. Can you provide references from past clients?
Once you have the contact information of their past clients, ask them about the agent’s service and if they would use it again.
4. What is your average time to close a transaction?
A real estate agent’s typical closing time depends on several factors, including the local market situation, the kind of property, the client’s needs, and the complexity of the transaction. For example, it usually takes 30 to 60 days in the US.
5. How do you stay up-to-date with market trends and changes?
There are ways for agents to keep updated with market trends and changes, such as continuing education to maintain licenses, subscribing to industry publications, conducting regular market research and analysis, and participating in social online communities. The more channels there are, the better a real estate agent can serve their clients.
Bottom Line
You’d better prepare questions to ask a real estate broker before scheduling an appointment to get the necessary information for your future cooperation and transactions.
If you’re looking for a reliable business in the field, check out Savills Industrial. We provide professional services to help you grow your investment.
