Questions Home Buyers Should Ask Their Real Estate Agent

Choosing the right real estate agent is one of the most important decisions you’ll make on your home-buying journey. This professional is your guide, advocate, and strategist. To ensure you have a strong partner by your side, you need to ask the right questions from the start.

This guide provides essential questions to ask your real estate agent. The answers will help you gauge their expertise, understand the process, and make informed decisions.

1. How will you represent my interests as a buyer?

Understanding your agent’s legal and ethical duties is fundamental. You need to know they are working exclusively for you.

• Can you walk me through your standard buyer representation agreement?
• What is your policy on dual agency (representing both buyer and seller)?

2. What are the current local market conditions?

A great agent should be a local market expert. They need to provide a clear picture of what’s happening right now in the specific neighborhoods you’re targeting.

Is it a buyer’s market, where you have more negotiating power, or a seller’s market, where competition is fierce? Your agent should come prepared with data on average days on market, list-to-sale price ratios, and inventory levels. This information directly impacts your search and offer strategy.

• Which neighborhoods offer the best value for my budget?
• Are home prices trending up or down in this area?

3. How will you help me craft a competitive offer?

Making an offer is more than just naming a price. In a competitive market, your offer needs to stand out.

Your agent should explain the different components of an offer, including price, contingencies, and closing timeline. They should have a strategy for making your offer attractive, which might involve an escalation clause, a personal letter to the seller, or flexible terms. Their ability to articulate a clear plan is a sign of their experience.

• What offer terms are common in this market besides price?
• How do you determine the initial offer price for a property?

4. How can we compete with cash buyers?

All-cash offers often win because they present less risk and a faster closing for sellers. If you are financing your purchase, you need an agent with a plan to overcome this disadvantage.

Experienced agents have strategies to make a financed offer nearly as appealing as cash. This can include getting fully underwritten loan approval beforehand, offering a quick closing, or using a larger earnest money deposit. Your agent should also highlight the strengths of your financial position to the listing agent.

• Do you have relationships with lenders who can provide a quick pre-approval?
• What can we do to make our financing look as secure as possible?

5. What are the key contingencies we should include?

Contingencies are clauses in your purchase contract that allow you to back out of the deal without penalty under specific conditions. They are your safety net.

The most common contingencies are for inspection, appraisal, and financing. Your agent should explain the purpose of each and recommend which ones are crucial for your situation. In a hot market, some buyers waive contingencies to be more competitive, but your agent should help you understand the significant risks involved in doing so.

• What are the risks if we waive the inspection contingency?
• How much time do we typically get for each contingency period?

6. What is the typical timeline from offer to closing?

Knowing the expected timeline helps you plan your move, finances, and personal schedule. The process usually takes 30 to 60 days, but this can vary.

Your agent should provide a step-by-step roadmap. This includes key milestones like the home inspection, appraisal, loan finalization, and the final walkthrough. A clear timeline manages expectations and reduces the stress of the unknown.

• What are the most common reasons for delays in closing?
• How will you keep me updated on our progress toward these milestones?

7. What should we look for during the home inspection?

The home inspection is your chance to uncover potential issues with the property. Your agent’s role is to help you understand the inspector’s findings and negotiate repairs.

• Do you have a list of trusted home inspectors?
• How do you approach negotiating for repairs based on the inspection report?

8. What happens if the appraisal comes in low?

An appraisal gap—when the appraiser values the home for less than your offer price—can jeopardize your loan. Your lender will only finance a loan based on the appraised value.

Your agent needs to explain your options if this occurs. You can try to renegotiate the price with the seller, cover the difference in cash, challenge the appraisal, or, if you have an appraisal contingency, walk away from the deal. An experienced agent will have navigated this situation before and can advise you on the best course of action.

• How common are appraisal gaps in this market?
• Should we include an appraisal gap clause in our offer?

9. How do you coordinate with my lender?

Seamless communication between your agent and your mortgage lender is critical for a smooth closing. Delays in financing are a common reason for deals to fall through.

Your agent should act as a central point of contact, ensuring the lender has all necessary documents and is meeting deadlines. They should be proactive in checking on the status of your loan approval and the appraisal order.

• How often will you communicate with my loan officer?
• What information will you need from me to help with the financing process?

10. What is dual agency and is it practiced at your brokerage?

Dual agency is when a single agent or brokerage represents both the buyer and the seller in the same transaction. While legal in some states, it creates a potential conflict of interest.

An agent cannot negotiate the best price for the seller while also securing the lowest price for the buyer. It’s essential to know your agent’s stance on this practice. Many buyers prefer to have exclusive representation to ensure their agent’s loyalty is not divided.

• If you or your brokerage lists a home I like, how would that be handled?
• What are the specific risks of a dual agency situation for me as a buyer?

11. What happens if I want to back out of the deal?

Sometimes, despite everyone’s best efforts, a deal doesn’t feel right. You should be aware of your options for canceling the contract.

Your agent should clearly explain how your contingencies allow you to walk away and get your earnest money deposit back. They should also explain the financial and legal risks of backing out for a reason not covered by a contingency.

• What are the deadlines for each of my contingencies?
• What happens to my earnest money deposit if I cancel the contract?

Your Home-Buying Checklist

Armed with these questions, you are ready to find an agent who will be a true partner in your home search.

• Interview at least two to three agents.
• Ask questions about their experience, strategy, and communication style.
• Review and understand the buyer representation agreement before signing.
• Choose an agent whom you trust and feel comfortable with.

Finding the right home starts with finding the right agent. Give me a call, and I can go through these questions, as well as any additional questions you have, and we can make your home-buying experience a successful journey! 

Mary Tarrant

928-277-6404