Location, location, location. Quite simply, if you get this right, it’s hard to go wrong in real estate.
But here’s the thing nobody really talks about: agent, agent, agent. The person you choose to guide you through one of the biggest financial transactions of your life matters. A lot. And most people just go with whoever called them back first. We’ve written about this before. It’s a little silly.
Not all agents are the same. Some specialize. Some are generalists. Some are great with first timers and will hold your hand through every step. Others would rather work with experienced buyers who already know what they want and don’t need the education. Neither is wrong. But matching the right agent to your situation? That’s everything.
Quick reminder on location before we get into it: the agent you work with should know your target area at the zip code level, ideally down to individual streets. Not just the city. Not just the county. The neighborhood. Keep that in mind as you read through this
If you remember nothing else, remember the importance of location:
- Property Location: You will have to choose between the perfect location and the perfect house. Choose location. The reasons why are outside the scope of this article.
- Agent location: The agent you’re working with should know (and have experience in) the location you’re targeting. Not at a city or county level, down to the zip codes, ideally individual streets.
With that out of the way, here’s a guide to how to choose a real estate agent. Yes, believe it or not, we’re not all the same.
Oh, and if you’re someone who is easily offended or is going to focus on the outliers, please click away.
Home Buyer
As long as the agent knows the location and has some experience, you’ll probably be fine with most agents.
Home seller? Agents who focus on selling properties (listing Agents) tend to be more experienced, but you’ll probably want to interview 2-3 different agents before choosing one. Make sure they know your neighborhood.
This is why it’s hard to automate the process of recommending an agent. Most people are too lazy nowadays to spend more than 5 minutes to help truly identify the right person for their needs. Sigh, sign of the times.
The Short Version
- Some agents work with buyers
- Some agents only work with sellers
- Some specialize in investors and investment properties
- Some focus on military and VA loans
- Some handle distressed properties, probate, foreclosures, and short sales
- Some are relocation specialists
- Some focus on luxury properties
Now the longer version…
I’m Buying a Home
First question to ask yourself: what kind of buyer are you?
- Are you a first time home buyer who needs someone to hold their hand through the process?
- Are you an investor?
- Are you relocating because you’re in the military?
- Looking for a Sr community?
First Time Buyer
If you’ve educated yourself by talking to homeowners, reading online etc…that’s a good start. Even better, if you’ve actually applied for a home loan instead of looking at homes on Zillow you know you can’t afford 😂 (It’s still fun though).
Some agents love working with first time buyers. They will patiently answer all of your questions and calm your inevitable nerves.
They will work with your mortgage lender (loan officer) and/or suggest another mortgage lender to ensure your pre approval is rock solid. They will spend countless hours with you looking at home after home. They will basically be your best friend.
Other agents, frankly, don’t have time for all that.
They work with experienced buyers and/or those that are buying a home because they are selling their existing home. By the way, this is not the same as a dual agent.
Find the agent who lights up when you tell them it’s your first time. They exist and they’re good at what they do.
The VA and Military Specialist
VA loans are one of the best home buying benefits out there. Zero down payment, no private mortgage insurance, competitive rates. But they come with their own set of rules, timelines, and quirks that a lot of agents simply don’t know well.
VA appraisals work differently. Minimum property requirements are stricter. Some sellers are hesitant to accept VA offers because they’ve had bad experiences or don’t understand the process. An agent who specializes in VA transactions knows how to navigate all of that. They know how to make your offer competitive, how to find sellers who are open to it, and how to handle the appraisal process without blowing up the deal.
If you’ve served, you’ve earned this benefit. Don’t waste it by working with someone who’s figuring it out on the fly.
The Relocation Specialist
Moving to a city you’ve never lived in is one of the higher-stakes real estate situations you can find yourself in. You don’t know the neighborhoods. You can’t just drive by on a Saturday afternoon to get a feel for the street. You’re making a major financial decision based on limited information and probably a tight timeline.
Relocation specialists are used to this. They know how to do most of the process remotely. They can give you an honest, unfiltered read on different areas without just telling you what you want to hear. They understand the pressure you’re under and they move accordingly.
One piece of advice we give everyone: do not buy a home in a location you don’t actually know. Spend some real time there first. Figure out, down to the zip code, where you actually want to live before you start making offers. We see people skip this step and regret it more than almost anything else
I’m an Investor
Are you? No, really, do you know what you’re doing or are you basically going to waste people’s time. This is what an agent thinks, but is too polite to tell you directly when they hear that.
Investing is about buying low and selling high. We get it. But if you want an agent who will submit dozens of lowball offers on a bunch of properties, you’ll have a hard time finding an experienced agent unless you can prove you’re a credible investor.
The big boys are well known and many agents compete to work with these deep pocketed investors, not vice versa.
That said, we all start somewhere so your best bet is to find a newbie agent who has time to submit all of these offers.
Alternatively, if you’re trying to buy a $60,000 home for example, just go directly to the seller or their agent. You don’t really need your own agent. Experienced investor-focused agents are busy working with people who have proven track records, and they compete for those relationships, not the other way around
Now, if you’re a serious investor and/or flipper and have the track record to back it up, then yes, you’ll want to work with an investor friendly agent, not one who focuses on retail buyers. Someone who thinks in cap rates, cash-on-cash returns, and after-repair value. Someone with contractor relationships, access to off-market deals, and the ability to analyze a potential acquisition quickly without getting emotional about it. Most agents are not this person. That’s just the truth.
99% of the agents in our network don’t either.
I’m Selling a Home
Agents who exclusively work with home sellers tend to be more experienced. Not always, but as a rule of thumb.
They know how to market and advertise properties. They have relationships with other agents in the community and even relationships with potential buyers.
They know the numbers in the neighborhood and whether prices are trending up or down so they can price your home effectively. This is so important. Can’t be overstated.
It is absolutely essential that the agent you’re working with to sell your home knows the neighborhood. It’s a bit less important when buying a home, but it is 1000% critically important when selling a home.
Other Types of Real Estate Agents
Luxury Agent
They focus on big dollar transactions. They’re used to helping people buy or sell mansions, know how to price them, stage them, advertise them, have fancy open houses, mingle and network with the right folks etc…
Many of us obviously want these big transactions, but few of us actually are experienced in them.
The exception is NYC. It’s ridiculous here. For example, many decently sized 2BR condos in Manhattan start at $1MM. Townhouses or multifamily properties in “good” neighborhoods are 2MM+. By default, everyone’s a luxury agent.
Short Sales, Foreclosures, REOs
Dealing with heightened emotions, the bank, creditors, investors etc…it can be a lot. And the additional paperwork, legal headaches and lengthy process can be overwhelming for someone who doesn’t focus on these transactions.
This is a niche that not many agents focus on. Those who do are probably making a lot of money!
Relocation Specialist
Lots of people may change locations because their employer is moving them to another office. Maybe they have a list of agents they generally contract with.
These agents tend to understand the logistics and needs of potential buyers a bit better. That said, if you’re switching locations due to other reasons, just focus on working with an agent who knows your target location and you’ll be fine.
Oh, and please don’t buy a home in a location you don’t know. We see far too many people making this mistake time and time again.
Slow down, spend some actual time living there to figure out, down to the zip code level, where you actually want to live. Don’t rely on us agents to help you make that decision.
Final Thoughts
This article is already too long but again, remember it’s the experience and the location that counts.
Screening an Agent
We, as agents, may get fancy licenses and certifications (ABR, CRS, MRP, LHC…) in some of the aforementioned areas of focus, but they’re meaningless without experience.
Spend some time talking to the agent(s) to hone in on their specific real world experience to make sure they’re the real deal.
Screening a Client
This goes both ways. If you can’t afford to play the game, please don’t waste an agent’s time. There’s no shame in waiting until you’re ready.
Get pre approved for a home loan before you do anything. This is step one. If you’re a cash buyer, be prepared to show proof of funds. Want to be taken seriously? Prove it.
Why an Agent?
Finally, the value of an agent is in their relationships, local market knowledge and negotiating skills. You may transact (buy or sell a home) once in 3-5 years. Good agents have seen hundreds of transactions.
A 2%, 5% or even 10% swing up or down on a 500K transaction is a lot of money. Don’t go it alone unless you know what you’re doing or an experienced agent on the other side of the transaction will eat your lunch.
As always, feel free to contact us should you need a recommendation for an agent the next time you’re ready to buy or sell a home.
Gideon is a licensed real estate agent. He he holds an undergraduate degree from Northwestern University and an MBA from New York University.
He’s passionate about business, real estate, digital marketing and making sure that black people increase our collective net worth.
License #:10401336627