Step-by-Step Guide to Vetting Your Real Estate Agent

Does this new year mean new home? With prices on the rise around LA it feels like a seller’s market in Pasadena, for sure. In the last six months alone, prices have risen 8%, making the average home in Pasadena a whopping $906,907. To find the most elusive listings, hit the right open houses, and make the most competitive offers, you’ll need the expert services of most experienced estate agent in your target neighborhood.

Buying your home is a huge investment, most likely the biggest financial decision you’ll make -- using the recommendation of a relative or a friend of a friend might be convenient, but it isn’t necessarily going to get you the best buying experience, or best price on your dream home.

Agents are easier to find today than ever, but the question still remains: how do you ensure that your agent is great at what they do, is an expert in your specific needs, and has your best interest at heart? As a savvy consumer, it is up to you to do your due diligence before committing to work with any agent, regardless of whether you are a first-time buyer or a veteran shopper.

Here is a step-by-step guide to help your thoroughly vet you real estate agent and ensure they’re the right person to help you.

Investigate the neighborhood.

Get a good feel for the prices, availability of homes, and types of buyers before even interviewing an agent. Even stop by an open house or two. Getting a sense of the market yourself, before interviewing your agent, will give you a better idea of red flags come interview time. For example, should an agent tout their ability to snag a home for you at significantly under a reasonable market listing price, you’ll know they’re just trying to win your business. Not necessarily navigate you through the current market. “You have to take responsibility for your own transaction in order to make sure you’re being treated properly.” says Monique Rad-Stein, a Los Angeles real estate attorney of The Rad Firm APC.

Verify the Agent’s Real Estate License.

Before you finalize the shortlist of agents you plan to interview, save yourself time and verify those prospective agents’ licenses. “We warn consumers to do their due diligence and recommend that everyone verify the agent’s license.” says Lisa Stratton, spokesperson for the California Bureau of Real Estate under the Bureau of Consumer Affairs. It’s an easy step to ensure that the agent has the years of experience they advertise, has no previous infractions on their record, and is in good-standing with the state of California. You can verify that the agent is licensed by checking with the California Department of Real Estate. Stratton also suggests going one step further, “always ask to see the [real estate] license ID card and make sure that it matches their DMV ID,” misrepresentation is the #1 violation in the state.

Verify the Brokerages’ Credentials.

“Make sure that the brokerage has credentials in good standing as well,” advises Rad-Stein. Regardless of how reputable the brokerage may seem, it is always a smart choice to verify both, their California credentials, and also to look up the brokerage’s name with the Better Business Bureau. Don’t think that it is only individual agents who can be cited for infractions.

Interview At Least 3 Real Estate Agents.

After finding the real estate agents in your neighborhood you think are a great fit, it’s still important to make sure you and they are on the same page. You’re not ever given a job without an interview, why should a real estate agent be any different? Especially since you’re trusting their advice on such a big financial commitment. Make sure they have the time to commit 100% of their attention to your search.

There are certain baselines that buyers should follow no matter what kind of home they’re buying, or where. Shelley Barnett, a homeowner, recently sat down with three prospective agents before committing to one in Houston, Texas. “We asked how many transactions they in the neighborhood in this price range?” Comparing each agent’s answer to this question and others like it can help you decipher if they really do have the experience and contacts required in your desired neighborhood. These contacts can be vital, particularly in higher priced markets like Pasadena where not all listings may be placed on the local market’s listing service, or MLS.

Look up County Court Records.

Homeowner Bill Seavey of Cambria, CA “could never verify anything on the internet” about a particular previous agent. A check with his local court, though, might have revealed some unseemly details about the agent he used. Records that could have given him, and other consumers like him, insight into agents with criminal histories and the questionable morals that allow them to work both sides of a deal. Going the extra step to look up court records can prevent your pending home purchase from blowing up, leaving you jilted and forced to start the whole process over again.

Speak with Past Clients for References.

After interviewing prospective agents, ask to speak with some of their past clients – preferably those who have similar homes to yours. Talking to a past client - in person or over the phone - can speak volumes about an agent. Steve Jones has bought and sold nearly 100 homes as founder of Los Angeles residentialreal estate development company BetterShelter, and notes that in his experience, “90% of failed deals are the result of a crummy agent.” To avoid running into those situations a full vetting - that includes references - is just good business.

Ask Your Agent’s Position on Presenting Every Rejection in Written Form.

If your prospective agent is against it, that’s a red flag that they won’t have your best interest in mind through the process. As a buyer, if you request to see a rejection in writing, your agent is obligated to show you. It’s “one of the biggest problems I see,” notes Rad-Stein. Some agents will present only a verbal rejection to their clients as tactic to eek out a bigger commission.

With this plan, you will be able to find a real estate agent who is great at what they do, and also someone you’ll be able to trust. It isn’t everyday that we spend $700,000, $1 million, or even $3 million. “I know a lot of people tend to get swayed by discounted commissions,” says Jones. “But I think that a good real estate agent is worth their weight in gold.”