How to Find a Real Estate Agent

If you spend much time reading about real estate on Reddit, you’ll know that real estate agents and realtors aren’t exactly Canadians’ favourite licensed professionals.

But when you’re buying or selling a house, the help of an experienced agent can make all the difference. You can try going it alone, but not many people do.

The key is to find someone trustworthy who knows what they’re doing. Having total confidence in a stranger’s abilities might be unrealistic, but if you do your due diligence as a consumer, you can find a real estate agent who gets the job done.

Choosing someone to shepherd you through the market isn’t the biggest housing decision you’ll make, but you still need to give it some thought. The following steps should encompass all the research you’ll need to do.

Ask friends and family

Who do you trust more than these folks? Canvass your friends and family members and ask if they’ve had success working with a particular real estate agent, team or brokerage. If so, ask for an introduction.

Peruse national databases

National brands maintain searchable databases of all their licensed agents, which can help you save time compiling an initial list of agents to contact. In some cases, you can filter for factors important to you, like languages they speak, their active listings or years of experience.

Get local

Not every real estate agent is connected to a large real estate brand. Take a walk through the neighbourhoods you’re interested in and take note of For Sale signs. The name of a person or company that keeps popping up may be an indicator that they’re a local expert or favourite.

Vet your choices

Before setting up a call with an agent, confirm they’re licensed and see if there are any complaints against them via a provincial real estate council.

It can be tempting to avoid paying commission fees by taking the “for sale by owner” route. For some people, this could be a viable option, although it includes quite a bit more work on the part of the seller.

Avoid DIY selling if:

Real estate professionals are adept at the marketing, legal and negotiating aspects of selling and buying homes. Hiring one might cost you a commission, but it will also make the process less stressful and time consuming.

Once you have a list of candidates, and have confirmed their credentials, it’s advisable to interview three or four prospective agents. Here are some questions to consider asking them.

1. What is it like to work with you?

This open-ended question helps you explore whether the agent’s working style is a match for your needs. For example, you might explore their communication style and methods to understand whether they’ll be in regular contact via text or will only reach out when they have a property for you to view. Are they available to arrange showings during times that match your schedule?

2. Do you have an area of specialization?

Some agents may specialize in particular types of houses, such as condos, historic homes, or rural acreages. Others might work primarily with first-time homebuyers, people planning to flip fixer-uppers, or buyers looking for investment properties.

3. Can you provide recent references?

Don’t be afraid to ask for references from former clients, who can share their perspective on what it was like to work with that agent.

4. What’s your commission rate?

If you’re selling, it’s important to know how much of your potential profits will go toward the commission. You can also ask if they are willing to negotiate on their fee or its structure.

5. What kind of marketing tactics will you use to sell my home?

If you’re selling, it’s especially important to understand what services the real estate agent will provide in exchange for their commission. You may want to find out:

6. What is your list-to-sales price ratio?

If you’re selling, you’ll want to hire an agent with a history of negotiating sale prices that are close to or above their list prices.

A real estate agent is a licensed professional who helps people buy or sell real estate.

A good real estate agent helps clients successfully navigate the entire process, offering unbiased guidance and assistance along the way.

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Real estate agent

In Canada, a real estate agent must be licensed by the province or territory where they work. Licensing requirements can vary significantly depending on the region, but in general, real estate agents must:

No matter where they operate, a real estate agent must abide by a set of standards and a code of ethics. They have a duty of care to their clients and must act in the clients’ best interests.

Realtor

REALTOR® is a trademarked term and only agents who are members of the Canadian Real Estate Association (CREA) are permitted to legally call themselves Realtors.

To be a Realtor, an agent must take additional courses and must undergo regular training throughout their career. They are also subject to a specific code of ethics.

Real estate broker

A real estate broker has more extensive training than a real estate agent and typically owns their own brokerage or manages a team of real estate agents. It’s unlikely you’ll work directly with a real estate broker but will instead work with one of their agents.

Real estate agent commissions typically range from 3% to 7% of the property’s final sale price. If a house sells for $600,000, for example, the real estate agent commission would be between $18,000 and $42,000.

The home seller is typically responsible for paying the commission to their real estate agent, who in turn gives a portion of the fee (often half) to the buyer’s agent.

However, some real estate agents may be willing to work for a flat fee. For example, in Ontario, a real estate agent can choose to be paid in one of three ways:

Can you avoid real estate agent commissions?

If you’re a home seller, reducing your potential profit by tens of thousands of dollars to pay the real estate agent’s commission may be an unattractive idea.

It’s worth noting that while home buyers can’t negotiate a lower commission, sellers can. While there’s no guarantee that your real estate agent would be willing to reduce their fee, asking doesn’t hurt. Even a reduction of 1% could save you thousands of dollars when you consider a home’s selling price.

Dual agency

Dual agency, sometimes called “double-ending”, occurs when the same real estate agent or brokerage represents both the seller and the buyer. Dual agency’s inherent conflict of interest — who’s this person actually negotiating for? — might make you want to steer clear of it.

Where dual agency is legal, the real estate agent is expected to disclose to all parties that they represent both the buyer and seller.

While double-ending could result in a lower overall commission, many experts recommend avoiding these deals because it’s difficult for a real estate agent to fairly represent both parties. The interests of a seller (who wants to get as much money as possible) are opposed to those of a buyer (who wants to pay as little as possible).