How to Choose a REALTOR®

By Emily Southey | 10 minute read

You’re ready to sell your home. Now what? The first step after deciding to sell your property is to hire a REALTOR®. While not mandatory, partnering with a REALTOR® to sell your home is one of the wisest decisions you can make. Realtors are experts in all things real estate. They have extensive knowledge of the real estate market and can walk you through every step of the selling process. From setting the asking price and hosting showings to marketing the property and negotiating on your behalf, REALTORS® can be invaluable assets to home sellers. But how do you know which REALTOR® to choose? Keep reading for our top tips on how to choose the right REALTOR® for you.

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Mistakes to Avoid When Hiring a Realtor

It can be easy to fall into several traps when hiring a REALTOR®. For example, choosing the REALTOR® with the lowest commission rate or hiring the first one you meet without conducting any other interviews. Ensure the home-selling process goes off without a hitch by avoiding the common mistakes below. 

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Choosing a REALTOR® based solely on commission

We’re not saying commission doesn’t matter. After all, it’s the amount of money you’ll be paying a REALTOR® for their services. However, commission shouldn’t be the sole factor used to determine who to hire. The main reason for this is that just because one REALTOR® has a lower commission than another doesn’t mean you will make more money from the sale of your home. In fact, it can mean the exact opposite if the less expensive REALTOR® isn’t able to bring you as high an offer as the more expensive REALTOR®. The reality is that sellers will find REALTORS® all across Ontario who lower their commission in an attempt to win a listing. While it might seem like a kind customer service gesture at first glance, it can actually be a sign of desperation, which could mean the REALTOR® is inexperienced or has a poor reputation and the only way they’re able to nab clients is by slashing their rates. Additionally, REALTORS® with low commission rates may not have access to the same marketing resources as those with higher commissions. Therefore, you may be spending less on commission, but it could take longer to sell your home because the REALTOR® has limited resources at their disposal. Finally, consider the fact that one of the key tasks of a REALTOR® is negotiating on your behalf. If they were willing to cut their own rates to win your business, how well do you think they’ll be able to represent you when going up against a buyer’s agent? 

Choosing a REALTOR® you know personally

This rule applies to most industries. When you’re hiring someone to do a job for you, it’s best to choose someone you don’t have a personal relationship with. We know it can be tempting to hire your REALTOR® nephew or your sister-in-law who just happened to get her real estate licence, but we advise you against doing so. The reason for this is that things can get messy when someone you know personally is negotiating on your behalf. If a negotiation goes south and you decide to pass on an offer from a potential buyer, is your REALTOR® cousin going to be frustrated that they lost out on this commission? Ultimately, when you choose a REALTOR® you know personally, it’s far more likely that they’ll act unprofessionally, which could sabotage a potential deal.

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Choosing a REALTOR® that locks you in

Whatever you do, never choose a REALTOR® that locks you into a contract you cannot get out of. It’s completely normal (and reasonable) for REALTORS® to require exclusivity. After all, this is their job and they deserve to be rewarded for the time and effort they’re putting into selling your home. That said, you should never sign an exclusivity agreement before confirming with the listing agent that you have the right to cancel the contract at any time. Most REALTORS® will agree to this, which gives you an out for any reason (perhaps you change your mind and decide to sell your home privately or after working with them for a few weeks, you don’t think this REALTOR® is the right fit). However, some might try to lock you in. This is a major red flag. Both sellers and buyers should always have the option of cancelling their contract and hiring a new REALTOR® if they choose to do so. 

Choosing a part-time REALTOR®

Whatever you do, never choose a REALTOR® that locks you into a contract you cannot get out of. It’s completely normal (and reasonable) for REALTORS® to require exclusivity. After all, this is their job and they deserve to be rewarded for the time and effort they’re putting into selling your home. That said, you should never sign an exclusivity agreement before confirming with the listing agent that you have the right to cancel the contract at any time. Most REALTORS® will agree to this, which gives you an out for any reason (perhaps you change your mind and decide to sell your home privately or after working with them for a few weeks, you don’t think this REALTOR® is the right fit). However, some might try to lock you in. This is a major red flag. Both sellers and buyers should always have the option of cancelling their contract and hiring a new REALTOR® if they choose to do so. 

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Hiring the first REALTOR® you meet

Shopping around is key when hiring a REALTOR®. Therefore, you should never hire the first REALTOR® you meet without interviewing other candidates. Think of yourself as an employer hiring an employee. Would you hire the first person who walks through your door? No, you would do your due diligence by interviewing multiple candidates and choosing the best one. That’s exactly how you should approach hiring a REALTOR®. Book meetings with a minimum of three REALTORS® in your area, come prepared with questions, and after completing all scheduled interviews, make your decision. If the first REALTOR® you interviewed ends up being the winner, then feel free to hire them. At that point, you will have weighed your options, seen what else is out there, and made the best decision for you and your home.

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Tips for Choosing a Realtor

Now that you know what not to do when hiring a REALTOR®, we’ve put together a list of tips to make choosing a REALTOR® that much easier. 

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Interview multiple candidates

The first step in choosing a REALTOR® is interviewing multiple candidates. To find REALTORS® in your area, do some research online. There are brokerages all over Ontario, which means your search should quickly yield multiple results. From there, read reviews and contact a few potential candidates. If they get back to you and have availability, schedule a phone or in-person interview. Be sure to have a list of questions you plan to ask before each interview. To fairly evaluate the candidates, ask the same questions in each interview. Your interview questions should be strategic and informative. The goal is not only to get a feel for the REALTOR® as a person but to determine key pieces of information, such as their commission rate, the services they offer, their knowledge of the local market, their years of experience and accreditations, and their track record. 

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