The Real Estate REplay
Host Wendy Gilch, and a rotating cast of expert co-hosts, break down the good, the bad, the unethical (and sometimes illegal) things other sellers and buyers experienced while buying or selling a home.
Learn what went right, what went wrong, what they would do differently and how to spot red flags before they become a problem.
The Real Estate REplay is powered by consumer advocate group, Selling Later.
www.sellinglater.com/resources
The Real Estate REplay
Ask Away, Homebuyers: If Your Agent Can’t Handle Questions, Find a Better One
What was supposed to be a week off took an unexpected turn after a Reddit post about a buyer asking their real estate agent some simple, reasonable questions left me frustrated—and fired up. Why? Because some agents don’t like being held accountable or challenged by informed buyers. Spoiler alert: That’s their problem, not yours!
In this episode, we’re diving into why it’s essential for homebuyers to ask the right questions before choosing a real estate agent. Not all agents are created equal, and interviewing them is the first step to protecting yourself and your biggest investment.
Here’s what we’ll cover:
- The key questions every homebuyer should ask a potential agent before signing on.
- Why these questions matter and how they empower you to make better decisions.
- The red-flag answers that should have you running for the door.
- How you can access a free resource from Selling Later with these questions (and more!) to help guide you through the process, whether you’re buying or selling.
We believe every buyer and seller deserves the tools to protect themselves and their equity. That’s why Selling Later offers free resources, including this complete list of questions, to make sure you’re prepared to navigate the real estate process with confidence.
Don’t let anyone make you feel bad for doing your due diligence. Tune in and learn how to take control of your homebuying journey!
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Hit us up here.
Now, I wasn't planning to release an episode this week thanks to a nagging cough that just won't quit, but then I came across a Reddit post as I was sprawled out on my couch over break. That got me absolutely pissed. It was a thread where one specific real estate agent was showing an email they received from a potential buyer that had a list of like 12 normal questions that every home buyer should be asking an agent before working with them, and this agent was annoyed at it and wasn't even sure if they wanted to even respond. Now some agents in the thread were great and said these are great questions I wish everyone would ask. And other agents got me so pissed that I got off my coffin couch and here I am to record for you because it got me thinking.
Speaker 1:This is exactly why our mission this year is to make 2025 the year of consumer due diligence. It's time for every single home buyer, whether it's your first time, second or third, to feel confident asking tough questions, to demand honesty and transparency and to ensure they're truly being represented in the process. So in today's episode if we can make it through my coughing we're going to be diving into the questions every home buyer should be asking their agent before working with them, and why. These conversations can be your best defense and help you weed out the crappy, unethical agents that still seem to float in the industry. So grab a cup of tea. Hopefully I'll have enough water to make it through here. So don't cough the whole time and let's kick off 2025 with a commitment to empowering consumers and real estate. Let's get started.
Speaker 2:Welcome to the real estate replay. I'm Wendy Gilch, an industry outsider, here to reveal the hidden practices and explain the processes that can impact your next home purchase or sale. Alongside other industry misfits, we'll call out these four practices and equip homebuyers and sellers with insights they need to protect themselves every step of the way.
Speaker 1:So I'm guessing, like most of you who are blessed with this lovely little cough, you might have spent a little bit of time laying on the couch, as did I, and while I was doing this, I was cruising through Reddit and came across a post called would you answer this email? It said this was a new potential client's second email to me. We're arranging a call, but this is the list of questions they want to ask. Not sure if they expect me to reply in an email or phone call. Do you think it's even possible to impress these people enough to even pass this interview? The wildest part about this person even posting this is that these are very normal questions and, because Reddit never surprises me, as I scrolled through the comments I saw quite a variety of responses. I myself even commented and said wow, if more buyers actually asked questions like this, maybe it helped weed out some of the crappy agents out there. And while a good handful of agents agreed with me, some not so much. One agent said no, I would pass, they won't be worth your time and you already know they're going to be beyond needy and unreasonable. The very unlikely caveat is I would take it if it was a big buyer like $2 million? Easy, I would not reply. I've experienced this in other businesses. Here's another one For just asking general questions they want answers to before meeting and working with them. This person said this just screams high maintenance client. This is before you show them anything. How much of a pain will they be in two weeks and into escrow? And for this specific agent out there, I want to remind you that most of these homebuyers are going to be asked to sign an agreement with an agent before they start touring a home, especially if they're a realtor. So, yes, buyers should be asking all of these questions this person listed and more.
Speaker 1:And then the comment that really pissed me off, which made me want to do a whole podcast episode about this, is the one real estate agent saying I'd find someone who will give you a referral fee and then respond like this Thank you so much for your interest in my services. Based on your questions, I know exactly the perfect realtor to best assist you. I'll forward this to them and they'll be contacting you shortly. So what? We're not good enough for you to spend five minutes to respond to me, but we're good enough for you to forward our email to another agent so you can get 25% of the commission for doing jack shit? No, thank you. Another one said before I waste my time answering all of these questions which I can and could answer. I'd want to know if they're qualified. Again, I want to reiterate the questions that this person had in their email were totally normal questions. So, for this home buyer in Michigan that actually emailed this agent, don't use this one because they had to make a whole Reddit post that took even more time, as if they were to just even spend the two minutes to respond to you. But I wanted to take your questions and actually add to them what we normally tell homebuyers, what you should ask, because every homebuyer should be asking these questions. And so, instead of just bitching about this Reddit post, I figured why not make a whole podcast episode explaining all of these questions and why they are so important for a home buyer to be asking them, so that every home buyer will now start asking agents all 13 of these questions? So here they are.
Speaker 1:Number one how many transactions have you closed in the past two years? In real estate, it's not necessarily about the years of experience, but more about how many transactions they have walked clients through. Sure, you want someone that's been in the game for a while and built a reputation. However, someone with five years experience and 40 transactions in the past two years is going to be more current and more knowledgeable about the market than someone with 30 years of experience and has only closed three homes in the past two years. And this is especially true as your market might be fluctuating from a seller's market to a buyer's market. You want someone that's not just going to tell you offer your highest and best. You want someone that has enough experience to know what the market's doing exactly right now and what kind of offer you'd have to craft to be able to get a home. And we're going to talk about teams a little bit more. Unfortunately, teams like to just put their numbers all together. So when you're interviewing someone on a team, make sure they give you their transaction numbers and not the whole team, which we'll get to in a little bit.
Speaker 1:Are you working full-time or part-time as an agent? This market is ever-changing, but even in slower markets, things can move quickly on popular properties. So if you're serious about buying, you likely want an agent that is working full-time. If you do find someone you really like that does work part-time that you think will work for you. We suggest being very clear on what their schedule looks like and what limitations they might have when scheduling stuff with you in an active market. Number three who would I be working with if I selected you as my agent?
Speaker 1:There are two types of setups when it comes to real estate agents the solo agent and the team agent. There's pros and cons to both, so the correct answer to this will be based on your own personal preference. A solo agent is an agent that works alone and would be your contact for the whole experience. While they may have a transaction team to help with contracts or administrative work, the majority of your time will be spent with this one person. Our personal preference is that we like solo agents, so that you have one person that you're working with the whole time. The problem is if a solo agent gets too busy, it might become hard to schedule showings. A good number to pay attention to is if they're closing over 40 deals a year. Ask them what their protocol is if you need to see a home and they're not available at that time.
Speaker 1:Your other option is the team agent. It's a group of agents that work together to show you homes and get you to closing. You will likely have a contact agent that you'll work with most often, but you could work with other agents on the team at some point. The downside is that, while the team lead might usually have a ton of experience, most agents underneath them have much less. Be aware that some teams will send their most experienced agent to your interview, but when you agree to work with them, you'll get pushed to a newer agent. This is why it's important to not only understand which team members you will work with, but also to meet with those people before agreeing to work with anyone. Don't let the big sales numbers fool you Understand how much experience everyone on the team actually has before you agree to work with them.
Speaker 1:Next question what is the market like right now? You want an agent that has their thumb on the local market. They should be able to tell you how long homes have been sitting on the market right now. If homes are going for over under, asking you what type of deals are being accepted right now, if they can't tell you confidently what's happening in the local market, then they can't help you craft the right price for your home or help you decide what to offer when buying. We would also consider it a red flag if they spend more time telling you what they confidently think will happen in the year 2025 in the market, especially when discussing rates and home values. No one has a crystal ball to predict anything.
Speaker 1:What's your favorite type of communication? Once you start looking at homes, things can move quickly and it's crucial that you have an agent that's responsive and attentive. If you're on the go and mostly want to talk via email, you're likely not going to mesh with an agent who really doesn't like to email and only wants to talk to you on the phone. It's not the end of the world if you prefer texting, but they prefer phone calls. But we suggest you make your preferred form of communication known to avoid any communication issues in the future. And, while we're at it, to protect yourself in the transaction, we do suggest using a communication form that keeps record of what was discussed Text, email, whatsapp, whatever.
Speaker 1:Can you give me the contact information for a few of your recent clients? While we'd like to say you can trust online reviews, we have seen plenty of fake ones to know that that's not really accurate, in addition to knowing that some reviews are never really verified. Some can be fake. It's also worth noting that some bad reviews can really verified. Some can be fake. It's also worth noting that some bad reviews can be hidden or deleted. So instead of relying on reviews, just go straight to the source and ask the agent for their past few clients, not clients from 10 years ago. You're looking at someone they worked with recently, in the past two years. Any good agent with happy clients has no problem giving you this information. Next question Tell me about the last offer you wrote for a buyer that was accepted.
Speaker 1:It's important to understand what the market is like for buyers, but also what type of offers are being accepted. It's a good time to see what type of strategies the buyer agent you're interviewing uses to be the winning offer. The market is ever-changing and their answers should be based on present time, not something from six months to a year ago. If the buyer's agent doesn't have a recent strategy or an idea of what's working right now, outside of offer your highest and best and let's cross our fingers you probably shouldn't use them. And please don't work with someone who thinks it's going to be in your best interest to just waive inspections. Lord, please don't work with someone who thinks it's going to be in your best interest to just wave inspections. Lord, please, don't do that, especially if you're buying a new construction home. Don't do it. Please don't do it.
Speaker 1:What do you know about the area in which I want to buy within? While it's not a deal breaker, it certainly can work to your advantage to use someone who's deeply connected to the community in which you want to buy. They know the history of the homes in the area, common inspection issues you might find, and they typically have their ear on homes that might be coming up in the market. This is especially important if you're moving to a new area. You want someone that has a lot of knowledge about the specific areas you like and could even be a resource for you once you move in. Here's my favorite Can I see your buyer agreement contract in advance, unless you live under a rock?
Speaker 1:Last year, you know that there was a huge antitrust settlement that was approved and now realtors are being asked to get agreements signed with buyers before they show you a home. But you need to know, as we've said many times, some of these agreements are crap. You need to understand what you are signing. There is nothing wrong with you asking to see their agreement up front to be able to review the terms and, if you don't understand something, figure out what it means before you're about to sign it. The best question what do you expect to be paid and are there any additional fees? I want to remind you that you are responsible to pay your agent's fees. You can 100% negotiate with a seller to ask them to pay it, to use seller concessions to pay for it, but you are responsible for whatever fee is going to be in that agreement. This is the time that you negotiate that fee. Keep in mind that if you're in a competitive market, the less you have to ask to help from the seller, the better your offer is going to look. Ask to help from the seller, the better your offer is going to look. So it's really crucial that you, as a home buyer, take the time to negotiate the buyer agent fee. Remember, lower fees means that's less for you to ask the seller to pay for. But let's talk about that quote additional fees.
Speaker 1:If you've listened to me talk long enough, you know how much I hate junk fees in real estate, and there is quite a big one that has been slapped onto consumers that has just keeps going up. In the past years, you might see these fees called an administrative fee, a transaction fee. Some have even been bold enough to call it a regulatory compliance fee, but what it is is a junk fee. Some experts believe that brokerages are trying to gain more agents by offering lower commission splits and in doing so they make less money on transactions. Adding these excessive fees is a way for them to recoup some of that money. And if that's truly what's happening, it means that these admin transaction regulatory compliance fees means that you're just essentially paying this fee to help brokerages recruit more agents and make more money. We've seen buyers and sellers pay anywhere from $295 to over $1,000 for this fee.
Speaker 1:And if you don't believe us, here's a broker from Topeka, kansas, admitting that the fees are actually his fees, that he pays his broker and he just passes them along to his clients as a transaction fee. My brokerage charges a $4.95 per transaction. That caps at 20 transactions annually, so that means every closing this agent is supposed to pay the broker $4.95 until they sell 20 properties. Plus, there's a $65 errors and admissions fee and a $50 per month office fee. I offset all those fees by charging a $595 transaction fee to the client. So just so you know that $495, the $65, the $50 is the agent's cost to work under the broker. It's not the consumer's cost. Don't pay it. Negotiate this fee out. And if the agent is unwilling to do so, there are plenty of other agents that agree that these fees are bullshit and won't charge you.
Speaker 1:And here's my favorite question Can you tell me about the recent antitrust lawsuit and if anything has changed? And if their answer is that lawsuit was bullshit, red flag. But the bigger question should be hey, with this settlement, change? What happens if the home isn't offering compensation to help pay for your fee for you representing me, and if the agent responds well, we can skip homes that aren't offering compensation. Do not use that real estate agent. Stop the interview and look for a different one.
Speaker 1:In the current real estate climate, post antitrust lawsuit world sellers are not openly disclosing how much compensation they need to offer, and they don't really need to, because what you're paying your agent is something that you two decided in a separate conversation. The seller doesn't know how much you need, so you just have to ask for it. A skilled buyer's agent would have a strategy for negotiating with the seller to ensure that your costs can be covered. There's many ways to skin a cat, but avoiding a home because you can't get an answer is not one of them. Ah, my favorite question Do you have any business, affiliate relationships or partnerships I should be aware of Listen.
Speaker 1:While kickbacks between certain providers are illegal, there are many other ways that real estate agents can profit from your deal. Everything from lenders, title, home warranty, home security can all find their way back to your agent's pocketbook for the right deal. Now, not every agent will participate in partnerships, but those that do are legally required to disclose it to you. Knowing these partnerships in advance can help protect you from being steered into a company that might not be best for you or cost you more. A great example is the most recent CFPB lawsuit against Rocket Homes. Now Rocket Homes and Rocket Mortgage are under the same umbrella, and so when someone fills out a Rocket Mortgage application, they are sent to a Rocket Homes agent, which is just a random ass real estate agent who is going to pay Rocket Homes over 40%, probably, of the commission that you're actually gonna pay the agent. The kicker is that for so many years, rocket Homes actually had it in their contract with the agent that they are not allowed to steer you away from Rocket Mortgage. So, technically, if the agent wanted to stay on Rocket Mortgages and Rocket Homes' good side, they would not encourage you to shop around because it's literally in the contract that they're not supposed to do that. But is that in your best interest? Nope, and that's the problem with a lot of these lender partnerships Sometimes the lender is paying half of the agent's Zillow ads, sometimes the lender is renting an office space and, unfortunately, sometimes there's just even office incentives If you can get your clients to close with a certain mortgage company, a certain title company and that's exactly how the brokerage involved in the Rocket Homes CFPB lawsuit got in trouble for incentivizing agents to get their clients to close with Rocket Mortgage.
Speaker 1:But because it's the year of 2025, consumer due diligence you're going to be smarter about this. You should always be shopping around for your lender. You should always be shopping around for your home inspector, for your title insurance, and remember due diligence here. It's even smarter is if you're shopping around and researching these people now, before you hit the market, because sometimes these partnerships that are between the agent, the lender and whoever is because the consumer didn't know ahead of time that they should be researching these companies and get so overwhelmed with the offer process and the process of closing on a home that they just take whatever answer the agent gave them. And sometimes the agent gives them a lender because they know they're amazing. And sometimes the agent gives them a lender because the lender is paying $10,000 towards their Zillow ads. But if you're doing your due diligence and you find people before you even hit the market, you already have a list of people to talk to and not to get off on a tangent.
Speaker 1:But while we're speaking about due diligence, it is so important that you go on optoutpreedscreencom 30 days before you start meeting with lenders to prevent the credit companies from selling your information to a multitude of other lenders, in which then your phone will blow up for three days straight with phone call after phone call of lenders soliciting you for business because the credit company told them that your credit score was pulled because you might buy a home. Going on opt-out pre-screen prevents them from selling that information. I want to let you know that all of these questions are always available to you in your buyer and seller library on Selling Later, and we also offer every home buyer and home seller on Selling Later, a free resource, which is the Real Estate Agent Report Card, that gives you most of the data that you might need for some of these questions and also highlights any issues that we see. If perhaps the agent only uses one lender to give you a heads up about it before you meet with them, so that you can ask about it, or just don't use them all together, or just know that you need to shop. And as a little bonus question, another one you might want to ask is how do you handle conflicts of interest? What happens if I want to see a listing but you're actually the listing agent on that property? The answer is not dual agency and if the agent's telling you they can represent both of you, walk away, because they're not representing anyone. When they have the sell side and the buy side, they're essentially a transaction project manager and all the duties they owe you to help advise you, craft an offer, negotiate, go out the window, yet you're probably still going to end up paying the same price.
Speaker 1:Now, we didn't get to cover all of the questions on here, but those are the big ones that you should be starting with, so let's recap One.
Speaker 1:Please, for the love of God, interview more than one real estate agent and do it before you hit the market. Do not let Zillow and other companies match you with an agent, because that's always going to be based on the agent paying that company a ton of money and that money comes out of the commission they're going to charge you. Number two it is totally normal and appropriate for you to ask these questions before you work with someone. Number three if you are unsure, we will help you. And number four you can always request a real estate agent report card and we will always be happy to help you sort through and sift through everything to make sure that you find someone who's actually really good at their job. So now that my raging episode is over and I can't hold my coughs in anymore, we're going to cut it short for today, but I want you to understand how important it is that you interview people this year to find someone who's actually good at their job. Happy New Year.
Speaker 2:Have a story or a question you want to share? Hit us up at therealestatereplaycom.
