How to Choose a Real Estate Agent: 8 Checks Before You Sign

Choose a real estate agent the way you would hire any professional who handles your largest asset: confirm the license, interview at least three, ask for proof of recent local sales, and negotiate the contract in writing before you commit. The agent’s personality matters less than their record in your neighborhood, their incentives, and how clearly they put the terms on paper.

This guide walks through those steps for buyers and sellers, with the questions to ask, the numbers to know, and the warning signs that tell you to keep looking.

TL;DR

• Verify the license with your state regulator before the first meeting, and ask to see any credential an agent advertises.
• Interview three or four agents. FTC research found most sellers contact only one agent, which leaves savings and better terms on the table.
• Commission is negotiable and not set by law. Get the amount, the length of the agreement and the services in writing.
• Judge agents on recent, similar sales in your ZIP code, not on the highest valuation or the slickest pitch.
• Ask who you will actually work with, how often you will hear from them, and by what channel.

Table of Contents

• Start by deciding what you need
• Step 1: Build a shortlist of local agents
• Step 2: Verify the license and credentials
• Step 3: Interview at least three agents
• Step 4: Judge the proof, not the promise
• Step 5: Understand how agents are paid
• Step 6: Watch for conflicts of interest
• Step 7: Compare candidates side by side
• Step 8: Match the agent to your situation
• Our perspective
• Find local professionals in your area
• Red flags that mean keep looking
• FAQ
• Sources

Start by deciding what you need

Agents are not interchangeable. Before you contact anyone, write down three things:

1. Your goal. Buying your first home, selling quickly because of a job move, or selling a house with deferred repairs all call for different strengths.
2. Your location. A condo in a downtown tower, a ranch house in a suburb and an acreage property are different markets. Agents who close many deals in your ZIP code know the pricing, the buyers and the inspection quirks.
3. Your preferences. Do you want a daily text update or a weekly call? A hands-on guide or someone who stays out of your way?

Buyers should also get a mortgage preapproval first. It tells you your budget and shows agents you are serious, so you spend interviews on strategy instead of guesses.

Step 1: Build a shortlist of local agents

Start wide, then narrow. Good sources, roughly in order of usefulness:

• Referrals. Friends, neighbors and coworkers who bought or sold nearby in the last couple of years can tell you how an agent behaved when something went wrong. Surveys cited by the FTC show that roughly 69 to 74 percent of sellers rely on referrals or prior relationships, which is exactly why a single referral should be the start of your search, not the end.
• Yard signs and open houses. Agents whose name keeps appearing within a mile of your home are active in your market.
• Online profiles. Read specialties, years in business and client reviews. Look for patterns across reviews rather than a single glowing or angry one.
• Local directories. A directory that filters by service type and ZIP code helps you see who actually operates in your area. On Best Service Local you can search by service and ZIP code and open business profiles side by side, for example a real estate profile for buyers and sellers in Illinois.

Aim for five or six names, then trim to the three or four you will interview.

Step 2: Verify the license and credentials

This takes ten minutes and screens out the worst risks. The California Department of Real Estate advises consumers to check that an agent is licensed and in good standing and not to take advertised titles on faith. The same logic applies in every state, because each state licenses agents separately.

Here is the routine:

1. Find your state’s real estate commission or department of real estate and use its public license lookup.
2. Confirm the license is active, the name matches, and look for any disciplinary history.
3. Note the supervising broker. In most states an agent works under a broker, and the brokerage is part of what you are hiring.
4. If the agent claims a designation or says they are a REALTOR®, ask to see proof of the certificate or membership.

For agents who hold licenses in more than one state, the ARELLO licensee verification database lets you search by name or license number across participating regulators. It is a convenient starting point, but your own state regulator remains the authoritative record.

Step 3: Interview at least three agents

The FTC’s report says experts advise comparing several candidates because agents differ in their services, their market analysis and the commission they will accept. Treat each meeting as a job interview. Ask every agent the same questions so you can compare answers directly.

Questions about experience

• How long have you worked in residential real estate, and is it your full-time job?
• How many homes did you close last year, and how many were in my neighborhood or price range?
• Which designations or certifications do you hold, and what did they require?
• How many days do your listings typically stay on the market compared with the local average?

The National Association of REALTORS® publishes a similar list, noting that experience is no guarantee of skill on its own, so pair the questions with evidence.

Questions about the work itself

• Who will be my day-to-day contact: you, an assistant, or a junior team member?
• What is your marketing plan for my home, or your search strategy for my budget?
• How do you handle multiple offers or a low appraisal?
• Can you give me three recent clients I can call?

The team question matters. Many high-volume agents work within teams, which can mean more resources and better availability, but you should know whether the person who pitches you is the person who will negotiate for you.

Questions about communication

Agree up front on how often you expect updates and by what channel: email, phone or text. The Consumer Financial Protection Bureau’s guidance on closing stresses having clear expectations in writing, and a mismatch here causes more frustration than most price disputes. If an agent answers your interview emails slowly, assume it will not improve after you sign.

Step 4: Judge the proof, not the promise

Sellers get the most misleading information at the listing presentation. The state of California’s DRE warns that a high valuation can be a tactic to win the listing, followed by pressure to cut the price once the house sits unsold. The defense is simple.

Ask each agent for:

• Recent comparable sales within a half mile or so, with sale dates and final prices.
• The gap between list price and sale price on their last ten or so listings.
• A written pricing rationale, not just a number.

If one agent’s suggested price is far above the rest and the comparables do not support it, that is a reason for caution, not excitement. An agent who tells you something less flattering and shows the data is usually the one worth hiring.

Buyers should ask for a sample of how the agent searches: do they set up alerts across the whole market, or only send listings from a narrow circle? The FTC has noted that steering toward higher-commission homes is a risk consumers often do not know about, so stay involved in the search and tell your agent you want to see every home that fits your criteria.

Step 5: Understand how agents are paid

Commissions are the topic people avoid, and the one that should be settled first. The Better Business Bureau says fees are typically 5 to 6 percent of the sale price but are negotiable and vary by region. On a $300,000 sale, that range works out to $15,000 to $18,000 in total commission before it is divided among the parties.

Rules changed in 2024. Under the National Association of REALTORS® settlement, written buyer agreements became a nationwide requirement on August 17, 2024 for many real estate professionals. NAR’s consumer guide states that compensation is negotiable and not set by law, and that the agreement must define it clearly. In practice, that means buyers should expect to sign something before touring homes with an agent, and should read it first.

Before you sign any agreement, confirm:

The exclusivity question is the one people skip. Some contracts obligate you to pay even when you bring the buyer, and many consumers only discover it later. Ask for the clause to be explained in plain language, and if you are unsure, have a real estate attorney review it. Our guide to what real estate attorneys typically charge buyers shows that a document review is a modest cost compared with a commission dispute.

Step 6: Watch for conflicts of interest

Agents often recommend lenders, title companies or inspectors. Helpful referrals are fine, but you are not required to use them. Under RESPA, federal rules prohibit kickbacks and unearned fees for referrals, and an agent who steers you toward an affiliated business must disclose the relationship. In 2014 the CFPB ordered a large Alabama firm to pay $500,000 over inadequate disclosures of its mortgage affiliations, a reminder that this is a real compliance issue and not a technicality.

Practical response: when an agent suggests a lender or title company, ask whether they have a financial interest, then get at least one other quote. The same applies to contractors for pre-sale repairs. Before you hire anyone for work on the house, our checklist on contractor background checks covers what to verify.

Step 7: Compare candidates side by side

After the interviews, score each agent from 1 to 5 on the criteria that matter to you. A simple grid keeps you from choosing on charm.

Call the references. Ask what went wrong during the transaction and how the agent handled it. Every deal has a hiccup, and the response tells you more than the result.

If you are comparing how agents in other markets structure the process, the Warsaw brokerage Prosperity Broker publishes a step-by-step guide to selling a flat with an agency (in Polish). The stages differ from US practice, but the logic of comparing agents before you commit carries over.

Step 8: Match the agent to your situation

A few common situations and what to prioritize:

• First-time buyer. Choose patience and teaching ability. Ask how they explain the offer, inspection and closing timeline. Budget for other costs too: our breakdown of home appraisal costs shows how loan type can change what you pay.
• Seller with a house needing work. Look for an agent with a network of vetted contractors and honest advice on what repairs pay back. Our roof repair cost plan is a useful reference when a roof is the sticking point.
• Investor or landlord. Ask about rental experience, and consider whether you will also need property management, where comparing total costs matters more than comparing the headline rate.
• Relocating buyer. Favor strong video walkthroughs, responsiveness across time zones and local contacts for inspections.

Our perspective

We built Best Service Local around one idea: people choose better when they can see local options together. Every category on our platform, from home repair to real estate, is searchable by service type and ZIP code, because a provider who does not operate in your area is not a useful result no matter how well rated.

The same principle applies to agents. The strongest decisions we see readers make share three habits: they compare several providers, they check verified details instead of marketing claims, and they ask about the terms before the work starts. Agent choice is a high-stakes version of hiring a roofer or a handyman. The professional you pick will shape the price you get, the stress you feel and the money you keep.

Our advice is to treat a recommendation as a lead, not a conclusion. Whether a friend, a sign or a directory gave you the name, run the same checks: license, local record, contract terms, communication fit.

— Service

Find local professionals in your area

When the sale or purchase is done, you may need other local help: repairs before listing, a handyman for inspection items, or a roofer after a storm. You can search Best Service Local by service type and ZIP code, compare business profiles side by side, and contact providers directly. Browsing and comparing is free for consumers. For quick fixes, you can view local handyman profiles such as Superior Fix Handyman in Plainfield, IL or Advantex Roofing & Restoration in Oswego, IL.

Red flags that mean keep looking

• The agent cannot show an active license or avoids the question.
• A valuation far above every other estimate, with no comparable sales to back it.
• Pressure to sign today, or an agreement with no clear exit terms.
• Vague answers about who will handle your transaction.
• Slow or inconsistent replies before you have even hired them.
• Pushing a single lender or title company without disclosing any relationship.
• Refusal to discuss commission, or a claim that the rate is fixed.

FAQ

What is the best way to choose a real estate agent?

Verify their license, interview at least three agents, and compare them on recent local sales, contract terms and communication. Use the same questions with each so the answers are comparable. Then call at least two references before signing.

How much does a realtor make off a $300,000 house?

If the total commission is in the typical 5 to 6 percent range reported by the BBB, that is $15,000 to $18,000 before it is split between brokerages and agents. The rate is negotiable, so the actual figure can be lower or higher. Ask for the number in writing.

Do I have to sign an agreement with a buyer’s agent?

For many real estate professionals, yes. NAR’s consumer guide says written buyer agreements became required on August 17, 2024, and that you can negotiate their length, services and compensation. Read it fully before signing, and ask a real estate attorney if any clause is unclear.

Do I have to use the lender or title company my agent recommends?

No. You can shop around, and agents with affiliated business arrangements must disclose them. Get at least one competing quote and compare fees.

Is a REALTOR® the same as a licensed real estate agent?

Not exactly. A license comes from your state and lets someone practice real estate. REALTOR® is a membership title in a national trade association with its own code of ethics. Check the state license first, then ask for proof of any membership.

Sources

• FTC and DOJ report on competition in the real estate brokerage industry
• California DRE: Tips on how to choose a real estate agent
• BBB Tip: How to choose a real estate agent
• NAR: Consumer guide to written buyer agreements
• ARELLO licensee verification database
• CFPB: RESPA rule on kickbacks and unearned fees (12 CFR 1024.14)
• CFPB: Action against RealtySouth for mortgage disclosure violations

Recommended

• $600–$1,500 Typical: Real Estate Attorney Fees for Homebuyers
• Home Appraisal Cost: VA, FHA, and Flip Rules Can Change Your Bill