What should I ask a realtor before I hire them?

Choosing a Realtor to work with is more than just calling any company out of a phone book or newspaper ad. There are many factors that determine whether the Realtor will be a right fit for your situation. Whether you are buying your first home or selling your current residence, these are some of the questions you may want to ask in your initial meeting.

If you don't know a reputable real estate professional in your area, ask yourmortgage professional. We work with hundreds of real estate agents across the country and know who takes care of their customers andwho does not!

One of the most important questions to ask the Realtor up front is what areas or localities do they work in or which areas do they specialize in. Obtaining a Realtor that is familiar with only one city would not be a good idea if you were looking to buy or sell your home in a completely different area. Your Realtor needs to be very familiar with your immediate area to help you price your home right or to make sure you do not over pay for a new home.

Don't be surprised if the better Realtors in your area ask you to sign an Exclusive Buyer's Agreement early in the house-hunting process. Many "less than stellar" Realtors waste lots of time and gas money working with a potential buyer only to have that buyer purchase a home from another Realtor. An Exclusive Buyer's Agreement binds a buyer to a Realtor and lets the Realtor know the home buyer is serious.

In many cases, realtors work exclusively with their "in-house" financing. This is the financing department that their real estate firm employs. These in-house departments are often unable to assist customers with unique situations, such as low credit customers, self-employed buyers, or buyers who require 100% financing. If you have had an experience similar to this, do not think you can't get a mortgage loan! Call a local mortgage loan specialist and see what he can do for you. He will have access to many programs that the realtor's in-house lending department will not.

Your realtor will also likely ask you to produce a Mortgage Loan Commitment, otherwise known as a pre-approval letter. This lets the realtor know that you have been approved for financing. Your mortgage loan specialist can issue you this letter after a brief interview. Your pre-approval letter will indicate the maximum level of financing you have been approved for, and any other details specific to your loan approval.

To choose a successful agent, research those who have success selling homes in your neighborhood. Often you’ll find the same two or three agents closing deals. The most successful agents have full-page ads in the local classified magazines listing houses grouped by neighborhoods or areas. Successful agents have many listings. Part-timers and unsuccessful agents may have few, if any, homes listed. To get the attention you deserve, it is best to choose a successful agent who is a full-time partner in selling your home.

Ask friends and relatives who have purchased a home recently in your area which agent they used. Take your time to find someone who you feel comfortable spending a lot of time with and someone who has enogh experience to help you. Many agents that concentrate solely on listings do not have the patience and time to work with say, a first-time buyer.

» DISCLAIMER: The information contained in this article on 'What should I ask a realtor before I hire them?' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.