How to Choose a Real Estate Agent: Questions, Fees and Red Flags

Buying or selling a home is one of the largest financial decisions most people make, and the agent you choose will shape a lot of it: the price you list at or offer, how negotiations go, and how smoothly you get to closing. Yet many people hire the first agent they meet at an open house or the one a friend mentioned in passing.

This guide covers how to compare agents, what the paperwork and fees usually look like, and the warning signs worth noticing. It is general information, not legal or financial advice, and real estate rules vary by state.

Buyer's agent or listing agent?

Agents can represent either side of a transaction, and the job is different on each side.

• A listing agent (seller's agent) helps you price your home, prepare it for sale, market it, review offers and negotiate on your behalf.
• A buyer's agent helps you understand the local market, find and tour homes, decide what to offer, negotiate, and keep the deal on track through inspections, appraisal and closing.

Many agents do both, but most lean in one direction. If you are buying and selling at the same time, ask whether the agent is comfortable managing both transactions and the timing between them.

A note on dual agency

Sometimes one agent or brokerage ends up involved on both sides of the same sale. States treat this differently: some allow it with written disclosure and consent, some limit it, and some prohibit it. If it comes up, ask exactly what the agent can and cannot do for you, and do not sign a consent form you do not understand.

Agent, broker or Realtor: what the titles mean

A real estate agent, sometimes called a salesperson, holds a state license and generally works under a supervising broker. A broker has additional education and licensing and can run a brokerage. Realtor is a trademarked term for members of the National Association of Realtors, who agree to follow its code of ethics. None of these titles alone tells you whether someone is good at the job, but they help you understand who is responsible for your transaction.

Check the license

Every state licenses real estate agents and brokers, usually through a real estate commission or a department of licensing. Most offer a free online license lookup where you can confirm that a license is active, see which brokerage it is held under, and in many states see any public disciplinary actions. Search for your state's real estate commission and look for a link to verify a license. It takes a couple of minutes and is worth doing for any agent you are seriously considering.

Interview two or three agents

Talking with more than one agent is normal, and good agents expect it. A short phone call or meeting will tell you a lot about how they work and whether you communicate well together.

Look for real local experience

Real estate is local. An agent who regularly works in your neighborhood and price range is more likely to know how homes there actually sell, which streets have quirks, and which local inspectors, lenders and title companies are reliable. Ask about recent transactions near you rather than total career numbers.

Questions to ask

1. How long have you been licensed, and is real estate your full-time work?
2. How many buyers or sellers have you represented in this area recently, in a similar price range?
3. Who will I work with day to day: you, a team member or an assistant?
4. How often will you update me, and how quickly do you usually reply?
5. For sellers: how would you price my home, and can you walk me through the comparable sales you used?
6. For sellers: what is your marketing plan, and what is included in your fee?
7. For buyers: how do you help clients compete without overpaying or giving up protections they need?
8. How is your compensation structured, and what exactly does the agreement require of me?
9. How long is the agreement, and how can either of us end it early?
10. Can you give me names of recent clients I can contact?

Be wary of pricing promises. A listing agent who suggests a much higher price than everyone else may be trying to win your listing rather than giving you a realistic number. Ask every agent to show you the sales data behind their suggestion.

How commissions and agreements work

Real estate commissions are not set by law, and they are negotiable. The amount, how it is calculated and who pays it are terms you agree on in writing with the brokerage. Do not assume that a figure you have heard from friends or online is standard or required.

Listing agreements for sellers

If you sell, you will usually sign a listing agreement with the agent's brokerage. Read it for:

• The compensation you will pay and when it is owed.
• Whether you are offering to pay anything toward a buyer's agent, and how that will be handled.
• The length of the listing and the conditions for canceling it.
• Any fees owed if you sell, after the listing ends, to a buyer the agent introduced.

Buyer agreements

Buyers now commonly sign a written agreement with their agent before touring homes, a practice that became much more widespread after industry changes in 2024. The agreement should spell out what the agent will be paid, or how that amount will be determined, and who is responsible for paying it if the seller does not cover it.

Before you sign a buyer agreement, check:

• The compensation amount or formula, stated clearly.
• How long the agreement lasts and whether it covers a specific area or type of property.
• Whether it is exclusive, and what happens if you buy a home on your own or through another agent.
• How you can end the agreement if the relationship is not working.

You can ask for a shorter term, a narrower scope or a different fee before you sign. If any term is unclear, ask the agent to explain it, and consider having a real estate attorney review it. In some states, attorneys are a routine part of home sales anyway.

Red flags

• Pressure to sign an agreement on the spot, or reluctance to give you a copy to read first.
• Vague answers about compensation, or claims that the fee is fixed and cannot be discussed.
• A license that does not show up in the state lookup, or a name that does not match.
• Promises of a specific sale price or a guaranteed sale date.
• Discouraging you from getting a home inspection or from reading documents carefully.
• Steering you toward or away from neighborhoods based on who lives there, which can violate fair housing laws.
• Pushing specific lenders or service providers without explaining any business relationship. Ask whether the agent receives anything for the referral.
• Slow or inconsistent communication during the interview stage, which rarely improves later.

Also be careful with wire instructions. Real estate closings are a common target for email fraud. Always confirm wiring details by calling a phone number you know belongs to your title or escrow company, never a number from an email.

Reading reviews

Online reviews can help, especially when several clients describe the same strengths or problems. Look for details about communication, negotiation and how the agent handled setbacks like a low appraisal or a failed inspection. Our guide on how to spot fake online reviews can help you separate genuine feedback from filler.

Find a real estate agent near you

Browse real estate agents on Directory For USA, compare reviews and service areas, and contact two or three to ask the questions above. Check each license with your state before you sign anything, and take the time to read every agreement.