What to Do Before Talking to a Real Estate Agent

Before talking to a real estate agent, prepare for the conversation. Begin by defining your goals, budget and moving timeline. Then, note any questions for the agent based on those needs and preferences.

In this guide, we’ll cover what to do before talking to an agent whether you plan to buy, rent or sell a home. 

• What buyers should do before talking to an agent
• What sellers should do before talking to an agent
• What renters should do before talking to an agent

What buyers should do before talking to a real estate agent

Over half of home buyers (52%) contact a real estate agent before completing any other task, according to Zillow research, and most buyers (84%) use an agent to shop for, search for or purchase their home. To prepare for your first conversation with an agent, take these steps.

Set your budget

Your budget is the most important information for your agent. You may not know an exact price yet, but it’s helpful to know a range and upper limit. When setting a budget, consider your down payment, income and the mortgage rate you may qualify for.

You can estimate your home-buying budget with BuyAbility from Zillow Home Loans. This tool takes into account your income, debt, credit, current mortgage rates and other factors to give you an idea of homes that may fit your budget. When you search for homes on Zillow, budget-friendly homes will be labeled as “Within your BuyAbility.”

Get pre-approved

If you’re buying a home with a mortgage, you’ll need a pre-approval from a lender confirming your budget before your agent can put in offers for you. A pre-approval is a letter that indicates you’re likely to get a certain amount of financing. It may or may not include a quoted interest rate.  

Note that pre-approvals expire, so depending on how long it’s been between getting pre-approved and putting in an offer, you may need a refreshed pre-approval. Fifty-five percent of buyers said getting pre-approved for a mortgage was one of their first three steps in the home-buying process, but just 14% said it was their first step, according to Zillow research.

Clarify your goals

Consider your main priorities before talking to an agent. Are you looking to buy within a certain time frame? Do you need to sell a home, too, before you buy? Are you willing to exceed your budget or offer over asking? Are you only interested in a specific neighborhood or school district? By understanding what’s most important to you, your agent is that much more equipped to deliver. 

Hone in on your must-haves and deal-breakers in a home, as well. The agents you talk to can help you get a sense of what the market’s currently offering and whether there are options that align with your needs.

Prepare questions

Create a list of questions about the agent’s experience and their approach to the home search, offer strategy and negotiations. These may include:

• Do you work full-time or part-time?
• Do you specialize in any particular area(s)?
• Will I be working with you directly or a member of your team?
• How is the local housing market right now?
• How do you help buyers navigate a competitive market?

Take a first-time home buyer class

If buying your first home, your lender may require you to take a home-buying class. This course can be taken online or in-person, typically in a few hours. It’s a good idea to complete it before reaching out to an agent so you know the basics of the process.

What sellers should do before talking to a real estate agent

Before talking to a listing agent, take stock of your home and goals. This’ll help your agent determine appropriate pricing and a marketing plan to get you the outcome you want.

Research your local market

Before contacting an agent, understand what’s realistic for the housing market in your area. You can use Zillow market data to learn median list and sale prices, days to pending sale and more.

You can also check your Zestimate, an estimate of your home’s value. You can even claim your home on Zillow and update its details with any improvements. This may impact your Zestimate. Note that a Zestimate is not a substitute for an appraisal.

Define your objectives

Homeowners sell for all kinds of reasons, from changing jobs to getting married to simply looking for more (or less) space. Fifty-six percent of sellers moved on to a home that was more expensive than the one they sold, according to Zillow research.

Before talking to an agent, consider your motivation for selling. This can help your agent tailor their strategy to achieve your goals.

In addition, think about what matters most. What is your target price (or price range)? When do you hope to sell? Do you need to sell before buying another home? Are you willing to wait for a specific price, or rent the home for a time? The better you know your priorities from the outset, the more likely your agent is to make them a reality.

Estimate sale proceeds

With a price or range in mind, calculate different scenarios to see what you may profit, then consider the commission fee or rate you’d be comfortable with. Keep in mind costs like the capital gains tax, transfer taxes and any credits you offer to buyers, which may impact your take-away.

You may be able to negotiate commissions with the agents you talk to. Some agents offer a flat commission fee rather than a percentage-based rate, while others offer a la carte services, like listing on the MLS or photography. Make sure you understand what you’re getting for the price.

Evaluate your home for repairs

Walk through your property with a critical eye, assessing its condition, maintenance needs and presentation. If you know something needs repair, make sure to note this to the agents you speak with. 

Generally, it’s best not to make repairs or improvements until you talk to an agent — they know the market and what buyers are looking for, so they can guide you as to the best investments.

Organize documentation

Put together a file with information on any home improvements, including dates and receipts. This’ll be necessary when it comes time to price and market the home. Your agent can play up the renovations in your home’s listing description and at open houses.

These details are also helpful during the appraisal — you’ll want the appraiser to have as much information as possible to provide the most accurate valuation. If you added a bedroom to your home, for instance, they’ll look for suitable comparables based on that.

Prepare questions

Create a list of questions about the agent’s experience and track record; their commission fees; and their approach to pricing, marketing, offer strategy and negotiations. Include questions about the market, too, such as days on market and the percent of listings that sell for over asking. Here are some key asks:

• How many homes have you sold in the past year?
• How do you determine the list price for a home?
• What does your marketing strategy include? 
• What is your commission rate?
• What happens if the home doesn’t sell within my desired time frame?

What renters should do before talking to a real estate agent

Real estate agents don’t only help buy and sell homes — many work mostly or exclusively in rentals. If you need help finding your next apartment, take stock of your wish list before talking to a real estate agent.

Know your non-negotiables

Renting often calls for some flexibility, especially with HOA or landlord rules. If there’s anything you aren’t willing to compromise on, have that in mind when you talk to an agent. You may be able to make do without on-site laundry, for instance, but can’t live anywhere that doesn’t accept pets. Think about things like:

• Do I want flexible lease terms, such as month-to-month?
• Am I interested in a specific building or location?
• Do I need a rental where utilities are included?
• Do I need designated or off-street parking?
• Do I want neighbors above, next to or below me?
• Do I want a gym, pool or other amenities?
• Do I want a rent-to-own property?

Prepare questions

Create a list of questions about the agent’s experience in the rental market and cost for their services. Agents who specialize in rentals often know of listings before they come on market, as well as the common missteps renters make when signing a lease.

Your questions may include:

• What is your commission and who pays it?
• How do you find rentals?
• What’s your strategy in a fast-moving market?
• Are you familiar with certain buildings/developments?
• Will you help me negotiate the rent and/or fees?

How to find and compare real estate agents

It can be challenging to choose the right real estate agent, especially if you’re in an area with lots of brokers and options. Ultimately, the goal is to find someone you trust to guide you through buying, selling or renting. Here’s what to do after you prepare to talk to an agent:

Narrow your options

Check real estate agent ratings and reviews online. Make note of ones that specialize in your desired type of home, location, price range or situation. Do you need someone to help you pinpoint a neighborhood, for instance, or with experience in a specific type of property? Ask for referrals from family, friends or colleagues, too, especially if you don’t know where to start. They know you and your preferences and may be able to offer perspective.

Interview more than one

Most sellers (59%) only contact one agent, and of those, 73% hire that same agent, according to Zillow research. Talk to at least three agents about their experience and recent transactions, their approach to marketing and negotiation and communication expectations. Some agents focus more on open houses, for instance, or you may find you prefer a softer negotiation style or more frequent updates. 

Verify

Your real estate agent should know the housing market inside and out. If buying a home, look for a buyer’s agent familiar with local inventory, neighborhood price trends, school districts, commute times and more. Likewise, if selling, look for a listing agent with a deep understanding of recent sales, days on market and negotiation strategies. Many agents specialize in rentals, so if you’re on the hunt for an apartment, take note of that experience as you vet options.