In a highly competitive real estate market shaped by fluctuating demand and growing legal risks, working with a competent agent has become a sign of professionalism. Finding a specialist who actually fits your needs is not easy, yet this person is responsible for pricing strategy, property positioning, negotiation management, preventing deal failures, and ensuring transparency throughout the process.

This means that a seller or buyer must not simply find an agent but evaluate the agent’s experience, performance indicators, and real ability to protect the client’s interests.

This material outlines the key criteria you should consider when choosing a professional who will be responsible for your property.

Contents:

  1. Who a Real Estate Agent Is and Why You Need One
  2. How to Choose a Competent Real Estate Agent
    1. Professional Track Record
    2. Marketing Strategy
    3. Client Communication
    4. Negotiation Skills
    5. Legal Competence
  3. Summary

Who a Real Estate Agent Is and Why You Need One

Before reviewing the criteria, it is useful to recall the definition of a real estate agent. In most cases, this is a licensed specialist who represents either the seller or the buyer in residential or commercial property transactions.

Core functions of an agent:

  • Property evaluation. An agent prepares a Comparative Market Analysis (CMA) using data on recently sold properties, price trends in the area, competition levels, and seasonal demand shifts. A well-prepared CMA lowers the risk of overpricing, which tends to extend the selling or buying period.
  • Preparing the property for the market. This includes repair recommendations, selection of visual content such as photos, videos, and virtual tours, and creation of an effective listing.
  • Marketing. The agent defines marketing channels, sets up advertising campaigns, and works with aggregators, social media, and offline tools.
  • Finding buyers. The specialist screens inquiries, assesses the financial readiness of potential buyers, arranges showings, and protects the seller from random or unqualified traffic.
  • Transaction management. The agent builds a negotiation strategy, manages price discussions, and coordinates contract terms.
  • Legal support. This includes drafting the agreement, checking encumbrances, coordinating inspections and appraisals, and handling all procedural requirements.

These services come with a fee. Agent commissions usually range from 2 to 6 percent of the transaction price. Aggregated market data shows that an experienced agent increases the final deal value by an average of 10 to 20 percent due to effective pricing, marketing, and negotiation strategies.

Types of real estate agents:

  • Listing agent. This specialist represents the seller’s interests. Responsibilities include pricing strategy, preparing the property for the market, developing marketing plans, hosting showings, and negotiating with potential buyers.
  • Buyer’s agent. The buyer’s priorities differ from the seller’s interests, so the buyer’s agent focuses on detecting hidden issues, verifying legal compliance, evaluating the price, and negotiating for a reduction.
  • Dual agency. This model means one agent works with both the buyer and the seller at the same time. It is not legally allowed everywhere, and in many jurisdictions, it is heavily restricted because it compromises interests. An agent cannot fully negotiate in favor of one side against the other while representing both.

Compensation models for real estate agents:

  • Percentage of the property price. The most common model in both sales and purchases. It motivates the agent to set a higher sale price, although the service cost increases with the property value.
  • Flat fee. The client pays a fixed, pre-approved amount regardless of the result. This model is often used in the premium segment. A clear advantage is full control over the budget, while a drawback is lower motivation for the agent to maximize the outcome.
  • Hybrid model. A combination of a fixed amount and a performance-based bonus. This format is used for atypical properties or in agencies operating under corporate standards. It balances interests because the agent receives a minimum payment and motivation for results, which usually leads to consistent service quality.
  • Service-based model. Each service is paid separately, such as photography, advertising, negotiation support, or legal assistance. It is common in the budget segment or among clients who want to handle part of the work themselves. This allows paying only for the needed tools, although maintaining a unified marketing strategy becomes more complicated.
  • Success fee. The agent receives payment only after successfully closing the deal, yet the commission rate is higher. A limitation is that not all agents agree to work under this model.

How to Choose a Competent Real Estate Agent

When selecting an agent, most people pay attention to secondary factors such as the agency’s brand, personal impressions, or attractive promises. Meanwhile, the actual performance of a specialist is measurable. It can be evaluated through numbers, deal examples, and specific actions rather than general statements.

Professional Track Record

During the first meeting, it is reasonable to request concrete data instead of vague claims. The minimum set of metrics that allow an objective assessment of an agent’s level includes the following:

  • Number of transactions in the past 12 months. This shows how active and effective the agent is. A normal working volume is 8 to 12 deals per year. A strong result is 15 to 25 deals, and a high professional level starts at more than 30 deals per year. Fewer than 8 deals indicate irregular practice, except in the premium segment, where a single listing can equal several standard transactions.
  • Average days on market. This metric reflects the time required for the agent’s properties to go from listing to contract. A good agent sells a property 10 to 25 percent faster than the local average. For example, if the median time in the area is 40 days, a result in the range of 28 to 36 days indicates an effective strategy.
  • Ratio of initial to final price. This shows the percentage difference between the asking price and the final sale price. The typical range is 97 to 99 percent of the original price. A strong result is 100 to 102 percent. Top agents in competitive conditions reach 102 to 107 percent by creating increased demand for the property.

Another important metric is the agent’s closing rate, meaning the percentage of listings that reach the transaction stage. This reflects the agent’s ability not only to take on properties but to complete the work successfully.

A standard benchmark is 60 to 80 percent of listings closed. Anything higher is an advantage. If the rate is below 50 percent, the agent is taking on too many properties while failing to sell a significant portion of them.

Marketing Strategy

Beyond experience and deal statistics, it is essential to understand how an agent approaches marketing. When meeting with a specialist, it is useful to ask about the planned promotion strategy for your property and how the agent handled previous listings.

The first element to evaluate is how the agent presents the property. Professional photography is considered standard, not smartphone images. A proper listing requires a sufficient number of high-quality photos and a well-structured visual sequence. For a typical apartment or house, the adequate volume is at least 15 to 20 photos that show the layout, key rooms, the façade, and the surroundings.

For complex, high-value, or large properties, a video tour and, if possible, a 3D tour are appropriate. They substantially increase viewing time and improve conversion into actual inquiries. If the agent’s portfolio regularly features dark photos, random angles, only 5 to 7 basic shots, and no video materials, this is a clear indication of weak marketing.

The second factor is where the agent promotes the property. The basic set must include major online platforms, professional databases and work with the agent’s own client base and industry network.

For an active agent, standard practice is to launch paid promotion within the first days, send the listing through personal networks, and use at least one additional channel such as targeted advertising, social media, or email marketing. If an agent relies on only one or two platforms, it is unrealistic to expect strong demand.

Early viewing statistics reflect the effectiveness of marketing. In most cities, reasonable benchmarks include 50 to 150 listing views on the first day and roughly 300 to 800 views within the first three to five days, with a noticeable peak during the initial 48 to 72 hours. Lower numbers indicate a problem. The listing may be poorly prepared, priced outside the correct range or affected by both issues at once.

Client Communication

Effective communication requires a structured interaction system that allows the client to understand at any moment what is happening with the property, which steps are being carried out, and which decisions are planned. This can be assessed using several measurable criteria.

  • Regular reporting. In standard practice, reports are delivered weekly or based on predefined milestones such as going live on the market, initial showings, buyer reactions, and changes in competing listings. Reports must include clear data and recommendations for next steps. If an agent speaks about reporting in general terms, this signals the absence of a systematic approach.
  • Response speed. A working standard is the agent’s ability to reply within the business day for written messages and within a few hours for calls. Irregular responses, shifting commitments, or failure to document key decisions will cause delays and errors in later stages of the transaction.
  • Transparency of actions. A strong agent can explain the workflow clearly and concretely. The client should see which steps have been completed, which are planned, and on what basis recommendations are being made. If the agent avoids specifics or answers vaguely, this indicates weak communication discipline and a low level of transparency.

A competent agent explains possible scenarios in advance and outlines price ranges for negotiation. It is important to choose a specialist who:

  • easily provides sample reports from past clients;
  • demonstrates a clear schedule for reporting, competitor analysis, and updates to advertising campaigns;
  • quickly agrees on a convenient communication format such as messaging apps, calls, or email;
  • is comfortable documenting agreements in writing;
  • can translate complex transaction details into clear and understandable language.

Negotiation Skills

Negotiation is an essential part of any real estate transaction. Its success has the strongest impact on both the final price and the overall progress of the sale. A professional agent develops a negotiation strategy even before the first buyer appears. This strategy includes responses to offers below expectations, tactics for handling multiple buyers, and rules for concessions. It is standard for an agent to explain the logic of these steps using concrete examples.

An agent’s negotiation skills also influence the ability to answer buyer questions about the price, condition of the property, comparable listings, and transaction terms. The goal is not to pressure buyers or create unnecessary tension but to clearly justify the position while protecting the client’s interests. If an agent admits that they dislike bargaining or do not see value in negotiating with buyers, this raises concerns about whether they will defend your interests or simply aim to close the deal quickly.

How to assess an agent’s negotiation skills:

  • Request specific cases. A reasonable question is, “Name two or three recent deals where you achieved a higher price.” The agent should be able to state the initial and final prices and explain how the conditions were improved.
  • Ask which concessions the agent considers acceptable. A professional can list conditions where concessions are justified, such as repairs related to significant defects, and those where concessions are not appropriate. If the agent gives generalized answers or says, “We will decide as we go,” this shows a lack of commitment to the client’s interests.
  • Ask how the agent works with multiple buyers. A strong specialist explains how communication is structured when there are two or more parallel offers and which steps are taken to strengthen the client’s position.

The legal side of a transaction requires the agent to have a precise understanding of procedures, mandatory disclosures, and potential risks. What matters is not formal legal education but the ability to identify issues early, prepare documents correctly, and coordinate work with lawyers and other parties.

A professional agent always begins by reviewing ownership documents, property history, existing encumbrances, technical parameters, and compliance with the actual layout. This is the minimum level of due diligence needed to avoid bank refusals or failed transactions after an offer has been accepted. If an agent says that documents will be reviewed later by a lawyer, this indicates low involvement in the legal process.

Ideally, the agent explains in advance which documents are required, what the seller must provide, and which details may influence buyer decisions. A poor agent will inform you about missing documents only during the transaction, causing delays and complications.

How to assess legal competence before the start of work:

  • Ask which documents the agent reviews before the listing goes live. A professional names a clear list: ownership documents, information on encumbrances, technical certificates, permits for alterations, outstanding debts, and data on all owners. An agent who speaks in general terms often cannot identify potential issues early.
  • Request an explanation of mandatory disclosures. A proper response is structured and includes what the seller must disclose, which information is mandatory, what is provided on request, and which documents may influence buyer decisions. Uncertainty in this area indicates weak legal preparation.
  • Ask about common document errors and how the agent resolved them. A competent agent provides examples such as mismatched square footage, unapproved alterations, outdated encumbrances, or registry errors. An agent who cannot recall any case most likely performs weak document checks at early stages.
  • Ask how the agent monitors contractual deadlines. Standard practice involves using a transaction calendar with deadlines for deposit submission, inspections, contract amendments, and document delivery to the bank. If the agent answers vaguely and says, “We monitor as we go,” this demonstrates a lack of structured control.

The ability to manage the transaction process from beginning to end is also part of legal and organizational competence. The focus here is on systematic work, discipline, and coordination of all participants. This can be checked in several ways:

  • Request an example of a transaction calendar. Professionals show how they record deadlines and control key milestones using real examples. If the agent cannot show even a basic template, the workflow is not systematic.
  • Ask how the agent coordinates all parties. A strong agent explains how they work with lawyers, inspectors, appraisers, the bank, and the buyer; in which order documents are sent; how status updates are monitored; and which steps are prioritized.
  • Ask how the agent acts in non-standard situations. A competent specialist can explain in detail how issues were resolved, such as appraisal problems, inspection findings, document discrepancies, or bank delays. An agent who says “we will figure it out along the way” usually cannot manage complex transactions effectively.

Summary

Choosing a real estate agent is a complex task. It requires evaluating precise, measurable data derived from the agent’s recent transactions. These indicators reveal how well the agent handles the responsibility assigned to them and how they plan their work.

Weak specialists become a source of delays, conflicts, and financial losses. A proper selection approach relies not on intuition but on analysis. It includes measurable performance indicators, real experience, quality of marketing, strength of negotiation skills, legal competence, and the ability to manage the entire process from first contact to closing.