How to Choose a Realtor® When the Options Are Overwhelming

Whether you're buying your first home or selling a property you've owned for decades, the Realtor® you choose will directly influence how much money you make, or lose, on the transaction. This isn't a decision to take lightly, yet many consumers select agents based on referrals from friends, yard signs they've seen around the neighborhood, or simply whoever answers the phone first.

That approach leaves tens of thousands of dollars on the table. The performance gap between average and top-performing agents is substantial, and the 2024 regulatory changes from the NAR settlement have fundamentally altered how you should evaluate and negotiate with real estate professionals.

This guide provides a systematic framework for identifying, vetting, and selecting a Realtor® who will maximize your transaction outcome, backed by current market data and adapted for the new commission landscape.

Why Your Agent Choice Matters More Than Ever

The data is unambiguous: working with a skilled real estate agent produces measurably better financial outcomes than going it alone or settling for an underperforming professional. According to NAR's 2025 Profile of Home Buyers and Sellers, agent-assisted homes sold for a median price of $425,000 compared to just $360,000 for For Sale By Owner (FSBO) transactions. That $65,000 difference far exceeds any commission savings FSBO sellers might achieve.

These statistics reflect a growing recognition that real estate transactions have become increasingly complex. Buyers rely on agents for more than just finding properties. They need help navigating paperwork, negotiating terms, and understanding process intricacies. NAR's research shows that 76% of first-time buyers credited their agent with helping them understand the homebuying process, while more than half of all buyers valued agents who pointed out property features or flaws they hadn't noticed themselves.

For sellers, the stakes are equally high. The top priorities when selecting a listing agent include getting help marketing the home to potential buyers, pricing the property competitively, and selling within a specific timeframe. An agent who excels at these core functions will generate significantly better results than one who merely lists your home and waits.

The Performance Gap Is Real

Not all agents deliver equal value. The typical Realtor® completes 10 transactions per year with a median sales volume of $2.5 million, according to NAR's 2025 Member Profile. However, this average masks enormous variation. Some agents close 50+ transactions annually while others struggle to complete even a handful. Similarly, some agents consistently sell homes faster and for higher prices than the market average, while others regularly underperform.

When evaluating potential agents, understanding where they fall on this performance spectrum should be your primary concern. An agent's personality, availability, and communication style matter, but not as much as their track record of actually closing successful transactions in your specific market.

Understanding the New Commission Landscape

The August 2024 NAR settlement fundamentally changed how real estate commissions work in America. Understanding these changes is essential before you begin interviewing agents, as they affect everything from how you'll pay for representation to what questions you should ask.

Historically, sellers typically paid a commission of 5-6% of the home's sale price, which was then split between the listing agent and the buyer's agent. The buyer's agent commission was advertised on the MLS, and buyers rarely discussed compensation directly with their agents.

What Changed in 2024

The NAR settlement introduced several significant changes that went into effect on August 17, 2024. Listing agents can no longer advertise buyer agent commissions on MLS platforms. Buyers must now sign written agreements with their agents before touring homes, and these agreements must clearly specify the agent's compensation. All parties must acknowledge that commission rates are fully negotiable and not set by law.

These changes mean that buyers now need to think carefully about agent compensation before they start their home search. You'll be asked to sign a buyer representation agreement that specifies exactly how much you'll pay your agent, whether that's a percentage of the purchase price, a flat fee, or some other arrangement.

How Commissions Work Now

Under the new rules, there are several ways buyer agent commissions might be handled. Sellers can still offer to pay the buyer's agent commission, but they can't advertise it on the MLS. This offer would typically be communicated through the listing agent after an initial inquiry. Buyers can negotiate for the seller to cover their agent's commission as part of the purchase agreement. Buyers can pay their agent directly if they have the funds to do so. In some cases, buyer agent fees might be rolled into the mortgage or offset through price negotiations.

According to data from Redfin, the typical buyer agent commission has remained relatively stable since the settlement took effect, hovering around 2.5% in most markets. However, commissions for homes under $500,000 have actually increased slightly, suggesting that the market is still adapting to the new rules.

How to Evaluate Agent Performance

The most reliable way to choose a Realtor® is to examine their actual performance data rather than relying solely on reviews, referrals, or personal chemistry. Here's how to systematically evaluate agents based on metrics that correlate with transaction success.

Transaction Volume and Experience

An agent's transaction count reveals both their experience level and their current market activity. The typical Realtor® has 12 years of experience and completes 10 transaction sides annually. However, transaction count alone doesn't tell the full story. You want an agent who closes deals in your price range and property type.

Ask specifically about transactions similar to yours. An agent who primarily sells luxury homes may not be the best fit for a starter home purchase, and vice versa. Someone with extensive experience selling condos might lack the expertise needed for a single-family home with acreage.

Days on Market Performance

For sellers, one of the most revealing metrics is how quickly an agent's listings sell compared to the local market average. An agent whose listings consistently sell faster than average likely excels at pricing strategy, marketing, and buyer engagement. Conversely, an agent whose listings languish on the market may struggle with these fundamentals.

Ask agents for their average days on market over the past 12 months and compare it to MLS data for your area. Be wary of agents who don't track this metric or who dismiss its importance.

Client Retention and Referrals

According to NAR data, 72% of sellers say they would definitely use their agent again. This repeat business metric is a strong indicator of client satisfaction. Agents who generate significant business from past clients and referrals (top agents earn 40%+ of their business this way) have demonstrated their ability to deliver results that inspire loyalty.

When interviewing agents, ask what percentage of their business comes from repeat clients and referrals. Also request references from recent clients whose transactions were similar to yours.

Essential Questions to Ask Every Agent

Your agent interviews should go beyond pleasantries and general experience discussions. Use these targeted questions to identify the professionals most likely to deliver exceptional results for your specific situation. For a comprehensive list, see our interview questions for Realtors®.

Questions About Experience and Performance

Questions About Process and Communication

Beyond performance metrics, you need an agent whose working style matches your preferences. These questions help assess compatibility.

Ask how they prefer to communicate and how quickly you can expect responses to questions or concerns. Find out whether you'll work directly with them or with team members. Request a detailed explanation of their marketing plan (for sellers) or search strategy (for buyers). Inquire about their approach to negotiations and how they handle multiple-offer situations.

Questions About Compensation

Given the 2024 commission changes, transparent fee discussions are essential. Don't shy away from direct questions about compensation.

Ask about the total commission they're proposing and how it compares to competitors. Find out what services are included and whether there are any additional fees you should know about. For buyers, ask how they typically handle their compensation in transactions where the seller isn't offering to pay buyer agent fees. Get clarification on the terms of the representation agreement, including its duration and exclusivity requirements.

Red Flags to Watch For

Not every agent is right for you, and some agents should be avoided entirely. Watch for these warning signs during your evaluation process.

Performance Concerns

Be cautious of agents who can't or won't provide specific performance data. Evasive answers to questions about transaction history, days on market, or pricing accuracy suggest either inexperience or a track record the agent doesn't want to share. Similarly, be wary of agents who don't have recent transactions in your specific market area. Local knowledge matters significantly in real estate.

Unrealistic promises are another red flag. An agent who tells a seller their home is worth significantly more than comparable sales suggest, or who promises a buyer they'll definitely find something under budget in a competitive market, may be more interested in winning your business than in setting realistic expectations.

Communication Issues

The interview process itself provides valuable information about how an agent communicates. If they're difficult to reach, slow to respond, or vague in their answers during the courtship phase, expect these issues to worsen once they've secured your business.

Pay attention to whether the agent listens more than they talk. The best agents ask probing questions to understand your specific needs and concerns rather than launching into a rehearsed pitch. An agent who doesn't seem interested in your priorities is unlikely to represent them effectively.

Structural Problems

Some issues relate to the business structure rather than the individual agent. Team arrangements can be problematic if you're passed off to junior team members after signing with a prominent lead agent. Ask specifically who will handle showings, negotiations, and day-to-day communication.

Also investigate the agent's brokerage support. An agent with a reputable brokerage has access to better training, marketing resources, and professional networks. The brokerage's reputation can also affect how other agents perceive your listing or offers.

Buyer's Agent vs. Listing Agent: Different Needs

The qualities that make an excellent buyer's agent differ somewhat from those of a top listing agent. Understanding these distinctions helps you evaluate candidates more effectively.

What Buyers Need

A strong buyer's agent excels at understanding your priorities and translating them into an effective search strategy. They should have deep knowledge of available inventory, often knowing about properties before they officially hit the market. Negotiation skills are critical, particularly in competitive markets where multiple offers are common.

Buyers should also look for agents with strong networks among listing agents, home inspectors, lenders, and other professionals who facilitate smooth transactions. The ability to move quickly and decisively when the right property appears can make the difference between winning and losing a home.

What Sellers Need

Listing agents must excel at pricing strategy, marketing, and managing the showing and offer process. Look for agents with compelling marketing materials, professional photography capabilities, and a clear plan for exposing your property to qualified buyers.

Staging expertise matters too. The best listing agents can advise on cost-effective improvements that increase buyer appeal without overcapitalizing on updates that won't generate returns. They should also demonstrate strong negotiation skills when reviewing offers and navigating counteroffers.

Making Your Final Decision

After interviewing at least three agents (more if none clearly stands out), it's time to make your selection. Here's how to synthesize everything you've learned into a confident decision.

Compare Performance Data Objectively

Create a simple spreadsheet comparing each agent's key metrics: transaction volume, days on market, list-price-to-sale-price ratio, years of experience, and client references. This objective comparison helps cut through the influence of personality and sales ability.

Weight the metrics according to your priorities. If selling quickly is paramount, emphasize days on market. If maximizing sale price matters most, focus on the pricing accuracy ratio and negotiation track record.

Trust Your Instincts About Fit

Once you've identified candidates with strong performance credentials, personal compatibility becomes the tiebreaker. You'll be working closely with this person through a stressful, high-stakes process. Choose someone whose communication style, availability, and approach align with your preferences.

Consider how well each agent listened during interviews. Did they ask questions that suggested genuine interest in your needs? Did they provide thoughtful answers or resort to generic sales pitches? The agent who took time to understand your specific situation is likely to represent you more effectively.

Review the Agreement Carefully

Before signing any representation agreement, read every provision carefully. Understand the duration of the agreement, exclusivity requirements, termination provisions, and all compensation terms. If anything seems unclear or unfavorable, negotiate modifications before signing.

For buyers especially, the new written agreement requirement means you're making a commitment before you've even toured a home together. Make sure the terms allow you to exit gracefully if the relationship doesn't work out.

Conclusion: Invest in Finding the Right Fit

Choosing a Realtor® is one of the most consequential decisions in any real estate transaction. The right agent can sell your home faster and for more money, find you the perfect property in a competitive market, and guide you through complex negotiations and paperwork with confidence.

The 2024 NAR settlement has made transparent fee discussions more important than ever, but the fundamentals of agent selection remain unchanged. Focus on performance data over personality, verify track records in your specific market, ask probing questions about process and communication, and don't settle until you've found someone who demonstrates both competence and compatibility.

Given that the typical home sale involves hundreds of thousands of dollars, spending a few extra hours on agent selection is a modest investment with potentially significant returns. The difference between an average agent and a top performer can easily amount to tens of thousands of dollars in your transaction outcome.

Take the time to do this right. Your future self will thank you.