How do you choose a real estate agent?

Your real estate agent is your primary advisor through one of the largest financial transactions of your life. Picking the right one — rather than the first referral you receive — can meaningfully affect how smoothly the process goes, how well your interests are represented in negotiations, and how quickly issues get resolved. The CFPB's homebuying guide advises choosing an agent with strong experience in your target neighborhoods and price range, and checking your state's licensing agency for any disciplinary actions before you commit.

What to look for

• Active license in your state — verify through your state's real estate licensing authority before working with any agent.
• Local market expertise — an agent active in your specific target neighborhoods knows inventory, pricing patterns, and typical negotiation norms better than a generalist.
• Recent transaction volume — an agent who has closed several transactions in the past 12 months in your price range knows current market conditions.
• Communication style — you'll exchange many messages over 30–60+ days; choose someone whose responsiveness and communication method match yours.
• References — ask for contact information of two or three recent buyers they represented; call them.

Questions to ask before hiring

Interview at least three agents before choosing. Key questions: How many buyer clients are you currently working with? How many homes in this price range and area have you helped buyers close in the past 12 months? What's your typical response time? How do you handle multiple-offer situations? If they struggle to answer the last question specifically, that's a signal.

Buyer representation agreements

Following 2024 industry changes stemming from the NAR commission-lawsuit settlement, buyers are now typically required to sign a written buyer representation agreement before touring homes with an agent. This agreement outlines the agent's duties, the duration of representation, and how the agent is compensated. Federal Reserve research on the post-settlement market notes these agreements are designed to clearly lay out for buyers how their agent will be compensated and the final compensation amount — read the terms carefully, specifically how compensation is structured and whether you're locked in exclusively. Ask whether the agreement can be terminated if the relationship isn't working.

Buyer's agent vs. listing agent

The listing agent represents the seller's interests. As a buyer, you want your own representation. A buyer's agent owes you fiduciary duties — loyalty, confidentiality, disclosure, and acting in your best interest. A dual agent represents both parties in the same transaction, which creates inherent conflicts. Most states allow dual agency only with written consent from both parties. The CFPB's homebuying guide explains that agents can represent the buyer, the seller, or both, and that state laws can require an agent to disclose who they represent and under what terms.