Hiring a Listing Agent: Red Flags

Hiring the right real estate agent to sell your home can make or break your real estate experience. Whether you’re selling your condo, house or an investment property, having a competent and trustworthy REALTOR by your side is crucial. But how do you know if an agent is the right fit? Here are 10 red flags to watch for when hiring a listing agent.

1. Lack of Experience, Expertise or Credentials

A lack of experience, expertise and credentials can be a major red flag:

• Check Their Track Record: An experienced agent will have a proven track record selling homes in your area. Look for statistics on the number of transactions they’ve handled and their average sale prices. Verify if they completed those sales themselves or if they did so with the help of a partner or team. 
• Verify Credentials: You can verify that a REALTOR’s registration with the Real Estate Council of Ontario is in good standing.
• Ask About Their Awards: What does it really mean to be part of the ‘Executive Club’? What did the Platinum award reward? If they are the #1 agent in their office, how many agents work there? Take note: most awards are internal and linked to commission and sales volumes…they aren’t rewarding happy clients, effective marketing or the results that matter to their buyers and sellers.
• Confirm Their Specific Expertise: There’s nothing more ‘local’ than real estate, so beware the agent who is ready to drive anywhere and sell you anything. While Ontario agents are legally able to work anywhere in the province, they should be experts about your local real estate market and the particular type of property you own (ie. a house, a condominium or a commercial property).  Is their expertise legit or aspirational?

2. Unclear or Non-existent Marketing Strategy

A good REALTOR should have a clear marketing strategy for selling your property:

• Ask About Their Marketing Plan: If an agent can’t provide a clear marketing plan beyond listing your home on the MLS, it’s a red flag. They should outline how they plan to market your property, including online listings, open houses, and other promotional activities.
• Check Their Online Presence: These days, to be effective, a REALTOR needs a strong online presence, including a professional website and active social media profiles. Lack of an online presence can indicate outdated practices.

Related: Click here to read about how the BREL team markets homes for sale.

3. Pushy or High-Pressure Tactics

Your REALTOR is on your side and should prioritize your needs above anything else. 

• Beware The Agent Who Uses Fear and Time Pressure To Bully You. Most agents won’t ask you to sign a listing agreement the first time you meet them; they’ll give you time to read what you’re signing.
• Look for Someone Who Wants You to Make Informed Decisions. Your agent should want to present you with complete information – if you sense they are cherry-picking data to suit their overly optimistic or pessimistic view of the market or make a quick sale, it could be a red flag. 

4. Poor Communication Skills

This is probably the #1 complaint we hear about Toronto REALTORS. 

• Look for Responsiveness: Your agent should respond to your calls, emails, and text messages promptly. If you find yourself waiting for extended periods without a response, it could be a sign of an agent who’s overwhelmed, disorganized and/or lacks basic communication skills.
• Evaluate Clarity: Your REALTOR should be able to explain complex terms and processes in a way that is easy to understand. If they use jargon excessively or don’t take the time to explain things, it might be a red flag.

5. Unwillingness to Provide References

A reputable REALTOR should have unbiased online reviews from real clients (on Google, Yelp or Facebook) and should be willing to provide references:

• Ask for Client Testimonials: Request contact information for clients they’ve recently helped and make sure to call them. A lack of references or negative reviews can indicate issues with past performance or client satisfaction.
• Check for Complaints: Research any complaints or disciplinary actions against the agent with RECO.

6. Inconsistent or Overly Low/High Pricing Estimates

Valuations and pricing estimates should be based on market data and recent home sales that are comparable to yours:

• Request a Comparative Market Analysis (CMA): A good agent will provide a written, detailed CMA to support their pricing recommendations. If you’re interviewing more than one agent, the valuations should be similar. An overly low or high estimate can be a red flag.
• Be Cautious of Unrealistic Promises: If a REALTOR promises an unusually high selling price or exceptionally low buying price without backing it up with data, be wary. Such promises can lead to disappointment and potential losses.

7. Questionable Practices and Undisclosed Conflict of Interests. 

Do they have your best interests at heart? Conflicts of interest can compromise the integrity of your sale:

• Multiple Representation Concerns: Be cautious of the agent who regularly represents both the buyer and the seller in the same transaction. The very nature of negotiation means there are two sides with competing interests…how can one person represent two sides equally? If what’s good for one side is bad for the other, the real winner is the agent who just made twice the commission. We wrote a blog about Representation Options here.
• Exclusive Agreements Some agents will encourage you to list your home ‘exclusively’ with them and not put it on the MLS. That’s almost always a bad idea for the seller. You can read more about that here: Should You List Your Home for Sale Exclusively?
• Check for Connections: In Ontario, agents must disclose (in writing), relationships and financial interests that could influence their advice or actions. 

8. Restricted Work Times and Availability

Real estate is a 24/7 business, and you want your agent to be available when you need them. 

• Ask If They Have Another Job: A surprising number of Toronto realtors have other jobs, which means they aren’t always available during the day or on weekends. It might be a sign that they just got their real estate license, or they aren’t successful enough or committed enough to go all-in. 
• Inquire About Their Backup Plans: Do they have any planned vacations that will interfere with your listing? Do they have a partner or team who can help if they aren’t available?
•  Ask Who You’ll Be Working With – It’s not uncommon for the head honcho of a successful team to be involved in the initial pitch of a new listing and then hand off their clients to other, less experienced agents on the team. Make sure you know who will be handling the sale of your home. We wrote a blog about 5 Dirty Truths About Real Estate Teams here. 

9. Lack of Professionalism

Professionalism reflects a REALTOR’s commitment to their work:

• Observe Their Behavior: Pay attention to how they present themselves, both in meetings and in written communications. Unprofessional behaviour, such as swearing or being frequently late or disorganized, can be a red flag.
• Listen to What They Say: Your agent shouldn’t bad-mouth other agents or criticize the potential buyers for your home. They should always be respectful. 

10. Unclear or Rigid Contract Terms

In Ontario, you’ll be asked to sign a few legal documents that outline the terms of your relationship with your agent. We wrote a whole blog about Understanding the Paperwork for Sellers. Contract terms should be clear and fair:

• Review the Contract Thoroughly: Carefully read the terms of the Listing Agreement before signing. Be cautious if the agent is unwilling or unable to explain terms or makes the contract challenging to understand.
• Beware of Unusual Clauses: Look out for unusual clauses or fees that may be hidden in the contract. Ensure that all terms, including commission rates, services, inclusions and duration of the agreement, are clearly defined. In Toronto, most listing agreements are signed for a period of 3 months.