When you’re thinking about selling your home, there are a lot of factors to consider. One of the most complicated things to decide is whether or not you should use a real estate agent. You might feel pressured to use an agent, especially if you are new to selling homes and anxious about all of the logistics of the market. [While you don’t have to use a real estate agent to sell your home](https://www.taidacorp.com/submit-my-address), if you decide to, you need to be aware of the possible red flags. Let’s walk through a few real estate agent red flags, that way you can make an informed decision that’s right for you. 

## Real Estate is Not the Agent’s Full-Time Job
The real estate market is constantly changing, so if your agent is doing real estate on the side, then [chances are they don’t have the expertise to do their job well.](https://realestate.usnews.com/real-estate/articles/red-flags-to-watch-for-when-picking-a-real-estate-agent) It is important that a real estate agent watches the market closely, and frequently. Therefore, being an agent needs to be their full-time job. Being an agent also takes a lot of effort from their side. They may need to show your home to 20+ buyers till they find one that sticks. Staging a home can take hours of work. If they don’t seem available then you may need a new agent.

## The Agent Has Trouble Remembering Details 
Details are important, especially when drafting contracts. If your agent frequently sends you contracts with errors then you need a new agent. Contract accuracy is an agent’s responsibility, so if you are the one catching mistakes then they are not doing their job.

## They Don’t Seem Familiar with the Area
As a homeowner, you understand the importance of knowing about the area. [Understanding the school districts, attractions, and noise levels of certain neighborhoods is important](https://www.mymove.com/moving/buying-selling/realtor-red-flags/#:~:text=Red%20flag%20%231%3A%20Overly%20high%20pricing&text=But%20it's%20important%20to%20check,lowering%20the%20asking%20price%20anyway) if you’re a buyer—so it only makes sense that your real estate agent should know these things when marketing your home. Stay away if your agent seems unfamiliar with the area that your home is in, because that means they aren’t equipped to sell your home. 

## They Make You Sign Confusing Contracts
When you sign with a realtor at some point you will have to sign a letter of engagement.  What this contract outlines is how the agent represents you. Typically it will specify if the agent represents you for a home sale, for a home purchase, what areas (if it is a purchase), what period of time, and what commission percentage.

One of the most subtle  red flags that comes with real estate agents, is if they try to lock you into unfavorable representation contracts. An agent typically will not walk you through their engagement letter, so make sure you read through the fine print.

As a homeowner signing an agent to LIST your home, make sure the engagement letter specifies...
- A finite amount of time that they have to sell your home. Make sure it is a timeline you feel comfortable with.
- Whether they are representing you to sell your current home only, buy your next home only, or both.
- The property address they are listing.
- Commission - If you are having your agent do everything (list the home on multiple platforms, perform showings, draft and review contracts, negotiate on your behalf, follow up regarding inspections, and coordinate the closing) then typically they would be compensated 3% of what you sell your home for BY YOU. If your agreement says 6% to be split between buyers and sellers agents then see if they will add something to say “If the buyer is not represented by an agent then the seller will only pay 3% to the listing agent.” Essentially what this means is that if there is no agent on the buyer side then you recoup that 3% of savings rather than your agent making double.

Think through what you can sell your home for without an agent’s help. Use this formula below to see if using an agent would make you more money.

What I think I could sell my home for x 1.06 = What my realtor needs to sell it for

Almost always an agent will be open to tweaking their engagement letter ahead of time, but trying to get out of an engagement letter later in the process when a lot of work has been completed is much harder to do.

Ultimately, your agent needs to be someone you trust. If these red flags make you weary of using an agent, don’t fret. You have other options. Instead of using an agent, it is possible to sell your home on your home (“for sale by owner”).

Taida Corp usually buys from homeowners who are selling their home without an agent. We go to great lengths to explain the entire home selling process and make you feel comfortable with everything along the way. We want to get to know you, so contact us—and we’ll get that house off your hands. 


While you don’t have to use a real estate agent to sell your home, if you decide to, you need to be aware of the possible red flags. Let’s walk through a few real estate agent red flags, that way you can make an informed decision that is right for you. 


Taida Corp.

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Red Flags to Look for Before Listing Your Home With a Real Estate Agent

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