When it comes to buying and selling a home, it may be one of the most important financial decisions you make in your lifetime. For the average middle class American family, housing wealth represents between 50 and 65 percent of their total assets. Whether you’re a first-time homebuyer or an empty nester who’s bought and sold several homes but wants to downsize, one thing’s for sure — you both need to find the best real estate agent to guide you to success.

Top agent Dave Mattes, who completes 21% more sales than the average agent in Reading, Pennsylvania, thinks that “a good real estate agent is somebody that dedicates enough time to treat their customers well, and they have fast responses, market knowledge, and good communication.”

But, how do you find that agent or Realtor? And what’s the difference between the two? Only agents who are also active members of the National Association of Realtors and who are bound by the Realtor Code of Ethics are also Realtors. Be sure and ask any agent that you’re interviewing about their qualifications.

Asking questions is just one step in weeding through thousands of Realtors to find the right real estate agent for you. Here’s how to find a good agent, and what distinguishes the good from the bad.

Four steps to find the Realtor that’s right for you

The right Realtor for you will know how to market and sell your house. They’ll not only get top dollar but negotiate for other, non-financial, concessions that you might need. And through it all, they’ll keep you appropriately informed. Here are four steps to finding a great agent.

Step 1 – Look to the past. What are the agent’s actual results?

There are countless online sources where agents can purchase ads, listings and even pay to insert testimonials. If you’re only looking at an agent’s online presence, you’re not seeing the full picture. One of the best ways to know if they’re effective is by their results — past success is one of strongest indicators of future success.

Think about what matters the most to you: speed of sale, sale to list price ratio, or knowledge of your neighborhood. How quickly has the agent sold homes in your area before, and did they sell for list price or above? Once you know your priorities, use the agent’s results data to narrow your search.

All of these strengths are represented in a Realtor’s sales history, but who has time to dig through months worth of listings? Not most homeowners. That’s why we created the HomeLight Top Agent Match tool.

This powerful, data-driven tool analyzes millions of home sales to find the best performing real estate agents in your area. Its results aren’t based on questionable surveys, submitted testimonials, paid ranking systems or a friend’s recommendation — but on what they get done for their customers. The match tool’s speed and easy-to-read results allow you to browse and review agent profiles to determine who you’d like to interview. Enter your city and click “find an agent” to get started.

Step 2 – Look to the now. Is the agent engaged in the current market?

A successful agent is one who is actively listing and selling — now. They’ll have their finger on the market’s pulse, and have updated skills and strategies to bring buyers and sellers together. After narrowing your list of potential agents based on past success, look at their current pipeline.

Mattes advises sellers to “look for agents that have active inventory. “You want to work with the people who are “actually doing business, and who have a flow of business that you can witness online.”

Do they have sales or listings pending? How many sales did they close in the last few months? A quick glance at a few of their online profiles gives you a good idea of their market activity.

Step 3 – Interview at least three designated top agents

Once you’ve found a few great agents in your area, take time to interview and get to know them. Once you decide to list or buy, you could be talking to them several times a day — you’ll want to have a good rapport and clear communication. When you’re interviewing the agents, pay attention to how they respond.

Do they answer your questions with concrete, factual data? Beware of agents who respond with vague answers. You want someone who knows the average days to sell in your market and the current average list price off the top of their head.

Look for signs that they know your market, like mentioning the new grocery store opening down the block. A good agent is on top of changes that impact your home’s value.

Step 4 – Ask agents the right questions

When it comes to interviewing agents, you could ask over twenty different questions to find the right fit. But if you don’t have that much time, here are the top five questions to ask.

Q: What is your “days on market” average?

A: The days on market is the number of days, on average, for the agent to sell a home. For great agents, this number is typically about half of the days on market for average agents. Find the average days on market for your city with a quick glance at your city’s page. On this tool, you’ll find a list of popular cities at the top, and cities in each state down below. Once you select your location, scroll down and look for the chart with the “Days on Market” figures. You’ll also find additional information about what a top local agent can offer.

Q: How many homes have you sold in the past twelve months?

A: According to top agent James Silver, who works with 76% more single-family homes than other agents in Detroit, Michigan, a real estate team should sell around 200-300 homes in a year. He says that a good number for a single agent is in the 30-50 home range. This range won’t be the same in other areas, so compare an agent’s transactions to your market’s norm.

Q: What is your sale to list price ratio?

A: This percentage is the final sale price (what the buyer paid for the home) divided by the last list price. A positive ratio tells you that they sell homes for more than the listing price. Look for an agent with a sale to list price ratio that’s over the average in the area. You can find the average sale to list price in your city on your city’s page.

Q: How well do you know the market in my neighborhood?

A: How well does the agent know the ins and outs of your neighborhood? Selling points like the quality of local schools, access to nearby restaurants and grocery stores, and crime data, help market your home. You want an agent who can rattle off the pluses of your area during an open house, or point out what makes your location desirable.

It’s a good sign if they live nearby or have had the bulk of their transactions in your neighborhood. An agent’s HomeLight profile page also has a map of every location where they’ve bought and sold houses, so you can see their activity in your area at a glance.

Beyond the neighborhood, do they know the real estate market? Even if you’re in a seller’s market, you want an agent who knows which buyer concessions are common for your area, and what you can safely ask for during negotiations without risking the sale.

Q: What are your priorities for buyers/sellers?

A: What do you need most from the sale? Home sellers who are relocating to another state might need to sell quickly, and probably want an agent who does their job well, fast, and keeps contact to a minimum. First time sellers or buyers likely need an agent who will go out of their way to explain every step. Think about whether you need an agent who keeps you in the loop or takes care of all the details without checking in constantly.

What makes a good real estate agent?

Numbers are only one slice of the pie, however. There are other factors that make a good real estate agent the best choice to list your home.

• Has relevant professional certifications and experience An agent who has learned about the market, contracts, and the laws surrounding real estate is the best choice to represent you. Their professional certifications indicate their competence, as does their years of experience.
• Dedicated to the profession — not a part time hobbyistYou want an agent who makes their bread and butter from real estate — not someone who will be working at a day job when you call with questions. Accessibility indicates that they’re dedicated and give it their all.

  Nikki Lagouros is a full-time agent in Reston, Virginia, who sells properties 40% quicker than the average agent in her area. She says that, “If you email that agent to set up any sort of time or call them and they don’t answer or email you back promptly, it tells you how your sale is going to go. It’s a huge red flag.”

• In-depth knowledge of the local market  A good agent will have an in-depth knowledge of the local real estate market, but also the area. They stay informed about upcoming developments that could impact your home’s price. Plans to build a new highway on the other side of your backyard decreases its value, a new playground park increases it.

  Lillian Montalto is a top listing agent in Andover, Massachusetts, who works with 84% more single family homes than other agents in her area. According to her, buyers should make sure an agent “knows the marketplace, knows the inventory, is able to provide [them] with information, like how hot the market is and what homes are about to list.”

• Tech-savvy marketing skillsTheir knowledge of the local market will help an agent sell your home, but so will their tech-savvy marketing. Do they post regularly on Instagram or another social media feed? Do they know how to get your home out to a wide circle of interested buyers?

  Lagouros uses social media marketing to target potential buyers. After creating an avatar of an ideal buyer for one of her listings, she builds geo-centers around demographics and areas that target them in her social media marketing.

  More and more, buyers are shopping and purchasing homes online. Picking an agent that caters to this slice of the market increases your odds of selling quickly and for top dollar.

• Customer-fit communication styleDepending on the situation, some sellers want an agent who gives a high level of personal attention. If you send a text about an offer at 10 p.m., you don’t want to wait until 8 a.m. for a response. Other sellers might prefer to keep it short and sweet, or handle everything by email (for example, if you’re selling a vacation home).

  Your agent’s communication style should fit your preferences, because you’ll be talking to them a lot. Pre-listing or when looking at houses, and when evaluating offers.

  In a multiple offer situation, Mattes says that sellers need an agent who can help them sort it all out in a way that makes sense — helping them narrow it down if they want government financing, a cash deal, or no inspections. It’s an important part of their job to communicate the differences between offers to help you pick the one that’s best for you.

• Has a network of professionalsWould staging your home increase its sale price? Maybe the dining room could use a fresh coat of paint. A great agent has a network of professionals that they can call on to get your home ready for sale and also help out during the sale.

  Buyers often request repairs after the home inspection, but if you have to call around town and get recommendations and quotes it could delay the closing. A good agent will know the right person for the job.

• Integrity, the respect of their peers, and negotiation skillsA good agent will tell you the truth — even if you don’t want to hear it. They’ll encourage you to be honest on seller’s disclosures, saving you from potential lawsuits after the sale. This integrity has likely led to a good reputation and the respect of their peers — which might be measured by industry awards.

  They’ll bring this integrity to the table during negotiations. Even if you have a great offer, or have found a home that you’re thrilled to buy, there’s always something to negotiate. It could be the close date, repairs, or a rent back period. A good agent knows how to handle the back and forth of negotiations.

• Dogged determination and self-motivationAgents are independent contractors without the security of a regular paycheck of a 9-to-5 job. Successful agents will have the dogged determination to succeed — following up with interested buyers, responding to text messages late at night, and constantly working to get their sellers the best results.

What are the signs of a bad real estate agent?