Originally published: Jun 11, 2022. Last updated: Oct 16, 2026.
Buying or selling a home is one of the largest financial transactions most people ever make, and the agent you choose has a measurable impact on the outcome. In the National Association of Realtors 2025 Profile of Home Buyers and Sellers, covering transactions from July 2024 to June 2025, 88 percent of buyers purchased through a real estate agent or broker, rising to 92 percent for buyers of previously owned homes. On the selling side, 91 percent of sellers used an agent while for-sale-by-owner sales fell to an all-time low of 5 percent.
The price data explain why. The agent-assisted median sale price was $425,000 compared with $360,000 for for-sale-by-owner transactions, a gap of about 18 percent in favor of agent-listed homes. But not every agent delivers that premium, so choosing carefully matters. This guide covers where to find agents, what to ask them, how commissions work after the 2024 rule changes, and the red flags to avoid.
Where to Look for a Real Estate Agent
Referrals remain the dominant channel. In the NAR 2025 Profile, 43 percent of buyers found their agent through a referral from a friend, neighbor, or relative, and 18 percent used an agent they had worked with before, as reported by Virginia REALTORS. Satisfaction runs high: 88 percent of buyers said they would use their agent again or recommend them to others.
Start with your own network, then expand. Ask recent buyers and sellers in your target area who they used and whether they would hire that agent again. Check online reviews, but read them critically: look for detailed accounts of communication, negotiation, and problem-solving rather than generic praise. Local agent directories, brokerage websites, and open houses are all useful for building a shortlist of three to five candidates.
If you are buying your first home, it also helps to understand the full purchase process before you start interviewing. Our first-time home buyer guide walks through budgeting, down payments, and closing costs so you can have sharper conversations with prospective agents.
Interview Questions: The NAR Checklist
Realtor.com advises interviewing at least three agents before deciding. Use the National Association of Realtors interview checklist, published in its consumer handout on questions to ask when choosing a REALTOR, and add a few of your own:
- How long have you worked in residential sales, and how many homes did you sell last year?
- What is your average days on market, and how do your listing prices compare with final sale prices?
- What professional designations do you hold, and what do they mean for me?
- What specific marketing systems do you use for listings like mine?
- Will you represent me exclusively, and how do you handle dual agency?
- Can you provide contact information for your three most recent clients?
- How many homes have you closed in my target neighborhoods in the past year?
- What is your current client load, and how quickly do you respond to calls and messages?
- What is your strategy for multiple-offer situations, on both the buying and selling side?
Call the references. Ask past clients how the agent communicated under pressure, whether timelines slipped, and what surprised them about the process. An agent who is genuinely good will welcome the scrutiny.
What Changed After the 2024 Settlement Rules
The rules of engagement changed on August 17, 2024, following the NAR settlement, and every buyer and seller should understand the new landscape. According to the NAR settlement FAQs, two changes matter most. First, offers of compensation are prohibited on the MLS: MLS participants, subscribers, and sellers may not make offers of compensation to buyer brokers on the MLS. Second, MLS participants working with a buyer must enter into a written agreement with the buyer before touring a home, in person or virtually.
That written agreement must include a conspicuous statement that broker fees and commissions are fully negotiable and not set by law, plus a specific, conspicuous disclosure of the amount or rate of compensation. The agent cannot receive compensation from any source that exceeds the amount agreed with the buyer. Read the agreement carefully before signing, and make sure the compensation terms, duration, and cancellation provisions are clear.
Understanding Commissions in 2026
Commissions did not collapse after the rule changes. In the third quarter of 2025, the average U.S. buyer’s agent commission was 2.42 percent, up from 2.36 percent a year earlier and roughly back to early 2024 levels, according to Redfin. Rates vary by price tier: about 2.52 percent for homes under $500,000, 2.32 percent for homes between $500,000 and $999,999, and 2.22 percent for homes of $1 million or more.
Because commissions are negotiable, treat them as part of the interview. Ask each candidate what they charge, what services that fee covers, and whether the fee adjusts for the price point or the amount of work involved. A lower fee is not automatically better if it comes with thinner marketing or less negotiation effort; compare the full package. For sellers weighing the cost against the return, our analysis of how business owners value what they sell offers a useful parallel on pricing an asset against professional fees.
Red Flags to Watch For
- No local track record: an agent with few recent closings in your target neighborhoods will struggle with pricing and negotiation nuance.
- Vague marketing plans: “we will list it and see” is not a strategy. Expect specifics on photography, staging advice, online exposure, and open houses.
- Pressure to sign immediately: reputable agents explain the buyer agreement and give you time to review it.
- Poor communication during the interview: slow replies and unclear answers now predict slow replies and unclear answers during escrow.
- Dual agency without clear disclosure: understand exactly whose interests the agent represents before agreeing to it.
- Unwillingness to provide references: three recent clients should be a routine request, not a confrontation.
Frequently Asked Questions
What percentage of buyers and sellers use a real estate agent?
In NAR’s 2025 Profile of Home Buyers and Sellers, 88 percent of buyers purchased through an agent or broker, rising to 92 percent for buyers of previously owned homes. On the selling side, 91 percent of sellers used an agent, matching the highest share on record, while for-sale-by-owner sales fell to an all-time low of 5 percent.
Do homes sell for more with an agent?
NAR’s 2025 data show an agent-assisted median sale price of $425,000 versus $360,000 for for-sale-by-owner transactions, a gap of about 18 percent in favor of agent-listed homes, as reported by Florida Realtors.
How do buyers usually find their agent?
Referrals dominate. In 2025, 43 percent of buyers found their agent through a referral from a friend, neighbor, or relative, and 18 percent used an agent they had worked with before. Most buyers are satisfied: 88 percent said they would use their agent again or recommend them.
What did the 2024 NAR settlement change for buyers?
Effective August 17, 2024, offers of compensation are prohibited on the MLS, and agents working with a buyer must enter into a written agreement with the buyer before touring a home. The agreement must state that commissions are fully negotiable and disclose the compensation amount or rate.
What is the average buyer’s agent commission now?
In the third quarter of 2025, the average U.S. buyer’s agent commission was 2.42 percent, up from 2.36 percent a year earlier, according to Redfin. Rates vary by price tier, from about 2.52 percent under $500,000 to 2.22 percent for homes of $1 million or more.
What should I ask when interviewing a real estate agent?
Ask how long they have worked in residential sales, how many homes they sold last year, their average days on market, the variation between their listing prices and final sale prices, their marketing systems, whether they will represent you exclusively, and for contact information for their three most recent clients, following NAR’s interview checklist.
