How to Evaluate a Real Estate Agent

Choosing a real estate agent isn’t about picking the friendliest face on a bus bench. It’s a business decision — one that can affect how much you earn (or spend), how quickly you move, and how confidently you navigate the market.

Here’s how to evaluate prospects using hard metrics and peer-reviewed insights — not industry marketing.

Verify Licensing and Professional Standing

Start with the basics:

  • Confirm they’re licensed through RECO (in Ontario) and a member of CREA for ethical standards.
  • Check for disciplinary notices online.

Pro Tip: Always confirm that the agent is in good standing and that no past disciplinary actions are listed.

Interview Multiple Agents

RECO recommends interviewing at least three agents.

Treat it like a job interview. Ask actionable questions:

  • “Can you show me recent listings you’ve sold that are similar to mine?”
  • “How do you handle multiple offers or lowball bids?”
  • “What specific services are included in your fee?”

This approach gives you a sense of their market knowledge, negotiation style, and service structure.

Agents skilled in negotiation and strategy should have examples, not just opinions.

Use Quantitative Metrics 

Sale-to-List Price Ratio

This tells you how close the final sale price was to the original list price. Higher ratios indicate accurate pricing and strong negotiation skills.

Formula: (Sale Price ÷ List Price) × 100
Example: $784,000 sale ÷ $800,000 list = 98%.

Research Insight:

A landmark study by Levitt & Syverson (2008) found that real estate agents sell their own homes for 3.7% more and keep them listed 9.5 days longer than client properties—suggesting agents sometimes prioritize quicker turnover over maximizing client returns. Read the study (National Bureau of Economic Research)

Ask: “What’s your average sale-to-list price ratio?”

Days on Market (DOM)

This metric measures how long a home sits on the market before a firm offer is accepted. Shorter DOM typically reflects accurate pricing and effective marketing.

Market Insight:

Wikipedia notes that extended DOM often leads to perceived overpricing and lower sale values. Read it on Wikipedia

Ask: “How does your average DOM compare to local figures and how do you minimize it?”

Track Record in Similar Listings

Research Insight:

Bernheim & Meer (2013, NBER Working Paper) argue that agents who specialize in particular property types and locations tend to deliver better pricing accuracy and outcomes. Related peer-reviewed source

But let’s interrogate this idea.

In today’s data-rich landscape, especially in markets like Toronto, local expertise is increasingly being augmented (or even replaced) by access to detailed MLS® data, sold comparables, and price trend analytics. While hyperlocal experience may still hold value in nuanced rural or highly irregular neighbourhoods, urban centres with standardized housing types and abundant listing data allow any well-prepared agent to price and market a property competitively—regardless of their past activity in that specific postal code.

Professional Insight:

Many successful sales today come from agents who’ve never worked in a given neighbourhood before. What they do bring to the table is strategic pricing, strong presentation, and full exposure on MLS®—which reaches the same buyer pool as any “local expert.”

Client Tip: Instead of focusing solely on neighbourhood repetition:

Ask: “Can you show how you’ve priced and marketed properties effectively using MLS® data and recent comparables—even in areas new to you?”

Evaluate Services

Staging, Marketing & Negotiation Skill

Some agents simply post your home on the MLS and wait. Others manage staging, arrange professional photos, run digital ad campaigns, and negotiate strategically.

Academic Caution:

An academic experiment by Lane, Seiler & Seiler (2015) examined the impact of staging (furnishings and wall color) on real estate demand. They found:

  • Buyers perceive staged homes more favorably in terms of livability and neutral conditions.
  • However, staging did not significantly impact actual willingness to pay or final sale price.

Read the experiment (Lane, Seiler & Seiler, 2015 – Journal of Housing Research)
Secondary abstract and metadata (ideas.repec.org)

However, perception still matters. National Association of REALTORS® surveys suggest staged homes may sell faster and attract stronger offers—even if causality isn’t consistently proven.

Ask:
• “Do you include staging or digital advertising in your fee?”
• “Can you show me examples of marketing materials from a recent listing?”
• “How do you approach negotiations in competitive or lowball scenarios?”

Read Reviews

Public reviews on Google – Search for the agent’s first and last name or the company brokerage they work for… as this will be helpful, but not enough.

Ask for direct references from recent clients.

Ask:

  • “What challenges came up?”
  • “Did they communicate well after the offer was accepted?”
  • “Would you hire them again?”

What Peer-Reviewed Research Really Says About Agent Value

Let’s dismantle a myth: higher commission doesn’t guarantee better results.

Key Findings from Academic Literature:

  1. Levitt & Syverson (2008)

Steven D. Levitt & Chad Syverson, “Market Distortions When Agents Are Better Informed: The Value of Information in Real Estate Transactions,” The Review of Economics and Statistics, MIT Press, Vol. 90, No. 4 (Nov 2008), pp. 599–611.

Findings: Agent‑owned homes sell for approximately 3.7% more and stay on the market about 9.5 days longer than homes they sell for clients, pointing to incentive misalignment in client-agent relationships. (IDEAS/RePEc)

  1. Grochulski & Wang (2024, Federal Reserve Bank of Richmond)

Borys Grochulski & Zhu Wang, “Real Estate Commissions and Homebuying,” Working Paper 24‑01; and “Real Estate Commissions and Home Search Efficiency,” Economic Brief No. 24‑08 (Mar 2024).

Findings: Percentage-based commission models distort search efficiency and raise housing costs, suggesting cost-based or flat-fee structures could deliver large consumer welfare gains. (Federal Reserve Bank of Richmond)

  1. Stoll (2023, Hertie School / SSRN)

Julius Stoll, doctoral research, “Legal Reform Increased Commissions for Real Estate Agents Instead of Lowering Them”—a statistical evaluation of over half a million German listings.

Findings: A 2020 commission reform in Germany, meant to rebalance cost between buyer and seller, backfired—average combined commissions increased rather than decreased. (hertie-school.org, berlinschoolofeconomics.de)

  1. Palmon & Sopranzetti (2017)

Oded Palmon & Ben J. Sopranzetti, “On the Relationship Between the Number of a Broker’s Real Estate Listings and Transaction Outcomes,” Review of Quantitative Finance and Accounting, Vol. 49, No. 1 (2017).

Findings: Sellers working with high-volume brokerages achieved higher sale prices, smaller discounts from list price, and shorter DOM— suggesting brokerage activity level is tied to better outcomes. (IDEAS/RePEc)

Bottom line: Evaluate agents based on performance metrics and accountability, not how much commission they charge.

Evaluation Checklist

Evaluation Factor What to Ask
Licensing & Membership Are you RECO-licensed and a CREA member?
Track Record Have you sold homes like mine in this neighbourhood?
Sale-to-List Ratio What’s your average over the last 12 months?
Days on Market (DOM) Is your DOM lower than the local average?
Included Services Do you cover staging, photography, and digital marketing?
Negotiation Strategy How do you handle competitive bidding or lowball offers?
References Can I speak with past clients—not just read testimonials?
Communication Style How often do you update your clients, and how do you prefer to communicate?

Lets Summarize!

Finding the right real estate agent isn’t about luck or popularity—it’s about due diligence. Look past commission rates and headlines. Evaluate the person behind the pitch using objective data, a targeted interview, and verified outcomes.

The right agent should prove their value before asking for your trust.

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Faiza Ahmed (Broker)

As the founder of PropertyMesh, Faiza Ahmed is dedicated to making real estate more transparent and cost-effective. While she actively challenges the high-commission model to help sellers keep more of their equity, her core passion is empowering all clients — buyers and sellers alike — to make informed decisions in an ever-evolving market.

Faiza is a licensed real estate broker registered with the Real Estate Council of Ontario (RECO Registration #4791581) and an active member of the Toronto Regional Real Estate Board (TRREB).