Why Your Choice of Agent Matters More Than You Think

A real estate agent does far more than unlock doors. They handle pricing strategy, negotiations, paperwork, and closing coordination. A skilled buyer's agent can help you find the right home at the right price and negotiate effectively, while a strong listing agent can market your property strategically and attract qualified buyers.

According to a National Association of Realtors report, 86% of buyers said their agent was a useful source of information when navigating the homebuying process. Yet nearly one-fifth of sellers say it is difficult or very difficult to find the right agent. The takeaway: do not leave this decision to chance.

Step 1: Get Your Finances in Order First

Before you even begin looking for an agent, talk to a mortgage lender. Getting pre-approved educates you on the maximum amount you are likely to be able to borrow and gives your future agent a clear starting point. In Lexington's current market, where well-priced homes in desirable neighborhoods can receive multiple offers within two weeks, pre-approval also signals to sellers that you are a serious buyer.

Team Pannell Real Estate offers a mortgage calculator on our website that can help you estimate monthly payments and understand your budget before you speak with a lender.

Step 2: Identify What You Actually Need

Not every agent is the right fit for every transaction. Before you start interviewing, clarify your situation:

• Are you buying or selling? A buyer's agent represents your interests when purchasing, while a listing agent focuses on marketing and selling your property. Some agents specialize in one side.
• What is your price range? Look for agents with proven results in your specific price range and area. An agent who primarily handles luxury properties in Ashland Park may not be the best fit for a first-time buyer looking in Masterson Station.
• Do you have a strict timeline? If you need to sell before buying, or close within a tight window, communicate that upfront.
• What neighborhoods interest you? In Lexington, specific knowledge of areas like Beaumont Centre, Tates Creek, Chevy Chase, or Gratz Park matters — each has its own pricing dynamics and buyer competition levels.

Step 3: Build a Short List of Candidates

The best agents are found through multiple channels. Here is how to build a strong candidate list:

Personal Referrals

According to Zillow research, more than one in five sellers (22%) find their agent because of a referral from a friend, relative, neighbor, or colleague. Ask people in your life who have recently bought or sold in Lexington about their experience.

Online Research

Review agent profiles, read client testimonials, and look at recent transaction history. Check their social media accounts to see the types of homes they help clients find and get a sense of their communication style. Pay attention to how an agent responds to any negative or neutral reviews — this reveals professionalism.

Open Houses

Attending open houses in your target neighborhoods gives you a chance to observe agents in action. Take the time to interact with the agent — do not just grab a business card and leave. Notice how they engage with visitors and how knowledgeable they are about the property and surrounding area.

Step 4: Interview at Least Three Agents

The industry consensus is to interview at least three real estate agents to gain a well-rounded perspective. Yet Zillow research shows that 56% of sellers only ever contact one agent. Do not make that mistake — comparing candidates is the single best way to find the right fit.

Treat these conversations like a job interview. Ask every candidate the same set of questions so you can compare responses objectively.

Essential Interview Questions

1. How long have you been working in real estate, and how long have you been active in Lexington? Local knowledge can be just as valuable as years of experience. A great agent should know not just market data but also the vibe of specific neighborhoods — the best places to eat, school district nuances, commute patterns, and upcoming development.
2. How many transactions did you close in the past 12 months? A steady track record shows they take their business and your transaction seriously. Ask specifically about deals in your target area and price range.
3. Do you work alone or with a team? Solo agents can provide excellent personal service, but team support can offer backup during vacations or busy periods, ensuring you always have someone available.
4. What is your communication style and availability? Choose an agent whose communication preferences match yours. Do they prefer texts, calls, or email? How quickly do they respond? Will they be available for weekend showings?
5. Can you provide a comparative market analysis? For sellers, each agent should present a CMA giving you a range of potential list prices. For buyers, ask how they evaluate fair pricing in your target neighborhoods.
6. What is your marketing plan? If selling, understand how they will handle professional photography, virtual tours, online listings, and open houses. Ask about their strategy for getting your property maximum exposure.
7. Can you share references from recent clients? Read recent reviews and contact references. Look for patterns in feedback — consistent praise for communication, negotiation, or market knowledge is a strong signal.
8. Have you ever had a complaint filed against you? This helps you gauge professionalism. One complaint is not necessarily a deal breaker, but it is worth understanding the context.

Step 5: Evaluate the Metrics That Matter

Beyond personality and rapport, look at objective performance indicators:

• Average days on market (DOM): How quickly do their listings sell compared to the Lexington average of 45–60 days?
• List-to-sale price ratio: In Lexington, homes are currently selling at approximately 97.97% of asking price. An agent whose listings consistently sell at or above asking demonstrates strong pricing strategy.
• Transaction volume in your area: An agent who has closed multiple deals in your target neighborhood will have deeper insight into local buyer behavior and pricing trends.

Step 6: Assess Local Expertise — Especially in Lexington

Real estate is hyper-local. A good agent should feel like a knowledgeable tour guide, not a salesperson. In Lexington's 2026 market, this means understanding several critical dynamics:

• Market balance: Lexington is currently in balanced-to-slightly-seller-favoring territory, with approximately 2–5 months of inventory depending on the source and price band. This is dramatically different from the extreme seller's market of 2020–2022.
• Neighborhood-level pricing: Properties near the University of Kentucky or in established neighborhoods like Chevy Chase command premiums, while up-and-coming areas offer better value for first-time buyers.
• Interest rate sensitivity: With 30-year mortgage rates hovering around 6%, even a half-point swing can change a buyer's purchasing power by tens of thousands of dollars. Your agent should be able to discuss how rate movements affect your strategy.
• Future housing supply: Lexington is projected to need over 30,000 additional housing units by 2030, which supports long-term property value appreciation — an important consideration for both buyers and sellers.

At Team Pannell Real Estate, our agents have deep roots in Lexington and Central Kentucky. We understand the nuances of every neighborhood because we live and work here. Our team has helped thousands of clients navigate this market, and that local expertise is built into every client relationship.

Step 7: Understand the Contract Before You Sign

Once you select an agent, you will need to sign an agreement. Key items to review:

• Commission structure: Ensure the rate and payment terms are clearly spelled out in writing.
• Contract duration: Aim for a contract limited to six months or less. If the relationship is not working, you want flexibility.
• Exclusivity terms: Understand whether the agreement is exclusive and what the termination process looks like.
• Expectations: Make sure you have agreed on list price (if selling), communication frequency, and strategy before you commit.

Red Flags to Watch For

Avoid agents who exhibit these warning signs:

• High-pressure tactics: Any agent who wants you to sign immediately without giving you time to evaluate is prioritizing their interests over yours.
• Lack of local knowledge: If they cannot speak knowledgeably about your target neighborhoods, schools, and recent comparable sales, move on.
• Poor communication: If they are slow to respond during the interview phase, expect the same during a time-sensitive transaction.
• Unrealistic pricing promises: An agent who quotes a dramatically higher list price than competitors may be trying to win your business rather than setting you up for success.
• No references or reviews: Every experienced agent should be able to point you to satisfied clients. A blank record is a red flag.

Why a Team-Based Approach Can Make a Difference

Working with a real estate team — rather than a solo agent — offers built-in advantages. Team support means backup is available during vacations or emergencies, so your transaction never stalls. It also means access to specialists: someone who excels at pricing strategy, another who is an expert negotiator, and dedicated support for paperwork and closing coordination.

Team Pannell Real Estate operates with this team-based model. Our agents collaborate to give every client the benefit of collective experience and market knowledge. Whether you are searching for homes in Lexington or preparing to list your property, you get a full team working toward your goals.

Key Takeaways

• Get pre-approved for a mortgage before you start looking for an agent.
• Clarify your needs — buying vs. selling, price range, timeline, and target neighborhoods.
• Interview at least three agents using the same set of questions.
• Evaluate objective metrics: days on market, list-to-sale ratio, and local transaction volume.
• Prioritize deep local knowledge of Lexington's neighborhoods and market conditions.
• Review the contract carefully, especially commission, duration, and termination terms.
• Watch for red flags like high-pressure tactics, poor communication, or unrealistic pricing.

Frequently Asked Questions

How many agents should I interview before choosing one?

The industry standard recommendation is to interview at least three agents. This gives you enough perspective to compare experience levels, communication styles, and local knowledge without making the process overwhelming.

Should I use a buyer's agent or just work with the listing agent?

You should always have your own buyer's agent. The listing agent represents the seller's interests — their goal is to get the highest price for the seller. Your own buyer's agent works exclusively for you and negotiates the best possible deal on your behalf.

How much does it cost to hire a real estate agent as a buyer?

Buyer's agent commissions are typically 2.5–3% of the sale price, and the structure varies by agreement. Since the NAR settlement changes, it is important to discuss and agree on compensation terms with your agent upfront before signing a buyer representation agreement.

What makes Lexington's real estate market unique in 2026?

Lexington's market is characterized by steady demand, moderate price appreciation of approximately 3–4% annually, and a projected housing shortage requiring over 30,000 additional units by 2030. The market is more balanced than in recent years, giving both buyers and sellers reasonable negotiating opportunities.

How do I know if an agent really knows Lexington?

Ask them specific questions about neighborhoods — school districts, commute times, dining recommendations, and recent comparable sales. A true local expert should be able to discuss both the data and the qualitative feel of the neighborhoods you are considering.

Can I switch agents if the relationship is not working?

Yes, but check your agreement terms first. Most buyer agency agreements allow termination with proper notice. Switching agents costs you time in your search, so investing in the right choice upfront is worth the effort.