8 Red Flags to Watch for When Hiring a Real Estate Agent in Los Angeles

Buying or selling a home in Los Angeles involves major financial decisions, detailed contracts, and negotiations that can affect your bottom line. A good real estate agent should help you understand your options, protect your interests, and make informed decisions throughout the process.

But how can you tell if an agent is putting your needs first?

In this episode, Scott Himmelstein of the Scott Himmelstein Group discusses eight red flags buyers and sellers should watch for when choosing a real estate agent in Los Angeles, Porter Ranch, the San Fernando Valley, the Westside, the South Bay, and surrounding communities.

From unclear commission agreements to unrealistic listing prices, these warning signs can help you ask better questions before committing to representation.

1. Unclear Buyer Agent Commission Agreements

One of the first issues Scott addresses is buyer agent compensation.

Following industry changes in 2024, many buyers encounter written buyer representation agreements that explain the agent’s compensation. Before signing, buyers should understand exactly what they are agreeing to pay and how that amount may be affected by any contribution from the seller.

For example, if an agreement specifies a 3% commission and the seller contributes less than that amount, the buyer may be responsible for the difference under the agreement, depending on its terms and any applicable rules.

Scott describes this as a potential problem when buyers are told that the seller will always cover the entire commission. That assumption can leave buyers unprepared for an additional expense.

Before signing a buyer representation agreement, ask:

• What happens if the seller contributes less than the agreed compensation?
• Will you reduce your fee, or could I be responsible for the difference?
• Are there alternative compensation arrangements?
• Can we put the agreed terms in writing?

Commission arrangements are negotiable, and buyers should have a clear explanation of their obligations before signing. Never rely solely on verbal assurances that you will not have to pay anything out of pocket.

2. An Agent Promises an Unrealistically High Listing Price

For sellers, an attractive listing price can be tempting, especially when an agent praises the property and promises to achieve a number above recent comparable sales.

However, the highest suggested listing price is not necessarily the most realistic estimate of what a buyer will pay.

Scott explains how overpricing can lead to a home sitting on the market for weeks without strong offers. As time passes, sellers may make repeated price reductions, and prospective buyers may begin wondering why the property has not sold.

The problem may not be the home itself. It may be the original pricing strategy.

When interviewing listing agents, ask:

• What do you realistically believe my home will sell for?
• Which recent comparable sales support that estimate?
• How does current buyer demand affect the price?
• What is our plan if the home does not attract offers?

A useful pricing discussion should be based on market evidence, the property’s condition, and current competition, not simply the number a seller hopes to receive.

3. An Agent Pressures You to Sign Immediately

Buying or selling a home often involves deadlines, but that does not mean you should sign documents you do not understand.

Scott warns against agents who insist that every document must be signed immediately or suggest that the details can be worked out later.

For buyers, contracts may contain important provisions involving contingencies, inspection periods, and deadlines. Sellers may need to understand commissions, repair requests, credits, and estimated proceeds.

Before signing, you should have an opportunity to review the relevant documents and ask questions. If something is unclear, ask your agent to explain it in plain language.

Pay attention to how the agent responds. Someone who becomes irritated when you ask reasonable questions may not be providing the level of guidance you need.

A trustworthy agent should help you understand important decisions rather than make you feel uncomfortable for wanting clarification.

4. The Agent Does Not Clearly Explain Dual Agency

Dual agency occurs when the same agent represents both the buyer and the seller in one transaction. Scott explains that this arrangement can create a potential conflict because the buyer and seller generally have different financial goals.

The buyer may want to negotiate a lower purchase price, while the seller may want to achieve the highest possible proceeds.

If dual agency is being considered, ask the agent to explain their role, the applicable disclosure requirements, and how they will handle confidential information and competing interests.

You should understand what representation means in your particular transaction before agreeing to proceed.

If you are considering contacting a property’s listing agent directly, remember that the listing agent already represents the seller. Ask how they would handle your interests and whether you would benefit from having your own representative.

The important point is transparency. You should know who the agent represents and what that means for the advice they can provide.

5. The Agent Exaggerates Their Experience

A polished presentation and a recognizable brokerage name do not automatically establish an individual agent’s experience.

Scott encourages buyers and sellers to research an agent’s professional background before hiring them. A brokerage may have an impressive sales history, but that does not necessarily reflect the personal track record of the agent sitting across the table.

Look for information such as:

• Verified client reviews and testimonials.
• Relevant transaction experience.
• Experience with properties similar to yours.
• Familiarity with your preferred neighborhood.
• Evidence of the marketing and services they offer.

For example, if you are selling a luxury property in Porter Ranch, ask about the agent’s experience with comparable homes and buyers in that market.

The goal is not simply to hire someone with the most sales or the largest online following. It is to find someone whose experience matches your needs and who can explain how they would approach your transaction.

6. The Agent Lists Your Home and Disappears

Scott uses the term lockbox realtor to describe an agent who puts up a sign, installs a lockbox, publishes a listing, and provides little involvement afterward.

A listing needs more than an online posting to stand out. Depending on the property and agreed marketing plan, sellers may expect professional photography, video tours, social media promotion, online advertising, open houses, private showings, and consistent communication.

An agent should also be prepared to discuss how they will respond to buyer interest, communicate feedback, and adjust the strategy when necessary.

Before signing a listing agreement, ask for a clear explanation of the services included in the proposed compensation.

Questions worth asking include:

• What marketing materials will you create for my property?
• How will you reach potential buyers beyond the MLS?
• Will you coordinate and attend showings where appropriate?
• How often will I receive updates?
• How will you follow up with interested buyers and their agents?

The right marketing plan will depend on the property, its price range, and the target audience. What matters is knowing what your agent will actually do and how those efforts support your selling goals.

7. Hidden Costs Appear at the Last Minute

Unexpected expenses can create unnecessary stress during a real estate transaction. Scott highlights costs that buyers and sellers may encounter, including escrow and title fees, transfer taxes, prepaid taxes and insurance, homeowners association fees, and negotiated repair credits.

The costs that apply will depend on the property, transaction, location, and contract terms.

Sellers should request an estimated net sheet showing how the expected sale price may translate into proceeds after applicable expenses, loan payoffs, commissions, taxes, and negotiated credits.

Buyers should request a breakdown of estimated closing costs, including lender charges, title and escrow expenses, prepaid items, and other costs relevant to the purchase.

These estimates can change as the transaction progresses, but discussing them early gives you a better opportunity to plan.

If your agent cannot explain the expected costs, ask who can provide the information and when you will receive it. You should not have to wait until closing to begin understanding the financial details.

8. The Agent Does Not Use Modern Marketing Tools

Today’s homebuyers often discover properties through online searches, listing platforms, videos, social media, and virtual tours. Scott argues that agents should understand how these channels can help connect a property with potential buyers.

For sellers, the question is not simply whether an agent uses social media. It is whether the marketing plan is appropriate for the home and likely audience.

Ask how the agent intends to present your property online, what types of content they will produce, and how they will measure or communicate the results.

For buyers, online visibility can also help when researching an agent. Reviews, professional profiles, transaction history, and educational content can offer useful starting points, although they should be considered alongside direct conversations and verified information.

Modern tools are valuable when they support a thoughtful strategy. They should complement, rather than replace, local market knowledge, negotiation skills, and clear communication.

How to Choose a Real Estate Agent Who Puts You First

The right agent should be willing to discuss compensation openly, support pricing recommendations with evidence, explain contracts clearly, and provide realistic expectations about the process.

Before making a decision, take time to compare agents, ask specific questions, and review the services and terms being offered.

For buyers, that means understanding your representation agreement, financial obligations, and contract deadlines before committing.

For sellers, it means evaluating pricing recommendations, marketing plans, communication standards, and estimated net proceeds before signing a listing agreement.

Real estate transactions can be complicated enough without unnecessary pressure or confusion. A clear, well-documented working relationship can help you make decisions with greater confidence.

Watch the Video

Watch Scott Himmelstein of the Scott Himmelstein Group explain the red flags he believes Los Angeles buyers and sellers should look out for when hiring a real estate agent.

From buyer agent compensation and overpriced listings to dual agency, hidden fees, and ineffective marketing, the video walks through practical questions you can ask before choosing representation.

Thinking about buying or selling a home in Los Angeles, Porter Ranch, the San Fernando Valley, the Westside, or the South Bay? Reach out to discuss your goals and the next steps for your situation.