You've looked around your home, taken a deep breath, and made the decision - it's time to sell your home. For most people, just the thought of moving makes them nervous - you need every tool in your toolbox to feel confident about the process, and to make sure it goes smoothly. There's one element that can make or break your experience, and that's your realtor. It's not just finding a breathing human with a real estate license - this is a significant emotional endeavor. You need someone you connect with, who understands what you need and how you communicate, someone who sees the value in your home the same way you do and goes above and beyond to market it. And more than anything, you need someone who has a strong understanding of the market.
The bottom line is - the agent you pick can cost or save you THOUSANDS of dollars. There are particular questions you should be asking to make sure that you get the best representation for your needs. Some agents may prefer that you don't ask these questions, because the knowledge you'll gain from their honest answers will give you an indication about what outcome you can expect from their services And let's face it - in real estate, as in life - not all things are created equal.
Hiring a real estate agent is just like any hiring process - with you on the boss's side of the desk. So what questions should you ask? Let's dig in.
1. What makes you different? Why should I list my home with you?
It's a much tougher real estate market than it was a decade ago. What unique marketing plans and programs does this agent have in place to make sure that your home stands out favorably versus other competing homes? What things does this agent offer you that others don't help you sell your home in the least amount of time with the least amount of hassle and for the most amount of money?
2. What are your company's track record and reputation in the market place?
It may seem like everywhere you look, real estate agents are boasting about being #1 for this or that, or quoting you the number of homes they've sold. If you're like many homeowners, you've probably become immune to much of this information. After all, you ask, "Why should I care about how many homes one agent sold over another. The only thing I care about is whether they can sell my home quickly for the most amount of money."
Well, because you want your home sold fast, and for top dollar, you should be asking the agents you interview how many homes they have sold. I'm sure you will agree that success in real estate is selling homes. If one agent is selling a lot of homes where another is selling only a handful, ask yourself why this might be? What things are these two agents doing differently?
You may be surprised to know that many agents sell fewer than ten homes a year. This volume makes it difficult for them to do full impact marketing on your home because they can't raise the money it takes to afford the advertising and special programs to give your home a high profile. Also, at this low level, they probably can't afford to hire an assistant, which means that they're running around trying to do all the components of the job themselves, which means service may suffer.
3. What are your marketing plans for my home?
How much money does this agent spend in advertising the homes s/he lists versus the other agents you are interviewing? In what media (newspaper, magazine, TV, etc.) does this agent advertise? What does s/he know about the effectiveness of one medium over the other?
4. What has your company sold in my area?
Agents should bring you a complete listing of both their own and other comparable sales in your area.
5. Does your Broker control your advertising, or do you?
If your agent is not in control of their advertising, then your home will be competing for advertising space not only with this agent's other listings but also with the listings of every other agent in the brokerage.
6. On average, when your listings sell, how close is the selling price to the asking price?
This information is available from the Real Estate Board. Is this agent's performance higher or lower than the board average? Their performance on this measurement will help you predict how high a price you will get for the sale of your home.
7. On average, how long does it take for your listings to sell?
This information is also available from the Real Estate Board. Does this agent tend to sell faster or slower than the board average? Their performance on this measurement will help you predict how long your home will be on the market before it sells.
8. How many Buyers are you currently working with?
The more buyers your agent is working with, the better your chances are of selling your home quickly. It will also impact price because an agent with many buyers can set up an auction-like atmosphere where many buyers bid on your home at the same time. Ask them to describe the system they have for attracting buyers.
9. Do you have a reference list of clients I could contact?
Ask to see this list, and then proceed to spot check some of the names.
10. What happens if I'm not happy with the job you are doing to get my home sold? Can I cancel my listing contract?
Be wary of agents that lock you into a lengthy listing contract which they can get out of (by ceasing to market your home effectively), but you can't. There are usually penalties and broker protection periods which safeguard the agent's interests, but not yours. How confident is your agent in the service s/he will provide you? Will s/he allow you to cancel your contract without penalty if you're not satisfied with the service provided?
Evaluate each agent's responses to these ten questions carefully and objectively. Who will do the best job for you? These questions will help you decide.
Photo by Austin Distel on Unsplash