Once you've made the decision to buy or sell
your home, the next step is usually to discuss your options with
an agent. But with so many agents out there competing for
your business, how do you know which one will do the best job
for you?
Not all real estate agents are the same.
If you decide to seek the help of an agent when selling or
buying your home, you need some good information before you make
any moves.
Picking an agent is one of those critical
issues that can cost or save you thousands of dollars.
There are very specific questions you should be asking to ensure
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 a very good idea about what outcome you can expect from
using this agent. 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.
It's critical that you make the right decision about who will
handle what is probably the single largest financial investment
you will ever make.
THE 11 QUESTIONS TO ASK
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 to 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 is 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 while 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 10 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 own
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?
Obviously, 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 effectively market your home) 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 then service provided?
Evaluate each agent's responses to these 10
questions carefully and objectively. Who will do the best job
for you? These questions will help you decide.
11. Can one real estate agent represent
both parties in a transaction?
Yes, it's called dual agency. Remember, such a
situation often poses a conflict of interest. The buyer is
vulnerable because the agent's first loyalty is to the seller.
While many such transactions are completed without consequence
every year, it is wise for the buyer to seek their own
representation if they are a first-time buyer or if they need
significant assistance in making their offer.
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