Questions Before You Hire a Real Estate Agent

Questions Before You Hire a Real Estate Agent

Selling your home is probably one of the largest financial transactions of your life, so choosing the right real estate Agent is an important and sometimes daunting responsibility.  Here's a summary of what you should ask:

1. What experience have you had?

This does not necessarily mean how long an Agent has been in the business – it’s more about how well they know the local market and your kind of property. Ask them what has sold in your area in the last three months, the last six months, for how much and after how long a time. Ask, what are the prices of comparable properties and how might my property be different?

Since correct pricing is key, ask how often they’ve had to reduce the price of a property to make a sale. A good Agent will not agree to market a property that they consider overpriced. Agent should have all this information at their fingertips and be able to back it all up with data. They should be versatile and understand the “psychology of the market.” And don’t be fooled by a pitch that includes what celebrities the may have helped with a sale – that has no relevance to your sale. You need to know what they can do for you.

2. What’s your marketing plan?

You want a detailed description of everything the Agent is going to do to put your property “out there.” Does the Agent have creative ideas that have worked – hyper-local blogs or special events such as an invitation-only cocktail party for select Agents and prospective buyers? How will they make your property stand out from all the others a buyer will encounter? Since Internet marketing is uber-important (more than 90% of buyers search online) have them show you sample web listings and be sure that a professional photographer is included in the marketing budget. Not a photographer who will simply do ho-hum wide-angle photos, but one who is able to capture the detail and the important and interesting aspects of your property – a view, perhaps, or a unique feature in one of the rooms.

3. How will you keep me informed of your progress?

Tell the Agent how you like to communicate – text, phone or email. (Texting is not appropriate for any important legal-type communication since there is no permanent record.) Ask if they’ll commit to a regular schedule of detailed written marketing and activity reports (every two weeks is a reasonable expectation) and make sure that they can be easily reached when you have questions or need an update. Find out whether they have a skilled colleague to cover for them if they are ever unavailable. Make certain that they will never let anyone view the property unless they or their representative is present.

4. What’s your commission?

Remember that the amount of the commission is never set in stone and there may be room for negotiation. Ask to see the budget and be clear about what sales-related expenses will come out of the Agent’s commission and what you may have to pay for yourself (stagers, etc.).

5. How well connected are you?

This doesn’t mean how many friends the Agent has on Facebook – it means how well connected are they within their own firms and in the field in general. A seasoned Agent will have solid connections to the world of other real estate–related professionals: stagers (an Agent can help you decide whether hiring one will enhance or speed up your sale), real estate lawyers, photographers and, when the deal is done, even moving companies whom you can trust.

6. Do you have references you can give me?

Don’t overlook this one. Be certain to get the names of recent clients. It’s always helpful for the Agent to have a page or two of quotes from clients for that first meeting, but don’t rely solely on that. Make the calls.

The Bottom Line

To decide what Agent is best for you and who will give you the most value for the commission paid, let both your brain and your gut be your guide. Ask the right probing questions and assess whether the answers are well thought out and based on the Agent’s actual experience. Then, do a gut check: Ask yourself, does this person ‘get me’? Do we connect? Is this someone I want to be communicating with regularly, someone who understands me and my expectations, and someone I can trust to play a starring role in my life for the time it takes to sell my home?

Source: http://realtytimes.com/