So Many Agents, So Little Time.
How do you choose an agent to represent you?
That all starts well before you make appointments with the prospective realtors. First...Make a list, and ask them all the same questions. Those questions should include. Are you a Realtor in good standing? How long have you been a Realtor? How many times have you changed offices? There could be a profound negative affect if you hire an agent who has a propensity to change offices, particularly in the middle of a advertising campaign or in the midst of a mutually accepted transaction. How many homes have you sold in the last 2 years representing sellers? Let me explain here. Remember you’re a potential seller, not a prospective buyer so it’s important to know how many sellers the prospective realtors have represented not how many prospective buyers they’ve represented.
Keep this in mind, there are two sides to every transaction and the MLS maintains accessible records of the listing agents not the selling agents so it’s easy for an agent to claim that they sell many homes and not be able verify that through MLS stats. On the other hand if an agent or broker does in fact list homes regularly they should be able to produce a record of previous sales for you to review.
Ask what they will do to market your home. According to the standard listing agreement, the only action required to sell your home is to list it. That’s right! If a realtor does not clearly explain exactly what they will do to advertise your home you should be concerned because they’re probably just planning on listing it. Although the MLS is responsible for the majority of sales through cooperating brokers working with buyers, what about that 20 or 25 percent of buyers not working with a Realtor yet, you know, the ones driving around neighborhoods, browsing magazines, shopping online. An aggressive marketing plan that targets all buyers is a must so keep that in mind.
Now during those interviews you may have heard this: I’ll sell your home in 30 days or I’ll buy it! I’ll sell your home in how ever many day or I’ll give you 1000 dollars! Or something else along those lines. There is no way anyone can tell you how long it will take to sell your home. Let me repeat that. There is no way anyone can tell you how long it will take to sell your home. What we can do is to use market data in your specific area to determine on average how long similar homes have taken to sell and those promises and guarantees are nothing more than a gimmick to get their foot in your door.
Another important aspect is value. What your home is worth. A wide range of factors will ultimately determine your actual sale price, but many times a seller will mistakenly choose a realtor based on which realtor thinks the house is more valuable totally disregarding all other factors, in other words who the seller thinks will net them more money. That approach can increase market time especially if the realtors is trying to buy the listing, knowing that a price reduction is only a few weeks away. You, the seller determine the list price. You should be provided a list of similar comparable properties to help you determine that price.
Here’s what to look for. Similar means within about 100sqft of your homes square footage, excluding the garage. Be of similar style, in other words ramblers compared to ramblers, 2 stories to 2 stories, split levels to split levels and so on. Located in the same MLS area. Now if your property borders an MLS dividing line you can use that adjacent area. Also if there is insufficient data you can spread that search out into adjacent MLS areas. Similar also applies to lot size, age, condition and construction. If you own a home in a neighborhood or own a condo or townhome where there are several pervious homes sales in the last six months, the range of market value will be much easier to determine. On the other hand, if you own a custom home on acreage in an area with little market data, an experienced Realtor will be able to make adjustment to help you determine a range of market value but ultimately you determine the list price.
Who determines market value? The seller? The buyer? The Realtor? The market? The answer is, the BUYERS! If the buyers see the value you’ve placed on the property it will sell. If they don’t, they’ll buy something else. Another important issue is buyer financing. Unless you find a cash buyer, there will be an appraisal by the bank to verify the value both seller and buyer have agreed to. Another reason to price properly.
We can’t forget the one factor that contributes to a sellers bottom line and that of course is...Commissions. Always remember, commissions are negotiable! The industry as a whole cannot set a certain rate. That would be a violation of Anti Trust Laws. But since they’re negotiable, individuals can choose not to accept a listing if the commission is below what they are willing to accept. And like life itself you usually get what you pay for. Quality usually costs more. Whether it’s wine, food, cars, medical care, or legal representation, if your looking for quality be prepared to pay a little more.
That all starts well before you make appointments with the prospective realtors. First...Make a list, and ask them all the same questions. Those questions should include. Are you a Realtor in good standing? How long have you been a Realtor? How many times have you changed offices? There could be a profound negative affect if you hire an agent who has a propensity to change offices, particularly in the middle of a advertising campaign or in the midst of a mutually accepted transaction. How many homes have you sold in the last 2 years representing sellers? Let me explain here. Remember you’re a potential seller, not a prospective buyer so it’s important to know how many sellers the prospective realtors have represented not how many prospective buyers they’ve represented.
Keep this in mind, there are two sides to every transaction and the MLS maintains accessible records of the listing agents not the selling agents so it’s easy for an agent to claim that they sell many homes and not be able verify that through MLS stats. On the other hand if an agent or broker does in fact list homes regularly they should be able to produce a record of previous sales for you to review.
Ask what they will do to market your home. According to the standard listing agreement, the only action required to sell your home is to list it. That’s right! If a realtor does not clearly explain exactly what they will do to advertise your home you should be concerned because they’re probably just planning on listing it. Although the MLS is responsible for the majority of sales through cooperating brokers working with buyers, what about that 20 or 25 percent of buyers not working with a Realtor yet, you know, the ones driving around neighborhoods, browsing magazines, shopping online. An aggressive marketing plan that targets all buyers is a must so keep that in mind.
Now during those interviews you may have heard this: I’ll sell your home in 30 days or I’ll buy it! I’ll sell your home in how ever many day or I’ll give you 1000 dollars! Or something else along those lines. There is no way anyone can tell you how long it will take to sell your home. Let me repeat that. There is no way anyone can tell you how long it will take to sell your home. What we can do is to use market data in your specific area to determine on average how long similar homes have taken to sell and those promises and guarantees are nothing more than a gimmick to get their foot in your door.
Another important aspect is value. What your home is worth. A wide range of factors will ultimately determine your actual sale price, but many times a seller will mistakenly choose a realtor based on which realtor thinks the house is more valuable totally disregarding all other factors, in other words who the seller thinks will net them more money. That approach can increase market time especially if the realtors is trying to buy the listing, knowing that a price reduction is only a few weeks away. You, the seller determine the list price. You should be provided a list of similar comparable properties to help you determine that price.
Here’s what to look for. Similar means within about 100sqft of your homes square footage, excluding the garage. Be of similar style, in other words ramblers compared to ramblers, 2 stories to 2 stories, split levels to split levels and so on. Located in the same MLS area. Now if your property borders an MLS dividing line you can use that adjacent area. Also if there is insufficient data you can spread that search out into adjacent MLS areas. Similar also applies to lot size, age, condition and construction. If you own a home in a neighborhood or own a condo or townhome where there are several pervious homes sales in the last six months, the range of market value will be much easier to determine. On the other hand, if you own a custom home on acreage in an area with little market data, an experienced Realtor will be able to make adjustment to help you determine a range of market value but ultimately you determine the list price.
Who determines market value? The seller? The buyer? The Realtor? The market? The answer is, the BUYERS! If the buyers see the value you’ve placed on the property it will sell. If they don’t, they’ll buy something else. Another important issue is buyer financing. Unless you find a cash buyer, there will be an appraisal by the bank to verify the value both seller and buyer have agreed to. Another reason to price properly.
We can’t forget the one factor that contributes to a sellers bottom line and that of course is...Commissions. Always remember, commissions are negotiable! The industry as a whole cannot set a certain rate. That would be a violation of Anti Trust Laws. But since they’re negotiable, individuals can choose not to accept a listing if the commission is below what they are willing to accept. And like life itself you usually get what you pay for. Quality usually costs more. Whether it’s wine, food, cars, medical care, or legal representation, if your looking for quality be prepared to pay a little more.
posted by Gene Quinney Owner/Broker at 12:45 PM
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