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20 Questions You Must Ask Your Next Agent Before Signing On the Dotted Line

 
Author: Sean Spencer

You recently decided that the time has come to sell your home. You probably met with several Realtors, asked each a few questions, then selected a listing agent. Or maybe you already knew someone who sells real estate, so your decision was pretty simple.

The fact that your listing agreement recently expired and your home is still on the market leads me to believe that things didnt work out as you hoped they would.

Anyone who ever sold a home knows how frustrating and unnerving it is to have your listing expire without a sale. Youre probably thinking that youve wasted precious time without accomplishing your goal. The idea of going through the process all over again is an upsetting oneand yet, you still need to sell your home.

There are several possible reasons your home didnt sellyour homes condition, the price, etc.but my experience has been that when a home fails to sell, theres usually some kind of communication problem between the Realtor and the seller.

Now more than ever, choosing the right Realtor will make all the difference in the world. But how do you make the right choice? How do you make sure you dont end up in the same situation again?

Unfortunately, most people dont know the questions to ask a prospective agent. Nor do they know what answers they should look for. As a Realtor who has worked with hundreds of sellers, Ive found that those homeowners who take the time to find the right agent are consistently happier with their home-selling experience than those who dont. Its the first and most critical step in selling your home.

As a general rule of thumb, youre looking for an agent who:

* has the experience, qualifications and abilities to sell your home
* has in-depth knowledge of your area and the market in general
* will work hard on your behalf
* has resources to support the sales effort
* will keep you well-informed during the process
* has a personality you are comfortable with

If you didnt know what to expect from your last agent before you signed the listing agreement, then its possible you didnt ask the right questions.

Ive drawn on my years of sales experience to develop this article, which is designed to elicit the information youll need to make the right decision in choosing your next agent. By asking the following questions, you can dramatically improve your odds of having a successful home-selling experience.

How long have you been an active, full-time Realtor? How long in my neighborhood?

I recommend looking for an agent who has been actively working on a full-time basis for at least the last three to five years. You should also find out how long theyve worked in your specific geographic area. There are several reasons for selecting a well-established agent. First, you want someone who has a track record you can confirm. Second, an established Realtor has a roster of contacts you will need: home inspectors, mortgage companies, lawyers, etc.

Finally, an experienced agent will have creative, time-tested ideas for marketing your home.

Yes, there are good agents who have been in the business for a short time. But there is a high drop-out rate in our industry, and it would be unfortunate if, three months down the line, your agent moved on to other things. On the other hand, a part-timer often cant keep up with the pace or complexity of todays marketplace. And they might not be available when you need them most. Your home is your most important investmentdoesnt its sale deserve an agents full-time commitment?

"How many homes have you listed in the past six months? The past year?"

While an agents length of time in the field is important, the quality of that time is even more important. You need to gauge just how activeand successfulthe Realtor is. A large number of listings is often the sign of a successful agent. However, no matter how many listings an agent has, make sure that he has the resources and systems to market each of them effectively. Getting a listing is only half the job.

"How many homes have you sold in the past six months? The past year?"

Heres where we separate the listers from the doers. Just because an agent has a knack for signing up sellers doesnt mean hes good at finding, negotiating and closing dealsand thats what you want.

"What's the average amount of time one of your listings is on the market before it sells?"

You may think that a quick turnaround is a good sign. It could be. However, a faster-than-average selling record could indicate that an agent is quick to sacrifice a sellers profits in negotiationswhich is why the next question is so important.

"How does your average sales price compare to the original price?"

Theres a difference between a Realtor who gets you a good deal and one who gives away too much in order to sell your home. Thats why its important to compare the original list price to what a home actually sold for. For example, an agent who consistently gets 90 percent of the asking price is probably a better negotiator than the agent who only gets two-thirds of the asking price.

Again, this goes to the question of effectiveness. Make sure your agent has the systems in place to handle them all. A successful top-producing agent may be more effective at managing many listings than a less experienced agent is with a handful.

"How many homes are you currently marketing?"

A Realtor who does big business in condominiums, or homes substantially less or more expensive than your own, probably isnt the best person to sell your home. Look for someone who has experience selling homes of your type and price range, preferably in your neighborhood.

"What kind of property do you specialize in?

Again, youre looking for indications of success. A Realtor with a competitive piece of the market usually has better connections in the community and greater resources at his disposal.

"What can you tell me about your share of the marketplace compared to other Realtors in the area?"

While it doesnt necessarily indicate better service, a Realtor who has a support staff to handle office chores and routine details can usually devote more time to the business of serving a clients highest-priority needs. Ask about the composition of the Realtors staff, the duties each member has, and how they will be involved in the marketing of your home.

"Do you have a personal staff? How many are licensed?"

Make sure youre very clear as to the involvement you can expect from your agent compared to your agents staff. But dont assume that youre being treated poorly just because the agent isnt doing everything herself. If you were having major surgery, you wouldnt want your surgeon handling anesthesia and monitoring vital signs and every other detail of the operationthats what the rest of the medical team is there for. The important thing is that your listing is handled in an efficient, professional manner, that you are kept well-informed as to whats being done to sell your home, and that the operation is successful.

"How will you market my home?"

Most Realtors have at their disposal the same tools for selling your home: the Multiple Listing Service, company tours and Realtor caravans, open houses, marketing flyers and brochures, direct mail, advertising, personal networkingthe list is long.

What differentiates the best agents from the rest is their marketing philosophy and the strategies theyve developed to achieve their goals. Youre looking for a Realtor who tailors his approach to your specific circumstances, and then puts the tools at his disposal to your best advantage.

What you want is someone who does more than provide a physical description of your home and area to prospects. Your Realtor should be enthusiastically selling your homes benefits. Youre spending a good deal of money with an agent, and you should expect a detailed marketing planin writingbefore you sign a listing contract. As you discuss the marketing plan, make sure you include the following issues:

Flyers and Brochures

Carefully review the quality of the materials the agent shows you. Do the design, style of writing and print quality do a good job of selling the attributes of a particular home? Poorly-done materials reflect badly on your home and say something about the quality of the agents marketing efforts in general.

Classified Advertising

Dont be unduly impressed with the huge sums of money some agents spend on classified advertising of their listings. Ill let you in on a little secretclassified advertising is great for keeping a companys name in the public eye, but it rarely sells a home in and of itself. An agent who stresses advertising at the expense of other efforts should be avoided. Theres no substitute for hard work on the agents part.

Other Forms of Advertising

Many of the marketing and technological advances found in other fields are also being put to good use in the real estate industry. Some agents now use toll-free hotlines and fax-on-demand marketing to provide potential buyers with 24-hour access to information on your home. Ask the agent what he does that he considers unique or special.

Open Houses

Again, be wary if the agent sings the praises of open houses. As a rule, theyre good for your Realtors prospecting efforts, but not very effective in selling your property. And a home held open too frequently can begin to look like a loser, making it a prime target for lowball bids.

Multiple Listing Service

The MLS is one of a Realtors most important resources. But heres another little secretmany agents fail to use the MLS effectively as a marketing tool.

Make sure that your agent takes the time to craft a strong, detailed sales pitch that extols the benefits of your home, and doesnt just list a lot of dry facts.

When you consider that a listing in the MLS is like a free classified that reaches every other Realtor in townmany of whom have clients who might be interested in your homedont you think you should take advantage of it? I do.

Other Forms of Promotion

Exposure is the key to any home sale. One of the most common ways a home is sold is when another agent knows a buyer who is looking for a home like yours. Ask the agent about techniques other than the MLS, advertising and open houses which he will use to maximize your homes exposure.

"Will you help me stage my home?"

Three things go into selling a home: price, condition and agent effort. If you choose a hard-working agent who helps you set a competitive price, make sure that she also will advise you on how best to present your home to prospective buyers. Some agents are reluctant to say anything in this area because they dont want to offend their client. Ask the agent what kind of information she will provide to help you stage your homethe more detailed and honest, the better.

"How will you keep me informed?"

One of the biggest complaints sellers have about their agents is that they didnt receive enough feedback. Ive found that the best communication occurs when clients let me know up front what they consider to be enough feedback.

Only you know what level and type of communication works best for you. Do you want weekly progress reports? Daily reports? Are phone calls and letters acceptable, or would you prefer to discuss matters in person? Find an agent willing and able to give you the time and attention you require. And agree on the appropriate level of communication at the beginning of the relationshipdont wait until you see a problem.

"What listing price would you recommend for my home? How did you arrive at it?"

Ask about the current market and how it affects your price and selling strategy. A good agent will be able to back up his assertions with solid proof. By running a comparative market analysis, he should be able to give you a sound argument and documentation on how he arrived at your homes proposed market value and price range.

The comparative market analysis should include the following:

* Listing and selling prices
* Description of comparable homes
* Length of time homes have been on the market
* Listings of any price reductions that were made

The agent should also explain how differences between your home and the comparable properties affect your homes value. "What's your pricing/marketing philosophy 30/60/90 days down the road?"

If your home isnt seeing any interest after two or three months on the market, what is the agent going to do to generate activity? You shouldnt have to go to your agent and suggest things to try, such as lowering the price. You want a proactive representative, not someone who simply reacts to whatever happens.

"What's your commission on a sale?"

A Realtors commission isnt set by law; it can vary from agent to agent. Make sure you know up front what youre paying.

While you are legally entitled to negotiate a lower commission, some agents may be less willing to list your home as a result. In a soft market, an agent has even less incentive to push your home when there are others on the market whose sale will result in a higher commission. And an agent whos too quick to give up his money may be quick to give up your money during the negotiation process.

Rememberthe saying You get what you pay for also applies to your real estate service.

"Can you provide me with references?"

A Realtors reputation is one of his most valuable assets; most will work hard to protect it. Surprisingly, most sellers dont bother to check referencesyou should. This is one of the easiest and most important steps you can take. And yet Ive seen more people make the mistake of not checking references.

Talking to past clients is an excellent way of learning how an agent operates beyond what he says hes going to do. You can get a good idea of whether a Realtor is a good match for you by finding out how he handled other clients.

Here are some questions to ask your agents past clients:

* How long was your home on the market?
* Do you feel the agent priced it realistically?
* What was it originally listed at? What did it sell at?
* What type of marketing did the agent do?
* Did the agent suggest how to make your home more marketable?
* Did the agent keep his promises. Did he do what he said he'd do?
* Were you kept informed along the way? How often did you talk?
* How many offers did you get?
* During the closing process, did the agent have good follow-up?
* What did you like the most about the agent?
* Was there anything about the agent that you didn't like?
* Would you use this agent again?

"What professional organizations do you belong to?"

At a minimum, your agent should be a fully licensed professional who is a member of the local real estate board and Multiple Listing Service, as well as the state and National Association of Realtors.

Other memberships worth noting are the local Chamber of Commerce, professional organizations and community groups. This kind of involvement can reflect good networking and better insight into the community. But what really matters is your agents commitment to selling your home.

"Do you have any personal marketing materials I can review?"

The quality of a Realtors own marketing piecesbrochures, direct mail, listing presentation book, etc.is a good indicator of how well shell represent you and your property. If she hasnt already sent them to you, she should provide them at your first meeting.

"Do you have any questions for me?"

The sharp agent is considering your situation and plotting a marketing strategy as you speak, so of course there should be questions. If not, you could be dealing with someone with a one size fits all mentality whos going to plug you into a prefabricated marketing plan.

A good agent will ask your reasons for selling, the date you need to move, what improvements youve made to the property, special features you feel are noteworthy, and whether there are any defects or problems with the house. All of this shows a concern and responsiveness, and the agent will incorporate your answers into his selling strategy.

Remember, youre looking for an agent whos ready nowthe last thing you need in your life is another meeting!

"Am I comfortable with this person?"

This question isnt for the agentits for you. Ask yourself if you feel good about the agent, his personality and how he conducts business. After all, this is a person who will be representing you in the sale of your most precious asset. The last thing you need is a personality clash in the course of the selling process. You want an agent who you can trust, who is honest with you and who relates well to you.

I firmly believe that this is often the single most important element in a successful home sale. Uneasiness or discomfort in the agent-seller relationship leads to unhappiness on both sides and usually poor results. Both of you need to be completely comfortable in sharing expectations, thoughts and concerns regarding all aspects of the sale.

I hope this article has given you a better understanding of just how important choosing the right Realtor is for a successful home sale. Asking these questions before you sign with another agent will enable you to avoid the agony of another failed listing and, ultimately, choose the professional who is best able to deliver the results you deserve.

Please feel free to call me if you would like further explanation on any of these topics, or if you have any real estate questions at all. I simply see my mission as striving to be as helpful as I possibly can to area home owners. I hope this special report provides the information you need to be an informed home owner.

Author Bio:

Sean Spencer

Passion. Focus. Dedication.

What Sean brings to his clients is a commitment and dedication to provide quality service. He does what it takes to make things happen and you always know he?s working with your best interests in mind. He offers reliable communication and follow through that will guide you in the right direction when it comes to your most important decisions. You?ll receive the one-on-one attention you deserve, with a warm and caring style that is all his own.

Most importantly, Sean knows what counts: Passion. Focus. Dedication. To Sean, these are the key elements for success and the foundation for the way he approaches all your real estate needs. You owe it to yourself to give him a call today. You?ll be glad you did.

You can search for this article using: real estate web sites, real estate agent web sites, real estate investor websites
 
 
 

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