Are you thinking about selling your home? The sale of your home may be one of your largest transactions. Make sure you don’t leave it in the hands of an amateur. Here are 8 tips to picking a good Realtor.
1. Business decision, not a personal one
This is a buyers market and it is not easy to be a seller. A professional Realtor can make the sales process much easier than someone who just got their license or who does not work full time. This is a big transaction so make a smart choice, not an emotional one.
2. Ask for referrals
Do you have a friend that recently sold their home? Ask them their experience and if they would use their Realtor again. If so, get that agents name. Ask around to your family and friends for a referral.
3. Interview
Most Realtor’s hate this advice. Listen to a listing presentation from 3 agents before you make a decision. Be careful to not list a home based on the anticipated sales price that the agent gives you. Remember, the market determines the value of your home. Not you or the Realtor you hire.
4. Is the biggest producer the best?
Don’t assume that the highest producer is the best Realtor or gives the best service. Would you rather work with a good Realtor who has forty listings or a good Realtor that has ten? You probably will end up with better service with the Realtor that spread between only 10 listings. That is not always the case but this is what you can uncover when you interview them. The larger producer may sell ten homes between $2 million and $3 million a year. If your home is worth $300,000 would you rather use that Realtor or one who sells twenty homes a year priced between $300,000 and $400,000?
5. If you pay peanuts you work with monkeys
I am as frugal as the next guy. However, the difference you pay between a full service broker and a discount broker is not that much. The market decides what a Realtor can charge. If it is too much the public would not use them.
From the outside it appears that Realtor make way too much money. 6% of $400,000 is $24,000. That is a lot of money. However, when you break it down and spread it around it isn’t as much as you think. That commission is usually split between the listing agent and selling agent. The Realtors have to split with their brokers. Brokers have to pay their staff, rent, advertising, light bill, utilities, etc. Promoting your listing to find a buyer costs money so there are expenses like photography, advertising, direct mailers, signs, websites etc. The agents belong to one or several Realtor Associations. We have to pay dues to all of those Associations. To promote the listing on the MLS we have to pay dues to access the MLS. The expenses go on. Realtors probably don’t make as much money as you think.
6. Don’t let the Realtor buy your listing
It is common for a home seller to list with the Realtor that gives them highest asking price. Don’t do this. Have your Realtor defend any price they come up with. Have them show you comparable sales and be objective.
7. Interview a Realtor that works your area
Some Realtors only work a small niche. Those agents typically know their niche or market area more than their competitors. They are good to have on your side. However, the process of valuing and selling real estate is essentially the same in all segments of market with slight variations. You don’t have to hire a specialist or niche Realtor.
8. Be Leery
Some Realtor will give you all of the right answers in the interview. They never disappoint you and tell you everything you want to hear. Be cautious of these Realtors. They might not be giving you honest advice just to get your listing. Of course, the story will change after you listed with them
Keep these tips in mind and they will help you make a wise choice in hiring a Realtor. Selling a home is not rocket science but you can waste a lot of time hiring the wrong agent. The way home prices have been falling listing with the wrong agent can cost you a large amount of money.
Marc Rasmussen helping people buy or sell Sarasota real estate.