by George Lawson
In addition to the questions I suggested in my previous post, here are some more questions to ask prospective real estate agents -
5) What is your marketing plan for my home?
Certainly, one of the most important questions to ask a prospective real estate agent (if the not THE most important) is how they would earn their fee. If all an agent can offer is an undefined marketing plan and a listing in the local MLS (Multiple Listing Service: a directory of homes for sale), he or she is really not worth a commission. It sounds fairly simple, but not all agents work the same way. Some will aggressively market your property while others may just add your property to the MLS and wait for inquiries. The more actively involved your realtor is, of course, the better for you.
As a seller, you will want to know:
- What are the market conditions for your neighborhood -- who is selling, who is buying, what the selling price range is currently ... and why? You want someone who's on top of the market. Mention a house in your area that's for sale. If the agent knows the property and can give you a few details, that means he or she knows your area.
- Are there any improvements they would recommend making prior to listing it? Ask the agent for both a "must do" and "would be nice" set of recommendations.
- Are they technically-savvy? Being proficient in online marketing strategies is no longer simply preferable, it is now mandatory. In a time where 89% of home buyers start their search online, today's successful real estate agent must have a solid strategy for offline AND online marketing of your home. If your agent uses outdated means to promote your property, your property will not be marketed to its full potential. How exactly do they use high tech tools like QR codes, SMS texting, 24/7 voice messaging systems, and single-property websites that are smartphone accessible? Quick access to the buyers in today's market requires using the most advanced tools and is key to selling your property for the right price in a timely manner.
- Do they plan to market your home to the immediate neighborhood? Your neighbors may likely know just the right person to purchase your home. Will the agent be using direct mail or door hangers to specifically target your neighbors?
- How would they qualify potential buyers before they see your home? One of the greatest benefits of hiring a reputable agent is letting them find qualified buyer prospects. Cleaning and vacating your home for showings is a hassle ... you want to make sure your potential agent has a strategy for making sure buyers who visit can afford the home in the first place.
- What steps do they take to ensure your home’s security? The agent should be able to provide you with recommendations and strategies to keep your home safe during showings and open houses.
- Speaking of open houses, how many will they be holding for your home? Some home sellers like to get a guaranteed number of open houses in writing before they select a real estate agent. Be sure to ask if the real estate agent will actually be present at these open houses, or whether an assistant or another associate would be conducting them.
- What kind of traditional marketing will they be doing? (paper flyers, e-mail flyers, four-color brochures, info cards, print ads, etc.) Can they provide samples?
6) How will you help me find other real estate professionals?
All agents build teams of professionals, from title companies to escrow officers to mortgage lenders and home inspectors. Let the real estate agents explain who they work with and why those specific professionals. Be sure to ask if the agent (or the agent's company) receives any compensation for the referral. If the agent or the broker are receiving compensation from any of the vendors, you could also be paying a premium for their service. Referrals should be made on the quality of past work, not on the size of the referral fee.
7) How much do you charge?
Typically, real estate agents charge a percentage of the purchase price to represent one side of a transaction. For example, A listing agent may charge 3% for herself and another 3% for the buyer's agent, a total of 6%. These fees are negotiable, but be careful if an agent discounts the commission for no apparent reason. You need to consider what marketing services they are willing to forego in order to assume the discounted fee. And, if an agent is willing to cut his/her commission ... how willing might they be to cut your asking price?
8) What kind of guarantee do you offer?
Will the agents stand behind their service to you? If you sign a listing agreement with the agent and later find that you are unhappy with the arrangement, will the agent let you cancel the agreement? And will they put that guarantee in writing?
9) What are the top three things that separate you from your competition?
Most good agents won't hesitate to answer this question and will be ready to list off why they are best suited for the job of selling your home. Answers will vary, of course, but they might include:
- Assertiveness
- Availability
- Friendliness
- Good negotiator
- Integrity
- Loyalty
- Marketing skills
- Satisfied customers
- Strong communicator
Finally -
10) Ask the agent to repeat back the goals and objectives you've already shared
If the agent doesn't appear to have a thorough grasp of what you want, you might want to hire someone else. You want an agent who will listen to you and communicate with you.
Copyright 2011, George Lawson (all rights reserved)
Coming Next: Choosing a Real Estate Agent - 10 Top Seller Mistakes
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