Don't Pick The Wrong Realtor!

How many homes do most people sell in their lifetime...two maybe three?  How do you know which realtor to pick with such little experience?  Not all realtors are the same, however most people think they are.  Many will list their home with a friend or Aunt Jenny who has a day job and does real estate on the side or worse; the first realtor they meet.  What kind of business plan will they use to sell your home and what type of qualifications do they have?  So what do you do?  Research....not a lot, but some due diligence will help in the long run.

Look around your neighborhood and see who has the most signs, ads and marketing material.  Who's been actively mailing to you?  Once you've compiled a list of realtors in your area ask them these questions:

1. Can you send me more information about yourself and business?

Usually the realtors that are marketing consistently are using systems to sell their listings and find qualified buyers quicker.  If a realtor's own marketing materials aren't effective & professional, then how effective are they going to be when it comes to selling your home?  If they can't market themselves effectively to you then imagine how effective they're going to be in handling potential home buyers.

2. How long is your average listing on the market before it sells?

Keep in mind that market conditions will dictate an average number of days a listing is on the market if priced properly.  If an agent is selling all their listings quickly that might not be a good thing...it could signify undervaluing their inventory.  Ask the agent what the price variations are on their listings between the original asking price and actual sales price.  If the two values are close then the agent is effective in determining the right sales price.  This will prevent you from extreme "let downs" and know what your home should sell for from the start.  Again...the real estate market is fluid, so prices can move while your home is on the market.

3. How long have you been in the business and what professional organizations do you belong?

A realtor can have 20 years of experience and not be as qualified as somebody who's been in for 3 and is a top producer.  The 20 year realtor could have taken five years off and is only doing real estate part time.  Organizations will help you get a better feel of how they approach their business.  A member of the local real estate board, Multiple Listing Service and don't forget being licensed is a must!  Other local memberships will help in networking and exposure for your home.

4. Will you hold open houses?

Although these don't sell a home by themselves, they are important to allow people to see your home up close and personal.  These should be part of a complete marketing plan.

5. How much do you think we should put our home on the market for?

Make sure the price reflects your market.  Ask to see comparables of the recent homes sold in your area.  Be realistic.  If you're gunning for an unrealistic price your agent should be honest with you about that.  An agent that accepts a listing priced unrealistically won't market your home effectively because they know it's unrealistically priced and they'll be throwing money into the wind.  Keep it real or just stay put and enjoy your home or refinance and remodel.  Remember a home that sits on the market past your area's average will be look at unfavorably by other agents and potential buyers.

6. How long will our listing agreement be?

Six months is a good rule of thumb.  Some agents will allow you to have an "Easy Out" agreement...meaning either one of you can fire one another at any time.  Every agent works differently for different reasons.  Weigh each out carefully.  Something that seems good at first can be a hindrance in the long run.

7. What other fees will there be?

An agent should be able to spell out what other fees you'll encounter during the listing and escrow process.  For example escrow, title fees are a few.

8. Are there any disclosure laws that I need to know?

Keep a file folder with all your paperwork regarding these.  Inspection reports, property profile, preliminary title report, termite or pest paperwork, CC&Rs, condo plans, easements etc...  Each property is different, so each will require different forms of documentation.  Most title companies will have document folders on hand for their clients to keep...ask your realtor.

9. How are you different then every other agent out there?

Most successful agents will have unique marketing techniques that will blow their competition away.  The old tired ways of marketing a listing is what most run of the mill agents will try to sell you on.  Look for the agent that uses cutting edge technology and consistent systems to not only sell your home, but attract potential buyers for your home.  What is Aunt Jenny using?  No offense, but maybe she's not the person you want selling your home!