My office is in Quakertown and I often meet with homeowners thruout Bucks, Montgomery, Lehigh and Northampton counties to discuss selling their home and they are usually interested in 2 things: Listing at the highest price and paying the lowest commission. What I've found is that what people are really looking for is to "maximize their net". The best way to do this is to interview more than one agent in order to compare services, expertise and fees. By learning the answers to the following 5 questions you will most likely have all the information you need in selecting an agent.
1. What is the market value of my home? The most important thing to know regarding market value is that the agent does not determine it, the market does. Think about it, if the agents determined the market value, than all the homes would sell since that is how we make money. So don't let an agent tell you they can get more money for your home than anyone else, because they can't. The market value needs to grounded in knowing what similar homes have recently sold for. This is what a Bank Appraiser looks at and you can be pretty certain a Bank Appraiser will be involved with the sale of your home. All agents you interview should be providing a similar "range of value".
2. About how long should it take to have my home under agreement? While there is no way to guarantee when a home will sell, it's pretty straight forward to estimate based on current stats such as the avg. days on market and the absorption rate. All agents should have these stats.
3. What is your Marketing Plan? Again, pretty straight forward but make sure you know what they will do, when they will do it and get it in writing.
4. Can you explain how your commission works? With my company it's pretty simple: The fee to Assist 2 Sell Buyers and Sellers Advantage is $2,995 for our marketing and services, due at closing. If an MLS agent brings the Buyer, they receive an additional commission (typically around 3%), however, if the Buyer contacts our office directly and they are not using another agent, we do not take the additional 3%, the fee is only $2,995. Many agents charge a high percentage of the sale price (example: 6%) and you will pay that total amount even if the Buyer comes to their office and is not using an agent from another company.
5. Is the agent experienced and knowledgable? There is no easy way to best determine this. It's really a combination of their knowledge and the comfort level you have with them. They should be able to justify their market analysis as well as discuss what happens when an agreement comes in (escrow, inspections, purchase capabilities of the buyer, deadlines etc...).
Having the answers to these 5 questions should bring some clarity to selecting the right agent for you. You can visit my website at QuakertownAreaHomes.com.
* Commissions are negotiable and not set by law.
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