Two of the biggest mistakes sellers make when choosing a listing agent are selecting the agent based on:
Highest List Price for Your Home
Lowest Commission
At first glance, a seller might say, "What? Are you nuts?" Sellers want the highest possible price and to pay the least amount of commission. But those two criterion have very little to do with hiring a competent agent and, in many instances, are completely irrelevant. Let's look at why...
Success or Failure depends on the agent you hire to sell your home
Agents can't tell you how much your home will sell for. An agent can show you comparable sales, pending sales and active sales, then recommend an asking price....but YOU choose the list price and a buyer will tell you if the price is right (when and if they make an offer)
- To get the listing, some agents distort the truth.
Since agents can't guarantee your sales price, the listing agent who suggests the highest price is probably untruthful. Ask the agent to show you numbers supporting that suggested list price. They probably won't have them or the home sales will be located in a different neighborhood.
- Look for a listing agent who gives you a range.
An agent should give you a price range. It might be $10,000 - $25,000 depending on the prices of homes in the area or the spread can be greater for special homes. Many factors determine the range, among which are location, temperature of the market (trends) and improvements.
- Pricing is an art.
The best time for an offer is within the first 30 days on market. If the home is priced right, you'll get an offer. If it's priced too high, you might not get any showings at all; buyers will shun your home and you'll eventually end up reducing your price, leaving buyers wondering what's wrong with your house.
- Hire The Best.
Real estate agents are not equal; each is unique. Remember about 10% of the agents do 90% of the business. Think about that statement.......which in turn means that 90% of the agents do 10% of the business. Which agent do you want to work with? Each has their own marketing techniques and advertising budget. By choosing an agent with a large advertising budget, you will gain greater exposure to the largest number of buyers, which is ideal. Reaching greater numbers of buyers equals better chances of a good offer.
- Should You Choose an Agent Based On Commission?
There is always a reason why a broker or real estate agent would discount their fee. Sometimes it's the only way the agent feels it's possible to compete in a highly competitive business, because the agent can't stand apart from the competition on service, knowledge or negotiation skills. If the sole benefit an agent brings to a table is a cheap fee, ask yourself "why". Is the agent desperate for business or unqualified? Do you want to work with a desperate agent?
Sometimes full-service agents will negotiate a lower commission under special circumstances such as:
- You're buying a home and selling a home at the same time giving both transactions to one agent.
- You're willing to do all the legwork, advertising, marketing, and pay for expenses related to the sale.
- You promise to refer more business to the agent, which would result in multiple transactions.
- You're selling more than one home.
- You don't have enough equity to pay a full commission.
- Importance of Agent Marketing.
A good listing agent lives and dies by marketing…..because marketing sells homes. Ask to review a complete copy of the agent's marketing plan. Precisely, what is the agent going to do to sell your home? Here is what you should expect for the fee that you agree to: (Just remember one thing…if the agent doesn’t get your home sold, he/she doesn’t get paid).
- Professional signage
- Follow-up reports/calls giving feedback on showings
- Broker Open House
- Incentives for agents to sell
- Staging advice
- Advertising in major/local newspapers
- A personal website with good internet presence
- MLS/Internet exposure with 8 to 12 professional photographs
- Virtual Tour
- Distribution to major Web sites.
- Highlight Sheets
- Public Open House
- Direct mail to surrounding neighbors
- E-Flyer to agents in marketing area
- Updated CMAs after 30 days.
- Enhancement on Realtor.com
- Updates on neighborhood facts, trends and recent sales.
No single tactic sells all homes. It's a combination of all of the above. If you are interviewing agents who offer similar services and can't decide between them, ask to see written endorsements (testimonials) from previous homeowners.
- Characteristics of a Good Listing Agent
Here is what sellers should look for in an agent:
- Experience - Let new agents learn the business on somebody else's dime.
- Education - Ask about degrees and certifications.
- Honesty - Trust your intuition. Your agent should speak from the heart.
- Networking - It's a people business. Some homes sell because of an agents relationship with other agents.
- Negotiation Skills - You want a master negotiator, not somebody out to make quick sale at your expense.
- Communication - Sellers say communication and availability of the agent are very important.
- Personal Guarantee - If the agent doesn't offer an "opt-out" of contract, don't hire that agent.
If you are thinking of selling your home, call me. I will explain my services and I will discuss the current trends of today's market. My goal is to put the highest possible dollars in your pocket.
A Special Report Prepared By:
Evan Greene
Licensed Broker/Owner
HouseValueExpert@aol.com
www.MyHGrealty.com
Cell: (631) 848-8000