Buying or selling your home can be one of most daunting tasks, especially considering the volatility of the real estate market. Working with a real estate agent can make the process of buying or selling seamless, or a nightmare depending on the agent. It is essential to select the right agent. So, before you sign an agreement, review these tips to be sure the real estate agent is the best fit for you.
Find the right agent for you. In order to find the right agent, one of the most important places to begin is by asking friends whom they have worked with in the past. A good experience with a trusted friend is the simplest way to research any prospective service provider. If you are unable to get a recommendation from friends or family, try to interview at least three local realtors. Also, look for an agent who is very familiar with your area, especially if you live in a large, metropolitan area with many different suburbs. It is also important that the agent be familiar with the type of home you are looking to buy or sell, for example, townhouse vs. single-family home. Aside of those, be sure the agent you select is competent, efficient, and ethical.
Broaden your scope. Wide exposure is important when selling your home, however, if you are not set on buying in a specific area, a wide scope is essential when buying as well. Finding a realtor or real estate firm who works with other agencies will often get your property sold faster, or help you find the perfect home easily. The most common networked group of real estate companies and agents is the Multiple Listing Service (MLS) includes licensed members of the National Association of Realtors.
Ask the right questions. Some of the most important questions you can ask a prospective agent when trying to sell your home include:
- How much is my home worth? A good agent (or the inspector they work with) will inspect your home and prepare a written market analysis.
- How do you plan to market my home? Good market plan include local MLS, Internet marketing through the realtor’s Web site and regular newspaper ads.
- How long is the listing agreement? In most markets, a 90-day listing is typical. Contracts can always be extended if needed or desired.
Other questions to ask when buying or selling include:
- How many listings do you currently have? It is important to know how many other homes the realtor is trying to sell. Too many listings and they likely will not be able to give you the proper attention. Having too few listings does not need an explanation.
- How often will we be in contact? Knowing when and how you will hear from your agent allows each of you to know the other’s expectations so hopefully there will be no communication issues.
- How long have you been licensed? While time is not the most important factor, it sometimes is a good indication of experience.
- What designations/certifications do you have? Keeping appraised of trends and continuing education is the mark of a good realtor.
- What is your fee structure? Commission is typically a percentage of the sales price or a flat fee.
- Do you have a list of references? Realtors keep a list of recent customers. Call and ask if they were satisfied and if they would use the real estate agent again.
Commission is negotiable. There is no such thing as standard commission. Each realtor sets their own and they very depending on level of service, company policy and customer needs. Commission can range anywhere from four to eight percent and is a point that should be properly evaluated and negotiated before a contract is signed.
Terminating a contract. If it becomes necessary to terminate a contract, you must legally be able to prove the agent is not taking the normal steps to properly market and sell your home. This may include not listing it with MLS or advertising in multiple locations. Unhappiness is not a legal reason to end a contract. Before terminating, meet with the agent or their supervisor to discuss the problem and see if there is another agent in the firm who can meet your needs.