KEY QUESTIONS TO ASK EACH LISTING AGENT YOU INTERVIEW.
The reason it is so important to interview at least three
local agents is to compare their sales abilities and their
CMAs (comparative market analysis) of your home's market
value.
Each interview, including the agent's inspection of
your home, should take about an hour. These will be the three
most profitable hours you ever spend.
The reason is each agent should prepare a written CMA
showing the agent's estimate of your home's market value. The
CMA will include recent sales prices of comparable nearby
homes, the asking prices of neighborhood homes now listed for
sale (your competition), a list of recently expired nearby
listings which didn't sell, and the agent's estimate of your
home's market value.
In addition to receiving each interviewed agent's CMA, here
is a list of key questions to ask each agent (the best agents
anticipate these questions as part of their listing
presentations):
1.) What are the names, addresses, and phones of your five
most recent home sales listings?
Before you decide to list with one of the agents
interviewed, be sure to phone those recent sellers to ask,
"Were you in any way unhappy with your listing agent?" and,
"Would you list another home for sale with the same agent?"
2.) How long have you been selling homes in this area? Do
you sell real estate full-time? What professional courses and
designations have you completed?
Some agents will resent these questions, realizing you are
a well-educated home seller. But the best agents will have
anticipated these important questions.
Occasionally, you will find a successful part-time agent
who comes highly recommended by recent home sellers. Or you
might encounter a promising new licensee who has lots of time
to devote to selling your home listing.
3.) What is your minimum listing term? The best answer is
90 days so you won't tie up your home for a long time with a
lazy or ineffective agent. However, some agents insist on
180-day listings.
They usually justify such a long term by saying, "The
average number of days on the market for homes in this area is
150 days (or whatever)." But your reply should be, "I don't
want just an average agent. I want an outstanding agent who
has confidence in his or her ability to get my home sold
within three months for top dollar."
If the agent you think is best still insists on a six-month
listing, after checking his or her references, an acceptable
alternative is a 180-day listing with an unconditional
cancellation clause after 90 days written into the listing
contract. Then, just in case you chose a "bad agent" you won't
be stuck more than 90 days.
4.) What is your marketing plan for my home? The best
agents will have anticipated this question by providing a
written marketing plan as part of their listing presentation.
Each written marketing plan should include at a minimum a)
a weekday open house tour for all MLS (multiple listing
service) member local agents, b) Internet promotion on the
agent's personal Web site and at
www.Realtor.com (where 70 percent of today's home buyers
begin their search), c) weekend open houses once or twice a
month, d) newspaper ads at least once every week, e) brochures
(ask to see samples of the agent's past brochures for other
listings), and e) depending on the sales price, advertising in
additional publications.
5.) How many listings do you have now? What are their
addresses? Do you have an office assistant? What percentage of
your listings didn't sell last year? What day of the week do
you take off and who covers for you when you are gone? Are you
planning any vacations during the next three months?
If the agent you are considering has too many listings, he
or she might not be able to devote enough time to your home
sale. Watch out for "numbers agents" who take many listings,
have several assistants, but sell a low percentage of their
listings. However, consider it a bonus if two agents work as a
"team" to handle a large percentage of their listings.
Having an office assistant is another bonus to free the
agent's time for sales while the assistant handles the details
such as arranging inspections, appraisals, and sales closings.
6.) What sales commission do you charge for a home like
mine?
You should be aware, according to a recent survey by Real
Trends, the average home sales commission is 5.1 percent.
However, many agents try to get the traditional 6 percent
sales commission, especially for homes priced below $500,000.
If the listing commission is competitive, this is not the
time to cut the agent's commission and incentive to get your
home sold. Presuming the agent's references and success record
are satisfactory, a sales commission up to 6 percent is
acceptable.
However, if the listing agent produces a low purchase
offer, that is the time to say, "Well, since you didn't
produce a purchase offer at your recommended asking price, if
you will lower your sales commission, maybe I can accept this
low purchase offer."
The most important part of the sales commission is the
portion that will go to the buyer's agent. To illustrate, if
your home sale listing offers only a 2 percent commission to
the buyer's agent, but other local listings offer a 3 percent
commission, agents representing buyers are likely to show
those homes before yours.
In addition to the sales commission, at the time of listing
be sure to ask if there are any additional fees for you or
your buyer. Some brokerages try to charge "transaction" or
"administration" fees in addition to the sales commission.
SUMMARY: Spring is the best time of year
to sell your house or condo to earn top dollar. But before
listing your home for sale with the best agent for your
situation, be sure to interview at least three successful
local agents before selecting the best agent.