SMART ESSENTIALS FOR SELLING YOUR HOME. Deborah Rhoney
follow up to ensure the buyer’s mortgage process is on track.
<> Protect your interests from contract to settlement with an understanding of local procedures and legal requirements. An experienced agent will smooth the way toward agreements and attend to all the details that must come together before settlement.
<> Provide after-sale advice and invaluable referrals for all the details from repairs to packing, and from hiring movers to relocating pets.
Strategies To Find The Right Agent Frankly, not all real estate agents are created equal. Some real estate agents are simply better than others. Smart sellers know the tell-tale signs of a top agent. Here’s how:
<> Ask for referrals. Your friends, relatives and coworkers have probably gone down this trail before and may be able to recommend someone who helped them.
<> Look around your neighborhood. Whose names show up on the “for sale” signs — more important, the “sold” signs — in your area? Watch your mailbox to see which agents specialize in your neighborhood and are working to get more business. These agents obviously work in and know the community.
<> Shop at open houses. This can be a great way to see an agent in action — if the open-house agent is the listing agent — while you check out your home’s competition. Did the agent ask for your name? Did the agent offer you information on the home and about financing? Did the agent follow up?
<> Consider your chemistry. Does the agent listen to your questions and concerns, and answer them to your satisfaction? Does the agent respond to your phone calls and emails quickly? You’ll want to feel comfortable working with your agent as a consultant who’s going to help you sell your largest investment.
<> Ask about the agent’s listing activity. Almost nine out of 10 buyers find the home they purchase through a real estate agent or through agents’ marketing from online ads to yard signs. The other 12% of homes are found through word of mouth from friends, neighbors, relatives, builders or knowing the seller. Simply put, agents and their listings generate buyers. Ask how many homes an agent has sold (not just listed) in the last six months, last year and the year before. Increasing numbers means the agent is improving, and so are the agent’s systems. Ask for listing-by-listing statistics for (1) days on market (DOM), and (2) list-to-sold prices. Top agents outperform the market and sell their listings for more money and faster than average.
<> Ask for a marketing plan. Sellers who hire an agent without knowing what they are getting for their money risk not getting their money’s worth. What will the agent do for you? Here are some marketing techniques to ask about: > MLS: Beyond listing the property, does the agent do listing syndication (pushing listing details with automated services to numerous real estate portal sites online)? Is there an agent website with a My Listings page? > Online: Will the agent create a single-property website for your listing? (This is essential.) Virtual tour (still photos or video)? Portal advertising — Realtor.com, Trulia, Zillow, local newspaper, etc.? Classified websites — Craigslist, Backpage, etc.? > Offline: Will the agent use direct mail, e.g., just-listed postcards? Homes magazines, newspaper ads? Property flyers? > Marketability: What services are offered related to staging, photography, curb appeal, warranty, pre-listing inspections, appraisal? Will the agent arrange self-storage for your extra stuff? > Yard marketing: Does the agent provide a yard sign, brochure box, directional signs? > Opens: Will the agent conduct public open houses for buyers and neighbors? Broker opens for local agents working with buyers? By-appointment-only showings (must contact agent to be prequalified)? How does the agent promote open houses to generate traffic? > Social media: Exposure of listing on Facebook and other social media? Video on YouTube? > Mobile: Smartphone-compatible listing info on sign, flyers? Quick Response (QR) code links to property website, listing page, virtual tour, video? > Innovations: What unique techniques will the agent use to sell your home?
The bottom line: Hire a top-notch pro who has extensive training, strong marketing skills, familiarity with your neighborhood and a solid track record of sales.
Costly Mistakes To Avoid When Selecting A Listing Agent Not doing in-depth “hire-work” is the single biggest mistake most sellers make (just ahead of asking the wrong price). Here are some doozies:
Mistake #1: Meeting only one or two listing agents before hiring. Most sellers think all agents are the same. Making that assumption could mean your home goes unsold or sells at a lower price.
Solution: Interview several agents, ideally four or more. One smart approach is to ask agents to send you a pre-listing package before your meeting including pricing comparables, market data, home prep tips, agent and brokerage background, services, commission, listing contract, etc. If their “pre-list pack” is professional, then they will also market your property professionally. Invite the best agents — one at a time — to your home for a listing presentation. Smart Tip: Some agents like to sign listing contracts in “one trip.” Resist any pressure. Sleep on it. Bring back the best on your short list for a second session.
Mistake #2: Hiring an agent because he or she comes in with the highest price recommendation. Inexperienced and promise-the-moon agents tend to “buy listings” by inflating seller expectations with a high listing price. But those listings spend more days on market and often languish until they sell below market value after a death spiral of price reductions.
Solution: Top agents sell for close to list price because they know how to price right in your local market and sell with few or no price reductions. Ask the agent to show you what comparable homes have recently sold for and to prove why the suggested listing price is correct. Be aware that low-ball listers can sell fast, too, but not at the highest possible price.
Mistake #3: Not asking about credentials and not understanding designations. The length of time an agent has been in the business can be misleading. The agent may have been part-time or is a dabbler. Or the agent may have mainly worked with buyers, not sellers.
Solution: Prepare your list of questions before meeting with agents. If the answers you hear don’t make sense, or seem vague or incomplete, ask more questions until you’re satisfied. Remember: It’s the job of agents to explain their qualifications, what they intend to do and how they intend to do it.
Mistake #4: Not knowing your preference for a sole practitioner or a team. Some real estate agents work alone, or with a spouse or child, or with one assistant. The best are highly efficient generalists. Others run an outfit with assistants handling details and perhaps several agents, often buyer specialists. Contracting with one business model when you truly prefer the other can be stressful, not to mention costly.
Solution: Solo top agents can be very effective, if they aren’t distracted by too many mundane details or too many clients. You could be in great hands, especially if the agent concentrates his or her time on a specialty such as listings only (referring out most buyers), or one large condo complex or development or property type (think golf homes, horse estates, ski chalets or waterfront villas). In short, you get solo attention from one of the best in the area. That said, successful teams are like small companies within a brokerage company. A team’s “rainmaker” is often a “closer” for listing presentations and for purchase negotiations. Everything else, from MLS entry to yard signs, from marketing to listing management, and from transaction processing to closing gifts, are handled by staff. With a team, clients may get even more attention faster but from different people, and fewer details are likely to fall through the cracks. Smart Tip: Ask agents to detail who does what in their operation and how many transactions a month they manage. Select the business model that matches your comfort level.
DIG DEEPER INTO THE LISTING CONTRACT