10 mistakes to avoid

10 Mistakes To Avoid When Hiring a Realtor

Provided by Jay Burnham, VP
Coldwell Banker Residential Brokerage

Written By Judy Wolfson
Real Times

Most of us sell only a small number of homes in our lifetimes. With limited experience in real estate how are we to be capable of maximizing the profits from our home sale? Many home sellers make the critical mistake of thinking all Realtors are the same. They list with the first agent who comes along. Does it make good business sense to put the responsibility of selling your home with someone who has no plan or qualifications? This special report will educate you with valuable information that will help you make the best decision. With which real estate agent should you list?

Start by doing a few hours of research. Who are the most active agents? Compile a list of agent names and use these questions to help you determine which agent is right for you.

1. Could you send me some information about yourself? You can often get a good idea of which agents are the most professional by looking at their promotional materials. If the materials aren't professional, how are they going to market your home if they can't market themselves? Track how long each agent takes to respond to your request and how quickly they follow up with you. If they don't respond efficiently to your listing requests, imagine how they'll handle potential home buyers.

2. How many homes have you listed, and how many homes have you sold in the last six months? Look for an agent who has experience with homes similar to yours and who is active in your area. If your home has special features, look for an agent with experience in those areas. Your agent should have a good record of selling homes, not just listing them. After all, this is your ultimate goal.

3. What is your average length of time from listed to sold? Don't automatically assume the shorter time on the market, the better. That could reflect selling homes quickly at low-ball prices. Look at what the asking price was compared to the selling price. An agent who sells close to the asking price and quickly is effective at helping clients determine the right price and helping them get it.

4. How long have you been in business, and to what professional organizations do you belong? The length of time a real estate agent has been licensed is not a surefire sign that the agent has been an active seller. The agent may have been in business for 10 years but only part time; whereas an agent who's been in business for two years may be a top producer. So consider the professional organizations to which an agent belongs. The minimum should be a licensed professional who's a member of the local real estate board and multiple listing service, as well as the state and National Association of Realtors. Local community groups and associations are also pluses in terms of networking and commitment to the industry.

5. Do you have an assistant or support staff? By employing someone to handle the details of the business, the agent can spend more time servicing your needs. However, make sure you know how much time an agent will spend and how much time an assistant will spend on the sale of your home. It may be fine if the assistant does most of the legwork as long as the agent is there at the most critical times of the transaction period.

6. How often will you hold open houses? Will they be public or by appointment only? Simply putting a sign on your lawn and holding open houses every Sunday will not sell your home. Too frequently, open houses make the property a target for low-ball bidders. Look for an agent with a specific plan for each open house. The plan should be just one facet of a complete marketing plan.

7. What listing price do you recommend, and on what criteria is that price based? Pricing is the most critical step to selling your home. Take great care in choosing an agent with the knowledge to price your home effectively. Keep in mind that the selling price should attract prospective buyers to your home, get you top dollar in the current market, and reflect the condition of your home. Be realistic and avoid "yes" agents who will say "yes" to any request or price while your home languishes on the market. Low-ball agents will try to talk you into an artificial price simply to sell as fast as possible.

8. What does the listing agreement entail, what are the beginning and expiration dates, and what are the fee amounts I will be paying? Have your agent go over every detail in the listing agreement with you until you understand completely. Make sure the beginning and ending dates are on the agreement. A good standard for length is six months. Know exactly what fees you will be paying, and remember that less is not always better. If the agent stands to make very little commission, you can bet it will be reflected in the amount of time and effort that is spent marketing your home. When agents reduce their commissions to get listings it may mean they intend to spend very little money promoting the property. The normal commission is between 5 percent and 7 percent.

9. What disclosure laws apply to me, and of what do I need to be aware? Make sure your agent helps you with locating professional inspectors for the various mandatory home inspections required in your area. Create a home marketing file, including a property fact sheet, a property transfer disclosure statement, pest control report, applicable CC&Rs, applicable study zones report, structural engineering report, property profile from the title company, plans for alterations or additions, and special equipment reports for pools, spas, sprinklers, and alarm systems. Your agent should be able to handle this for you.

10. What types of things separate you from your competition, and will you give me some feedback? How effectively will you advertise? Do you have 24-hour advertising capability? Will all of the leads be followed up by your agent's team? Agents who are innovative and offer new methods of attracting home buyers will measurably outperform agents who rely on methods of the past. To market effectively in the 90s and beyond requires progressive strategies that add value and service both for buyers and sellers.

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Written by Judi Wolfson

JAY BURNHAM, VP
Coldwell Banker Residential Brokerage
PREVIEWS International® Property Specialist
54 Dodge Street
Beverly, MA 01915
978.233.2828

Designations Earned: CRB, CRS, GRI, RECS, SRES