Thinking About Using a Realtor?
Ten Questions You Should Absolutely, Positively
Get Truthfully Answered Before You Sell Any Property!
Not all real estate agents are the same. If you decide to seek the help of an agent when selling or buying your home, you need the right information before you can make a decision to sign a listing agreement. Did you know that approximately 6% of all real estate agents do 80% of the business?
Picking the right agent is one of those critical issues that can cost or save you thousands of dollars. There are very specific questions that you should be asking to ensure that you get the best representation for your needs. Many agents would prefer that you do not ask these questions, because the knowledge you will gain from their honest answers will give you a very good idea of what outcome you can expect from using this agent. Let us face it – in real estate, as in life – not all things are created equal.
Hiring a real estate agent is like any hiring process – with you on the boss’ side of the desk. It is critical that you make the right decision about who will handle what is maybe one of the single largest financial investments you will ever make. You should ask any agent you are considering the following questions:
1. Do you make it easy for buyers to get information about my home and how do they get this information?
In addition to using the Multiple Listing Service, you may be surprised to know that the other two marketing tools that agents use to sell homes (open houses and big company ads) are actually not very effective at all. In fact, according the National Association of REALTORS®, less than 3% of people purchase their home as a result of calling on a company ad, and less than 1% of homes are sold at an open house. How do most homes in Cache Valley sell? As I said earlier – the Multiple Listing Service. When an agent puts a home on the MLS, every agent from every company has access to show and sell that home. By the way, there are over 350 REALTORS® in Cache Valley, Utah and over 750 listings. So, how do you make it stand out?
Prospects calling for information on your home probably value their time as much as you do. The last thing they want to be subjected to is either a game of telephone tag with an agent or an unwanted sales pitch. Make sure your prospective agents is propmt at returning phone calls. Also, make your prospective agent show you his/her website with all their listings. Ask to see a virtual tour of a home. Request information from the site on a particular listing and see how long it takes for that agent to get in touch with you. Three hours is the goal! I have found that six times as many buyers go to the web for information on your home. What is the search engine strategy? Remember, the more buyers you have looking at your home the better, because it sets up an auction-like atmosphere that puts you in the driver’s seat. Also, direct mail, databasing buyer needs, list-to-sell ratios, days on market, individual agent production, and over thirty other items determine the success of a marketing program.
2. What is your commission and why are you worth it?
Do not ever agree to any commission unless you are shown exactly how this agent earns it. Fact: real estate commissions are NOT set by law! Your new agent should be able to show you how to make money, not cost you money. Your net proceeds should be increased by an agent.
3. Tell me about your team.
Most agents work by themselves without any support making it difficult for them to provide you with a consistently superior level of service. The job of real estate has many and varied parts to it. Some of these include lenders, escrow officers, appraisers and inspectors. If the agent does not have a strong support team to cover each aspect of your transaction, you should ask yourself how much time they really have to market and get your home sold. Note: Always get a team to achieve your goals.
4. Specifically, how do you attract buyers?
The agent should be able to explain, step-by-step, how they attract buyers and show you evidence. If they can not, hire another agent! Do not hire any agent who tells you their reputation will somehow attract buyers. Make them prove it! For instance, I have over eighteen methods to attract buyers. I even have a buyer’s club for motivated buyers to join!
5. What has been sold in my area?
Agents should bring you a list of comparable sales in your area. It should include expireds, cancelleds, and pendings. They should be scientifically compared by square footage, amenities, and emotional aspects with a plus and minus system just like an appraiser.
6. What specific advertising will you be doing to get your home sold?
If they expect to get your home sold by using only a big company ad, open houses, or a mediocre website then you are in big trouble. Make them be specific and put what advertising they promise in writing. Test their search engine strategy by going to www.google.com and searching for Cache Valley real estate.
7. On average, when your listings sell, how close is the selling price to the asking price?
Their performance on this measurement will help you predict how high of a price you will get for the sale of your home.
8. How many buyers are you currently working with? Do you have a list? How do you track your buyers?
Obviously, the more buyers your agent is working with, the better your chances are of selling your home quickly. It will also impact price because an agent with many buyers can set up an auction-like atmosphere where many buyers bid on your home at the same time. Ask them to see the list and describe the system they use for working with these buyers. They should have the list of buyer with them at ALL times. If they have a lot of buyers, they will certainly need a computerized system to keep track of them. If they can not or will not show you a list of their buyers, hire another agent. Note: There is a big difference between a list of actual buyers and a printout of a database. An actual buyer list should contain the buyer’s financial qualifications as well as what type of property they are interested in. Anything other than this type of list just does not cut the mustard! My list includes name, contact information, pre-approved status, and exactly what they are looking for.
9. What makes you different? Why should I list my home with you?
It is a much different real estate market than it was even one year ago. What unique plans and programs does this agent have in place to make certain that your home stands out favorably among other competing homes? What things does this agent offer you that others do not to help sell your home with the least amount of hassle and for the most amount of money? What type of technology do you use to help sell my home? Can you give me a demonstration of that technology?
10. Can I cancel my listing at any time?
Do not ever sign anything unless this agent can guarantee, in writing, that they will cancel your listing at any time if you decide not to sell your home. If you are not satisfied with the service being provided or if the problem cannot be solved, Cornerstone Real Estate Professionals only charge a small fee to cover overhead.
Bonus Question:
Specifically ask them about Cornerstone Real Estate Professionals or Shelby Cardall.
If they say anything negative about another company and try to make another company look bad, hire another agent. Get the facts for yourself. Also, if they brag about how many homes they sell, how good they are, or that they are number one – run the other way! It seems that every real estate company is claiming to be number one. At Cornerstone, we encourage you to compare any other company’s services to ours based on FACTS.
