What You Should Ask Your Real Estate Agent
before You List

You don’t sell your home every day. So, it is not something that you are extremely familiar with. If you want to maximize the return on your home, you should work with competent full time real estate agent. Now, how can you determine which real estate agent will be the best represent you? This report will give you several ideas and questions to use in selecting your real estate agent.

Referrals from Friends and Co-Workers

If you have a co-worker or friend that has worked with an agent and had a good experience, put them down on your interview list. If someone had a bad experience, they will quickly tell you. If possible, identify two or three agents that have been recommended by someone you know and trust. Then, interview each of them. Keep in mind that your personality will have a lot to do with the agent you work with. As you talk to a real estate agent, here are some questions and items to keep in mind.

Ask the real estate agent for some specific information

It really doesn’t matter what you want the agent to answer for you. What you are really looking for is how long it takes him/her to respond to your request. The most important factor in a good real estate transaction is communication. If the agent promptly responds before you have “hired” them, then you can expect a quick response once you are working together. You want to work with an agent that will respond quickly and efficiently.

How long will it take to sell a home in my neighborhood?

You need to have a good idea of how long it will take to sell your home. Your agent should be able to do an analysis of the market and get you a pretty good idea. Although there is never a guarantee on the length of time to sell your home, a realistic idea is important.

How much can I expect to sell my home for?

Any agent will be happy to sell your home. Many will try to get you to offer your home for the lowest possible price. Why? Because it will sell quicker and the agent won’t have to do as much work. You want an agent that will help you maximize your investment in your home. You don’t want to price your home too high or it will just sit on the market. However, you also don’t want to price it so low that you leave thousands of dollars on the table.

One more thing… Some agents will promise you the world, i.e. they tell you they will sell your home for the absolute highest price. The reality is that these agents will quickly come back and get you to drop the price soon after it is listed… Beware.

Get a CMA (Comparative Market Analysis) and review it with the agent.

When you are trying to determine the market price, you cannot just pick a price out of the air. You can’t say “My neighbor’s home sold for such and such, so that’s what I want from my home.” It doesn’t work that way. A comparative market analysis will show you the price of homes that have sold recently in your neighborhood that are similar to yours. Using this information can help you set a price that will get you top dollar and still attract as many potential buyers as possible.

Be careful. Selling your home can be a two edged sword. If you go too high, you will help sell other homes in your neighborhood. Given two homes in similar condition, the home with the lower price will generally get more visits and more offers. But that’s not all. If you’re over priced, you can expect potential buyers to give you a low-ball price. You will get more visits and better offers by setting a good asking price up front.

Get all the Contract Agreements before Signing

You need to know how long the contract will last. What is the beginning date? When is the ending date? Review every item of the contract. Don’t be afraid to ask questions. You want to do your homework up front, so you have a good experience during the entire process. Keep in mind that a listing agreement normally last from three to six month. It may vary depending upon the condition of your real estate market. However, don’t expect a good agent to list for a shorter period of time. They really can’t market your home so you get top dollar. See the next item for more details.

Use a Full Time Profession Agent who has a Specific Marketing Plan

Using a full time professional agent will normally generate more net profit to you as the seller. Sometimes agents will agree to list your home for a smaller commission. That should be a red flag, if you want top dollar. Here’s why. Good real estate agents will put their own money into marketing your home. It is not uncommon for them to spend hundreds of dollars during the first few weeks of the listing. They will notify your neighbors. All the real estate agents in the area will be notified. Your home will be put on multiple websites, including the MLS (multiple listing service). Your home will be listed in real estate magazines. Additional signs and free call in information may be set up.

You need to know exactly what an agent is going to do to market your home. Have them put it in writing and keep to the plan. This will give you maximum return for your home.

One more note. You really do get what you pay for. Cheaper doesn’t mean better. Here are some facts to keep in mind:

• Reduced sales commissions translate to reduced showings. Many professional real estate agents will be reluctant to show your home to their buyers.
• To get maximum value for your home, you want as many potential home buyers as possible to see your home. That will drive up the price of the home.
• Research show that homes listed by discount brokers stay on the market much longer and sell for a lower price.

Have your agent explain in detail the Seller Disclosure Laws

Every state is different. The laws that have been enacted cover a wide range of topics. Ask your real estate agent to explain to you those items that you must do to keep the sale of your home completely legal. For example, is a home inspection or termite inspection required? What do you need to know about zoning? If you’ve finished a basement or made an add-on to your home since you purchased it, how does that affect your building code laws? What does your state law say about the working of all major appliances, air and heating systems, etc? Your agent should handle all of these matters for you.

Many states require you to fill out a seller disclosure document. This will ask you several questions about the condition of your home, roof, appliances, etc. You must answer truthfully to exempt yourself from future liability. Although your agent cannot help you complete this document, he/she can answer any of your questions concerning it. This should be done soon after the listing and before buyers begin touring your home. It will simplify the home selling process.

Why should I hire you rather than your competitor?

This is a very good and direct question. A good agent will have a well planned marketing strategy outlined to sell your home. They will make use of current technology so that your home is on the market 24 hours a day and is available to anyone worldwide. Remember, putting your home in the paper just won’t get the job done. Today’s buyers are more sophisticated and expect more. You should also expect more from your agent. You want to attract as many potential buyers as possible.