Mistake #2

Choosing an Agent Based on Price.

I may ruffle some feathers here, but this is a solid point and it needs to be considered. There are reasons Sellers choose an Agent based on price and it usually is because they want more money for their house and if an Agent "tells them what they want to hear" they jump in thinking they will get that price. They usually don't get that price and end up sitting in the market, getting price reductions signed, time wasting, locked in a contract and then blaming the Agent for telling them that price in the first place, but let's be honest, it was what they wanted to hear.

Now, the fault doesn't completely lie with the seller, after all they are relying on the Agent to give the correct assesment of market value, and to be sure most Agents do, only to be told by the Seller that they "want to try it higher for awhile".

However, there are some Agents who simply want listings, as they generate a locked in contract, calls on signs, buyers for other property and the flashy listing price "seals the deal."

As a Seller it is a good idea to interview Agents and never make your choice based on the price they tell you. Ask them the following  questions and note their answers, then review it after the excitement has worn off so you can make a logical choice.

1. How many years have you sold real estate?

2. How may homes have you personally sold?

3. What percentage of clients do you work with? (EX: 30% buyers, 70% sellers etc... Some agents prefer one over another.)

4. How many homes have you listed this year? Is this a figure for you personally or do you have a team of people that also list?

5. How many of those homes have sold?

6. How do you come up with the price? Is it based on recent sales, price per square foot, or other active (but unsold) homes?

7.  Why do you work for the company you are under?  ( this will tell you alot about their personal choices, convictions, focus and if real estate is a serious occupation for them. Some Agents have p/t jobs elsewhere.)

8. Do you have another job in a different field? If they do and you hire them keep in mind that their attention to your listing is going to be split.

9. What are your thoughts on home staging? ( ask this question because it will show you if they are current on what is changing in the real estate market)

10. Do you text, scan, email or call your clients? This will also tell you alot, not only for your communication with them, but also to know if they are in 2011!! There are many Agents who do not scan emails or text...even today.

11. Do you work in a team or alone?

12. What kind of marketing do you do to sell my house?

13. Do you pay for a professional home staging consultation? Have you taken any Home Staging Classes yourself?

14. What are your thoughts on a pre-listing house inspection?

15. Do you have your own website?

16. Do you upload recent listings weekly?

17. Do professional photos get taken of my house as part of your marketing?

18. What is your commision? How does that commision help sell my house? Will people even look at my house if there is a low commision being offered? (It's important for you to know that commision is negotiable, however, it is ALSO negotiable UP. Consider adding a bonus to your commision, or even a higher percentage.)

19. What do you offer for this commision? (get beyond the basics of putting it on mls, running ads, open houses....that should be standard, and there should be other marketing tools they use to help sell your home.

20. And finally ...."What price is best for this property?"

There are many other question you will ask during this process and do not be afraid to ask all of them. Remember you are hiring them and they are on a job interview. If you feel pressure to rush through these questions or are not getting the answers you need, then reconsider if this Agent is right for you. Agents who are serious about Real Estate will be able to hold their own in this interview and if you hold your own you will come out with a good Agent and a sale, and a working relationship that will last you for years to come. Agents who are serious about real estate will see you as a person, not a number and they will respect your questions, answer them and be honest with you.

For more information on Preparation for Staging and Selling see www.stageandsell.ca or call us at 780.452.4527 

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Copyright© 2012 by Jill Gargus.