Selecting Successful Real Estate Agents

Tips for selecting a real estate agent that is right for you and your house

In real estate, experience counts. That's a lot more to selling a house successfully than just putting out a For Sale sign and having an open house. You want someone that has experience in selling houses like yours, in your neighborhood. In fact, that's the number one criterion: selecting a real estate agent that is a "selling" agent, not a "listing" agent.

Ask the agent how many listings they've had in the last year and how many sales they have had. You want an agent with more sales than listings.

You want someone with a verifiable track record in your area. Someone with a great track record on the east side of town, is less likely to have a good track record on the west side of town.

You want an agent that is easy to work with. This is very important. An agent should return your calls and be reasonably available, and keep you posted on what is happening regarding your house. Ask for several references from recent past clients that you can call.

If someone you know has used this agent and liked them, that is a positive, but should not be the guiding decision maker.

Interviewing prospective agents

Interviewing is a good way to find an agent to represent you in a real estate transaction, if you don't already have an agent with whom you have a good working relationship. It's a good idea to make a list of questions to ask the agents you interview so that you don't overlook anything. Here are some questions you might consider before asking a prospective real estate agent to represent you.

• Do you work as a full time Real Estate Agent?

• How do you normally market your property? What's your opinion on Open Houses?

• How do buyers normally contact you?

• How many properties have you sold within the past 30 days? 90 days? 6 months?

• Do you have a list of references that I may check?

• What is my property worth?

• What listing price do you recommend? How did you arrive at that price?

• How will you assist in my relocation plans?

• Do you have a written Marketing Plan designed to sell my property quickly and for top dollar?

• Do you guarantee my satisfaction by allowing me to exit the listing agreement at any time, if I am not happy?

Be sure to ask the agents if they have any vacations planned during the time you plan to be working together. Agents, like all of us, are entitled to take time off. But, unlike other businesses, an agent's work isn't automatically covered when the agent is gone and you certainly don't want your property going on the market just before your agent heads off for Bermuda.

If the agent you are interviewing does not answer the above questions to your satisfaction, you should probably find another who does! Also look for red flags concerning the initial interview. For example, if the agent shows up late, doesn't return your phone calls, these might be red flags signaling you should look elsewhere.

In looking for an agent, you should probably interview 3 agents if you don't already have an agent. Talking with more than one agent gives you a basis for comparison. But, if you bought or sold a home recently and had a good working relationship with your agent, you may want to consider using that agent again. Make sure the agent is experienced in the area where you want to buy or sell this time.

During the face-to-face interview with the prospective agent, listen. You'll never find out about the prospect if you do all the talking. Can he sell you on himself? Do they seem to have a passion for selling, or are they boring. Look at them using the eyes of a prospect and how they will likely react to your representative.

Once you're comfortable with your selection, ask them to specifically describe their marketing plan they would implement in selling your property: newspaper, flyers, internet, open houses.

Go through at least 2 interview sessions with possible agents

Checking references

Any agent that isn't brand new, will have a list of references from previous clients. Make sure you contact these people to get their opinion. Be sure to ask what they liked and didn't like about working with the agent. Remember, everyone will have different opinions about the same subject and just because an agent has some qualities that a client found bothersome, they may have other features that are just as important or even more important. It's very difficult in life to find that perfect person.

The goal is to find a qualified person, with traits that fit your personality and goals. Selling a house can be right up there on the list of the most stressful things in life. Find an agent that you can trust and have a good rapport. But remember: the ultimate goal is to get your house sold for the most money as fast as possible-- not to become best buddies.

Pricing comparisons

When you do interview prospective real estate agents, one of the things they will do is suggest a selling price. This is obviously an important part of the process and where you have to be careful.

Let's say that of the 3 prospective agents you interview, 1 of them suggests a really great price that you would be thrilled to get. Is this agent the one to go with?

Here's a few points to consider: just because a real estate agent suggests a price, doesn't mean that price is what you will get. House buyers are not stupid and they probably have done some homework. That means they've looked at the comparables too!

But why would an agent knowingly suggest a too high listing price? Because this agent may be an unethical agent (yes, as much as I hate to admit it, there are shady characters). This unethical practice is called "buying a listing." The agent suggested that you could sell your house for much more than the comparables for your area knowing full well that your house would never sell at that price. Oh, he'll list it at that price and leave it there for a while, but when there are no offers coming in, he'll tell you the market has suddenly gone bad and what you need to do is drop your asking price. That will make everything better.

In no time, your asking price is actually lower than the other agents first suggested. But the difference is that your property has become shop worn. That is, it's been on the market for a long period of time and hasn't sold. Those are sticking points for home shoppers: Why hasn't it sold? What's wrong with this property?

So the caveat is: beware of agents bearing gifts in the form of high asking prices. Also, don't be greedy by forcing an agent to list your property for more than what his experience tells him it is worth.

Signing the Listing Agreement

Once you decide on an agent, they will present you with a Listing Agreement. This is a stock form, and he will tell you that it is what the company insists on using. However, you will want to made some additions/changes to this agreement BEFORE you sign it.

• Limit the listing agreement to 90 days in a good market, and 120 days in a poor market. They will insist on a 180 day listing, but that is not in your best interest, especially if the agent doesn't perform as expected.

• Insert a Buyout Provision that lets you buy out the listing agreement in the event you produce a buyer of the house on your own. You cannot ethically advertise the property yourself when you have an agent, but if one happens along and you can close the deal through your own contacts, then there is no reason to pay a full commission. Set up a possible schedule, for example if you find a buyer within the first 45 days, you'd pay the agent $750 and $1000 if you find a buyer in the last 45 days.

• Offer an attractive selling bonus for fast results. For example, if the agent can sell the house in 30 days, offer him 8%, and 7% in the second 30 days, and the last 30 days they get their regular 6%. There is no percentage after 90 days because you will be changing agents at the end of the agreement period.