|
Top
10 Mistakes Sellers Make
When Choosing a REALTOR®
By Crissie Cudd
Prudential Florida WCI Realty
Selling a home should be like any other business transaction,
but all too often sellers make emotional or impulsive decisions that cost
them money and time. Choosing the right
REALTOR® to market a
property and negotiate the sale is the most important step in the process.
“My friend (or family member) sells real estate.”
Friendship alone isn’t enough to establish a professional’s
credentials. Use tough standards when selecting an agent, just as you would
when hiring an attorney, a doctor, or an accountant to handle your taxes. A
true friend will understand and appreciate that this is a business decision
and will offer their credentials and expect to compete for the listing. Besides, if a problem or challenge develops while selling your home, do you
want to risk damaging a friendship or family relationship?
“Your presentation sounds good. I’ll list right now”
Look at more than one presentation and consider the
advantages and disadvantages of each. Making an impulsive decision when
caught up “in the moment” could be difficult to correct later. Since you
normally contract to list your house with the agent for a specific period of
time, you may find yourself unable to “switch” to another if you find
yourself unhappy with the service you receive.
“You’re the only agent who agrees with my selling price.”
Some agents tell you what you want to hear. In the real
estate profession, this is known as “buying a listing” and is employed by
shortsighted agents who are more interested in themselves than they are in
you. However good it works as a short-term “sales tactic” in getting your
listing, it is an extremely poor strategy in selling a home at the highest
possible price.
You see, your house gets the most attention from other agents
when it is a “new” listing. If priced properly, lots of agents will show it
to their buyers. If you price it too high, no one will show the house and it
will sit on the market for some time. When you finally drop your price to
reflect its real value, your house is “old news” and buyers may think you
are growing desperate. Therefore, the prices you are offered will come in
lower and lower - and you may find yourself accepting a price that is below
what you could have received had the house been priced properly to begin
with.
Besides, pricing your home too high will only make similar
houses for sale look that much better. Overpricing helps sell those houses,
not yours.
“I don’t need references. I’m a good judge of character.”
A snap judgment isn’t good enough. You also need to determine
if the agent is competent and the best way to do that is to check up on
references. Ask for references on recent sales -- check up on references of
recent customers. Find out how an agent’s customers feel about their selling
experience.
Remember that how long an individual has been in real estate
isn’t necessarily all you should look for. Experienced agents can grow jaded
and not work as hard - newer agents sometimes make up with enthusiasm and
effort what they lack in experience.
“I’m going to list with the agent who has the lowest
commission.”
You get what you pay for. Paying a cut-rate commission will
often get you a sign in the front yard and placement in the Multiple Listing
Service, but little additional effort from your agent.
Realize that agents and real estate companies put up their
own funds to market and advertise your home. Marketing and advertising costs
money -- the lower the commission, the less incentive for an agent to put up
his or her own money to market your home.
Incentive plays a very important role in sales. A “full
service” agent earning a full commission will often “drop everything” to
handle any challenges that come along - an agent earning a small commission
does not have that same incentive.
Incentive is also important to the buyer’s agent. Since there
are almost always two agents involved in every sale, they split the
commission according to the listing agent’s instructions. One agent is your
listing agent. The other agent is the buyer’s agent. When your listing agent
dropped his commission, did he also reduce the commission that will be paid
to the buyers’ agent? If so, you won’t find as many agents willing to show
your house - they’ll be showing houses that offer a customary commission to
the buyer’s agent.
Finally, negotiating ability is an important skill in a
listing agent. Are you willing to put your faith in an agent who can’t even
negotiate his or her own commission?
“The agent is what counts - not the company.”
Agents who work for large well-established companies with
lots of agents do have some advantages. Large companies generally have
longer office hours, so someone is always available to answer an ad call on
your home. Large offices often have larger budgets and can spend more on
advertising. The ad space for your particular home might not be huge, but
because the total ad is so large it gets lots more attention.
Large real estate companies often have lots of agents. This
is important because when your house is newly on the market, the company may
stage an “office preview” where every agent in the office comes through and
tours your home. Every agent who views your home and is impressed is another
agent on your sales team.
Additionally, larger companies are often better at offering
ongoing education to their agents. As a result, your agent may be better
qualified and prepared to offer a quality service. Although most states
require real estate agents to enroll in “ongoing education” to keep pace
with changes in the real estate market, many agents only take the “bare
minimum” in ongoing education courses. Sometimes, large offices are better
at convincing their agents to go beyond the minimum.
There are exceptions to every rule, of course. Some very
effective agents go off on their own and open private offices or “boutique”
agencies.
“All REALTORS®
passed the same test so they must know the same things.”
The real estate profession is constantly changing and, as
mentioned above, the best real estate professionals stay abreast of those
changes by continuing their education. Some go beyond the required minimum
requirements. Many agents acquire “professional designations” that show they
took additional specialized courses.
“This agent will hold an open house every week.”
Open houses can and do sell homes, but usually not your home.
Only a small fraction of the homes held open are sold as a direct result of
the open house. More often, “open houses” are a way that real estate agents
“prospect” for potential clients. If they develop a rapport with those
visitors to your open house, they can find out about their housing needs and
sell them the home that most closely matches those needs. Meanwhile, the
person who eventually buys your home may be visiting someone else’s open
house.
Good agents know better than to pin all their selling efforts
on an open house. They use their time in more effective marketing methods.
The most effective marketing is not directly to the public, but to other
agents. By getting other agents interested in your home, your listing agent
multiplies your sales force beyond just one individual.
“I want an agent who lives in my neighborhood.”
Knowledge of the local market isn’t only acquired by living
in the immediate neighborhood. Sure, your agent should have intimate
knowledge of recent sales, models, schools, businesses, and so on, but that
is easily achieved through extensive research. Convenience shouldn’t be the
primary reason for choosing an agent.
“This agent sold more homes last year than anyone else.”
That should only be the beginning. What is more valuable --
an agent who listed 32 homes and sold 25 - or an agent who listed twelve
homes and sold all twelve? So you need to ask some questions. How many of
their listings did not sell? How many were reduced over and over before they
sold? How long were the houses on the market? How smoothly was the process
handled? How accessible was the agent when there were questions or problems?
Quantity is important, but only if all of the quality
questions have been answered satisfactorily.
Conclusion
The best agent is the one who will do the most effective job
of marketing the property, negotiating the most favorable terms and
conditions, and communicating with the seller to make the process as smooth
as possible.
Click here to send this article to a
friend
|
