Thinking about selling your home and need to find a Realtor to represent you? Here are 5 tips that might help you make a wise decision.
1. This is business, not personal
Selling a home can be tough these days. The market is challenging and you need someone that is up to the task. Use a full time professional with a proven track record. You might feel compelled to use a family member or friend who has not sold a home since 2005 but don’t do it. This may be the largest transaction of your life so make it a business decision. If you don’t do it initially you probably will down the road when they don’t sell it.
2. Get a referral
Ask your friends and family members to refer you to a Realtor. Someone in your sphere of influence has probably used a good Realtor. It is best if they have used them first hand.
3. Interview 3 Realtors
Most Realtors hate this one however competition is healthy. Meet with the Realtors and have them do a listing presentation to you. This usually consists of their marketing plan, backgrounds, background on their brokerage and a valuation of your property.
4. Is the highest producer the best?
Don’t assume that the highest producer is the best Realtor or gives the best service. Would you rather work with a good Realtor who has 40 listings or a good Realtor that has 10? You probably will end up with better service with the Realtor that spread between only 10 listings. That is not always the case but this is what you can uncover when you interview them. The biggest producer may sell ten homes between $2 million and $3 million a year. If your home is worth $300,000 would you rather use that Realtor or one who sells twenty homes a year priced between $300,000 and $400,000?
5) You get what you pay for
I want to save money just like the next guy. However, this is one time where you may not want to be cheap. I am not knocking discount brokerages but usually it does not work out well. If you talk to a person who used a discount broker they generally don’t have good things to say.
From the outside it appears that Realtor make way too much money. 6% of $400,000 is $24,000. That is a lot of money. However, when you break it down and spread it around it isn’t as much as you think. That commission is usually split between the listing agent and selling agent. They have to split with their broker. Brokers have to pay their staff, rent, advertising, light bill, utulities, etc. Promoting your listing to find a buyer costs money so there are expenses like photography, advertising, direct mailers, signs, websites etc. The agents belong to a Realtor Association. That is an expense. To promote the listing on the MLS we have to pay dues to access the MLS. The expenses go on. Realtors probably don’t make as much money as you think.
If you want to pay peanuts you usually end up working with monkeys.
Marc Rasmussen
Realtor in Sarasota, Florida
{ 9 comments… read them below or add one }
You have made several good points Marc.
May I add that discount brokerages only work in a “Sellers” market and we are definitely not in that cycle. Buyer’s Agents tend to look at commission structures prior to showing homes to a prospective Buyer and will generally avoid discounted commissioned listings if possible.
In today’s market, Agents for both the Buyer and Seller work extremely hard for their clients and commissions IMHO.
~Mack
It has been a long time since I was in Las Vegas! Your comments on finding a good Realtor apply also to those serving the buyer’s market. Related to the listing presentation, I am blessed to work for a company (Sky Realty) that believes in training its agents to use the internet to build our businesses. Part of what we learn is how to market our listings so they can be found by potential buyers. You are also correct about the costs associated with being a Realtor.
Very good list of things to consider. I would possibly add or ask for their average days on the market compared to their competitorsto truly see if they have an advantage or are better. Also it would be nice if the realtor provided examples or already had rough drafts of the amrketing materials they were going to use on the home for sale. Just my 2 cents.
Sacramento Property management
I couldn’t agree more with #4. I would rather have someone work with a newer, but smart, hard working and determined than a mega-agent. Sometimes I think the mega’s time can become diluted.
I went on a home tour for agents where one of the mega realtors got lost finding her own listing and I live in a fairly small town. You talk about overload.
Good posts one and all… I think more folks should know that all licensed real estate agents are not Realtors ..Realtors® are sworn to a Code of Ethics to uphold and it becomes a part of their personal integrity.
I like your tip list. A seller needs to explore his options and not “settle”. These are some great guidelines to follow.
Good information, Marc. I was talking with an internet prospect the other day who said that she had a Realtor who a friend of a friend of her son had recommended. I could hear the disappointment in her voice and told her that there is a better criteria for choosing a Realtor. After I told her about my years of experience and expertise in the area, I now have a new Buyer Client. We cannot be shy about our value.
Great list and thank you for pointing out where the money goes. Many sellers fail to realize where the commission goes.