10 Things You Need to Know Before You Hire An Agent
Not all real estate agents are the same. If you decide to seek the help of an agent when selling or buying your home, you’ll need some important information before you make any moves.
Picking an agent is a critical step that can cost or save you thousands of dollars. There are very specific questions you should be asking to ensure that you get the best representation for your needs. Many agents may prefer that you don’t ask these questions, because the knowledge you’ll gain from their honest answers will give you a very good idea about what outcome you can expect from using this agent. And let’s face it - in real estate, as in life - not all things are created equal. Hiring a real estate agent is just like any hiring process - you are the boss in this situation! It’s critical that you make the right decision about who will handle what is probably the single largest financial investment you will make.
Consider asking the following questions:
1. What makes you different? Why should I list my home with you?
It’s a much tougher real estate market than it was a decade ago. What unique marketing plans and programs does your agent have in place?What makes your home stands out from other competing homes? What things does your agent offer you, that others don’t? How do they plan to help you sell your home in the least amount of time, with the least amount of hassle and for the most amount of money?
2. What is your company’s track record and reputation in the market place?
It may seem like everywhere you look, real estate agents are boasting about being #1, or quoting you the number of homes they’ve sold. If you’re like many homeowners, you’ve probably become immune to much of this information. However, if one agent is selling a lot of homes where another is selling only a handful, ask yourself why this might be? What things are these two agents doing differently? You may be surprised to know that many agents sell fewer than 10 homes a year. This volume makes it difficult for them to do full impact marketing on your home, because they can’t raise the money it takes to afford the advertising and special programs to give your home a high profile. At this low level, they probably can’t afford to hire an assistant, which means that they’re running around trying to do all the components of the job themselves, which means service may suffer.
3. What are your marketing plans for my home?
How much money does this agent spend in advertising the homes s/he lists versus the other agents you are interviewing? In what media (newspaper, magazine, TV etc.) does this agent advertise? What does s/he know about the effectiveness of one medium over the other?
4. What has your company sold in my area?
Agents should bring you a complete listing of both their own, and other comparable sales in your area. This will give you an idea of how well your agent knows the neighbourhood and how to market it.
5. Does your Broker control your advertising or do you?
If your agent is not in control of their own advertising, then your home will be competing for advertising space with an agent’s additional listing and the listings of every other agent in the brokerage.
6. On average, when your listings sell, how close is the selling price to the asking price?
This information is available from the Real Estate Board. This is to verifywether the agent’s performance is higher or lower than the board average. Their performance on this measurement will help you predict how high a price you will get for the sale of your home.
7. On average, how long does it take for your listings to sell?
This information is also available from the Real Estate Board. Does this agent tend to sell faster or slower than the board average? This measurement will help you predict how long your home will be on the market before it sells.
8. How many Buyers are you currently working with?
The more buyers your agent is working with, the better your chances are of selling your home quickly. It will also impact price because an agent with many buyers can set up an auction-like atmosphere where many buyers bid on your home at the same time. Ask them to describe the system they have for attracting buyers.
9. Do you have a reference list of clients I could contact?
Ask to see this list, and then proceed to spot check some of the names.
10. What happens if I’m not happy with the job you are doing to get my home sold? Can I cancel my listing contract?
Be wary of agents that lock you into a lengthy listing contract which they can get out of (by ceasing to effectively market your home) but you can’t. There are usually penalties and broker
protection periods which safeguard the agent’s interests, but not yours. How confident is your agent in the service s/he will provide you? Will s/he allow you to cancel your contract without penalty if you’re not satisfied with the service provided? Evaluate each agent’s responses to these 10 questions carefully and objectively. Who will do the best job for you? These questions will help you decide.
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