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.
Click
here to see why Raza Mohammad is the
right agent for you!
