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10 IMPORTANT QUESTIONS TO ASK YOUR REAL ESTATE AGENT
Category Market Advice
Property transactions are complex and take several months from start to finish, so it's essential that you choose the right agent to handle the sale of what is probably your single largest investment, but many homeowners don't know what to ask realtors when they are looking to appoint one.
Your choice of real estate agent matters more than you think and it's not only a matter of appointing the "best" agent, it's also very important to find one who is the right fit for you.
Most people ask a few generic questions and make sure they have a "good feeling" about an agent but, although it's important to feel comfortable with the person who will be handling the transaction, there are other equally important factors to ascertain.
Your choice of real estate agent can literally make or break your sale, so the best approach is to treat it much like a job interview - and to do your homework.
The first step is to find out which of the agencies are most active in your area, determine their national (and international) reach and what type of properties they usually handle etc and then interview the agents who most stood out in your top choice of agencies.
The following questions will draw out what you need to know to make the right decision:
- How many transactions have you done in the past 12 months?
This will depend on where you live and whether it's a small town or big city, but generally speaking if an agent has only handled one or two sales in a year, it probably means they're not successful or are only working part-time.
Either way, it's possibly an indication that the agent is inexperienced or not up to speed with in your local property market and it's probably best to look for another one who is closing more deals.
- Do you have referrals from past clients?
Agent with experience should be able to refer you to previous clients they've dealt with and contacting one or two will give you an idea of the agent's strengths and potential weaknesses. You can also do an online search to see if they've received any reviews.
- What's your availability like?
One expects successful agents to be busy, but not too busy to have time to take your calls and answer questions, to bring potential buyers to view your house without too much delay, host a show house day, communicate with the other parties in the transaction and also timeously review paperwork.
- How will we communicate and how often?
You need an agent who will communicate regularly with updates and to respond quickly to your questions as they arise. You want a proactive agent who'll notify you as soon as there's news - whether it's good or bad.
Also ask agents what methods they'll mainly use to communicate with you (phone, text or email) and how frequently you can expect to hear from them.
- What's your marketing strategy?
Marketing is key. It's what can drive higher demand and an experienced agent will already have a marketing plan in mind when they come for the interview. This should include a wide range of platforms and they will also have professional photographers and videographers on hand and will be able to offer a virtual tour.
- What are my home's best features?
No matter the age, state or size of a property, every home has positive features that an agent worth their salt will quickly recognise and will know how to best highlight them when marketing the property.
- Do you have suggestions for increasing the selling price?
The appearance of your home will have an effect on how fast you sell and for how much and it's therefore always advisable to make sure your house is in tip top condition and to carry out a few necessary repairs before you put your home on the market.
However, be wary of an agent who suggests major work such as a complete kitchen revamp because it's very easy to over-capitalise at this stage. An experienced agent will suggest things like a fresh coat of paint, sprucing up the garden and fixing anything obviously broken like a leaking tap or chipped front door.
- How did you arrive at the listing price?
Every home owner obviously wants the best possible return on their investment, but the highest valuation is not necessarily the right valuation and over-valuing a home is likely to result in the property selling for less than it should have after a longer period on the market.
Every real estate agent will tell you what they think you should list your home for, but the "how" is much more important and a good agent understands how to build a competitive pricing strategy, can clearly explain how they got to the number and isn't afraid to push back and tell you the truth.
- What's your cancellation policy?
Like a marriage, one never anticipates a split but there may come a time that you might need to part ways with your agent so it's best to know what your options for cancelling a contract are before you sign one.
Technically, a listing agent doesn't have to cancel an agreement if they haven't violated any of its terms, but most agents would rather protect their reputations than force a client to remain locked in an agreement and therefore might only charge a cancellation fee to recoup some of their upfront marketing costs.
- What sets you apart from other agents?
Any real estate agent could claim to be the best local agent, and that may be the case but, if so, they should have at least one good reason and these include:
- The fact they live in the neighbourhood;
- They've sold more properties than any other agents in the area;
- And have more than one or two client referrals to share with you.
When you select the right agent for you, not only are you likely to sell your home faster and at the best possible sale price, you will also have the peace of mind of good guidance along the way which makes the selling process much less stressful.
And by asking these questions when interviewing prospective estate agents, you'll put yourself in the absolute best position to ensure you're choosing the right person to sell your home and someone who is the right fit for you.
Author: Lew Geffen Sothebys International Realty