Selling your home? How to find the best listing agent
Remember the jitters you felt when you bought your first house? Get ready to feel them again if you鈥檙e planning to sell your home. One of the best ways to聽keep your sale on track and take the pressure off your shoulders is to hire an experienced real estate agent.
When you sell your home, you want to get the greatest possible聽return on your investment and find the most qualified buyer. Marketing, showings, negotiations and closing must be handled聽in a short time frame; you might聽not want to tackle all that聽on your own.
With so many different real estate brokerages and agents out there, it can be hard to know whom to trust. Here are tips and interview questions you should ask potential agents before choosing one to聽list your home.
Get referrals from people who have worked with the agent
Word-of-mouth referrals are great, but not everyone who sends a name your way has actually used the person to . Ask the person who鈥檚 doing the referring if he or she worked with the聽agent, says Tom Salomone, president of the National Association of Realtors. A referral doesn鈥檛 hold a lot of weight if it can鈥檛 accurately convey an agent鈥檚 quality of work, communication style or manner of聽treating clients and other people in a transaction.
Interview at least three agents
You wouldn鈥檛 settle for just one bid if you were renovating your kitchen or getting a new roof, right? Likewise, you should interview at least three agents in person to see聽whether you feel comfortable with them, Salomone says.
Zach Finn, an independent real estate agent in Fort Lauderdale, Florida, agrees. You don鈥檛 want to default to聽a popular brokerage or the first agent you find on Yelp; do your research, Finn says.
鈥淭he fact is, having a license doesn鈥檛 make you a real estate expert,鈥� Finn says. 鈥淢any people make the mistake of going with the first agent they meet or hear about.鈥�
Look at productivity and education
Some agents have plenty of experience and happy clients to their credit. Some, however, haven鈥檛 closed a deal in years. Research credentials online and make sure agents you鈥檙e considering聽are licensed to practice in your state. When you visit an agent鈥檚 website, check the number of current聽and聽recently sold listings.
Real estate聽agents can earn professional designations conferred by trade organizations, such as the聽聽or other groups. While there are plenty of good real estate agents who don鈥檛 have these designations, extra training shows a commitment to learning best industry practices and delivering top-notch service.
Ask the right questions
When you interview potential , it鈥檚 important to be prepared with a list of questions. You want to see if someone is qualified and has the right experience not only to market your home, but to get it sold as quickly as possible and for top dollar. Ask each agent:
- What are the comparable listings in my neighborhood?聽If an agent you鈥檙e interviewing doesn鈥檛 have a list of comparable homes that have sold in your neighborhood on hand, that鈥檚 a huge red flag, Salomone says. Comparables (called 鈥渃omps鈥� in the industry) are the pillar for determining your home鈥檚 value and deciding on an asking price. A well-rounded comparative market analysis will show current listings and聽homes聽sold in the past three to six months that聽are similar to yours in size and amenities.
- What do you think my home is worth and why?聽During a listing presentation or before it, most agents will ask to walk through your home so they can take notes and see what they鈥檒l have to work with. It also helps them crunch numbers against the comps to provide you with an asking price they feel is in line with market conditions and your goals. You might have an asking price in mind, but your agent might not agree. 鈥淚t鈥檚 important to have an agent that will support your decisions but is also willing to tell it like it is,鈥� Finn says. 鈥淭he right agent will challenge your idea and perception of an inflated market value and try to set realistic expectations.鈥�
- What would聽your marketing plan for my home include?聽A good real estate agent will have a robust plan to promote your listing in an effort to find the right pool of buyers. 鈥淛ust listed鈥� postcards, open houses, virtual tours, professional photography and/or broker tours for buyers鈥� agents (particularly for luxury homes) are all factors that may go into a marketing plan. Ask for examples of marketing materials and聽scope out agents鈥櫬爓ebsites to see how they promote their listings.
- Are you a full-time real estate agent, or is this a side job? This question is crucial because selling real estate requires full-time effort and shouldn鈥檛 be treated lightly, Salomone says. 鈥淵ou don鈥檛 want to hire someone who can鈥檛 take calls on your home and show it during the week because he or she is working 40-plus hours somewhere else,鈥� he says. Ask agents how long they have been selling real estate and how many listings they鈥檝e sold recently. If someone hasn鈥檛 closed a deal in several months, that鈥檚 a reason for concern.
- What is your commission rate?聽The typical real estate commission is about 6%; oftentimes, the listing agent splits that amount with the buyer鈥檚 agent. Some agents might be willing to negotiate their commission, but don鈥檛 count on it. After all, you鈥檙e paying for a professional service. Leave the commission question for last, but聽make sure you understand how much you鈥檒l be charged for a real estate agent鈥檚 services聽鈥斅燼nd what exactly is included.
Next steps to hire a聽listing agent
Once you鈥檝e met with a few agents and found聽one you click with, you鈥檒l likely sign a listing agreement in which you agree to a certain term of service at a set commission rate. Typically, contracts range from 90 to 120 days, assuming it will, on average, take about 40 to 60 days to get from listing stage to an accepted offer. Keep in mind, though, that this timeline could be shorter or longer,聽based on local market conditions.
Now that the tough part is over, relax and let your real estate agent take the wheel. Make sure to keep the lines of communication open with your agent聽so you know聽what鈥檚 happening with your home. Happy selling!
Deborah Kearns is a staff writer at NerdWallet, a personal finance website. Email: dkearns@nerdwallet.com. Twitter: . This article first appeared in .
