|
Useful
reading...
5. What professional courses and designations has the agent
completed?
Real
Estate Tip: The
letters after the real estate name may be an indication that
he or she has upskilled rather than just being content to
just take the courses needed to get and maintain a real estate
license.
Designations include:
ABR (Accredited Buyer Representative), ABRM (Accredited Buyer
Representative Manager), CLHMS (Certified Luxury Home Marketing
Specialist, CRP (Certified Relocation Professional), CRS (Certified
Residential Specialist), e-PRO (a training program presented
entirely online).
Some of these real
estate designations require memberships in organizations,
with annual fees. Most successful real estate agents devote
time (and money) to continuing education. The more the real
estate agent knows about the laws and practices affecting
your real estate transaction the better. A real estate agent
who has upskilled may have the advantage of the latest marketing
strategies.
6. Does
the agent work full-time?
Real
Estate Tip:
It is important to find an agent that will be serious about
helping you and have the time available to put in the required
effort when needed. That doesn't necessarily mean that the
agent needs to work full time, but he or she certainly needs
to be available and able to complete the transaction that
benefits his/her client. If you are dealing with a new agent
seek reassurance that he/she has adequate supervision from
an experienced brokerage office manager.
7. Does
the real estate agent have good negotiating skills?
Real
Estate Tip:
Often, negotiations on a price and conditions go back and
forth several times before a deal is made. Will the agent
look for the quickest or easiest solution, or will he or she
strive to get the best deal for you (the client), even if
that means putting in extra effort. Ask if the real estate
agent will let you contact the last three or four home buyers/sellers
that the agent represented.
Useful reading...
8. What
will the real estate agent do for you?
Real
Estate Tip:
The agent you hire should demonstrate what actions he or she
will take to help you reach your goals. The important thing
is that the agent needs to understand what you want when buying
or selling a home and be able to represent you well to the
other parties involved in the transaction.
For this reason
a good agent is usually a good listener and a good communicator.
That is not to say that the agent should always agree with
you. A good agent will be prepared to speak his or her mind
and needs to be positive, honest and realistic.
Real
Estate Tip:
When asking what an agent can do for you, look carefully at
answers relating to communication and negotiation skills,
personal commitment, and access to resources.
Useful reading...
9. What does the agent want as a minimum listing period?
Real
Estate Tip:
Most real estate agents want a minimum 90 days listing term.
They will say that they need that amount of time to do justice
to the marketing of the property. The agent will have access
to statistics on the average number of days the local multiple
listing service (MLS) says it takes to sell homes in your
area.
Although 90 days
is common, some agents will try to lock you in to a six-month
listing contract. Such a long listing contract is not usually
necessary or desirable unless it includes an unconditional
cancellation. You could compromise and agree to the unconditional
cancellation clause taking affect after perhaps 60 or 90 days.
Real Estate Tip:
If the agent insists on a long listing term, because that
what is needed to sell the home, you might want to question
whether or not you are signing with the right real estate
agent. If that is how long it takes the "average"
agent to sell a home in your area, do you want to list with
an "average" agent, or would you better better off
with an agent that can do better than "average."
Ask the agent if he or she considers themselves to be "average."
10. What
systems does the agent have in place to keep in constant contact
during the listing and the transaction?
Useful
reading...
11. What is the fee structure?
Does the agent require a percentage of the sales price, does
he/she work for a flat fee, or will the agent be paid by the
seller (if you're the buyer)?
Real
Estate Tip:
Real estate fees are generally negotiable. Typically, real
estate agents charge a percentage, from 1% to 4% to represent
one side of a transaction: a seller or a buyer. A listing
agent may charge, for example, 3.5% for him or herself and
another 3.5% for the buyer's agent, for a total of 7%. Real
estate is a competitive business so don't be afraid to negotiate.
And remember, the lowest price is not always the best value
for money.
Real
Estate Tip:
Remember to negotiate the listing period. You don't have to
list for three months or six months. Although you don't want
to be changing agents every time the going gets tough, you
also don't want to get stuck with a bad agent.
12. What
is your best marketing plan or strategy for my needs?
Real
Estate Tip:
- As a seller, you will need to know:
- Specifically, how will you sell my home?
- What are the details of the proposed marketing campaign?
- Will you show me a sample flyer or mailer?
- Where and how often do you advertise?
- How do you market online?
- What price should I list the property at?
Useful
reading...
Real Estate Tip:
Don’t sign with an agent just because he or she suggests
the highest asking price. When listing a property for sale,
agents and brokers should compare the listed property with
similar properties that recently sold, in order to determine
a competitive market price for the property.
Real
Estate Tip:
- As a buyer, you will need to know:
- How will you search for my new home?
- Will I be competing against other buyers?
- How do you handle multiple offers?
- How many homes will I likely see before I find a home I want
to buy?
- Do you present offers yourself?
Ask the agent how
he or she will protect your interests and why you should hire
them rather than another agent?
13. Why
should I list with you rather than any other real estate agent?
Listen carefully to the substance of the answer. Look for
honesty and genuine commitment.
Real
Estate Tip:
- Also ask the agent -
- What is your average market time vs. other agents' average
market time?
- How would he or she establish a price?
- How would the agent market the property?
- How often will the agent be in contact with you?
- What references can the agent provide (both personal and for
the company he or she works for)? Number of sales is important
but so too is personal and company reputation.
14. How
many homes has the real estate agent listed and sold in the
last 12 months?
Real
Estate Tip:
Watch out for the real estate agent who has dozens of listings
and two or even three office assistants. Is he or she just
playing the numbers game? Does this agent work on percentages,
knowing a volume of listings will result in a certain percent
sales? Is it a case of quantity v's quality?
If the agent is
just looking for another listing to add to the volume, how
can you be sure your listing won't get neglected? Don't get
me wrong, there is nothing wrong with an agent having several
listings, it is really a matter of being reassured that your
property will be a priority.
Real
Estate Tip:
As an example, the most successful listing agent in town might
employ 6 assistants. This could explain why he or she is the
top sales agent in the entire county.
Before deciding
on a particular agent ask, "What percentage of houses
listed by the agent sold in the last 12 months?"
15. Will
the real estate agent help you find other professionals?
Real
Estate Tip:
Many real estate agents will have a list of professionals
you can consult with. When arranging any legal or financial
transaction you may already have a list of professionals who
can help you. You may be best to consult with the professionals
that you have previously had dealings with as opposed to finding
new contacts.
If you don't
already have a list of professionals to call on, your real
estate agent should be able to supply you with a list of professionals
including: mortgage brokers, home inspectors and title companies.
If you see the
term "affiliated" it could mean that the real estate
agent, or his/her broker, is receiving a comission from one
or all of professionals. Although this is not necessarily
a bad thing, you need to determine whether or not you are
paying a premium for the service in order for the agent to
be compensated. You also need reassuance that the professional
is competitive, independent of the other party and capable.
Ask the real estate agent to explain why he or she recommends
these professionals.
Useful
reading...
Related Articles:
© Noel Peebles,
Market Leaders ebooks.
|
