10 Important Questions To Ask Your Real Estate Agent

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 this agent have in
place to make sure that your home stands out favorably versus
other competing homes? What things does this agent offer you that
others don't 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 for this or that, 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. After
all, you ask, "Why should I care about how many homes one agent
sold over another. The only thing I care about is whether they
can sell my home quickly for the most amount of money."

Well, because you want your home sold fast and for top dollar,
you should be asking the agents you interview how many homes they
have sold. I'm sure you will agree that success in real estate
is selling homes. If one agent is selling a lot of homes while
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. Also, 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.

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 not only with
this agent's other listings, but also with 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. Is
this agent's performance 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? Their performance on 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?
Obviously, 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.

All About Real Estate Agents

Real Estate Agents.....

Who Are They...

Real estate agents are professionals instrumental in connecting the buyer with the seller.
Additionally, many real estate agents manage rentals wherein they introduce tenants to landlords and oversee the maintainance of the property on behalf of the landlords.
In most areas real estate agents are required to be highly educated, licensed and are regulated by a governing body.
Some real estate agents are also Realtors.
To use the title Realtor, a real estate agent must be a member of the National Association of Realtors which in addition to a number of other requirements, requires Realtors to adhere to a strict code of ethics and offers Realtors additional educational and designation opportunities.
Though not required by rule or law, it might be a wise decision to seek the services of a Realtor.


What Do They Do....

Real estate agents bring together two or more interested parties, perform those steps necessary to successfully conclude a transaction and charge a commission for their services.
For sales transactions, they charge commission to the seller while for rentals, commission is typically charged the landlord.
Real estate agents generally calculate their fee as a percentage of the selling price (in the case of a sale) and as part of the rent for rental units.

How Do They Do It...

People who want to sell or rent their property leave details of their property with the real estate agent.
Along with all property details the real estate agent will typically have keys to the house to facilitate showings.
The other interested party (i.e. the buyer/tenant), gets access to this information and to the property by contacting the real estate agent.
That's how the real estate agent becomes a hub of information.
Contrary to some common misconceptions, real estate agents typically represent the seller or the buyer but rarely both.

Why Should I Use One...

First and foremost, to protect yourself. Real estate transactions are highly regulated, highly paper (document) intensive transactions.
The real estate agent possesses an in depth knowledge of the laws, rules, regulations, disclosures and documentation necessary to successfully complete the transaction to the satisfaction of the buyer, the seller and the law.

Because real estate agents are most familiar with local real estate market conditions, it is wise and makes sense to seek the advice of one to get an idea of the current trends and pricing for properties within that market.
A good real estate agent will know the prices (or price range) of various properties of different types and at various locations within the region.

Because of the real estate agent's knowledge and expertise, property sellers often get a few thousand dollars more for their property.

Many home seekers, including seasoned real estate investors use the services of real estate agents to locate the best real estate bargains in the easiest and quickest manner.

Furthermore, the best agents analyze the wants and needs of a home buyer/tenant and provide valuable input as to the kinds of properties available to them within their budget. Therefore, a good real estate agent will not just present a list of available properties to the buyer/tenant but will actually discuss their needs and make suggestions.

The good real estate agent, working in this manner benefits in at least two ways...
First and most obviously, when the real estate agent is able to successfully complete the transaction the commission is earned and the real estate agent is paid...
and secondly, if they make the customer/client happy they earn a good reputation and often receive referrals (hence more business).

Worth Noting...

It is worth noting that there is a myth floating around that real estate agents only work on behalf of the seller, buyer beware.
This is not written in stone nor is it always the case. Real estate agents are, in most regions, highly regulated.
With few exceptions, real estate agents work either for the seller (as is the case with many listing agents) or for the buyer (as is the case for a buyer's agent).
Additionally, some areas allow for dual agency where an agent can work for both the seller and the buyer or as a transaction broker where the agent represents the transaction itself and neither the seller nor buyer individually.
However, in the case of dual agency/transaction brokerage, note that rule, regulation (law) and ethics do not permit the agent to act in favor of either party while in detriment to the other.
If you are unsure of the relationship between you and your real estate agent, do not hesitate to ask.