There are a number of reasons why someone may consider listing their home for sale. Some of the principal reasons include job relocation, downsizing after the children have grown, upsizing when the family is growing or right sizing to have a more manageable home to take care of. Retirement relocations are growing rapidly with the baby boomer generation seeking homes in a warmer climate. People may also be driven to consider selling their homes due to divorce, the death of a spouse or due to financial problems. The investor community is also listing and selling homes as they reach their Return on Investment (ROI) objectives, reduce inventories due to market conditions and other financial considerations.
Once a decision is reached to list a home it is vitally important to select the right real estate broker and equally important the right real estate agent. For most individuals, selling their home is the largest or one of the largest single financial transactions they will ever engage in. So how does one go about identifying the best broker and best agent to list their home with? Depending on the market one lives in there will be huge variations in the number of possible choices. Generally speaking however there are always far more agents in a given market then houses to list. The real estate boom over the last few years has attracted a seemingly endless flow of new realtors entering the market and over 85% of this same group exiting the market during their first year of business with more failing during their second year. So why such a high attrition rate when the real estate business is booming and everyone is making a bundle? Firstly and contrary to popular belief, the real estate business is not easy. Listing and selling homes takes a lot of expertise, knowledge and experience. Listing and selling homes successfully involves more than writing the listing contract, taking a few pictures, placing the listing in the local Multiple Listing Service (MLS) and running an advertisement in the weekend newspaper.
Here are questions anyone listing their home should ask before making a decision to list with an agent.
How long has the agent been licensed and how many homes have they listed and/or sold over the past 12 months?
How long has the agent’s broker been in business in the area and their general reputation?
What is the average “days on market” for the area where the home is located and what is the experience of the agent in the area?
Does the agent work primarily on obtaining listings and leave the selling to others, primarily sell listings from other firms/agents and leave the listing of homes to others or do they strike a balance between the two?
Where does the agent live and does the agent know the area the home is located?
Is the agent available during the evenings and weekends for showings, discussions and negotiations?
What will the agent’s marketing plan for selling your home be? Newspaper advertising (size of ads, frequency and which newspapers and magazines)? Which MLS systems will the home be placed in? Does the agent maintain an internet website and will it be used to help market the home? Will the agent accompany agents showing the home?
Will the agent produce a comparable market analysis (CMA) and provide a realistic recommendation for a selling price range?
How often will the agent provide updates on activity including number of showings, feedback from other agents, recommendations to enhance the desirability of the home?
Ask the agent to describe their experience when negotiating a contract for sales and purchase of a home.
When selecting a real estate broker and agent to list and sell your home, consider meeting with agents from 3 different brokerages and one or more agents from each brokerage where you have narrowed down the firm but want to select the most appropriate agent to work with.
As in any business, success and experience of the agent you are working with is an important consideration when selling your home.
