10 Things You Need to Know Before You Hire an Agent
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(Medford, MA) Not all real estate agents are the same. If you decide to seek the help of an agent when selling or buying your home, you need some good information before you make any moves.
An agent can cost or save you thousands of dollars
Picking an agent is one of those critical issues that can cost or save you thousands of dollars. There are very specific questions you should be asking to ensure that you get the best representation for your needs. Some agents may prefer that you don't ask these questions, because the knowledge you'll gain from their honest answers will give you a very good idea about what outcome you can expect from using their services. And let's face it, in real estate, as in life, not all things are created equal.
Hiring a real estate agent is just like any hiring process, with you on the boss's side of the desk. It's critical that you make the right decision about who will handle what is probably the single largest financial investment you will ever make.
1. What makes you different? Why should I list my home with you?
No matter where you live you will have options when hiring an agent. So, 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 the 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 where 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, meaning they're running around trying to do all the components of the job themselves. Bottom line, their service to you may suffer.
3. What are your marketing plans for my home?
How much money does this agent spend in advertising the homes they list versus the other agents you are interviewing? In what media (newspaper, Internet, social media, magazine, TV etc.) does this agent advertise? What do they 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 MLS (Multiple Listing Service). Is this agent's performance higher or lower than the average? Their performance on this measurement will help you predict how high a price you will get for the sale of your home.
7. 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 exciting atmosphere where many buyers bid on your home at the same time. Ask if they are a listing only agent or also handle buyers. In particular ask about their company policy on the type of agency they practice (Dual-Agency vs. Designated Agency) link to Massachusetts description here. Ask them to explain the pros and cons of each type of agency. They should also provide you with a Massachusetts Mandatory Licensee Disclosure form which will also assist you.
8. On average, how long does it take for your listings to sell?
This information is also available from the local MLS. Does this agent tend to sell faster or slower than the average? Their performance on this measurement will help you predict how long your home will be on the market before it sells.
9. Do you have a refrence list of cients I could contat?
Ask to see this list and then proceed to spot check some of the names.
10. What happens if I'm not hapy 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 effecively market your home) but you can't. There are usually penalties and broker protection period's which safeguard the agent's interests, but not yours. How confident is your agent in the service they will provide you? Will they allow you to cancel your contract without penalty if you're not satisfied with the service provided? Remember this is a contract you are signing, if you are unclear or unfamiliar with any terms DO NOT rely upon the agent's interpretation, they are NOT attorney's. Consult with your own attorney prior to signing anything if you have any doubts.
Evaluate each agent's responses to these 10 questions carefully and objectively. Take notes for later review and comparison. Who will do the best job for you? These questions will help you decide.