Home Buying and Selling: Interviewing Real Estate Agents
While most home buyers and sellers purchase a home without the help of a real estate agent, there are certain benefits to having your own agent during the buying and selling process. For starters, real estate agents are generally knowledgeable about a variety of properties. Thus, buyers get around driving through neighborhoods searching for signs posted in the yard. More importantly, if using an agent, buyers are guided through the process of bidding, negotiating, and closing the purchase of the property and obtaining the associated mortgage loan.
Regrettably, some buyers and sellers use a real estate agent and receive little results. If an agent is inexperienced, they may not have the resources to help buyers find an appropriate property. On the other hand, seasoned agents may have many clients, which results in some buyers or sellers being neglected. Rather than choosing a real estate agent at random, homebuyers and sellers should select agents that are reputable and capable of finding and selling property within a reasonable timeframe. Prior to selecting an agent, consider the following qualifying questions.
Seller Questions
What Is Your Sales Ratio? - Even though an agent has a lot of properties listed, this does not mean they are closing all the deals. Because real estate involves selling, agents must be active. Furthermore, if the agent rarely sells a home for the asking price, they are likely pricing homes too high, which is a tactic to get a listing or to increase their commission. Therefore, sellers should know the market price of their property, and price the home accordingly. If the asking price is too high, the number of bids will be few.
What Is the Marketing Strategy? - If eager to sell your home and move out, sellers should inquire about the realtor's marketing plan. For example, will a "for sale" sign be posted in front of the property? Will the property be listed on the MLS (multiple listing service)? Does the real estate agent offer direct or online advertisements?
What Is the Agent's Fee? - Know the real agent's fee upfront. Typical fees are about 5% - 6% of the sales price. However, this may be higher in some areas. The fee is negotiable.
Buyer Questions
Buyers may ask questions such: Are there many homes listed at the desired price? Does the real estate agent have many clients? Will the real estate agent email or contact the buyer when properties become available?
What Makes the Agent Different? - There are many successful real estate agents. Alternatively, there are also a number of bad agents. As part of the screening process, buyers and sellers may ask the agent to verbalize why they are different from the competition. Some agents may respond by highlighting their assertive nature or excellent selling skills. Furthermore, if the agent has a high closing ratio buyers and sellers should consider this a plus. Agents who are expert communicators and negotiators will greatly benefit sellers and buyers.
Will the Agent Explain Documents? - Because buyers and sellers typically have little real estate experience, they will likely need certain documents clarified or explained. A reputable agent will allow their client to review documents before signing, and make themselves available to address any concerns.
Will the Agent Assist in Getting a Mortgage? - Good agents assist their buyers with introductions to lenders and mortgage brokers.
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