The most common mistake made by house sellers when picking a listing agent is to choose one based purely on two criteria: the highest list price for their home and the lowest commission.
A seller can inquire, “At first glance,” “What are you talking about? Are you insane?” Because sellers want to get the best price and pay the least amount of commission for depas en playa del carmen. These two factors, on the other hand, have very little to do with hiring a professional agent and are, in many cases, utterly useless. Let’s have a look at why that is.
Agents are unable to predict the price at which your home will sell. It is a mistake to assert that they can. Comparable sales, pending sales, and active sales are all things that a listing agent can show you. However, you set the selling price, and a buyer will tell you whether it is reasonable. A real estate agent might recommend a list price that will entice a buyer. The buyer usually decides where it goes from there.
While deciding on a listing price may seem daunting at first, it may come as a comfort to realize that in 2019, home owners received a median of 99 percent of their asking prices—and their homes sold in an average of three weeks.
1 This is proof that if you do your research and work with a knowledgeable agent, you can choose an appropriate listing price. Here are a few pointers to keep in mind when looking for an agent.
Some agents lie in order to get the listing. Because agents cannot guarantee your sale price, the listing agent who proposes the highest price may be lying. Request that the agent show you the numbers that back up the suggested list price. It could be a red signal if the realtor has no numbers or if the house sales are in a different neighborhood.
Look for a listing agent who can provide you with a pricing range. A price range is usually present, but not always. Location, market temperature, and house renovations are just a few of the factors that influence the range.
Pricing is a skill. You’ll almost certainly get an offer if the house is priced correctly. You might not get any showings if it’s priced too high, and you’ll eventually have to lower the price, leaving purchasers wondering what’s wrong with your home.
To give you an idea, the average time it took to close a home in 2019 was between 40 and 48 days, depending on the month.
2. If it takes a long time, your pricing is probably too high.
Should you hire an agent solely on the basis of commission?
Each real estate agent is a one-of-a-kind individual. Each company has its own marketing strategy and advertising budget. You might obtain more exposure to a bigger number of purchasers if you choose an agent with a large advertising budget and company funds to match it. This is beneficial since reaching a larger number of potential buyers increases your chances of receiving a decent offer.
Why would an agent work for a lower fee than a competitor? A broker or real estate agent will always lower a real estate fee for a purpose. It’s sometimes the only way an agent believes they can compete in a highly competitive industry, because they can’t otherwise differentiate themselves from the competition in terms of service, knowledge, or negotiation abilities. Ask yourself why you should hire an agent if the only benefit they provide is a low cost. Is the agent thirsty for work or inexperienced? Before you sign a contract with an agent, think about the following questions.
Under some circumstances, full-service agents may agree to a lesser commission, such as:
- You’re buying and selling a house at the same time, and you’ve entrusted both transactions to the same agent.
- You’re ready to undertake all of the effort, advertising, and marketing, as well as cover all of the costs associated with the sale.
- You agree to send the agency more business.
- You’re selling multiple properties.
- You don’t have enough money to cover the entire commission.
- You are accepted as a pro bono case by the agent.
- Unless the agency matches a competitor’s fee, the listing will be lost.
- The agent prefers the signage (traffic exposure) to charging a full commission.
Ask to review a track record of each agent’s original list price and ultimate sale numbers if you’re interviewing agents who offer similar services and can’t pick between or among them. The lowest-fee agency is likely to report more price reductions and days on market (DOM).
Consider hiring an agent who has expertise closing on difficult-to-sell houses if your home is in a difficult-to-sell neighborhood.
Agency Marketing’s Importance
Marketing is the life and death of a good listing agent. That’s because a home’s good marketing is what sells it. Request a full copy of the agent’s marketing strategy. You should inquire about the agent’s strategy for selling your home. Here’s the bare-bones minimum you should expect as a guide:
- Signage that includes an agent’s cell phone number is professional.
- A lockbox for real estate
- Lockbox access is monitored electronically every day.
- Feedback to the seller and follow-up reports on buyer showings
- Previews of brokers
- Broker and office preview incentives
- Advice on staging
- Targeted digital marketing
- Only advertise in local publications if it’s necessary.
- Service that provides many listings (MLS) 36+ professional pictures were used to create the exposure.
- Options for virtual tours
- Distribution to major online publications
- If necessary, four-color flyers
- Buyers’ financing flyers
- If the location is a candidate, a minimum of two open houses are required.
- Direct mail to neighbors and out-of-area buyers and brokers
- Meetings of the Board of Realtors
- Seller feedback on buyer sign-up calls and showings
- After 30 days, a new comparative market analysis (CMA).
- New listing email feeds that compete
- Facts, trends, and recent sales in the neighborhood are updated on a regular basis.
- Keep in mind that no single strategy sells houses. Homes are sold using a combination of all of these strategies.
For a month or two, you’ll be in contact with your listing agent (or longer). Choose an agent with whom you have a positive relationship. Here are some of the qualities that sellers say they look for in a real estate agent:
- You want an agent who has sold a lot of houses in the past and has learned from his or her failures.
- Inquire about credentials and degrees.
- Honesty: Have faith in your instincts. Your representative should appear serious.
- Networking: This is a people-oriented industry. Some homes sell as a result of agents contacting other agents.
- Negotiation abilities: You want a tough negotiator, not someone looking to make a fast buck at your expense.
- Communication and availability, according to the sellers, are critical.
- Finally, you should request a personal guarantee. Don’t choose an agent that won’t guarantee performance or free you from a listing if you ask.
Most Commonly Asked Questions (FAQs)
What is a reasonable real estate commission?
A real estate commission is typically between 5% and 6% of the sales price, with the commission distributed evenly between the buyer’s and seller’s agents. If there is no buyer’s agent involved or if you do more of the homework yourself, you may be able to negotiate a reduced commission. That range, however, is common for most agents.
How can I figure out what my house’s listing price should be?
The list price for your home is ultimately up to you, although your agent can assist you in making that decision. They should gather similar sales for you to evaluate, talk with you about current market circumstances, and go through any changes you’ve done to the house to assist you arrive at a price that will attract offers.
Is it possible to sell my home without using an agent?
You can sell your house “for sale by owner” without using an agent. However, if you choose that path, you must be willing to do the work of an agent yourself. It entails conducting comparable-sales research, listing your home, displaying it, marketing it, and negotiating the price. At the absolute least, you should consult with a lawyer to guarantee that the sales process is free of legal difficulties.