Step 2: Find the Right Realtor
There are a lot of agents out there. So how do you choose? Go ahead and ask your pals for referrals, but don’t fall into the trap of picking an agent purely because of rave reviews. The old mantra of location, location, location applies to real estate agents as much as homes.
Once you have some potentials, email them or call their office, then sit back and wait. This is your first test of a key component: how responsive will your agent be? Ideally, she should get back to you that same day.
Your initial conversation with a prospective listing agent should be like any job interview: Don’t be afraid to ask the tough questions right off the bat. A good agent should know his stats, and any dancing around these numbers could mean he’s hiding something. According to Crouch, you should ask the following:
- How long have you been in business? Aim for Realtors with at least two years of experience, enough time to learn the ropes and finesse their marketing and selling plans. Time (on the job) is money (in your pocket).
- What percentage of your listings do you sell? Ideally you want an agent who has sold an average of 60% to 80%.
- What is the average list price to actual sell price ratio for your listings? This can fluctuate by market, but you should still look for high numbers.
Everyone knows that to sell a house quickly (and get the big bucks) you need to reach as many eyeballs as you can. And the way to suss out an agent’s ability to do that is to ask these questions:
- How will you market my home? A Realtor should use at least a good brokerage website to showcase your listing, national listing portals and an email subscription list.
- How will you use social media? They should use at least Facebook and Twitter to market listings; they get bonus points if they post photos on Instagram.
- What offline materials do you use? While most marketing is done online now, your Realtor should still make use of tried-and-true methods such as fliers, yard signs, and brochures, especially at an open house.
- How much do you spend on advertising? Advertising costs vary widely by area, but Realtors should consistently spend a portion of their business expenses on advertising. By asking for a set amount, you’ll know if they’re doing that or not.
Finally, don’t assume the most inexpensive agent is the one for you. While agents work at different price points and some may take a lower commission, they should be confident enough in their abilities to stand by their prices. So when you’re talking terms, he recommends asking agents if they’ll work on a discount. If they jump at the chance early on in the conversation, that might be a red flag.