Perhaps your best friend asks you to co-sign a loan for the new car he’s desperate to own. Or maybe your sister won’t qualify for a mortgage on her first home unless you co-sign the loan. There’s only one thing for a good friend or devoted family member like you to do. But before you co-sign a loan for anyone, make sure you understand your obligations and risks.
Picking the right real estate agent to list your home could make the difference between selling quickly at a good profit and settling for a low-ball offer. Here are some questions you should ask to ensure you get the right person working for you.
What are your professional qualifications for listing my home?
Look for someone who works as a full-time REALTOR® and a licensed real estate agent. REALTORS® are real estate professionals who belong to the National Association of Realtors. They subscribe to a strict code of ethics and are committed to ongoing education in the real estate industry. If your home has special features, look for an agent with experience in selling homes that are similar to yours.
What’s your track record for selling homes like mine?
- How many homes have you listed over the past six months? A good REALTOR® typically lists one or two homes a month.
- How many of the homes you’ve listed over the past six months have sold? It’s a good sign if a REALTOR® sells all or most of the homes he or she lists.
- What’s the average length of time the homes you’ve listed have been on the market? It’s reasonable to take 90 to 120 days to sell a home. Much longer than that, and the home was probably overpriced.
- What’s the average difference between the asking and the selling price of the homes you list? They should be close.
- How much of your business is repeat or referral business? Successful agents have satisfied past customers and are therefore more likely to satisfy you.
Are you a disclosed dual agent?
This term means your agent is allowed to act on your behalf and simultaneously represent the person buying the house from you. To avoid this conflict of interest, hire an agent who will work for you alone. Otherwise, you could find yourself fielding low-ball offers from your agent’s other customers.
Is this the area of the city or region where you normally work?
Look for an agent who knows your area well. He or she will have a good idea of the best price you can get for your home and should have a network of other agents who are searching for homes in your region.
Do you have suggestions on ways to increase my home’s value?
A good listing agent should be able to tell you how to “stage” your home so it’s more appealing to potential buyers. Repainting in neutral tones, placing fresh flowers in the living room and home-baked cookies on the kitchen counter can speed up the sale of your home and put thousands of extra dollars in your pocket.
How often will you keep in touch with me?
Your REALTOR® should keep you regularly informed about potential buyers or real estate agents who have visited your home or expressed an interest in it, feedback from people who have viewed your home and all marketing activities. It’s not unreasonable to expect a daily telephone call, fax or e-mail with an update. Some offices have software that automatically notifies you, via e-mail or fax, every time someone tours your home.
Will I be working with you alone, or a member of your team?
An agent with many listings may hire employees to handle some aspects of the business, such as administrative work. There’s nothing wrong with a team effort to help you sell your home. But make sure that your agent is the one who will show your home, negotiate the sale and handle every other detail of the transaction. If your agent is taking a vacation in the near future, make sure you meet and are happy with the agent who will be filling in while he or she is away.
How will you price my home?
You don’t want to screen out potential buyers with an inflated price, or sell your home for less that market value. Your agent should be able to recommend a listing price based on a recent market analysis of your area that includes the recent selling price of homes similar in size, condition and amenities to yours.
How will you market my home?
An agent should list your home with the local and national Multiple Listing Service (MLS), share details of the listing with other REALTORS,® and market it on the Web. In addition, he or she should arrange an open house for real estate agents, regular open houses on weekends for the public, plus individual open houses for prospective buyers by appointment. This includes creating a detailed property fact sheet that can be passed out containing specific information on your home’s features and any home improvements you have made.
What will be included in the listing agreement?
Most contracts specify that you can work with only one listing agent. They also spell out the beginning and ending dates, which should be negotiable. It’s reasonable to allow an agent three to six months to sell your home. Agents cannot, however, provide a written guarantee that they will sell your house within that period of time. The length of time it takes to sell a home depends on many factors (such as market forces) that are out of your agent’s control.
It’s in your best interest to also specify in the listing agreement that your agent can accept offers only from buyers who have been pre-approved for a loan.
How are you paid?
Most agents are paid entirely by commission -- usually four to six percent of the selling price. And in most areas of the country, the person who is selling the house pays that commission from the proceeds of the sale. Find out whether there are any other fees, such as administrative costs.
Can you provide me with references?
A good REALTOR® should be able to provide you with references from satisfied clients who have sold homes in a similar price range in the area where you live.
Find a REALTOR® in your area to help you sell your home.
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