How Much Are Your Commission Fees
The average commission fees payable by the seller are 6% of the homes final sale price.
Since there are no specific regulations to dictate commission rates, its fairly common practice to negotiate commission fees with your realtor until both parties are happy. Just remember that you get what you pay for. If your realtor agrees to a lower than 6% fee, make sure that they are still going to correctly market your home.
Key Questions To Ask During A Listing Presentation
What are homes selling for in my neighborhood? Have local housing prices gone up more or less than the state and city average?
How fast are homes selling? What’s a reasonable timeframe to get offers and go under contract, and how long does it typically take to close in our market?
Are there any homes like mine for sale? Active listings will be your competition, so you’ll want to dig into the photos and listing details for ideas on how to beat them.
How fast have your past three listings sold? Learn days on market for recent sales, home sale prices vs. the initial list price, and how their performance compares to the typical agent in your area.
What strategies do you have in place to sell my house fast and for the highest price possible?
3. Price your home
Now it’s time to zoom in to discuss your home’s valuation.
The agent pulls out their CMA to give you an estimate of your home’s fair value and discuss a fair listing price. They’ll explain the pros and cons of listing your house at various price points.The agent should also talk you through the best strategy based on your goals and personal situation.
Finally, the agent might also provide you with a seller net sheet: a one-page doc providing an estimate of what you may walk away within a sale after factoring in all sale costs.
If you disagree with your agent’s CMA valuation, it could make sense to get a second opinion from another agent, or invest in a pre-listing appraisal.
4. Discuss sales strategy
Data On Houses The Agent Sold Within The Past Year
Asking for listing and sales dates and prices will give you a good sense of the agent’s recent success at selling homes. If there’s a big gap between the listing price and the selling price of homes the agent sold in the past year , the agent might be unrealistic when recommending a listing price. Or if the agent’s listings took an unusually long time to sell , this could tell you the house wasn’t priced appropriately .
Of course, if none of the agent’s properties are similar to yours, this might not be a good match.
Do You Specialize In This Neighborhood
Having a local expert can be a huge advantage for sellers. Local agents will be aware of any upcoming developments in the area, plus plans for stores or other amenities that might affect the value of your property, how quickly it will sell, and the price youre likely to get. Theyll also know what local buyers are looking for in real estate.
You want to know that your agent understands the market for your neighborhood right now, says Ashlie Roberson, a New York Citybased agent at Triplemint. She also advises sellers to inquire about the agents favorite places in the area.
After all, your agent needs to be able to not only sell your home, but your neighborhood.
Expecting The Asking Price
Any smart buyer will negotiate, and if you want to complete the sale, you may have to play ball. Most people want to list their homes at a price that will attract buyers while still leaving some breathing room for negotiationsthe opposite of the underpricing strategy described above. This may work, allowing the buyer to feel like they are getting good value while allowing you to get the amount of money you need from the sale.
Of course, whether you end up with more or less than your asking price will likely depend not just on your pricing strategy but also on whether youre in a buyers market or a sellers market and how well you have staged and modernized your home.
Don’t Miss: What To Take To An Interview
Question #8 How Much Will I Be Charged For Your Services
A question that concerns many people is how much will a Realtor charge for their services in selling a house. The percentage a real estate agent will charge strongly depends on what kind of contract you will be signing with them. There will be Realtors that will try to take as high of a percentage as they can, thats why it is necessary to know if you are going to pay a one-time fee or there will be fees that will come across on the way.
Before signing any contract this is a must ask question you should ask your real estate agent when selling.
How Many Buyers Are You Currently Working With
While it might not be the first thing that comes to mind, this ought to be included in your real estate agent interview questions. Whether they are working with several buyers or just a few, its also worth finding out the system each agent has for attracting buyersbut keep in mind that the more buyers your agent is working with, the better your chances are of selling your home quickly. This also impacts the price your home will sell for because an agent with multiple clients can set up an auction-like atmosphere in which many buyers bid on your home at the same time.
Don’t Miss: How To Prepare For Bank Interview
Question #5 How Many Of Your Listings Have Been Terminated
Even though many real estate agents avoid these kinds of questions, you need to know how many of their listings have fallen through. One of the great Realtor interview questions! If the real estate agent is honest and trustworthy he will share the information right away without any second thought.
The reasons for a terminated listing can vary a lot, maybe the seller changed his/her mind after signing the contract or just canceled the plans of selling. You can never know whose fault it might be. In any case, numbers always win. The more properties they have sold, the better you can understand how good they do their job.
Difference Between A Real Estate Agent And A Broker
A real estate broker has gone a step beyond the agent level with additional training to get a real estate broker license. Like agents, brokers must complete state-required coursework and pass an exam to get licensed. A broker can oversee other real estate agents, work under a managing broker or operate independently.
Read Also: How To Kill An Interview
Question #1 What Are The Expenses
It goes without saying that everyone wishes to spend less when trying to sell their home. The process comes with many expenses and sometimes the seller is not ready for it. This is exactly why you should always think about how much everything will cost you.One of the questions to ask real estate agents at the first meeting is approximately how much will the overall expenses be. This way you can understand whether you want to continue the process or get ready for it for a while. Surprise payments and costs are really annoying for everyone. This is one of the good questions you can start with.Discover what a real estate agent can do for you. Do the research and try to sell your home through a reliable Realtor that can change the whole process.
Their Marketing Expertise Shines Through
Evaluating an agents marketing plan is super important, because you dont want to hire one wholl just slap it in the MLS and thats it, advises Daneault.
But how do you tell if an agents marketing plan is up to snuff?
Start by looking at the days on market for their listings as well as some of their competition. If your prospective agents listings sit on the market for 60+ days, yet competing houses sell in a week or two that agent probably has no marketing game.
The right agent for you needs to have solid answers to marketing questions like, What is your marketing budget for my house and what doesnt the marketing plan look like ?
Some agents offer different services. According to Boswell, they can go anywhere from an MLS-only where theres a flat fee charge and the client literally does everything except for the entry on the MLS all the way to full-service concierge, where they show up to every showing and give you the full beautiful marketing package.
You May Like: How To Interview On Skype
What Are The Exact Terms Of Your Cancellation Policy
Okay, I know that sounds like a strange place to start, but it will tell you a lot about the Realtor youre talking to. The Realtors response can be tricky too, so let me help you with that.
Realtor: Oh, you can cancel anytime, we dont hold anyones feet to the fire.Seller: But what is the term of your contract, how long does it go for?Realtor: We have 90-day contracts.Seller: So what happens if I cancel on day 5, can I sell it with another Realty company or by myself on day 6?Realtor: No it doesnt work like that, you can cancel, but then you have to wait until the contract expires before you can sell it by yourself or with a different Realty company.Seller: Oh, so I cant really cancel anytime then can I?
Realtor: Oh, you can cancel anytime, we dont hold anyones feet to the fire.Seller: Is there any fee if we do cancel?Realtor: Yes, it is customary for you to pay for our expenses if you cancel, we spend a lot to hire professional photos, order the yard sign, print material, etc.Seller: No, actually that isnt customary in the industry.
Realtor: Oh, you can cancel anytime, we dont hold anyones feet to the fire.Seller: What happens if a buyer who visited the home when you listed it for us, comes back after our contract with you is cancelled and makes an offer later on?Realtor: Well, in that case, wed be due our commission, up to 120 days after the initial term of our contract expires. Seller: Oh, so then it really isnt a cancel anytime policy, is it?
Their Network Runs Deep
If youre going to get your home ready to list on a tight timeline youll need a great crew and the right agent can help you with that, too.
Every great agent maintains a network of qualified contractors and other home repair experts who know how to meet a deadline and a budget. Boswell recommends hiring someone who has an arsenal behind them, so theyre not only coming to you with themselves but they have cleaners, stagers, contractors, photographers, and videographers ready and waiting.
Also ask for ballpark figures for all the repairs and upgrades youre considering making, and how much room these contractors have available to fit your projects in.
Recommended Reading: How To Write A Thank You Email Interview
Remember That Youre Hiring Them
Hiring a Realtor® to sell your home is exactly that youre hiring someone to perform a service and bring their expertise and their team along with them. A seller has a lot to consider when choosing an agent to sell their house. This is a big decision and we understand that its not personal when a client decides to go with another agent. It just wasnt a match, says Daneault.
So when its time to sell your home, using this guide will help you feel confident and ready to choose the Realtor® thats right for you.
Header Image Source:
How Will You Market My Home For Sale
This is another question all real estate agents will be ready for. Best thing I can do here is point you to NAR, National Association of Realtors, Research on how homes actually sell every year what makes them sell. Here is a quick summary:
97% of home buyers search online. 51% of buyers identify the home they will end up buying online. 28% of the time real estate agents send them a house the buyer looks at online first, then they buy it.6% of home buyers purchase a home because they saw a yard sign or open house sign.2% of home buyers purchase a home because they already knew the sellers.1% of home buyers find the home they purchased any other way.
The reason the above adds up to over 100% is because everyone basically shops online for their next home. The 6% that found the home they bought because of a yard sign or open house event also looked online.
Looking at the research, youll quickly want to know and somehow be able to gauge the effectiveness of that Realtors online marketing efforts on behalf of your home.
Recommended Reading: What To Wear To A Job Interview Female
Finding A Real Estate Agent: Tips For Sellers
Here are some things to think about when choosing an agent to help you sell a home.
What are the comparable listings in my area? An agent should provide a comparative market analysis, showing homes similar to yours that were sold in the last six months.
What do you think my home is worth and why? An agent who recommends the highest price isn’t always the best choice. Choose an agent who backs up the recommendation with market knowledge.
What should I do to improve my home? You may need to fix things up to sell your home, depending on the local real estate market. Listen for solid reasoning about what your home needs and the return on investment for making those improvements.
How will you market my home? Agents will likely suggest putting your home on the Multiple Listing Service and real estate websites, such as Zillow. Get details about other promotional tools the agent will use, such as photos, video tours and advertising. The level of marketing required to sell a home depends on the market. Less marketing may be required when there are more buyers than homes for sale.
» MORE:How to find a listing agent
What Is Your Success Rate
Past performance can be an indicator of future success. But when considering a real estate agents professional scoreboard, remember that their stats are relative both to other agents competing for your business as well as the market as a whole.
These are the three stats youll want to inquire about when interviewing an agent to sell your home:
How Long Will It Take To Sell My House
A real estate agent should be able to estimate how long it will take to sell your house based on their pricing strategy and local market trends.
The national average selling time is 9.7 days, but this varies by region as some markets are more active than others.
You cant expect a realtor to know exactly how long it will take to sell your house, but their estimate should be based on data.
For example, a listing agent who knows what theyre doing might say something like, Houses in this neighborhood are under contract within 25 days of listing, on average. Since your home is priced below the median home value in the neighborhood, I would expect that it will sell in less than 25 days.
Watch out for agents who promise to sell your house faster than anyone else!
Should I Interview Real Estate Agents
Absolutely. Yes. Definitely.
Interviewing real estate agents is the best way to find one that will work for you. While its important to get referrals and check an agents online presence , meeting them in person and asking questions is the only way to truly know if your styles will mesh. And you can be on the lookout for signs of a bad agent.
I would interview at least two to three agents and really talk about your needs, says Daneault. Youve got to feel good with this person. You want to be able to laugh and cry with them. Youve got to feel that youre being heard.
If youre not outgoing by nature or just dont have a lot of practice in this role, the idea of interviewing strangers can be a little intimidating. For that, HomeLight has a helpful guide on how to interview a Realtor® in a brief 15-minute phone call. Here are a few questions to get you started:
- Whats your marketing plan for a property like mine?
- Whats your response time, and how often will you be in touch?
- What is your commission rate? .
- If I pick you, whats the first thing we need to do to get started?
- How many open houses will you do? How do you handle prep work and staging for open houses and showings?
Recommended Reading: How To Conduct A Phone Interview
Pricing Your Home Correctly
You really only get one shot to price your home right. Prospective agents should provide you a CMA that will justify their opinion of your homes value and why they suggest a certain listing price or range. This is as much art as it is science. Interviewing multiple agents will help you compare this data and the arguments, and make your own very informed decision.