Crucial questions Sellers must ask their potential Realtors
Category Advice
We may not buy property as often as we get our hair cut or require medical treatment, but it's equally, if not more important that we select our real estate agents with as much care as we do hairdressers and doctors - and to develop an ongoing relationship once you have found the realtor that best works for you. Such a relationship between Realtor and client offers several compelling benefits.
Most people will end up buying and selling several properties over the years, especially if they enter the property market at a young age, while some will buy multiple properties for investment purposes. And, as anyone who's ever bought or sold a home can tell you, hiring the right agent for the job is critical to your success; not only to finding a buyer the perfect home for their needs but also to ensure a seamless sale process and, for buyers, the best final sale price that can be achieved.
Here are some crucial questions a Seller must ask their potential Realtors:
1. Check if the agent has an Estate Agency Affairs Board Fidelity Fund certificate
If the agent does not, he or she may well be operating illegally, and the seller will have no compensating body to which they can appeal should the agent behave contrary to the law. The possession of a Fidelity Fund certificate is one among many indicators that the agent is not bogus.
2. Try to establish just how well the agent knows the property market in the area they serve
A few probing questions may reveal that the agent has little or no idea of the latest price fluctuations, whether up or down, and is ignorant as to how these relate to national price movements. It may also transpire that he or she does not know which price categories and precincts in his area are performing best, and has only a vague picture of the types of buyer most interested in the area.
These fundamental facts can be established if the agent has access to the better research bureaux, is in touch with other top-selling agents and has management that keeps him fully informed.
3. The agent should reveal which homes, if any, they have sold in the last 6 to 12 months
The agent should also be able to show how close the sale price came to the asking price, and how long the home was on the market. Very large discrepancies between the asking and achieved price probably indicate that the agent overvalued the home so as to get a mandate - a dishonest practice that occurs all too often. Equally important, the agent should also be able to give the potential client the names and telephone numbers of people with whom they have recently worked with, and should be willing to allow the new client to consult them about their performance. While it is true that even the best agents can go through lull periods in their careers, a prolonged period of non-achievement should be a warning sign that all is not well, and the agent is probably not up to the task.
More considerations
Having done this initial groundwork, the seller should then quiz the agent on just how much the agency will be prepared to spend on advertising on behalf of the home, and where they will place it. The seller should investigate how frequently the agent will hold show days, and how often they themselves will be in attendance at these. Show days have a proven record in achieving results, and a lack of willingness to host them is a sure sign of a lack of commitment on the agent's part. In addition, the agent should be able to show that they are heavily involved in promoting the homes (and themselves) through social media, because today this is an integral part of any property marketing exercise. The frequency with which the agent will report back by telephone and by email on the progress - or lack of thereof - that they are making should also be made clear before any agent is appointed. At the outset, it is also important to establish just how deeply the agency's management is involved in backing up its agents.
The goal is to achieve a speedy sale at the best possible price and, in order to do so, not only must the property be realistically priced for the current market, it must also be properly marketed, all of which require experience and knowledge and the backing of a reputable agency. There's no point in getting excited about high-end valuations if the realtors and their brands don't have the local, national and even international reach on the correct platforms to communicate with a wide targeted audience of serious buyers.
Therefore, one of the main criteria that should be considered over and above the agent's track record and knowledge of the area and local market is their own and their agency's marketing reach. The importance of a comprehensive marketing strategy when selling a home should never be underestimated, especially in a tougher market, as it can significantly impact the final sale price realised as well as the length of time it spends on the market. And, in terms of the EAAB regulations, a mandate presentation by the agent must include a marketing plan.
When it comes down to the wire, having a professional, experienced and legally-savvy estate agent at your side and making use of all the latest tech offerings, is critical to ensure a seamless transaction that doesn't reveal any nasty or costly surprises weeks or even months later. The key factors in moving property, especially during the next year or two, will be experienced agents who can adapt to new marketing techniques, with good databases and extensive marketing to the right demographic and, of course, realistic pricing.
Author: Property 24 - Extracts
