The MUST ask interview questions of your selling agent (RE agent, settlements, commission)

[PAFAMILIY]

Hi-
I need some expert advise. I am having a realitor come to my house tomorrow and I would like to know what are the MUST ASK QUESTIONS to determine if this person will be the best agent for us (other than liking the person)

The factor (as with many) is that we have little money due to my husband being unemployed for approx 1 Year (he just got a job in Sept and that is why we need to move)

SO, besides the 'MUST'' ask interview questions, I want to know how to bring this (I want to cut as much costs as possible) issue up to this agent without offending and yet, keeping as much $$ in our pocket for our move.

FYI- our move will be from affordable house in Philly suburbs to expensive housing in Northern, VA-Washington, DC metro area .

I TRULY APPRECIATE ALL YOU HELP. ALL THE QUESTIONS YOU COULD LIST FOR ME WOULD BE GREAT...I MEET WITH THIS AGENT TOMORROW BY 3:00PM

THANKS!!!!!!!!!!!!

[AlicynD]

Ask how they will best market your home and get it sold...this is where price/fees will come into play. Find out the services that are provided and what the commission is. Sometimes, what you pay for is what you get and in the end that money you thought you saved could cost you more time and money in the end.

[Captain Bill]

Remember that when you cut the pay, you also cut the incentive.

If an agent's fee is 3%, and you ask for a 1% reduction, you're actually asking for a 33 1/3 % cut. What if your boss cut your pay by 33 1/3 %. What would that do to your incentive?

There are agents who will reduce their fee for you, but they may also be very hungry and may even tell you that you can get more from your house than it is really worth. That will get them the job many times. Then after a month, you will have to start reducing the price and will stay behind the decline curve.

Ask the agents to show you their written marketing plan. You want to know exactly how they will market your property.

Ask if they can help you to prepare the home for sale by providing redecorating, staging advice.

Be sure to get a CMA. You need the mls sheets for each of the homes in the report, plus the report itself. The agent should provide you with a price range that represents current market value.

The CMA should consist of homes similar to yours that have been Sold recently with the DOM of each sold home, (this tells you what the market is like) that have Expired (that shows at what prices homes could not sell) and the Active homes and Days On Market for each. That is your competition, and you need to price competitively.

Ask the agent that you feel most comfortable with if s/he will take you to preview a couple of the Active competitive homes.

After that is when you need to get down to the actual pricing. If the agents suggest a higher price than the competition, be very leary.

The agent who tells you that you need to list at or slightly below the comps is the one who is telling you what you Need to Hear, but Don't Want to Hear. Listen to that agent.

The agent who presents you with the best market plan; who shows you the comps like I discussed, and advises you to price it at or slightly below the competition is the one that will net you the most money because the home will sell faster. Do not ask that agent to cut the commission. S/he will deserve, and earn, their fee.

If an agent tells you that you can get more money and offers a discount, you will normally net less money because the home will not sell until you continue to chase the market down and finally get it at or below the market. The longer the home is on the market, the lower the offers will be. That agent is one who is telling you what you Want to Here, and will net you the least amount of money, even with the reduced commission.

[Derek ATX]

Well put Bill, great summary of how the system works.

[PAFAMILIY]

Hi all-Well, I met with the realitor. While I liked her as a person...we know some of the same people...I had some concerns..one she DID say that she does 6 mo contract with 1st 30 days to cancel w/1 day notice...didn't like that too much..
Also said she would not accept less than 6% comission...
In addition, when walking thru my house, she mentioned how busy her day will be tomorrow because she had 3 settlements..not quite sure how I figured this out or what she said but I learned that she was representing the buyer and seller. I said WHAT...she then stated that she had a buyer who was also interested in a house from one of her sellers. I sat on that and mentioned later that I was not too sure I liked that idea. She said well, what I also can do when is give the buyer to a coworker and then we split the commission...bottom line is that one hand there is a conflict of interest because the buyer could have access to info you would not ordinarily want them to know, but on the other hand, I would not want to turn away a opportunity for a sale simply because the family interested happens to use the same agent...Your thoughts?
She did give me a marketing plan that contained compariables in the neighborhood and had some statements of what she will do ...not to impressed because I am sure everyone has something along these lines...I guess if she was willing to lower of comission and contract I would consider her. I will ask her if she would consider changing it.
I asked about open houses and she said she may do 2 per month. She places ads on realitor.com..puts up to 12 pictures..when asked about virtual tours, she said they are not as good and hard to set up...she likes the pictures. When I mentioned that site about having the ability of other reality companies looking at the mls listing (IDX site) she was not aware of it and said realitor.com is the best and that is really all you need..Is this true?

In the meantime, I need to meet with another realitor to compare. I don't just like calling anyone, I like asking people if they know any good realitors they would recommend

Anyone know any good realitors in Cheltenham,PA ??

What are your thoughts on what I said?

[Derek ATX]

Let's go through everything here. First, a 6 month contract is not unreasonable at all and here is the reason why. It costs us quite a bit of money to market a home, and typically the more the home costs the more money it costs to market it. If you were to find an agent that will agree to a 90 day listing then you're probably not going to get that much more than some pictures, a flyer, and entered into the MLS because there is too much risk to that agent that he will spend all of that money and the home won't sell in that time period. I try not to list anything under a million for less than a year but I tell my clients in writing that if at any point they are unsatisfied with my performance they can cancel the contract with two weeks notice. That will give me time to stop my marketing campaign.

Second: I'm not sure what the rules are in your state but in Texas you can not represent both ends of the transaction but the BROKER can act as an intermediary. On a related note if she passes the buyer to another office worker that person will not have the confidential information about you and your situation. That would be a breach of the fiduciary. The transaction would be worked pretty much the same, only the negotiations may be quicker.

Virtual Tours: I do them on high end listings but not as much on the mid to lower range unless the property is unique and it needs that extra medium to convey the property to potential buyers. There is a bunch of debate about their effectiveness. We tend to use them more in Austin due to the amount of people moving here from out of state.

Open Houses: Last stat I saw was that less than 10% of homes are purchased based on open houses. I do them a lot because it helps me generate new business and it helps me on my knowledge of the property I'm marketing and what changes may need to be made to make it more appealing. It is a great source for feedback. 90% plus of your buyers will have an agent showing them homes and be prequalified and ready to buy.

The site: I am not familiar with this site you mention either. It sounds like the same thing the MLS offers. Every real estate company in your area has access to your property when it is on the market through the MLS. The IDX system is just the abridged version of the MLS that networked into client searches when they go to a realtors site and click onto a link to search homes.

I hope this helps. Keep in mind that as well as a good marketing plan you need to be personally comfortable with your realtor and make sure your personalities go well together. Selling a home and negotiating with a buyer can be very stressful and being concerned about what your realtor is doing is the last thing you need.

[keeperk]

[quote=PAFAMILIY;2677838] concerns..one she DID say that she does 6 mo contract with 1st 30 days to cancel w/1 day notice...didn't like that too much..
Also said she would not accept less than 6% comission...

In addition, when walking thru my house, she mentioned how busy her day will be tomorrow because she had 3 settlements..not quite sure how I figured this out or what she said but I learned that she was representing the buyer and seller. I said WHAT...she then stated that she had a buyer who was also interested in a house from one of her sellers. I sat on that and mentioned later that I was not too sure I liked that idea. She said well, what I also can do when is give the buyer to a coworker and then we split the commission...bottom line is that one hand there is a conflict of interest because the buyer could have access to info you would not ordinarily want them to know, but on the other hand, I would not want to turn away a opportunity for a sale simply because the family interested happens to use the same agent...Your thoughts?

I asked about open houses and she said she may do 2 per month. She places ads on realitor.com..puts up to 12 pictures..when asked about virtual tours, she said they are not as good and hard to set up...she likes the pictures. When I mentioned that site about having the ability of other reality companies looking at the mls listing (IDX site) she was not aware of it and said realitor.com is the best and that is really all you need..Is this true?

In the meantime, I need to meet with another realitor to compare. I don't just like calling anyone, I like asking people if they know any good realitors they would recommend

QUOTE]

Ok, my thoughts:

your protection a 6 mo. listing more than for the listing agent. Don't understand " 1st 30 days to cancel w/1 day notice...didn't like that too much.. " if that means you or she can cancel in 30 days, that would be good I would think. She doesn't not think she can get the job done for you, or you have an out if you're unhappy with the services. This is a plus for you. You're not stuck with her, and she knows she has 6 mo. to prove she's worth keeping sale or not in that time frame.

Then you don't like:
she mentioned how busy her day will be tomorrow because she had 3 settlements..not quite sure how I figured this out or what she said but I learned that she was representing the buyer and seller. I said WHAT...she then stated that she had a buyer who was also interested in a house from one of her sellers.

She's telling you upfront what her schedule will be tomorrow, AND obviously her buyers trust her enough to purchase one of her own listed properties. I would think this is a good thing!
95% or more of my listings I sell myself. I don't wait for the "other guy" to get the job done as they won't! That's why they list with me, to sell it! I don't represent the sides. I get the job done. Sell it! They hire me to sell, I sell it. Job done. Everyone happy. Don't get so hung up on the have to split, buyers agent, sellers agent.

I have great virtual tours and great pix. Buyers can get just as good from both. The feedback from buyers on the virtual tours is, "they liked the music".

I've been very successful w/o virtual tours. Just started it a year ago, but I can't say it's made a diff. for a sale. They're just fun and make me look like I’m so sophisticated in the filed of marketing. It makes the sellers happy, but I've not seen a diff. in it turning into sales.

[Captain Bill]

Originally Posted by PAFAMILIY

Hi all-Well, I met with the realitor. While I liked her as a person...we know some of the same people...I had some concerns..one she DID say that she does 6 mo contract with 1st 30 days to cancel w/1 day notice...didn't like that too much..

In this market where 100 days is usually the average DOM, the agent needs 6 months, for the reasons that were explained in earlier posts.

Also said she would not accept less than 6% comission...

That is exactly what you want, a realtor that knows what her service is worth and not willing to cut it. You will probably net more money with this realtor because she is a strong enough negotiator. You want someone who is not hungry will work to earn her fee.

In addition, when walking thru my house, she mentioned how busy her day will be tomorrow because she had 3 settlements..

If she has 3 settlements tomorrow she is telling you that she must put her clients first. At the present time you are not her client. You are a prospect. The fact that she has 3 settlements tells you that she is busy and successful. That is what you want, an agent who is out there doing deals.

not quite sure how I figured this out or what she said but I learned that she was representing the buyer and seller. I said WHAT...she then stated that she had a buyer who was also interested in a house from one of her sellers. I sat on that and mentioned later that I was not too sure I liked that idea. She said well, what I also can do when is give the buyer to a coworker and then we split the commission..

Some realtors are not comfortable being a dual agent. Some are comfortable. It takes a person who is a good mediator to be good at dual agency. If she is comfortable at being a dual agent then that is good for you, because she just may be the one to bring the buyer.

An agent cannot perform as a dual agency without written disclosure and consent by both the buyer and seller. Let your agent know up front if you will agree to dual agency if the situation arises. In a dual agency the agent walks a tight rope. She must maintain the confidentiality of each party. She must have loyalty to each party, and must obey the instructions of each party. Of particular importance is the confidentiality. She must not share any confidential information with anyone, including her office agents.

.bottom line is that one hand there is a conflict of interest because the buyer could have access to info you would not ordinarily want them to know, but on the other hand, I would not want to turn away a opportunity for a sale simply because the family interested happens to use the same agent...Your thoughts?

Discuss it with your agent some more. Let her know your concerns. Find out just how she would operate as a dual agent if that arises.

She did give me a marketing plan that contained compariables in the neighborhood and had some statements of what she will do ...not to impressed because I am sure everyone has something along these lines...I guess if she was willing to lower of comission and contract I would consider her. I will ask her if she would consider changing it.

Your main concern should be what she will NET you on the sale, not on what the fee is. If you get a poor agent at 4% you will probably NET much less.

Also, think of this: If commission is the only thing holding you back, then accept this agent. If there are other issues, such as marketing, or your feeling that she cannot do the job, then you need to talk to others. Don't let the commission blind you.

What was the price she said you should list at? How did that price compare with the comps? If the price she suggested was at or slightly below the Active comps, and in line with the Sold comps, then she is telling it like it is.

If you find another agent who tells you she can get you more money and will charge 4%, I can tell you now, that will not happen. That agent at 4% will cost you a lot of money with lost NET.

I asked about open houses and she said she may do 2 per month. She places ads on realitor.com..puts up to 12 pictures..when asked about virtual tours, she said they are not as good and hard to set up...she likes the pictures. When I mentioned that site about having the ability of other reality companies looking at the mls listing (IDX site) she was not aware of it and said realitor.com is the best and that is really all you need..Is this true?

Two open houses per month is reasonable. If you want more, you can ask her to get someone else to do them for her. It is common for busy agents to ask junior agents to do open houses for them.

If you really want virtual tours then talk to her about having a virtual tour company do them. She is charging 6% and it would not be unreasonable for you to require her to pay for someone to do the virtual tour.

I don't do virtual tours, but I also shoot about 100 photos so I can edit the best and have about 50 available. I put as many as I can on every site that I advertise on. Then I can rotate them. My fee also is 6%, and if a client demand a virtual tour I will pay for it to be done.

Realtor.com is the best, and your listing is also fed to other sites.

In the meantime, I need to meet with another realitor to compare. I don't just like calling anyone, I like asking people if they know any good realitors they would recommend

It is always good to talk to other agents. But concentrate on their market plan and get it in writing. If they are busy that is a good sign. Very important is the price that they say your property should be able to sell for in today's market. I would say talk to 3 agents and see what they say. If you want to come back here and summarize their total plan, that may help. I would suggest that you not even talk about commission until they get to the point where they tell you what their fee is. Instead, listen to what they have to say and get a good feel for how good you think they will be.

[PAFAMILIY]

ok..the price she gave me (I actually came up with myself prior to knowing anything)...229,000 max...As for pictures she said she does approx 12 pictures only...is that enough?

What is so great about a marketing plan?-This book that I got just should graphs and other listings...big deal..it just compared what was out there. I have a sellable neighborhood all things considered.

You mention if she said 3% instead of 6 for instance, then all we might get is some one who will do MLS listing, pictures and a flyer....what else would she do??? WELL, I did not hear her say she would do much more than that besides open houses...what else would she do?

I also noticed that someof the compariables said straightthrus and then look like mine which I call and SHE called a twin...is a straighthru an updated term?

As for the 6 month contract thing...to me if, someone is confident, then to say 3 months should not matter because we will most likely be satisfied

[PAFAMILIY]

let me just add that I do understand that most things are not selling within 3 months so the realitor does not want to wait her time...