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Table of Contents
- What should I ask a real
estate agent before I sign a listing contract to sell my home?
-13 powerful questions to ask a real estate agent before you sign a
listing contract to sell your home
- What should I know about
buyer agency?
- What should I watch out for
when selling my home?
-The 9 Most Deadly Mistakes You Can Make When Selling Your Home
1. What
should I ask a real estate agent before I sign a listing contract to sell my home?
13 powerful questions to
ask a real estate agent before you sign a listing contract to sell your home
1. How long have you been selling real
estate?
2. What is the percent of Sellers compared to
Buyers that you serve?
3. Can we cancel the listing if we're not happy?
4. Do you have a personal assistant?
5. Do you recommend that I hire an attorney?
6. May I see your resume or personal brochure?
7. What systems do you have in place that will
keep you in constant contact with me during the listing and the transaction?
8. Are you fully automated with your own personal
computer, FAX machine, copier, voice mail, etc.?
9. May I see all the paperwork that you are going
to ask me to sign?
10. What professional designations do you have?
11. I want to give my home the advantage of the
latest marketing strategies. How much time & money do you invest each month in
professional training?
12. Why are you personally motivated to sell my
house?
13. Why should I list with you rather than any
other agent who is calling on me?
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2. What
should I know about Buyer Agency?
The best agents strive to protect the best interest of the home
buyer. Your agent should be willing to execute a contract to carry out their commitment
and promise.
We recommend that all home buyers go into a contract with their
buyer's agent in order to have full protection and recourse.
When contracting with an agent you should look for the following
items in a buyer agency contract:
- The buyer agent agrees to represent the best interest of the
purchaser.
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3. What
should I watch out for when selling my home?
The 9 Most Deadly
Mistakes You Can Make When Selling Your Home
Mistake #1 - Pricing Incorrectly
Every seller wants to realize as much money as possible
when they sell their home. But a listing price that is too high often gets the seller less
than a price that is at market value. If your house is not priced competitively, people
looking in your price range will reject your house in favor of other, larger homes for the
same price. At the same time, the people who should be looking at your house will not see
it because it is priced over their heads! Overpricing usually increases time on the
market, and that adds to the carrying costs. Ultimately, many overpriced properties sell
below market value.
Mistake #2 - Failing to
"Showcase" the Home
Buyers look for homes, not houses, and they buy the home
in which they would like to live. Owners who fail to make necessary repairs, who don't
spruce up the house inside and out, touch up the paint and landscape, and keep it clean
and neat chase buyers away as rapidly as RealtorsŪ can
bring them.
If you were selling a car, you would wash it, or maybe
even detail it to get the highest price. Houses are no different.
Mistake #3 - Using the "Hard
Sell" During Showings
Buying a house is an emotional decision. People like to
"try on" a house and see if it is comfortable for them. It's difficult for them
to do that if you follow them around pointing out every improvement that you made. It may
even have the opposite effect you want, by making them feel they are intruding on your
private space.
Resist the temptation to talk the entire time a buyer is
there, and let them discover things on their own. Try a tasteful sign to point out some
hidden amenity that they might miss.
Mistake #4 - Mistaking Lookers for
Buyers
For Sale By Owners always get more activity than houses
listed with an agent. No question about it, RealtorsŪ will only bring
qualified buyers, and these will be fewer than if you open your front door to everyone who
walks down the street.
A qualified buyer is one who is ready, willing,
and able to buy your house. We find that most people who go looking at For Sale
By Owners are just starting to think about moving. They may be good buyers, but
they're just 6-9 months away from being ready. They don't want to bother an
agent yet, so they call the "By Owner" ads to
get a feel for what's available. They may have a house to sell first, or may
need to save some more, or may have credit that needs fixing. When everything is in
place, that's when they go out looking with a RealtorŪ.
An agent will ask a buyer how much they can really spend
for a house, how much they have to put down, how good their credit is, how much they can
pay each month, how much they will realize (realistically!) when they sell their present
home and about a dozen other questions like that. But unless your RealtorŪ
finds all the facts first, you must ask all these questions before the buyer crosses your
threshold. Otherwise, you may have a parade of Sunday afternoon shoppers with a dream of
owning a home some day.
Mistake #5 - Not Knowing Your
Rights & Obligations
Real estate law is extensive and complex; the contract for
sale and purchase is a legally binding document. An improperly written contract can cause
the sale to fall through, or cost you thousands for repairs, inspections, and remedies for
title defects. You must be certain which repairs and closing costs you are responsible
for. You must know whether the property can legally be sold "as is," and how
deed restrictions and local zoning will affect the transaction. If there are defects in
your title, or if your property is in conflict with local restrictions, you or your
RealtorŪ must remedy them, or you might have to
pay a great deal.
Mistake #6 - Signing a Listing
Contract with No Way Out
Many times an agent will have good intentions about
marketing your house, but circumstances can change. There might be a death in the agent's
family, or the agent may decide to quit the business. In these cases where the agent
couldn't or wouldn't perform, you should have the right to fire your agent. In some
companies the broker will assign your listing to someone else in the office, someone new
in the business that you didn't personally select. Always protect yourself by getting a
guarantee of performance with the right to cancel.
Mistake #7 - Limiting the
Marketing and Exposure of the Property
The two most obvious marketing tools (open houses and
classified ads) are only moderately effective. Surprisingly, less than 1% of homes are
sold at an open house. Agents use them to attract future prospects, not to sell the house!
Advertising studies show that less than 3% of people
purchased their home because they called on an ad. And if a machine answers, most callers
just hang up without leaving a message.
The right RealtorŪ
will employ a broad spectrum of marketing activities, emphasizing the ones they believe
will work best for you. There are dozens of more effective ways to find buyers than just
open houses and advertising. By the way, they or a trained member of their staff will be
there every time the phone rings. Did you know that most calls come in during business
hours when sellers are away at work, and most home showings are between 9:00 and 5:00
Monday through Friday?
Mistake #8 - Believing that a
Re-finance Appraisal is the Market Value of Your Home
An appraisal is an opinion of value for a certain purpose.
If the lender wants to lend you the money, they are motivated to have the appraisal come
in high. The appraiser may ignore foreclosure or distress sales in order to justify the
high value. But a real buyer in the real world will not ignore these properties. They are
your competitors when you try to sell.
I can't tell you how many ridiculous re-fi appraisals I've
seen. Don't make the mistake of thinking that the value you were told 6 months ago when
you refinanced is what a real buyer would pay. Ask your RealtorŪ
for ALL the solds in your area, then decide.
Mistake #9 - Choosing the Wrong
RealtorŪ, or Choosing One for the Wrong Reasons
It's likely that you don't interview people very often.
And yet in order to find the RealtorŪ who is
right for you, you may interview several. The quality of your home selling experience is
dependent upon your skill at selecting the person best qualified.
It's interesting that in the real estate business, someone
with many successfully closed transactions usually costs the same as someone who is
inexperienced. Bringing that experience to bear on your transaction could mean a higher
price at the negotiating table, selling in less time, and with the minimum amount of
hassles.
The world is populated with RealtorsŪ
who are wrong for you. For example, the housewife who sells an occasional house because
she needs a little pocket change, or the insurance salesman who believes he can handle two
careers. Or perhaps your cousin George, who really needs your business.
The sale of your home could well be the most important
financial transaction you have ever been involved with. The person you select can make it
a satisfying and profitable activity, or a terrible experience. It's your home, and your
money. The choice of your RealtorŪ is up to you.
Make that selection carefully.
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