Recently I was comfortably settled in my seat on a United Airlines flight from Chicago to San Francisco, looking forward to the movie “Dave,” which friends had recommended highly. We pushed back from the gate exactly on time.
The friendly pilot seemed anxious to beat the oncoming thunderstorm. Unfortunately, by the time we got out to the taxiway called “Lakeshore Drive” because it is located next to a pond at O’Hare Airport, we were number 30 for takeoff. Two hours later, we finally took off.
During the two-hour delay, while enjoying “adult beverage” refreshments and a snack, my seatmate asked what I did for a living.
That’s always a difficult question for me to answer fully because I invest in rental property; write about real estate in newspapers, newsletters and on Prodigy; and teach a real estate law course at our community college. Then my seatmate said he was planning on selling his home and asked how he should select a real estate agent.
Sensing material for a newspaper article like this one, I gave my new friend a list of 10 questions to ask each realty agent he interviews before signing a listing to sell his home.
Selling a home is a very expensive transaction, so you want to hire the best professional agent you can find. No amateurs need apply. Here are the 10 key questions to ask each agent:
– What are the addresses of the homes you have listed or sold in the last six months? The best agents you interview will be prepared and will hand you a list.
Examine the list carefully to see if the homes are similar in price to yours. For example, if your home is worth $100,000, but the agent sells $500,000 houses, perhaps you need an agent more experienced selling homes in your price range.
Don’t be especially impressed by each agent’s volume of home sales. Some agents carry as many as 50 listings at one time and have several sales assistants. They know a certain percentage will sell amd are playing a numbers game. Be sure to ask how many listings the agent has currently. If it is more than 15 to 20, that agent can’t possibly spend adequate time marketing your listing and handling the sales details when a buyer is found.
– What are the names and phone numbers of the recent sellers? The reason you need this vital information is so, after the agent leaves, you can phone some or all of these sellers to ask, “Were you in any way unhappy with your agent and would you list your home for sale with the same agent again?” The answers will amaze you.
– What are the addresses of the homes you listed in the last six months but the homes didn’t sell? Then get the names and phones of the owners to call them to inquire about why their homes didn’t sell and if they were dissatisfied with the agent.
But please be aware that often the homes were overpriced and the agent couldn’t get the seller to reduce it to market value. Don’t blame the agent for that. However, frequently the agent did a poor marketing job, such as not advertising the home, not promoting it among fellow real estate agents who have buyers, and just putting it into the local multiple listing service book, hoping another agent would find a buyer.
– What professional real estate classes have you taken in the last six months? What professional designations do you hold? The best applicants for the job of selling your home eagerly supply this information. Pay special respect to agents who are brokers holding the GRI (Graduate, Realtors Institute) and CRS (Certified Residential Specialist) designations.
Also ask how long the agent has been selling homes. Although novice agents usually have lots of enthusiasm, they lack the experience that sales success brings. Be sure your agent works full time selling homes. If the agent has a job elsewhere, such as teaching school, your listing won’t get the full-time attention it deserves.
Beware of any agents who haven’t taken real estate courses recently. The best agents will hand you their personal brochure listing their educational background. However, watch out for “seminar junkie” agents who have taken lots of real estate courses but who have very few home sales or other realty accomplishments to show for all their education.
– What price can you get for my house? That’s an intentionally blunt question. But don’t be surprised if the interviewee can’t immediately answer it.
After he or she inspects your home, each agent’s next step is to prepare a written CMA, competitive (or comparative) market analysis. This form shows recent sales prices of similar nearby homes, as well as asking prices of comparable neighborhood homes currently listed for sale. Then the agent should make adjustments for the features and drawbacks of your home, as compared to the recent home sales, arriving at an estimated sales price for the home.
To illustrate, I recently listed two houses for sale with an excellent agent whose CMAs for my houses even included color photos of each nearby sold house that he considered comparable. His CMA material was presented the day after the initial interview in nicely bound booklets, along with the agent’s recommended asking prices and probable selling prices. One house took him six weeks to sell, the other took only two weeks. His estimated sales prices were almost 100 percent accurate.-
– Other than yourself, who are the two best agents you would recommend for selling a home like mine? The agent will not be expecting this question. But the answer is very important to you. Phone those agents and interview them about listing your home for sale. If the agent refuses to give you names of other agents, be extremely wary of that agent.
– Ask each agent you interview what they think of the other agents you have or plan to interview. This is extremely important. The reason is, some agents and some brokerage firms have bad reputations. Many have outstanding reputations. Local agents know this. But some agents won’t even show homes, listed in the local multiple listing service, of certain agents and brokerages.
For example, recently one of my neighbors listed his home for sale with a salesman for a brokerage that has a very bad reputation. After several months, I asked my neighbor why his home hadn’t sold. He said he found out most agents in the community refuse to do business with the broker because he has a bad reputation. To make matters worse, my friend signed a six-month listing and the broker refuses to let him cancel it. No wonder that brokerage has a bad reputation.
– What is the minimum listing time you will accept? Some agents lacking confidence in their abilities will insist on six-month listings. Dismiss those agents. But the agents who have the most confidence in their sales ability will gladly accept 60 or 90-day listings.
As a frequent seller, I recommend a 90-day listing. If the listing expires but the agent is doing a good job, the listing always can be renewed. But if you chose the wrong agent who isn’t doing a good job, with a 90-day listing you’re not stuck with a long listing with a poor agent.
Some agents request a six-month listing but allow a cancellation after 90 days without any cost or reason. Get that promise in writing.
– How often will you report to me on your sales activity in selling the house? The best agents will report at least once a week to their sellers. Any agent who doesn’t phone or write their sellers at least weekly shouldn’t be allowed to sell homes. However, as a seller, you may need to prod your agent. A good day to phone your agent is on Tuesday when any weekend sales activity will have resulted in a purchase offer.
– What else should I know about your plans to market my home for sale? The best agents will prepare a written marketing plan for your home. You will be paying your agent extremely well, so expect service.
