Top 11 Mistakes Sellers Make When Choosing a REALTOR® to sell their home.
Selling a home is similar to other business dealings, but too often sellers make emotional decisions that cost them money and time. Choosing the right REALTOR® to market, negotiate, and sell a property is the most important part of the process.
Below you'll find 11 reasons why people decide to use a certain agent.
The first four can be grouped together, as advertizing tactics. If you can avoid making any mistakes, and choose a competent agent who knows how to market and sell your home, it'll save you a ton of stress.
1. Listing because a REALTOR® advertises “You’re home sold in 30 days or I sell it for free”.
First of all you need to be made aware in writing that there are very restrictive conditions to these offers. For example you most likely need to list your house at the price the agent wants you to list it at.
What happens if that price is $10,000 below market value, to ensure it sells within a few days?
Secondly by selling it for free means that the agent would not charge you his part of the commission but you would still have to pay the buyer agents commission which is frequently 2.5%.
Finally, what if it ever came to the listing agent actually reducing the commission to 2.5%, what kind of service do you think you would get for paying nothing to your listing agent.
2. “You’re home sold in 30 days or we pay you $5,000.”
This is the same as above, except really watch out for how much the agent will insist your home is listed for. They will want it listed so low that it is sure to sell within a couple of days on the market.
3. “We guarantee you an offer within 24 hours that’s acceptable to you or you don’t have to accept it.”
With this claim the listing agent will give you an offer the same day you list your house with them. The offer will be from and by the agent. Of course the offer will be so low, you won’t accept it, therefore it’s not acceptable to you. Your house is then put on the MLS system in the normal manner after you’ve turned down the useless offer.
4. “If your house is not sold in 60 days, I’ll buy it myself.”
With this claim you need to know if the agent can even afford to buy your house. A reputable Brokerage would insist that any of their agents making such a claim would need to prove that they have enough funds or assets in order to purchase your house.
Secondly if the agent can afford to buy your home, his conditions will certainly include a purchase price less than market value. The agent will make you pay all of their costs including but not limited to the commission fees twice, (selling fees and fees again if they relisted it) legal fees, land transfer taxes, etc.
If this were really a legitimate offer, don’t you think everyone would take advantage of it? You know that saying, “if it’s too good to be true…………..”.
5. “A friend of mine sells real estate.”
Use high standards and common sense when selecting an agent, the same as you would when hiring any other professional. Are you just trying to do your friend a favour or do you really want the best agent for the job?
A true friend will understand that this is a business decision and will expect to compete for your listing. Besides, if a problem develops do you want to destroy a friendship? How would you feel if you had to fire your friend?
6. “You are the first agent who agrees with my price.”
Some Realtors may tell you what you want to hear. This is known as “buying a listing” and is a method that poor agent’s use who are more interested in themselves than they are in you.
They will take your overpriced listing knowing that they will meet buyers who call about your home. Those buyers may work with the agent but will buy another property because yours is overpriced. This is called “Bait and Switch”.
Your property gets the most attention from buyers and Realtors when it is a “new” listing. If you price it too high, few people will show the house and it will sit on the market.
Most Realtors and buyers won’t waste their time looking at overpriced listings. When you do reduce the price to reflect its market value, buyers are inclined to submit low offers in the hope that you are now a desperate seller.
Besides, pricing your home too high will only make similar houses for sale look that much better. Your listing will be used to sell other houses.
7. “I’m listing with the REALTOR® who has the lowest commission.”
You will get what you pay for. Paying a cut-rate commission will often get you a sign in the front yard and placement on the MLS system with no additional effort from the Realtor.
Agents put up their own money to market and advertise your home. Good marketing and advertising costs money -- the lower the commission, the less incentive for an agent to put up his or her own money to market your home.
Part of being a good agent is being a good marketer. A savvy agent can expose your listing to hundreds and even thousands of more potential buyers than a home owner can even hope to. More interest means more motivated and qualified buyers to pay top dollar for your house.
Conversely incentive is also important to the buyer’s agent. The commission cutting listing agent will offer buyer agents less money if their buyer purchases your house. Therefore there won’t be as many agents willing to show your house – they’ll be showing houses that offer a customary commission to the buyer’s agent. Ask yourself, would you do the same work for less compensation if you did not have to?
Finally, negotiating ability is an important skill in a listing agent. Would you really put your faith in an agent who can’t even negotiate his own commission?
8. “The REALTOR® is who counts – not the company.”
This may be true. However there are other things to consider.
Agents who work for large well-established companies with lots of agents do have advantages. Large companies generally have longer office hours, so someone is available to answer a call on your home. Staff are there to immediately book showing appointments on your home.
Additionally, larger companies are often better at offering ongoing education to their agents. As a result, your agent may be better qualified and prepared to offer a quality service.
9.“All REALTOR ® pass the same exam so they know the same things.”
That’s like saying anyone from the same profession is equally skilled. You know that’s not true.
The real estate profession is constantly changing. The best real estate professionals stay on top of technology and changes by continuing their education. Good agents go beyond the required minimum requirements.
10. “Should I hire an agent who lives in my neighbourhood?”
Maybe, but don’t make that your sole criteria.
Knowledge of the local market isn’t only acquired by living in the immediate neighborhood. Sure, your agent should have intimate knowledge of recent sales, builders, businesses, and so on, but that is easily achieved through research. What you need is an agent who can market your home.
If an excellent agent lives in your neighbourhood, by all means use him or her.
11. “This agent sold more homes last year than anyone else.”
McDonalds sells lots of hamburgers but I seldom eat there. Have all of the quality questions been answered satisfactorily? Sometimes a small fish can get lost in a large pond. Big does not mean better.
The best agent is the one who will do the most effective job of marketing the property, negotiating the most favorable terms and conditions, and communicating with the seller to make the process as smooth as possible.
