The Realtor Interview

Choosing a Realtor to sell your home is much more than who you know (read my last blog, Working With a Friend or Family Member? Think Twice), but how much they know.  It is recommended that a seller interview more than one Realtor when selling their home.  It not only gives the seller different prospective in companies but also agents.  And contrary to popular opinion, all real estate companies and their agents are not the same.  They have different tools, different philosophies, there is big-box vs. personalized independents, and some fit better than others in what the seller is looking to accomplish.  

When interviewing prospective Realtors here are some questions you should ask.  If you do not feel comfortable with the answers, interview another Realtor.  Just remember, no Realtor has all the right answers just the right solutions to getting your house sold.

—  What is your marketing plan?  This question delves into how your home will be exposed to the greatest number of possible buyers.  It is much greater than “sticking a sign in the ground” and waiting.

—  What do I need to do to get the most from my home?  The agent should know the right buttons to push for buyers needs and not be afraid to tell you what improvements you need to obtain the highest price for your home.

—  Are you familiar with the area, the neighborhood?  Remember, a buyer is not just buying your house, but buying the area and the lifestyle. 

—  How did you determine my market value and how will you price it?  It is important in today’s volatile market that a home is positioned correctly.  Don’t let a Realtor have you believe that your home is worth more than it is.  It may sound great but it not only is a way for the Realtor just to get their sign in the ground, more importantly, it is a true disservice to you.  Also, stay away from gimmick pricing.  Stick with internet parameters.  (see my blog “Say No to 9’s)”

—  Have you marketed homes for those in our particular position?  Every situation is a little different, however, some are much more complicated, including but not limited to:  divorces, short sales, estate, etc.   

—  Who are you marketing to?  Is the Realtor looking at your home sales target market whether it be, income level, first-time, move up or downsize or investor, and so on.

—  How many Multiple Listing Services (MLS) will my home be listed on?  A multiple listing service is a data base used by Realtors for homes for sale or sold by members of that system.  Each MLS site also has a public site.  There are approximately 12-14 MLS systems throughout New Jersey servicing different sections of the state.  With the National Association of Realtors statistics showing that Realtors and the internet account for approximately 80% of homes are sold,a Realtor  offering the use of more than one MLS, your home is exposed to more Realtors increasing the number of potential buyers, increasing the possibility of a higher sales price.  

—  What experience & training do you have?  There is not much better than experience, however, many new agents have had terrific training (including specialized in niche real estate).  Those with a good support system (ie. A Manager, Mentor, and administrative team), a new agent can shine, as well as have the enthusiasm and fresh ideas, that may have been lost with a seasoned agent or company.

—  When and how often will you communicate with me?  Listing your home with a Realtor is like a marriage and a key to a successful marriage is communication.  A Realtor should contact their client at least once per week for updates, no matter what the message is.

—  Will you be there for every aspect of the transaction?  A real estate transaction can be very intricate.  Several things occur and the Realtor is there every step of the way.

—   What is your listing expiration rate?  I believe this is a key question.  A listing that expires is one that does not sell. 

—  What percentage of your sales close?  Another key question.  It is more than getting a contract signed.  The end result is getting to the closing table.

—  What support do you get from your office?  Most agents are considered lone wolves.  Their offices relying on their agents to complete the transaction for their client and stepping in when the agent asks for help or when it is too late.  When the time comes when either they take a vacation, have another business, work another job, etc., in essence, if and when they are not available, what happens to the ongoing transaction.  The support team should be on top of the transaction as that stop gap.

—  Do your office expenses get in the way of your marketing expenses?  Because of the fact that agents are independent contractors (1099), responsible for their own expenses, it is so important to the home seller that the marketing expenses are covered.  Ask for a marketing plan and budget, ask them if they pay for desk space, copies, assistants, marketing materials. 

—  Do company constraints get in the way to fully market my property?  Find out if the company policies and procedures will allow the agent to be independent in the personalized marketing of the home or do they do the same for everyone.

—  Do you feel comfortable with this Realtor?  You call a Realtor initially because of their company, you hire the agent because of the agent.

—  How will you represent me?  By law, the Realtor must discuss with you the four types of business relationships you may have with them.  (Seller’s Agent, Buyer’s Agent, Dual Disclosed Agent, Transactional Agent)  As a seller you certainly want a Seller’s Agent, but consider whether you want that agent or agency to also represent your buyer (dual agency) or would you hire a true sellers agent that represents only you, the seller.

In summary, the sale of your home, as was your purchase, may be one of the most important financial decisions you will ever make, the same should be with the person that represents that transaction.  This could the difference of having your house for sale and having your house sold.  You have options - Choose wisely.

Jeffrey David Halpern                                                                                                                   Coccia Realty, Inc                                                                                                             jeff@mycoccia.com