Northport NY Real Estate – Will You Hire the Right Agent?

Too many home sellers and home purchasers still don’t really understand the real estate process, and it’s been ever-changing in recent years. Making certain that you hire the right agent means you must consider speaking with a few candidates.

Consider interviewing each candidate to evaluate their statistics, education, track record and experience. Remember that top producers often obtain their track record from working hard, full-time. In the real estate business much like all other businesses, you will need to form a partnership with your realtor and work towards your goal.

Often the fee for services will be important. Like all businesses, this can vary depending upon the marketing strategy as well as the likely length of time it will take to sell or purchase a home. Fees are more competitive than ever but be careful of those who will discount their fee for services, this practice is one indicator of the agent’s ability to negotiate from the start. If they cannot negotiate for themselves and their fee, how will they negotiate on your behalf when it comes to buying or selling a home?

Often the cheapest is not always the best. Remember to consider your net – it’s not necessarily the charge, it’s the net proceeds of sale or purchase that should matter to you! If you sell for $10,000 more or purchase for $10,000 less paying an additional one percent to the effective agent, isn’t this equation better? 

Let’s look at an example: you decide to sell your current home. We already know that the fair selling price according to the recent sales for your property is $400K.

Example 1 - You sell you house for $400,000, paying your realtor a six percent commission. Your realtor executes a full-service marketing plan. Three weeks into the marketing plan your property receives two offers, you end up getting full price of $400,000. The net to the seller is $376,000.

Example 2 – You list your house for $400,000, paying your realtor a five percent commission – your realtor asks you to reduce the price of your home by $10,000 after 30 days as no offers have come in.  There has not been much exposure that you are aware of, and no real feedback, no broker open houses or weekly communication from the agent. You are frustrated but agree to lower your price by $10,000. Now, you receive an offer for $380,000 which your agent advises you to act on immediately. You settle for $380,000 paying a five percent commission = $361,000.

Saving the “fee” in the above instance actually cost you $2500 in example two.  If the one percent were added to the initial fee, as you see you might have been ahead by $2500.

Agents who run their business professionally need to charge money for their services, each and every listing and sale costs the agent hours of time and their money invested in advertising expenses, marketing exposure, gas for travel, communication tools, etc. to ensure a sale.

Remember that the “golden hammer” purchased by just anyone will never build the house by itself! If the right skilled professional with plans, a budget, a schedule, a crew and some and time are hired to use the “golden hammer” then surely the house will be built.

Catherine Lindstadt, Realtor