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Most people only sell a small number of homes in their lifetime. With such limited experience, how do you expect to be capable of maximizing your profits from your home sale? Many sellers make the mistake of assuming that all real estate Realtors are the same and list with the first Realtor who sends them a postcard, knocks on their door or calls them up out of the blue. Not taking the time to research the Realtor who will list your house could cost you thousands of dollars.
Start the process by doing a bit of legwork. Ask your friends, relatives, and co-workers for referrals to good Realtors. First, check to make sure the Realtor to which you are referred is a Realtor - a member of the local and National Associations of Realtors. Then, interview them to which you are referred to make sure they are right for you.
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Ask prospective Realtors to send you some information about themselves. You can often get a good idea about which Realtors are the most professional by looking at their personal marketing material. If they don't have professional marketing materials for selling themselves, how will they market your home? Track how long each Realtor takes to respond to your request. If they don't respond quickly and efficiently, assume that this is also how they will handle the listing of your home.
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A good listing agent will have experience at listing, marketing and selling homes. Ask how many homes they have listed and sold in the past six months. Look for a Realtor with not just years of experience, but an actual track record of success, regardless of whether they've been in the business 1 year or 10. Many Realtors boast that they have been in the industry for a long time, but may only have two sales a year. Your Realtor should have not just a good record of listing homes, but actually selling them. That is your ultimate goal.
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Ask how long it takes for the Realtor to sell a home on average compared to other agents in your area. Just because a Realtor sells homes quickly doesn't necessarily mean they are selling them for top dollar. Look at what the asking price of the houses they have sold was as compared to the actual sales price. Ideally, your Realtor should sell homes quickly at or close to the asking price.
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Ask how long the Realtor has been selling real estate and what professional organizations he or she belongs to. As mentioned previously, the length of time a Realtor has been in the industry is not a sure-fire sign that they are a quality Realtor. An Realtor with two years of experience may be a top producer while an Realtor who has been in the business for more than a decade may only sell real estate part time. Also, take into account what professional organizations your potential Realtor belongs to. At a minimum, they should be a licensed real estate agent or broker who belongs to the local real estate board and multiple listing service as well as the state and National Association of Realtors. Additionally, look for Realtors who belong to local community groups and associations; they will have better networking abilities and can find more potential buyers for your home.
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Ask what type of supporting staff the Realtor employs. By employing an assistant or staff to handle the details of their business, the Realtor can spend more time servicing your needs and showing your house to buyers. Make sure you know how much time the assistant will spend handling the sale of your home. It is fine if the assistant handles the legwork and paperwork as long as the Realtor is there to advise you and assist with your decision-making at the critical times during the transaction.
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Ask what type of system the Realtor has in place for Open Houses. If the Realtor is merely putting a sign up on your lawn and holding Open Houses every Sunday, it will do little to sell your home. Look for a Realtor who has a developed marketing strategy to attract the best potential buyers (and buyer's brokers) to your Open House. The Open House should be just one part of a complete marketing system. Note - very few homes are actually sold as a result of an Open House, so some very savvy and skilled Realtors don't hold houses open to the public at all.
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Review with your Realtor the comparable sales prices in your neighborhood to establish your asking price. As part of this review, your Realtor will likely prepare a Comparative Market Analysis, or CMA, comparing your home with similar homes in the neighborhood which are currently on the market, or have sold recently. Pricing is one, if not the most , critical aspect of selling your home. Take great care in choosing a Realtor that understands proper pricing strategies - then listen to her! The selling price should attract potential buyers to your home, net you the most profit, and reflect the current market conditions and the overall condition of your home. Be realistic and avoid Realtors who will overprice just to get the listing. Some Realtors will suggest a high dollar amount just to get you to list with them over Realtors who give you a more realistic and honest assessment of fair market value, knowing that you'll be forced to lower the price after your home sits on the market for weeks or months.
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Ask what the listing agreement entails, when the listing starts and ends, and what the fees are that you will have to pay. Have your Realtor go over every detail in the listing agreement with you until you understand it completely. Be certain the beginning and expiration dates are on the agreement; a standard length of a listing can last six to nine months depending on the market. Know exactly what fees you will pay and consider that cheaper is not always better. If the Realtor stands to make very little commission, you can be certain that he/she will not do the best to market your property effectively. Be careful of agents who offer to list for a lower commission; they will usually spend very little money or time marketing your home.
Fact: When Realtors see that the commission offered to buyer's agents is lower than average, many will hesitate or outright refuse to show your house.
Fact: What drives up the price buyers will pay for your house is for every potential buyer to see your house.
Fact: Houses listed by discount brokers generally stay on the market longer and sell at a lower price! Offering a full commission is a necessary part of selling your house for top dollar.
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Ask about which disclosure laws will apply to you. Your Realtor should help you with locating professional inspectors for the various home inspections which are standard in your area. Create a home marketing file including a property fact sheet, a property transfer disclosure statement, pest control report, property profile from the title company, and a copy of the plans for alterations or additions. Your Realtor should handle all of these for you. Your Realtor should recommend having all of these items completed up front - before a buyer even steps into the picture. Not having these done in advance will only complicate the sale.
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Ask what things separate your Realtor from the competition. Does your Realtor have a written marketing plan for your home? Your Realtor should have effective advertising including 24/7-hour, online advertisement capability. Realtors who have innovative marketing strategies will always outperform Realtors who rely on outdated techniques. Merely putting an ad in the newspaper no longer gets the job done. There are numerous ways to make your home available to the buying public; be sure your Realtor uses every one of them to attract the largest pool of buyers.
*The word REALTOR is a registered trademark of the National Association of Realtors.
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