You've decided you're ready to sell your home. Now it's time to find a listing agent to guide you through the process. Finding the right listing agent to sell your house is a critical decision that can greatly impact the outcome of your home sale. Here are some steps you can take to find a good listing agent.
Step 1: Know WHERE to Look
The first step in finding the right listing agent for a property is to do your research. It's not sexy, but it's so vital in order to make the right decision. Not all real estate agents are created equal, so knowing where to look can help weed out the inferior selling agents right away.
There are several places you can go to find a listing agent to sell your house:
Referrals
Your initial instinct will be to ask family and friends for recommendations. While referrals can be useful (so you know the agent is at least trustworthy), there are some limitations. First, your pool of potential agents is very limited; there are thousands of agents out there and you can only source so many referrals from your network. Second, it can quickly become uncomfortable when you choose NOT to utilize the services of a personal recommendation. That is why asking family, friends, neighbors, or colleagues who have recently sold a home for referrals on listing agents they have worked with and had a good experience with is becoming somewhat antiquated.
Online search
You may (and should) also search online for agents in your area. You can certainly see many more real estate agents than you would relying purely upon personal recommendations, but it is extremely difficult to know who to believe and trust. The level of due diligence required to sort through all these agents' online reviews, websites, and social media is incredibly tedious.
Regardless, look up listing agents in your area on real estate websites or search engines; you should at least find ONE real estate transaction for each. Read reviews from former clients and check their website and social media profiles to see if they have a professional online presence.
Real estate offices
Visit a local real estate office and ask for recommendations of listing agents who specialize in your area.
Open houses
Attend open houses and talk to the listing agent. This will give you a chance to meet them in person, see how they interact with potential buyers, buyer's agents, and get a sense of their marketing strategy.
Advertising
Look for advertising by local agents in newspapers, magazines, or online real estate portals. This can give you an idea of the type of listing agent who is active in your area.
We recommend combining the best of all these worlds. Blending your hunt between targeted, internet searches and recommendations from trustworthy sources is a sound approach.
Step 2: Make Agents Work for Your Listing
Once you've narrowed down your list of potential agents, it's time to start setting up meetings. This is your chance to get to know the listing agent and see if they're a good fit for you.
In the old days, this was merely a charade. You might judge an agent by the firmness of their handshake, the consistency of their eye contact, or the confidence of their tone. However, none of those would actually determine their efficacy as a real estate fiduciary. Luckily, nowadays we have much better data to evaluate potential listing agents.
Come prepared for every interview with a list of questions for the agent. Ask them about their past experiences and to cite specific deals they have closed. Have them outline, in detail, their marketing plan to get your home sold to meet your satisfaction. Just as importantly, ask them about the fee structure and if there is any room for negotiation on that front.
Better yet, ask them to present a tangible strategy for your home sale. A top tier listing broker will prepare a comparative market analysis specifically for you, using comparable sales and their insight. If they are not willing to do so, it is probably a sign they aren't as good as they claim, or they aren't as motivated to deliver for you as you'd want. Pay attention to how well they listen to your needs and answer your questions; you want an agent who is attentive and willing to work with you to get the best results possible.
To get the most out of your real estate agent interviews, follow this important checklist:
Communicate openly
Let each listing agent know your expectations, concerns, and preferences. Be upfront about your timeline, budget, and what you're looking for in a home. Discuss your priorities and concerns with an agent representing you. Be open and honest about what you want and listen to their advice and recommendations.
Listen to their expertise
A true real estate professional has the knowledge and experience to guide you through the buying or selling process. Open your ears to their advice and recommendations.
Be respectful
Be respectful of the agent and their work. Remember, they will be working hard to help you sell your home and negotiate the best deal for you. Negotiating commission should be a collaborative effort, not a confrontational one. Treat any listing agent with respect and professionalism.
Check their credentials
Of course, make sure any listing or selling agent you consider is licensed in your state and has a good track record of sales in your area. You can check with your state's real estate regulatory agency for this information. Most real estate agents belong to the national association of realtors.
Trust your gut
Consider a listing agent who you feel comfortable with and who you trust to represent your best interests.
The right listing agent should have a strong track record of success, be knowledgeable about your local market, have excellent communication skills, and be someone you feel good about working with. Remember, the selling agent represents YOU; so the best listing agent not only caters to potential buyers but also the home seller. That is their fiduciary responsibility.
Remember to do your due diligence and research any potential listing agents thoroughly before making a decision. By following these tips, you can build the foundation of a strong working relationship with your real estate agent and get the most out of your home selling experience.
Step 3: Choose the Right Agent for You
After meeting with several potential agents, it's time to choose the right one for you. If you have done a thorough job in the vetting process, you should have an adequate amount of data to compare your options. Plug the numbers they give you into your decision-making formula to calculate the optimal outcome for things you care about most, like asking price, timeline, and commission structure.
Look for a good fit
Choose an agent who you feel comfortable with and who you trust to represent your best interests. Look for an agent who understands your needs, communicates well, and has experience in your target market.
Understand the terms
Read any agreement carefully and make sure you understand all the terms and conditions. This includes the length of the agreement, the commission rate, the marketing plan, and any other selling agent's fee or expenses.
Understand the standard commission rate before negotiating, it's important to know what the standard commission rate is in your area. This can vary depending on your location, the type of property, and local market conditions. Research the standard commission rate in your area before starting the negotiation.
The standard commission rate in the United States typically ranges from 5% to 6% of the sale price of the home, with half of the commission going to the listing agent and half going to the buyer's agent. Alternatively, you could sell your house with a flat rate commission structure.
Commission rates are negotiable and can vary depending on the services provided by the agent and the specific circumstances of the sale. Some agents may be willing to negotiate a lower commission rate for certain properties or clients.
It's important to remember that the commission rate is not the only factor to consider when choosing a listing agent. Remember to consider their experience, marketing playbook, and past record of success in your area. Identify your priorities by determining what is most important to you in the agreement, such as a specific sale price or a shorter listing period. Use this information to guide your negotiations.
Ultimately, a fair commission rate is one that reflects the value of the services provided by the agent and is agreed upon by both parties. It's important to discuss commission rates and all other aspects of the listing agreement with your agent before signing the agreement to ensure that you are both on the same page.
The length of an agreement can vary, but most are between three and six months. However, some may be shorter or longer depending on the circumstances of the sale and the agreement between the seller and the listing agent.
A shorter agreement may be appropriate for a seller who wants to test the market or has a unique property that may require more time and effort to sell. A longer agreement may be more appropriate for a seller who wants to give their agent more time to market the property or has a property that may take longer to sell due to its location or condition.
It's important to discuss the length of the agreement with your agent before signing to ensure that you both have a clear understanding of the expectations and timeline for the sale of your property. Additionally, some agreements may include provisions for extending or terminating the agreement if necessary. Be sure to carefully review the terms and conditions before signing.
Research the market & Negotiate the Terms
Research the local real estate market and the prices of comparable homes in your area. This will give you an idea of what your home is worth and what you can expect in terms of offers.
Once you've identified your priorities and done your research, it's time to negotiate the terms of the agreement. Most homeowners don't know they can negotiate the terms of their listing agreement or are too afraid to ask.
Negotiating the terms of your agreement is an important step in the home selling process. Start by making a counteroffer that reflects your priorities and be prepared to compromise if necessary.
The negotiation process should be a collaborative effort between you and your agent. By being open, honest, and willing to compromise, you can create an agreement that works for both you and your listing agent.
Negotiating commission with a real estate agent can be a sensitive topic, but there are some strategies you can use to approach the conversation:
Consider the services being offered
Consider the level of service you expect from your agent and what services they are offering. If you expect more services than what the agent is currently offering, it may be appropriate to negotiate a higher commission rate.
Be open to compromise
Be open to negotiating a commission rate that works for both you and your agent. If the agent is willing to offer additional services or work with you to sell your home, it may be worth negotiating a higher commission rate.
Get it in writing
Once you've agreed on a commission rate, make sure it is included in your listing agreement. This will ensure that everyone is on the same page and there are no misunderstandings.
Remember, negotiating commission with your agent is a normal part of the home selling process. By being respectful, open to compromise, and getting everything in writing, you can negotiate a commission rate that works for both you and your agent.
Generally speaking, it is wise to try to remove the emotional factors of a decision so you can make an objective choice. However, ultimately you are selecting a human to entrust with selling your home, so it is perfectly fine to trust your intuition too. Your instinct is just another datapoint to consider. So take your time and when you're ready, make your choice.
Conclusion
Selling your home is a big undertaking, so it's important to take the time to find the right listing agent for you and your home. First, decide where to look for an agent. Next, make them propose specifics for your sale. Finally, use the data they provide to make the best decision. With these tips in mind, you should have no problem finding an agent who meets all of your needs and who will help you get the best results possible when selling your home.
Choosing the right real estate agent is an important decision that can greatly impact the outcome of your home buying or selling experience. If you want to use the latest technology that does all of this for you, check out TrueParity's platform that puts the top local real estate agents in competition for your listing.
Like this article? Share it with someone in need of a good real estate agent. Curious what top listing agents would do for your home sale? Check out TrueParity today.
