If you're thinking about selling your home -- a great real estate agent will make a world of difference for your home sale.
Does the mere mention of real estate agents give you anxious pause? We don't blame you. It's true, the real estate industry has become flooded with amateur speculators and unscrupulous agents. Or maybe you have a friend or family member pestering you for your listing (more on that later). But here's why you shouldn't immediately shut down the idea of enlisting a real estate agent:
Like it or not, if you want to net the most money in the shortest time, agents are central to a real estate transaction. Research shows that using a good listing agent will put more money in your pocket at the end of the day. However, choosing the wrong agent can be devastating. A mistake could cost you tens of thousands, hundreds of thousands, or even millions of dollars.
So how do you pick the best agent to sell your home?
Follow these three steps and you'll have no problem finding a true, legitimate professional to sell your home quickly, smoothly, and successfully.
PHASE 1: Identify the Best Agents in Your Local Market
You want to begin your real estate agent search by narrowing your pool of potential options. "Casting a wide net" is great advice most times in life, but NOT when it comes to listing agents.
The fact is 90% percent of the transactions in real estate are done by only a small percentage of the agents (usually the top ~10%). You should only consider working with the best real estate agents and ignore most agents. Your home is your most valuable asset, putting it in the hands of an underperformer is foolish and risky.
So begin by creating a shortlist of real estate agents that meet the most important criteria.
Look for agents that have built up a career through a decade or more of experience. Check to see if they've sold numerous (50+) properties, and that the majority of them are within your vicinity. Remember, a top real estate agent in another city may not be a good choice to sell homes in your neighborhood. Hyper-locality matters in the selling process. Find out who the #1, #2, and #3 agents in your zip code are (number of sold properties, total transaction volume in dollars).
Next, cull your pool even further by really putting the agents under the microscope. When you're reviewing each real estate agents' credentials, ask yourself:
Have they sold homes on my street? You want an agent that already knows potential buyers from their previous experience on your block.
Have they sold similar properties to mine? The market for single family homes and condos can vary drastically; as can the pool of prospective buyers at different sales price points. (Also, you want to understand how important you will be to your listing agent. If you have a $500,000 house, an agent who typically sells $4,000,000 properties is not going to give your property the priority it deserves).
Is their license active and in good standing? Better to get in front of any technicality that could impact your sale.
Do you like the agent's online presence? Watch their content on social media to get a feel for how they may market and represent your property.
Helpful Links
You can check online to get most of the answers. Here are a few examples; every state's department of real estate will have a comparable site.
CALIFORNIA: https://www2.dre.ca.gov/PublicASP/pplinfo.asp
FLORIDA: https://www.myfloridalicense.com/wl11.asp
TEXAS: https://www.trec.texas.gov/apps/license-holder-search/index.php
PHASE 2: Meet at Least Three Agents
After you've performed your digital due diligence, you want to meet a handful of the real estate agents that you like. The goal of this step will be to get multiple listing proposals and be able to make apples-to-apples comparisons across the board.
Aim for about 4 or 5 agents, and schedule quick introductory calls or property walkthroughs with each one. You are not only interviewing real estate agents, but putting them in a scenario where they must compete to earn your business. Remember, your listing agreement is worth tens of thousands to hundreds of thousands of dollars to these agents, so don't just give it away. It's totally fair (and smart) to force them to "put their best foot forward" when they're pitching their services.
Make them lay out the exact terms they're offering you, as well as their plan to get your home sold.
The Basics
What is their commission rate or fee? Will they offer a set commission to the buyer's agent, and if so, what is it? How many days do they think they need to sell it? And of course, what do they believe they can achieve for a final sales price?
Beware of agents that agree on your listing price or even inflate your proposed price. It’s very common for real estate agents to just nod their head at your number so you feel great and give them your listing. We’ve seen it too many times, the house sits stagnant on the market for months, price reduction after price reduction, only to sell at a smaller (!) number than what a more competent agent presented.
In our experience, the best listing agent is often one who doesn't waiver on the selling price they believe in -- rather than that of the home homeowner -- based on their expertise and comparative market analysis. There's a reason they're successful, so why not let them do what they do and help you avoid months of holding costs and stress?
The Not-So-Basics
There are a few additional, professional considerations to make when it's time to choose a real estate agent. Prospective agents should be prepared to articulate their listing strategy for your home and explain why it will succeed. Here are a few specific questions to ask at a listing appointment.
Do they have a strong network of buyers? The right real estate agent will already have prospective buyers ready to (hopefully) put an offer in for your home. They've been to open houses in your neighborhood and met folks who are looking for a house just like yours.
How much inventory do they currently have? If a real estate agent has 40 active listings they may be too busy to take on yours. If they have 0 active listings, then there could be another concern about why they're not in high demand.
What's their marketing and selling strategy for your particular property? A seller's agent needs to do much more than just throw a listing on the MLS these days. They need a detailed plan to deliver for you.
PHASE 3: Pick with Your Gut
Once you've done all the vetting with data and terms and the objective factors, you have to make a personal decision. Pick the real estate agent that feels most aligned with your head, your heart, and your gut.
By now, you should have a sense of each agent's qualities based on your interactions with them.
Do you like their personality? You’ll be working with this person for a few weeks at least; it's a more enjoyable experience when you like the person.
Are they well regarded in the industry? Remember, other agents and/or real estate attorneys will be representing buyers during the selling process, you also need them to get along with whom you choose.
Are they going to call you every week with updates? Communication cadence and preference matters. There's a sweet spot for too many updates and too few; you neither want to be annoyed nor neglected.
When you've found the listing agent with whom you want to work, it's time to make it official.
Ask them to draft up a listing agreement, and feel free to give the agent feedback if there are terms you would like updated. Similar to the process for setting a listing price, the best agents usually do not allow themselves to get steamrolled on commission because they're great at their job and know they’ll deliver awesome results.
The beautiful part of this method is you now have a business reason for why you would like to move forward with an agent and you can confidently tell any friends or family members (who have a real estate license) why you've chosen a different candidate without ruining a relationship.
Summary
Having a great real estate agent will be the difference in a successful home sale or a poor home-selling experience. Nowadays, choosing a listing agent is more than just calling a relative or browsing a directory from the National Association of Realtors. There are three steps you need to take to find the right real estate agent:
First, do research to create a pool of highly-qualified agents. This is based on their experience, performance, and fit for your home.
Next, interview multiple agents to hear their terms and strategies for your home. You want to force them to prioritize your sale and that begins by making them do their homework and explain why they'd be the best choice. (If they’re firm on home value and commission it's a sign that they’re likely a strong agent and know your local market well).
Finally, pick your favorite and enjoy a more efficient and better experience -- all while selling your most important asset for a fantastic price!
One more bonus tip! If you want one easy website that handles this entire process for you -- and more -- you're in luck.
TrueParity finds the top real estate agents in each neighborhood, brings them to a single place, makes them compete for your listing with clear terms and strategies, and lets you connect with the ones you like.
It's fast. It's easy. It's free.
