01/22/2022
How to get the most out of listing your house on the MLS through a real estate agent.
So you decided to sell your home. Its time now to review some practical steps to ensure the decision will work.
Have you considered selling directly to a buyer rather than defaulting to a traditional agent listing to find a buyer? If yes, we offer free no obligation consultation just like agent do. Message us on this page or call 763-308-8600 today!
If you only want an agent to find and deal with buyers, then follow along below to see how we effectively screen and use agents to sell our properties.
Finding the right listing agent is like finding the right mate. While it may take some time, you will be happy when you do.
Interview at least three agents
Talk to at least three listing agents — in person if you can — to make sure they are the right fit for you. You can find that out by reading online reviews and asking previous clients about the agent.
Ask the right interviewing questions:
When you interview potential listing agents, it’s important to be prepared with a list of questions. You want to see if someone is qualified and has the right experience not only to market your home, but also to get it sold as quickly as possible and for top dollar.
Keep track of your time and keep conversation short, let them give their pitch, keep emotion out of it. You want their straight up assessment without any influence.
Tell them nothing about what price you have in mind. This may influence the number they provide.
Be honest, but brief about repairs needed and repair history.
Be sure to point out great aspects of the house, property and neighborhood.
Your mindset and goal should be to establish the right price, this is determined by the current market, trends and experience.
Ask each listing agent:
1. What are the market comparable listings in my neighborhood? Comparables (called “comps” in the industry) are the pillar for determining your home’s value and deciding on an asking price. A well-rounded comparative market analysis will show current listings and homes sold in the past recent to six months that are similar to yours in size and amenities. The comps provided to you are their opinion and may be subject to little to no effort on their part. Try to keep the printouts they show or at least take a picture or write down the addresses with the sold prices so you can follow up to determine if it is a good comparison or not. Pictures can be found on Zillow, Redfin, Realtor, etc. If they are not available on these third party sites. Ask for the agent to send links so you can review them.
2. What do you think my home is worth and why? During a listing presentation or before it, most agents will ask to walk through your home so they can take notes and see what they’ll have to work with. It also helps them crunch numbers against the comps to provide you with an asking price they feel is in line with market conditions and your goals. You might have an asking price in mind, but your agent might not agree.
This may be a spoiler alert but is very typical; As many agents (3+) you ask, will be the same number of opinions on value / price. They can vary by tens of thousands of dollars! On one house, the 5 agent listing prices varied high to low by $80,000 on a price sold target of $135,000. Wow! Get their comps and research it for yourself and see which agent is closest. That may decide the agent and price to list at.
3. What would your marketing plan for my home include? A good real estate agent will have a robust plan to promote your listing in an effort to find the right pool of buyers. “Just listed” postcards, open houses, 3D virtual tours, professional photography and broker tours for buyers’ agents (particularly for luxury homes) are all factors that may go into a marketing plan.
4. What is the goal in pricing? In a sellers market, Agents may push an aggressive over priced approach initial listing. Overpricing has high risk of an extended timeline and usually fails to get market price, much less a potential market change. A fair price in a sellers market should return quick multiple offers and can bring higher than market values.
5. Are you a full-time listing agent, or is this a side job? Ask potential listing agents how long they have been selling real estate and how many houses they’ve sold recently. If someone hasn’t closed a deal in several months, that’s a reason for concern.
6. What is your commission rate? The typical real estate commission is about 6%; oftentimes, the listing agent splits that amount with the buyer’s agent. Some agents might be willing to negotiate their commission, but don’t count on it. After all, you’re paying for a professional service. Make sure you understand how much you’ll be charged for a real estate agent’s services — and what exactly is included. Remember to request a sellers net sheet. It will reveal a typical retail ready house will average ~10% of price as the cost to sell through and agent.
7. The best for last, this one is tried and true: Request a 45 day listing, and if it is rejected, reply that if they are sure their price is right, then that amount to time will not be a problem. This one is key to ensuring you don't loose time in the market if the listing and price fails. You will be free to find another agent or try something else.
A common agent request is for a six-month exclusive contract to list. As our experience tells us, six months is simply way too long. Remember the reason(s) you want to sell, if it is a need to sell and money is tight, then time is not a friend.
As most agents should mention, is that the first week is critical and going two weeks without an offer on a good retail “sale ready” house means something is wrong, usually the price. The market strategy / plan should include what to do if no offers are received.
Happy house selling!
