4 Of The Biggest Mistakes Sellers Make When Choosing A Realtor
1. Choosing the agent who offers the lowest commission.
A lower commission may seem like a really attractive feature at first, but that’s not the case. Just like any other service, you get what you pay for.
One of the most important parts of selling a home is making sure that you advertise to as many people as you can. To do this, Realtors use their own personal money to market your home. Let’s look at an example: Say the realtor offers a low commission of 3% then they have no incentive to properly market your home. This is just their tactic to win the listing. Whereas a Realtor who has a higher commission of 6% will do everything they can to make sure your home sells as soon as possible. This includes Staging your home properly, paid advertisements across multiple sites and hiring a professional photographer or cleaning service.
Keep in mind that the Listing Agent is not the only one receiving the 6% commission. The listing agent has to share this with the Buyer's Agent. If the listing agents commission is only 3% then the buyers agents commission will be only half of what the going rate is. This means that not only do you not get proper advertising for your home, but that the buyers agents will have no incentive to show their clients your home. This will end up making it less likely that your home even sells at all.
2. Choosing an agent who agrees with your selling price.
When selling your home you don’t want to go with the agent who tells you what you want to hear. This is short-term “Sales Tactic” we call ‘Buying A Listing’. Some agents use to win you over and get your listing, but in the end all is does is hurt you.
Why don’t you want to choose the agent who agrees with your price?
One of the most important details when selling the home is that the Realtor does a accurate market analysis. This detail includes not only looking at the price that similar homes in your area are selling for, but also taking into account any upgrades that the homes may have and why they are selling for that price. While some other homes near you may be selling for $400,000 if you don’t have the same upgrades they do then your home may be worth less.
We have had a lot of clients ask “Why don’t we list it at the higher price then lower it if we’re not getting offers?”
That’s a great question. The first 3 to 4 weeks are the most crucial time for advertising. If your home is priced too high the buyers will not even consider putting in an offer on your home. When this happens you're stuck with lowering your price over and over again which could lead to you selling your home for less than what it’s worth. To avoid this make sure when you are interviewing Realtors to pick the one who gives you a detailed reason as to why your home should be listed at that price. Don’t be afraid to ask them for all the details.
3. Choosing a part time Realtor.
Why does this matter? From the outside when you see a Realtor it may seem like all they do is drive around and show homes all day then go home and relax. That could not be farther from the truth. When representing a buyer or seller it is the Realtors job to make sure everything goes smoothly. This means negotiating contracts, meeting deadlines, and needing to be on call all day long in case something goes wrong.
Buying or selling your home is probably one of the biggest financial decisions you will make in your life. You need someone who will be able to respond to anything that happens immediately. If you choose a part time Realtor then you could risk losing your contract if he or she is too preoccupied with their full time job to be able to quickly put out whatever fire pops up during a negotiation.
4. Choosing the Realtor who sold the most homes last year.
When a Realtor tells you they sold 12 homes last year that may sound amazing and give you feelings of trust and hope. But they may be misplaced feelings. That number could be a completely false representation of their skills and abilities.
Look at it this way you’re listening to your Realtors listing presentation and he raves about how he sold 10 homes last year, but what he doesn’t tell you is that he had 20 total listings last year and only sold 10. If you interview another Realtor and he tells you he had 9 listings last year and sold all 9 of those listings, which would you choose? I would choose the Realtor who had a 100% success rate over the one who only had a 50% success rate.