How to choose the best real estate agent when selling your home
If you make this common mistake when selling your home, you could be costing yourself plenty, real estate experts say. Here’s why.
When it comes to choosing a real estate agent to sell your home, the level of choice can feel overwhelming. But rather than simply going with a friend of a friend or calling the local guy who drops glossy brochures in your letterbox, it’s important to be selective.
And as it turns out, the agent offering the cheapest commission or the highest price appraisal might even be the one to steer well clear of.
EARLY RESEARCH
In fact, before you even utter the words “price appraisal,” you should be doing some evaluating of your own, starting with online research into different real estate agents and how many properties they have sold, says head of Victoria at Belle Property and Hockingstuart Anthony Webb.
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“Secondly, it’s really getting out and looking at how they conduct their open for inspections,” he says. “Are they engaging with the buyers? Are they calling every single person that comes through? How are they answering questions that people are asking?”
He says auctions are equally important to suss out if you are planning on selling that way.
“I wouldn’t necessarily just look at the result of the auction, I’d be more looking at the skill of the auctioneer, how many people are attending and how they conduct themselves as well,” he says.”
He says the agent’s reputation, time in the industry and ability to build relationships are also important.
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PROOF OF PERFORMANCE
Ray White head of performance and recognition Bianca Denham says a lot of sellers look for proof of an agent’s ability to provide excellent service in the form of good communication skills.
“But the other way that an agent can demonstrate good service is if they can actually show reports,” she says. “It’s considered good practice to provide weekly reports to sellers depending on the sophistication of their operating system.”
Statistics can show the number of people who have inquired, the number of visitors as well as the follow up information.
Webb also suggests asking the agent how they handle negotiation in order to get every last dollar out of the buyer and what their preferred method of sale is. He says it’s also good to ask what their expectations are for the campaign in order to set a KPI as a benchmark and to speak with an agent who can offer a plan B if buyers aren’t resonating with the property.
CHOOSING THE RIGHT AGENT
And it’s not just about results – relationship and rapport are just as important, says Webb. An agent may have sold 100 properties and gotten great results but their morals and ethics might not match up to your own.
Webb says sellers can get a good feel for whether or not they “click” with an agent by taking the time to engage in conversations with them and seeing how they respond to questions during the listing presentation.
“I have seen some people make some really quick decisions about who they use and end up regretting it just because they haven’t done their due diligence and worked through the right process,” he says.
SIGNS OF A BAD AGENT
Just as there are several signs of a good selling agent, there are also many signs of a bad one. Ray White head of performance and recognition Bianca Denham says sellers should be wary of these red flags:
1. Promising a way higher price – if an agent promises a much higher price than other appraisals you have received they could be trying to win your business. Also, no-one can promise any price – they can only offer a range based on recent, comparable sales
2. Not being able to prove service – if they can’t show you how they can keep you updated during the campaign, how do you know what service they will provide?
3. Not having testimonials – it’s important that agents have a proven track record. If they can’t show you testimonials or give you the details of previous clients, how can you be sure they have done a good job?
4. Offering discounts – this usually belies a lack of ability or confidence. Why else would they be begging for business?
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Originally published as How to choose the best real estate agent when selling your home