Last year I did a blog about choosing a REALTOR® and I covered a few points to consider. In today’s extremely competitive market I thought I would talk about a couple of more things a home owner should consider when hiring a REALTOR®.
Some home owners will hire their sales representative based on the highest list price presented. The sellers look at each other and say, “He or she thinks our house is worth $400,000 too”. In the real estate industry we call this Buying a Listing. This could be a big mistake because your house gets the most attention when it is a “new listing” , and you have it priced above the market.
If you price your house to high, no one will show it and it will just sit on the market until you reduce the price. After you reduce the price, the buyers who were looking in your area have already purchased a home. You missed out on all those buyers! Pricing your house too high will only help similar houses in your neighbourhood sell faster.
Another thought is you should always ask the REALTOR® for references from recent sales. A good REALTOR® would have names and contact information readily available. Ask the REALTOR’S® clients about their selling experience.
Remember, the length of time a REALTOR® has been in the business isn’t all you should look for. Experienced REALTORS® can grow jaded and not work as hard, while newer ones may make up with enthusiasm and effort what they lack in experienced.
Some sellers base their decision on the lowest commission. We all know the old saying, “You get what you pay for”. This is very true. REALTORS® and brokerages put up their own money to market and advertise your home. This costs money… the lower the commission, the less incentive for a REALTOR® to put up his or her own money to market your home.
Incentive has an important role in sales. A full service REALTOR® earning a full commission will often “drop everything” to handle any challenges that come along – a rep earning a smaller commission doesn’t have that same incentive.
Again, make sure you interview more than one REALTOR® and look for the one that is a true professional.
Good luck to all of you trying to sell your house. If you have any tricks of your own on how you chose your last REALTOR®, please share with your fellow readers.