There are many choices in the real estate market for both sellers and buyers. The internet has accelerated the changes and increased choice. It is in fact a consumer’s world. It is sometimes difficult to sift through all of those choices to make a wise and effective decision. How will I find or sell a home?
The buying side choices are clearer: Do I want representation from an agent? Can I go it alone for searching, financing, negotiation, inspection, appraisal, insurance, title and closing? Have I done it before? If I engage representation, will he or she be paid from the seller’s side? How much will it cost me? What forms must be signed? Is representation contractual? All of these are part of the conversation you want to have with a potential agent before you make a decision on how to buy your home? Professional agents, particularly Realtors, will welcome and appreciate the directness and the intent of the conversation. It is part of the process. Furthermore, the real value of an agent becomes more apparent through this discourse. What are the comparable sales? What do they mean? What is the market trend? What is the risk of buying a foreclosure or a short sale home?
While interviewing an agent, for representation on buying or selling side, make sure that he/she understands you and that you understand him/her. Does he/she take the time to explain things so that you are comfortable? Does he/she have the time to focus on you and your needs? Does he/she have experience in your market area? Does he/she work with a team? If so how many? If he/she is busy, who covers? What are his /her professional credentials? Does he or she have professional designations? Ask around about the persons professional reputation. Also, use the web to investigate your potential agent. What does Google report about them?
The selling side has more choice: You can forgo any assistance at all and sell the home on your own. You can decide to do most of the work yourself and hire a limited service company. Another choice is a full service company which will do almost all of the work. (You still have to make the house available for showing). Finally, you can engage a concierge company that will market, manage and maintain the property. This is the platinum level of service. It is interesting that over 80% of homeowners who try to sell their homes by themselves end up hiring a professional. When trying to make the best decision, invite several agents to your home to review the choices. Most will come with a market analysis to determine what price your home is likely to sell at. They should have some sort of marketing strategy to describe how they will sell your house. Know that over 80% of purchasers use the web to find the house they ultimately purchase. A web centric strategy is critical. Print media generates less than five percent of the buyers; its potential value is in open house announcements. By the way, signs still generate approximately 6 to 7 percent of potential buyers. MLS is a very powerful tool that shares your home with over 5000 potential Realtors in Rhode Island. It also provides web exposure through many websites including www.realtor.com and www.riliving.com, Through an MLS program called IDX, your listing agents company, can share your listing information on the individual company websites of other MLS members. In short, your house can be found on the competing broker’s company website.
Your conversation should include a discussion on showings and access. In this market, you want to make sure that your house is easily available for any potential buyer to see it. Some agents are not as available as you might prefer. It is a fair question. When looking at various marketing approaches you want to understand what the costs are.
How is the agent compensated? Is there an up front fee? Or is it a contingency fee? Is it an hourly fee or a fee for services? Remember that all fees are negotiated by each company individually and independently. If you are engaging MLS how are cooperating agents being compensated. In short, what are they being paid?
Other elements of the conversation should include: length of listing agreement, availability for rent of the house, any seller help with buyer’s mortgage, interval of agent seller reporting (how often will agent email or talk w homeowner), and staging assistance. The process is more complicated given the current market, but it is workable. On May 1st, Rhode Island changes its agency law that is going to change the way agents work with buyers and sellers, but let’s save that conversation for later.
The most important message here is to ask, and get answers to your questions. The best agent’s are Realtors, members of the National Association of Realtors, direct, forthright, and forthcoming. The transaction and the relationship should both be transparent.
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