We are stepping over the threshold of 2009 and real estate has changed yet again. This is the most challenging market that many of us will EVER see. While rate are matching those of fifty years ago, prices have changed dramatically. Nationally we are down almost 29% from the highest point of the market in mid 2006. Furthermore, 45% of the closed residential properties in October required money from the seller to sell. These are ‘tough realities.” For Realtors these times are also challenging, particularly given the fact that most real estate listing contracts are written as contingent agreements: If the property does in fact sell, then, and only then, does the agent earn and collect his or her previously, independently negotiated fee. If the agent works for a year and it does not get to closing, then he or she does not earn any fee. This has put great stress on real estate agents trying to earn a living.
With these facts and the stage, it is very important that you hire an effective and proven agent. Several questions will help you determine who that agent is?
1. First and foremost, what is the agent’s license number and are they licensed in the State your properties is located in? Is the firm licensed in said State? Is the agent a Realtor? Realtors must ascribe to the Code of Ethics. Have there been any disciplinary actions taken by the Department of Business Regulation or the Board of Realtors against the agent and/or firm? Are there any pending complaints?
2. What is the agents record/experience? How long has the agent and firm been in business? How many properties have he or she sold in the past year? Is he or she part of a team? What kind of back up does he/she have? Is the agent selling real estate full time, or is this a part time position? Does the agent actually live in Rhode Island year around, or does he or she spend the winter in Florida? What other States is the agent licensed in?
Does the agent use a lockbox? If he or she is going to be showing the property, is he or she available and reachable by cell?
3. How does the agent/company market property? With 87 % of all buyers using the web to search for properties, how does agent market in web centric world? How does agent differential the sellers property with so many listings in the market? Is print advertising important in the Strategy? Based on sources of buyers it should not be, particularly if you believe in “greening’ the marketing process. What is company web site like? Is it central to the marketing plan? Does agent use any video and television? Does agent use social media? If so how? Will agent provide specific marketing plan?
4. How often does agent provide feedback and updates for seller? Generally it should be a least once a week. In additional, the agent should provide feedback in the manner, vehicle that the seller prefers: cell-phone, text, email, snail mail, etc. Communication is key for the process.
5. How did agent arrive at value? Particularly in a declining market, how did agent determine price? What is delta between list price and sales price? How long should it take to sell property? When does the agent anticipate revisiting price if it does not sell right away?
6. Who follows up on closing details to make sure property gets to closing? Smoke inspection; follow up on mortgage approval, coordination of closing attorney, water meter readings, etc.?
7.How much do you charge? How much do you offer cooperating agents? Do you have any referral fees that you are paying from the fee? If there is a dispute with the deposit and the buyer does not ultimately perform, what is your fee?
8.If you are not satisfied with the performance of the agent, is there a cancelation fee and if so, how much?
9.Finally, have the agent provide a list of prior, clients. Finally, call them for feedback and advice.
Good luck!
Ron Phipps, CRS, ePro, GRI, GREEN
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