Selling a home is one of the biggest financial decisions we face in life. There are so many facets to a home sale — from marketing and professional photography to understanding the laws, required disclosures, and rigid timelines. We work with many home sellers each day, and we’ve compiled the 8 best interview questions to ask a REALTOR® (or REALTOR® Team like The Power of 4/Team Excellence) in hopes that it will help you or someone you know when they’re considering a home sale. Let’s get started:
1) Are you a full-time professional real estate agent?
Why this is important: Knowing whether or not your REALTOR® markets and sells real estate full-time helps determine his or her commitment to your transaction. It also demonstrates the level of confidence she or he has in her/his abilities.
2) Do you have an administrative assistant, team or staff to handle different parts of the home sale?
Why this is important: It is not uncommon for agents who sell many houses each year to hire people to work with them. As their businesses grow, they must be able to meet and preferably exceed the expectations of their clients. The fact that they have a Team in place to help with various parts of the process of selling your home is a good indication that they are both talented and organized when it comes to selling real estate.
3) What is your marketing plan for my property?
Why this is important: Any REALTOR® you hire should be able to produce a multi-point marketing plan to market and sell your home. At a minimum, this should include services like professional photography, property video or virtual tour, social media marketing, networking with colleagues, promoting to their current database of buyers, and syndicating to real estate websites like REALTOR.com, Zillow, Trulia, and more. Request samples of their past marketing materials to get an understanding of what they plan to do for you.
4) How will you keep in contact with me during the selling process, and how often?
Why this is important: As with anything, it’s good to know and set proper expectations of how the process will look and feel. Many agents perform an “update call” either weekly or bi-monthly to keep their clients informed at all times. Great agents also stay up-to-date on the neighborhood competition and market trends and will often prepare updated comparative market analyses for you to review.
5) What is your list-to-sales price ratio, both over the last year and throughout your career? On average, how long do your listings stay on the market? How does that figure compare with other agents?
Why this is important: The proof is in the pudding. The list-to-sales-price ratio indicates what offer amount they were able to procure for their clients compared to the list price. A high list-to-sales-price ratio demonstrates negotiation savvy (the agent is able to keep the contract price close, at, or above the list price). The days on market figure shows how effectively they price and market homes. Both of these numbers are definitely among the best interview questions to ask a REALTOR®
6) Will you give me names of past clients and may I call them?
Why this is important: Interviewing an agent is similar to interviewing someone to work in your office. Contacting references is a reliable way for you to understand how she or he works, along with whether or not her/his style is compatible with your own.
7) How will you get paid? How are your fees structured?
Why this is important: In many areas, the seller pays all agent commissions. Sometimes, agents will have other small fees, such as administrative or special service fees, that are charged to clients, regardless of whether they are buying or selling. Be aware of the big picture before you sign any agreements. Ask for an estimate of costs from any agent you contemplate employing.
8) How would you develop pricing strategies for our home?
Why this is important: Although location and condition affect the selling process, the price is a primary factor in determining if a home sells quickly or at all. Access to current property information is essential, and sometimes an appraisal by a certified appraiser can help. Ask your agent how they created the market analysis they used to price your home, and whether your agent included For Sale by Owner homes, foreclosed homes and bank-owned sales in that list.
At The Power of 4/Team Excellence, we work with many home sellers each day, and we hope that these 8 best interview questions to ask a REALTOR® has been helpful to you or someone you know. If you’re considering putting your home on the market, we’d welcome the opportunity to share with you how we’re different from the rest.
Give us a call or email us anytime. We’re always here for you.
With homes flying off the market for top-dollar value and little-to-no inventory, one thing is certain about the real estate market: we are in a seller’s market. In addition to the rising home values, rent prices are also increasing – causing more people to decide to buy a home. While this may sound like a good thing, the increase in traffic and low inventory of homes available is not boding well for buyers. Why? To put it simply, they don’t have enough time to find and make an offer on a home they like. How do you compete in Central Texas’ hot market? Here are five tips to help you buy a home in our competitive market:
Get Loan Pre-Approval
Unless you are paying in cash, you are going to need to take out a loan to buy a home. To receive loan approval, a lender needs to look at your credit, debt, assets and more. Now, if you want to be competitive in a tight market, pay attention! Before you even begin searching for homes, you should visit a lender and receive pre-approval. What does this mean? Basically, it means that a lender has examined your financial situation and determined how much mortgage you can afford. DO NOT start viewing homes until you have this letter in hand. Why? To a seller, this pre-approval letter shows that you are a serious buyer and you can financially close the home. If you walk into a situation without this letter, a seller may pass you up for another buyer.
Avoid Contingencies
While contingencies can protect you as a buyer, they will more than likely place your offer at the bottom of the pile. This is a problem if you are buying in a competitive market. If you want your offer at the top of the stack, ensure your offer is appealing to the seller – i.e., no contingencies.
Make a Strong Offer
In a normal market, submitting an offer below list price is realistic. Even then, you have to be practical with your offer as offering 10 percent below the asking price will quickly turn off the seller. However, this changes even more in a competitive market. Trusting an experienced real estate agent is in your best interests in this situation.
Gather Your Best Down Payment
While the average down payment is around 7.6 percent of the median sale price, according to ATTOM Data Solutions, it is advisable to submit a larger down payment. How come? Sellers are more likely to accept an offer with a more substantial down payment. To a seller, this signals the buyer is more likely to qualify for a mortgage.
Look for a Hidden Gem
Turn-key homes are generally in higher demand than homes that require renovations. With this in mind, a home that doesn’t include everything on your wish list may come with less competition and a lower selling price. This home, while requiring renovations, could be customized into your dream home. Just one thing here: don’t pick a home that needs too many improvements. Why? It may end up costing you more than you saved – housing code regulations, foundation problems, etc.
In general, it is important to search for ways to show you are a serious buyer – especially in a competitive market. A buyer with a pre-approval letter, a substantial down payment and more, are more appealing to a home seller and make you more competitive.
Do you have any questions about buying a home in the Central Texas area? Contact us today!