How to choose the right agent

Remember: Hope is not an effective selling strategy

For most families, selling their home is one of the biggest emotional decisions they will ever make. If the move is voluntary, you may question whether or not you are doing the right thing.  If the move is mandated by a relocation, you will be separated from things that are special and dear to you.  The right agent will be empathetic to  your needs and thoroughly competent in the financial aspects of the sale. Choosing the best real estate agent to market and sell your home or help you find the right one can make all the difference, turning an otherwise difficult, stressful process into a comfortable, informed experience that you are in control of. You should choose an agent as carefully as you choose a doctor since you will be discussing highly emotional and personal issues over what could be weeks or months.  Make sure you trust what the agent says.  Many times people who are having trouble selling continue to switch agents over and over hoping to find the one with the "silver bullet" and who says their extensive marketing will get you an above market price for your home.  False!  The price for your home is determined by a buyer acting without duress. Trying to sell an overpriced house is like trying to sell out of date food Now why would I say something like this?  Because there is no market for either.  Try telling this to a frustrated homeowner who has his/her mind set on the price that their special house should really command.  THE BUYERS SET THE PRICE! Further, no lender will lend money for an above the market price. Period!  This is why you must use the same techniques lenders and appraisers use to determine the price range for your home. Now, let's take a look at another example below.  I spoke with this seller personally in the summer of 2007 at which time he insisted this was a special house and wouldn't consider my market positioning of mid to upper $ 700's. The outcome was that his home was listed for over $ 1,000 days and he had to drop the price nearly 30% (over $300,000 and pay the hidden costs of carrying the house) for over 3 years.  He could certainly have positioned himself better in the market early on in the listing period and may have taken home a much larger net amount.   Should you list with a major franchised company?   Your selection of a Realtor to work with should be based on the agent themselves not the company. You will never meet any of the company officers unless you go to court and the right agent will keep you out of court!   Don’t they have a secret cache of buyers?   No.   Don’t they have special advertising that attracts buyers?   No.   Agents may tell you that their “strong marketing” will get your house sold.   Yet, the fact is only about 8% of houses are sold by the listing agent.  If there was a "secret marketing plan", every real estate company would know about it and be using it.  And no iPhone app or sending emails from a phone will make any difference.  If you want to know the real reason houses are sold, send me an email. What's the secret?

I use statistical, dynamic modeling to price your property.  This is the same methodology used by certified, residential appraisers.  You will not get a "feel good" price that could never be justified by a certified, residential appraiser.  Many transactions fail to close because the agent improperly priced the house. Why pricing is important to an appraiser. The residential market is fluid and you have to maintain your position to aggressively attract buyers.  Usually a small change is all that is required to get your home sold.  The last homeowner who asked me why their home was not selling (even though it is special), after our talk repositioned the house 5% lower and got a contract in 2 weeks. Staging is absolutely mandatory.  PERIOD!

 What about the ratio of Cancelled & Expired Listings to Sold Listings?

Getting your home sold is the name of the game!  I looked up the ratio of Cancelled and Expired to Sold Listings for a company doing some of the most extensive print advertising in the area.  So far this year approximately 2 listings expire or are cancelled for every one that sells.  Ask good questions and choose the right agent!

ALL AGENTS ARE NOT THE SAME: SOME CASE STUDIES

Certifications alone do not make all agents the same.  In fact, there is an entire cottage industry built on selling more and more certifications to agents.  Next time you look in the newspapers, notice the alphabet soup some agents have after their name.  Do you know what it means?  Is it relevant?  But just like doctors, all agents are not the same.

Recently, I went on two listing appointments.  Here's the summary:

Case Study 1:  Sellers bought home 3 1/2 years ago at the exact top of the market.  When they decided to sell 500+ days ago, they picked an agent who then listed the house at more than the owners paid for it.   Everyone knows the market has declined so why do this?  The seller is now facing a much larger loss (how far did the house decline in value over the last year and a half ?) of several hundred thousand dollars more than if he had priced it correctly from the start...PICK THE RIGHT AGENT!

Outcome:  Seller listed with another agent at almost his purchase price of 3 1/2 years ago. and the house continues to sit on the market month after month.                               

Case Study 2:  Seller called for appointment.  Seeing the house was currently listed as ACTIVE  the MLS, I thought this was odd.  When meeting with the Seller, he explained the listing expired November 30 and could not understand why it was in the MLS as ACTIVE several weeks later.  And, although the property was vacant, it required special appointments to show on the weekends...PICK THE RIGHT AGENT.

This just in:

A study by the California Association of Realtors shows a decrease in the number of consumers who say they would use the same real estate agent again to 22 percent in 2009 from 79 percent in 2004. When asked why they would not retain their previous agent, 64 percent said their homes languished on the market and 51 percent were upset that their house fetched less than they had expected.

The study findings show that sellers with unrealistic expectations blame their agents when a transaction does not go as planned, but agents often are indeed at fault for failing to inform sellers about current market realities when it comes to pricing and financing. See my blog postings on this. 

In the short term, agents can expect consumers to prefer working with individual agents, believing that a large brokerage cannot provide the personal response and service they so desire. Agents also need to drum up the courage to turn down overpriced listings that likely will not sell. See my blog postings on this issue.

Over the long term, Realtors must focus on skill, hard work, and the use of technology to provide personal service and deliver the information of most interest to clients. Moreover, agents should immediately respond to calls and e-mails, listen to their prospect’s wants and needs, and make good on their requests. 

I have posted before that picking the right agent is just like picking the right doctor.  In these turbulent times, a professional "bedside manner" is critical.  And this survey demonstrates why professional pricing help is also so critical.  You, the seller, are not in the business and have emotional ties that will cloud your ability to price the home to sell.  The last 3 homes I have sold have only averaged 4 weeks on the market. 

Find out more at my Coastal Florida Lifestyle blog or my You Tube Channel then send to your friends!

HOPE IS NOT AN EFFECTIVE SELLING STRATEGY!