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Finding a Listing Agent

Ok, so you've decided to sell your house -- should you try to sell it yourself - For Sale By Owner; hire a "discount broker" to save a few dollars; or hire a full-service real estate agent like me.  It has always been my philosophy, you get what you pay for. 

If you decide to sell your home yourself, great!  I will be more than happy to provide you, free of charge, copies of sales contracts, addendum, etc. you'll need to sell your home.  If I can help in any way, I'm here to provide you with helpful information about selling your home.

If you decide to use a discount brokerage firm, make sure to ask what they are going to do to get your home sold.  A rule of thumb is generally discount brokerage firms will place a sign in your front yard and list your home on the Multi-Listing Service ("MLS") and you handle everything else.  You're paying 4% to 4.5% of which 2% to 3% is going to the buyer agent.  What is the agent going to do for their 1% to 1.5%?  Make sure you have a clear understanding of what they are going to do for you to get your home sold.

If you decide to use a full-service realtor such as me, I will provide everything from the moment you sign on the dotted line to aggressively marketing your home to prospective buyers to consulting with you on contracts.  Once the contract is finalized, my job is not done.  I will coordinate the settlement with all parties and make sure everyone adheres to the contract.  My services include advertising online at Realtor.com (one of the most actively searched databases by prospective buyers - locally and nationally), mass emails to all Realtors and Real Estate Offices, advertising in local and regional newspapers, providing you with regular updates on progress and feedback from buyers who have viewed your home, etc.  My goal -- is your goal -- to get your home sold as fast as possible, for top dollar.

Why go with the pros?

Selling your home can be a stressful proposition, whether you're relocating, movin' on up, or you just took a bath on the NASDAQ. Working with a good listing agent is probably the single most effective way to ease your anxieties as you enter the marketplace.

You may be hoping to save commission dollars by going the "fizzbo" (For Sale By Owner, or FSBO) route. Seller, know thyself: Successful fizzbos take time, dogged commitment, and a thorough understanding of financial and legal issues (such as terms for financing and disclosures), contracts and your local real estate market.

At first glance, using a listing agent does take some cream off the top of your net profit (typically 4 to 8 percent of selling price), but a good agent is worth his fee—saving you from common pitfalls that could actually cost more, such as under- or overpricing your home, costly work orders, or even lawsuits.

Ten reasons to go with the pros

1.   Get advice on inspections, repairs and home presentation before you list.

2.   Because of their familiarity with the local market, agents can price your home at its highest reasonable price—and their insider's view of financing and work orders can save you hundreds, even thousands, of dollars.

3.   Many buyers—especially first-time buyers, who constitute about one-half of the market—are reluctant to work with amateur sellers.

4.   Good agents are up to date on financial and legal issues—essential for negotiations and closings.

5.   Agents will field calls and be available for showings during weekdays, weekends and evenings; you don't risk losing a sale because you've kept your day job, and you'll get more prospective buyers eyeing your home.

6.   Agents handle costly advertising, promotion and (usually) open houses.

7.   Agents handle all offers and negotiations—situations that often cause homeowners to lose their cool and, potentially, a sale.

8.   Agents can help screen the financial qualifications of prospective buyers as well as advise them on financing options.

9.   Agents can "push" your home to colleagues, drum up buyers in a dry market, and—here's the pot of gold—list your home with a local Multiple Listing Service (MLS), which gives other agencies access to your listing.

10. In the emotional environment of selling, buyers and sellers are more comfortable working with a third party during walk-throughs and negotiations.

Where to Start

Ask, ask, ask. Consult friends and coworkers. Talk to former neighbors who have sold in the past year. Find out how long their houses were on the market and whether they had to reduce their price to sell. Was the agent reliable and responsive? Did (s)he act as a lone wolf, or did (s)he welcome the interest of other firms?

Select a firm. Consult your newspaper's real estate pages and notice local realty signs to learn which agencies have the most listings in your neighborhood. They know the territory. If a great agent has been recommended to you, get some background on his or her agency before you seal a deal. Your contract is actually with the broker firm, not the agent—an important point if you and your agent have any conflicts. Does the agency specialize in residential sales? If your agent takes a weekend off, is a colleague available to help you?

Dial up. Call the top agents or agencies with proven sales—not just advertisements—of similar homes in your neighborhood. Talk to the managing broker or the agency head, and ask which three agents have the best track record with homes in your neighborhood. Meet the agents, ask for copies of their standard listing contracts, and then compare the small print.

Have an open house for agents. Start preparing your home for sale before you list so you can sell agents on the value of your home. Clean, clear and prune your property inside and out. Then hold a pre-market open house for a handful of finalists. Let them know there will be others present without identifying them. During the walk-through, ask them basic questions and request their opinions about the condition of your house.

Compare "listing presentations." Ask two or three finalists to create a listing presentation, including: a comparative market analysis of recent sales and listings of similar homes in your area, with listing date, sale date, and list and selling price; their promotional plan for your home; suggested selling price; and a net proceeds sheet detailing your gain under different financing and commission scenarios.

Interview the candidates. Ask agents for a resume, references and the names and phone numbers of three previous clients. Call the Better Business Bureau. And look for an agent who's well-liked in the field. If other agencies have had bad experiences with him or her, they aren't likely to show their buyers his or her listings. How many other clients is (s)he presently working with? Try to avoid part-timers; you don't want to have to wait for return calls, and part-time agents tend to be less up to date on law and finance guidelines.

Choose someone you like. This is a close, sometimes emotional, relationship, so choose an agent whose personality is compatible with yours. A proven sales record is more important than finding a friend for life, but be sure that you're comfortable with your agent, share basic habits, and communicate in the same language.

What Not to Look for

Here are a few things that should not be an emphasis in your search for a good listing agent:

Agency size. The size of an agency is less important than its record of sales, longevity in the area, and an atmosphere of support within the agency. Ask whether the firm uses up-to-date computer technology, which may enhance marketing opportunities.

Highest bidder. Don't automatically go with the agent who suggests the highest selling price for your home; numbers are cheap if your home is priced too high for the market. If you're tempted by dollar signs, phone two other finalists and ask for a reality check. Some agents price unrealistically high in order to get your listing and later have to drop the price.

Ditto for the lowest bidder. Some less desirable agents will deflate the value of your house in order to be assured of a speedy sale. That's fine if you're in a real hurry to sell and are willing to compromise, but be careful not to sell yourself short.

Curiously low commission. There is no legal standard for agent commissions, and there are lots of ways to approach a commission percentage. But if you get excited about one agent's 4% fee in a market whose standard is 6%, consider what services (s)he's cutting to stay competitive.

Sally Anderson is a writer and editor based in Seattle.