12 Questions to Ask an Agent/Broker BEFORE You List
1 How is your real estate business capitalized?
Marketing is expensive – training is expensive – running a business is expensive. You don’t want to hire an agent/broker/real estate company that is undercapitalized.
2 How many names are in your contact management system and how often are they contacted?
Yes, real estate data is important. Company files, personal files, and the MLS are full of important, useable, data. But what about people? You know, those who buy and sell real estate. Top agents compile a running database of those interested in buying or selling real estate.
3 What percentage of your business is listing… sales?
While most work with both, many agent/brokers today specialize in listing or selling.
4 What is your percentage of list to sell price?
Some associates, simply wanting to have a sign in someone’s yard, will take any listing at any price thus resulting in a low list to sell price. You’re looking for the professional who doesn’t have time to play games.
5 What is your & the area’s average days on the market?
While market conditions often dictate how long homes will sit on the market, you want to know that the agent you choose knows their stats.
6 What is your percentage of listings taken to sold and closed?
7 What percentage of your listings do you sell yourself?
It is great, as a listing agent, to sell your own listing. However, this happens less than you would expect – on average about 10% of the time. If someone promises much more, I would question it.
8 What percentage of your listings expire and why?
The number one reason listings expire is they are overpriced (discussed in #4 above). There are many other reasons: seller makes it difficult to show, unruly animals, unkempt property in poor condition and poor marketing.
9 What is the current market ‘absorption rate’ for my property?
10 What’s your ‘compelling point of difference’ and how will that convince me to do business with you and your company?
In my book, Dog Eat Dog & Vice Versa, 9 Secrets to Put The Bite Into Your Marketing, I have a complete Chapter titled Dare to be Unique and You Don’t Have to Compete. As in most jobs, everyone just follows the leader – “Me Too”. You’re looking for the stand out.
11 When will I see a strategic marketing plan for selling my property?
Simply put, the steps the associate and company will do to get your home sold.
12 What is the highest price we can expect and what will we need to do to our property to achieve it?
The goal is to get your home sold for the highest price, in the shortest amount of time, with the least inconvenience to you. The professional will be able to demonstrate how they arrived at the price point and what you’ll have to do to bring your property to the top of the market.