Knowing the right person to call when you are ready to sell a house can be difficult. You probably know an agent or two, but your kids, neighbors, and friends all have their favorites as well. So how do you choose?
In this article we will take a look at the different strategies for how real estate agents or brokers are typically selected and considerations for those tasked with making this decision for themselves or others.
Friends and Family
When asked why they would select a friend or family member over other real estate agents when selling or buying a home, some common responses include:
1) I trust them,
2) It’s the most convenient option,
3) To save money, or
4) Would feel guilty hiring anyone else.
One might think the responses would include one like, “They are the best person for the job,” but this is not usually the case. In fact, some admit being nervous that the family member or friend may not have the skills, experience, or expertise to perform the task well.
Naturally the idea of saving money can be a strong catalyst for selecting a particular agent, but anticipated cost savings may not always be the actual outcome.
“When we decided to sell our home a couple of years ago, we wanted to help out the grandson of a close friend. He was very kind to give us a break on the commission, calling it a senior discount,” said Gene T.
“While the commission was less, we ended up paying a lot of fees that we later learned were unnecessary. Not sure we saved money in the end.”
Previous Agent
It isn’t uncommon for homeowners to call upon the person who sold them their home when it comes time to make a change. Whether it be a previous successful experience, a sense of loyalty, or the comfort of convenience, hiring someone familiar can certainly make sense.
Despite the familiarity, however, it is still important to ask questions and interview previous hires. Circumstances can change over time – both yours and theirs.
“It seemed like the right thing to do, calling the agent who sold us this house. She did a good job and was pleasant to work with,” said Rita H. “Selling our home didn’t go as well.
We learned later that our agent primarily dealt with buyers and had less experience with marketing homes for sale. It was disappointing, but we simply didn’t know to ask about that.”
Local Expert
Real estate agents often market themselves in specific geographic areas as neighborhood experts. This marketing strategy referred to as “farming” is intended to position an agent as having more knowledge and experience than others in that particular area.
While this may certainly be true, it can also be simply an image that is created through mass mailings, association newsletters, and online advertising.
When interviewing an agent purporting to be a “neighborhood expert,” be sure to ask them for statistics and references to support their claims.
You will also want to verify they are giving you personal sales data versus brokerage statistics. Just because their office has sold homes in your area doesn’t necessarily mean they have.
“We didn’t know where to start when selling our house,” said Carol M. “There was an agent who advertised every month in our newsletter, so we called her first.
Something just didn’t feel right, so we called an agent who had a sign in a nearby yard. He was late to our appointment and seemed very hurried. We finally hired an agent recommended by the retirement community we moved to.”
Yes, it may feel like an agent should know the in’s and out’s of your particular neighborhood (that is how real estate used to be sold).
But in today’s online world of internet marketing, it’s more important that an agent know how to negotiate a sales contract, use online marketing tools, and navigate the inspection process than it is for them to know all the neighborhood happenings.
Specialist
A small percentage of agents will expand into areas of specialization. They may earn designations or certifications in luxury, acreage, condos, 55+ mature market, first time buyers, etc.
Not all specialists, however, are as educated or experienced as one might hope. This is especially true for those serving the senior market. In fact, to earn certain designations, agents can take a weekend seminar and pay only a small annual fee to utilize the title. Conversely, others are required to demonstrate competency and prove their knowledge concerning the unique issues commonly faced by downsizing seniors.
“The community where we moved recommended a few agents they said worked with people like us,” said Ruth C. “We interviewed them all. One definitely stood out though. They were so patient and basically handled every detail from start to finish, including helping us with the move itself. It was a huge relief.”
Asking Questions
Whether your plan is to hire a friend, family member, former agent, area expert, or mature market specialist, it’s important to interview the potential candidates to ensure they are the right fit for your current circumstances. Below are a few things to discuss with them in your first appointment:
• Level of experience selling homes in the current market.
• Recent references and production reports. Call the references!
• Resources and trusted vendors to assist with relocation and estate liquidation tasks.
• Their proven strategy or process for marketing homes.
• The makeup of their team and team member roles.
• How listings and transactions are handled should they be ill, on vacation, etc.
• How they communicate (by phone, in person, email, in writing, text).
• Familiarity with local 55+ senior neighborhoods or retirement communities (if applicable).
• Fees, commissions, and brokerage cooperation policies.
Making an Informed Decision
It’s natural to want to accept answers to questions at face value. Beyond the simple and immediate answers, however, take time to observe how you feel about the interview and the person you are interviewing. Take time to reflect and to check references.
Remember, you are placing what is likely your largest asset in the hands of this person, team, or organization. You are in charge.
Considerations When Interviewing Agents
• Inquire about experience and training in dealing with downsizing moves – these are very different from traditional moves and require knowledge of the detailed timelines and additional steps involved.
• Do they have support staff available to answer calls when they are unavailable.
• Regular follow-up with you and your downsizing team is important. What are their follow-up policies?
• Get a written estimate of fees and expenses for your sale and/or purchase.
• Observe the level of attentiveness and time taken to address your questions and concerns.
• How much experience do they have? Consider how many sales they have successfully completed (in addition to years of experience).
• Obtain 3-5 references AND call them for specific information
• Choose an agent who sells real estate full-time. Someone with a second job or who sells “on the side” will not likely be available to serve your needs effectively.
• Technology is a reality in today’s real estate world. Whether or not you use email or the Internet, make sure your agent does.
If you are uncomfortable calling those you elected to NOT hire, ask the agent you hire to call them. This is a common practice designed to help you avoid uncomfortable conversations with disappointed or otherwise unprofessional agents.
If you or someone you know would like a complimentary downsizing coaching appointment, give us a call at 405.708.7010.
Planning a future move,
but just aren’t quite ready yet?
If you are a seasoned homeowner or someone
who plans to downsize from a larger home to a smaller
space in the next few years, you have come to the right place.
Click on the Button Below
to learn how you can join the Oklahoma Downsizers Club.