Any Tips for Interacting with a Realtor?

[Alicia64]

I've never sold a home before. This is a new "treat." I don't have a clue what to expect from a Realtor, hope to get from one etc.

 

I also don't know what or how they charge.

 

Anything at all that you can tell me?

 

Something I should look out for?

 

THANKS!!

 

Alley

[milovany]

Are you sold on using a realtor? We've bought/sold 3-4 houses without one. It's not very hard; the title company walks you through most of it. You can either make more money, or list the home for a lower price (to sell faster?) by not using a realtor.

[Alicia64]

dh was only given about 40 days to pack up his life and move. The good thing is that the company is giving us a 3 month apartment once we get there.

 

So we're fixing up and cleaning out. It'll be so much easier for a Realtor to sell without 6 year old boys and their stuff everywhere.

 

So, yes, a Realtor is necessary. But I love the way you do it and always wanted to try that for myself.

 

Alley

[asta]

Always remember that, no matter how nice they are, they are not there to be or become your friend. You are in a business relationship. You are paying them to sell your home - in your best interests.

 

Make sure that your realtor is a SELLER'S AGENT, not a buyer's agent. This way, they are always working for you. And they will try harder, trust me. Unless things have changed, realtors charge a standard 6% of proceeds. If another realtor brings the buyer to them, they split the fee with the other realtor 50-50.

 

Presentation truly is everything. If you live in New York, you should have a realtor who "looks" like the area of New York where you live. Not like rural Kansas. I know, that sounds harsh, but it is true. Places have "looks", and buyers expect it. Buyers want to know that the realtor "understands" the area they are selling.

 

If there is a predominant ethnic group in your area that speaks another language, you will greatly expand your buyer base by getting a realtor who speaks that language and knows the mores of that culture. Even if that ethnic group *seems* to be in a lower socio-economic group, don't assume - people allocate their monies in different ways.

 

Listen to them. If they tell you to put half of your stuff in storage and paint your walls white? Do it. Don't argue that all of your stuff makes it look "homey", or that your sponge paint and wallpaper border is "perfect". No one is buying your stuff. They are buying your structure. It is hard to envision one's own stuff when it is engulfed in someone else's. If your realtor doesn't insist that your home be ready at all times for walk throughs, especially on your short time frame, be wary.

 

Animals. No one with animals smells them. People walking into homes do. Your realtor will tell you to move the guinea pig/rabbit/hamster/cat box/dog. She means it. Trust her. If she DOESN'T tell you this, be wary. Clients don't want to smell animals or deal with dogs. Even if the dogs don't jump, many people are terrified of them.

 

A good realtor, in this market, will tell you the reality of the situation - which is that it doesn't matter what you bought your house for, or what it was "worth" a couple of years ago - it more than likely isn't "worth" that now. They will take a hard look at the "comps" in your neighborhood to find out what things have *actually* sold for and give you a reasonable expectation of what yours could sell for. And if you want it to sell fast? Recognize that you will need to drop THAT figure by quite a bit (this is how I sold a house in 30 days in a flat market).

 

Finally, don't be willing to sign a more than 6 month agreement with anyone. It is a slow market. Realtors should be hungry for work. If you are aggressive with your pricing, and the realtor doesn't have any bites in 6 months, you need to move on.

 

 

a

[mirth]

Always remember that, no matter how nice they are, they are not there to be or become your friend. You are in a business relationship. You are paying them to sell your home - in your best interests.

 

I really can't agree more. In my area, there are sooooo may realtors, that I've found they will say anything to get the listing. Once you list with them, the assumption is the house will sell eventually. If you have a $100,000 house, then that is $7000 they just mentally chalked up for themselves.

 

When I listed my old house, I wrote on a piece of paper the absolute lowest price I would sell my house for. (Do this too. DO NOT tell this number to your realtor, or anyone really) My house was in a very popular area. It was listed and sold within 25 days. Within this 25 days. we got a firm offer for someone who was willing to pay in cash. They did not need financing and were from a prominent local family. (Financing is the main way deals fall through and realtors never really get their commission, easily anyway, and end up spending a lot of their time with no reward) Their offer way low but my realtor said Ehhh, it's not bad. Ok whatever. I immediately rejected the offer. I countered with the original asking price as if to say "I'm not taking you seriously". They came back with a figure $700 lower than what I wanted on my secret piece of paper. Realtor said, "OK, this is a really good offer, I would recommend accepting it."

 

At this point, she had done maybe 10 hours work total on my sale (printing brochures, etc) In her view, it was like, "I want to advise this client to accept because it is a done deal. No financing issues. No way this will fall through." Finally, I revealed my bare minimum selling price is Offer + $700, and I will just keep showing the house until I get at least that.

 

At this point, she said, "OK how about if I just give you the difference?" I slowly said, "Really .....? [i probably thought about all her motives silently on the phone during about 20 seconds of radio silence] Then I said, "OK, I don't care where the $$ comes from."

 

If you tell your realtor your lowest minimum asking price, magically that is what you will get.

 

Freakonomics had a chapter on how real estate agent's own houses stay on listing (on the market) for an average of 25-40 days longer than their clients'. Isn't that interesting?

[mirth]

Oh yeah, there are also other types of listing agreements you can do.

 

E.g.

 

Non-exclusive listing. This means you can have 2 or more agents competing to sell your house. Neither of them have the exclusive right to act as your agent (make/reject offers, write contracts on your behalf)

 

One-day only listing. You give somebody one full day or one weekend to try to sell your house. After that, you care free to try to get someone else

 

Tiered commission. Realtor gets say 7% on the first $100k, 10% on the next $5k, 15% on every $1k after that. Now they have more motivation to get a high selling price for you.

 

I would just do sell by owner if the time came again.

[runamuk]

If you have time, interview realtors. We spent 5 days and interviewed 4 realtors, 3 of whom had been recommended. One realtor couldn't be bothered to do anything before our meeting (all the others came with packages prepared), one spent a good part of the meeting answering her phone and texts, and one just wasn't listening to us. We found one we "clicked" with, who understood the necessity and inflexibility of a military move and why we couldn't afford to leave our house on the market after we were already paying rent somewhere else. She busted her butt for us and sold our house in 19 days.

[Leila]

yes, I agree. The best way to do it is to start interviewing realtors, go to their websites and look around. Some are seller's others are buyers realtors, so be careful. And remember, they maybe very friendly but this is business for them and they are out to get some money.

[ChristyB in TN]

My husband owns a real estate company so I know a little about it.:) You want a busy realtor. The busy ones are usually on top of their game. It is not a great idea to hire a realtor who also works another job or is a part time agent. Hiring a realtor who has a "team" can work in your favor, too. They usually have someone available all the time. If you have trouble getting in touch with one then you know everyone else is having problems, too. Don't hire someone who: creeps you out, talks too much, looks disorganized, has problems immediately returning emails/phone calls and has strict hours. We find a lot of business gets done on Sundays! Finding a realtor who has sold other property in your area is a good plan! A common (here) way for a realtor to structure the commission is to get 6% for his/her end of a sale and less of a percentage if he/she represents the buyer, too. I hope it goes well for you!

[AuntieM]

I have sold 8 homes. You have received great advice from asta and mirth.

 

I just taught a real estate lesson to my high school personal finance class. Here are some tidbits you may find interesting...

 

Price your home correctly. Really take time to research the comparables. Of course you want a great selling price, but asking too much will only delay an eventual sale. "Holding out" for the best price will cost you in the long run with the extra expenses you incur while your house is on the market.

 

The standard real estate commission (traditionally paid by the seller) is currently appx 7% of the sales price of the house. Using a professional realtor, on the average, increases selling price by 16%. If you have never sold a home before, I do not recommend selling without an agent.

 

You are hiring the agent. You should interview several agents. They work for you. Hire a go-getter. And definitely get a seller's agent who will have your best interests as a focus.

 

A visible pet can cost as much as $10,000 through a decreased selling price. So can evidence of childrens' wear on the home. If I walk up to the door of a home with a realtor and I see Fido or Fluffy through the doorside window, I tell the agent not to bother opening the lockbox.

 

When folks come to look at the house, leave! Put the kids in the car and just drive around if you have nothing else to do! I have bought 9 homes (so shopped through hundreds!), and I will not look at a home thoroughly if the homeowner is lurking.

 

A fresh coat of paint - especially on the front door - can result in a higher selling price, so consider it. Also, replace all light bulbs with 100 watts (or highest wattage the fixture will take) and leave all lights turned on when you know or suspect there will be a showing. If you are not in town, consider leaving some lamps on a timer so the dark corners will be lit daily.

 

Curb appeal is ESSENTIAL! Make it look like a newer, fresher house by cleaning up and cutting back or replacing older, overgrown trees and bushes. Clean outside crevices and light fixtures.

 

Make sure your home gets into the Multiple Listing Service (MLS) and the internet. Many of the homes bought and sold today are due to corporate employee relocations, and most transferees won't (often can't!) deal with a For Sale By Owner (FSBO) and want to shop online to get an idea of the new market prior to actually making a trip to shop the new location.

 

Avoid funky smells. No pets or curry, but no overpowering air freshener scent, either. Freshly baked bread is a universally good smell, I think, just don't burn some right before a showing. People will say to light a candle, but I personally do not like the smell of scented candles so I wouldn't recommend it.

 

I really can't add much more, the others covered most. You can do it! There are lots of web resources that can advise you on staging your home to sell.