Questions To Ask A Real Estate Agent - Part 4

The most important thing you can do when buying or selling a home is to choose the right real estate agent to represent you.

Many buyers and homeowner’s are inexperienced when it comes to buying or selling a property. They rely greatly on the “perceived” ability of the real estate agent they are dealing with.

Although the average real estate agent does a good job, many buyers and homeowner’s would be “fair game” for a disloyal, dishonest, or incompetent real estate agent.

To help select the a good agent, there are several key issues a homeowner (or homebuyer) should discuss before using just any realtor.

Real Estate Agent Question:

What does the agent want as a minimum listing period?

Most real estate agents want a minimum 90 days listing term. They will say that they need that amount of time to do justice to the marketing of the property. The agent will have access to statistics on the average number of days the local multiple listing service (MLS) says it takes to sell homes in your area.

Although 90 days is common, some agents will try to lock you in to a six-month listing contract. Such a long listing contract is not usually necessary or desirable unless it includes an unconditional cancellation. You could compromise and agree to the unconditional cancellation clause taking affect after perhaps 90 days.

If the agent insists on a long listing term, because that what is needed to sell the property, you might want to question whether or not you are signing with the right agent. If that is how long it takes the "average" agent to sell a property in your area, do you want to list with an "average" agent, or would you better better off with an agent that can do better than "average." Ask the agent if he or she considers themselves to be "average."

Real Estate Agent Question:

What systems does the realtor have in place that will keep them in constant contact with you during the listing and the transaction?

Real Estate Agent Question:

Ask the agent what his or her fee structure is. Does the agent require a percentage of the sales price, does he/she work for a flat fee, or will the agent be paid by the seller (if you're the buyer)?

Real estate fees are generally negotiable. Typically, real estate agents charge a percentage, from 1% to 4% to represent one side of a transaction: a seller or a buyer. A listing agent may charge, for example, 3.5% for him or herself and another 3.5% for the buyer's agent, for a total of 7%. Real estate is a competitive business so don't be afraid to negotiate. And remember, the lowest price is not always the best value for money.

Remember to negotiate the listing period. You don't have to list for three months or six months. Although you don't want to be changing agents every time the going gets tough, you also don't want to get stuck with a bad agent.

Is It Worth Paying Real Estate Agent Commissions Or Should You Sell Your Home Yourself?