7 Savvy Questions to Ask Your Estate Agent Before You Sell
Selling your home can be an exciting time, but you need to make sure you do it right. Here are 7 questions you should ask your estate agent before selling.
Are you ready to make your next step up the property ladder? This can be an exciting time, but as well as finding a new home, it also involves selling your old one. Like many people trying to sell a property, you may be wondering where to start.
The obvious first step is a real estate agent. However, with so many competing for your business, it can be hard to know what to look out for. Read on to find out our 7 must-ask questions when consulting any real estate agent.
1. How and Where Will the Estate Agent Market Your Home?
Marketing is the key to getting your property sold. If it is not out there, people don't know it is for sale. If they don't know it is for sale, then you don't get a buyer, it is that simple.
The more marketing methods that are employed, the more likely you are to get offers. This increases the chance of you getting more for the property.
The most common methods are the use of multiple listings services, with syndication to other real estate portals. They should then discuss staging, how they will describe the property in copy, the list price, and if they will employ specific strategies for photos and videos. All of these should be the very minimum.
2. What Decisions Did You Make to Get My List Price?
It is really easy for an agent to tell you what they think your home should be listed for. What is harder, is to ask them how they arrived at that decision. In addition, it is really important, because in knowing, they have a better idea of how to sell your home to prospective buyers.
If the list price is too high, you will not get any visitors. If it is too low, you will sell for less than it is worth. This question also eliminates unscrupulous agents who may just be giving you an inflated price to secure your business.
3. What Do I Need to Do?
This is a very seldom touched subject, but it vitally important. The real estate agent knows what sells a home, and they can give you expert advice on how to set up your property to increase sales. Take their advice, and implement it.
This may mean facing some home truths, and you should ask them to be blunt and honest. That lime green ceiling with terracotta touches may look amazing to you, but will it really net your the most money for your property? Their tips should concentrate on getting the most saleable outcomes while spending the least amount of money.
4. What Similar Properties Have You Sold?
Knowing what similar properties the agent has sold can be a great indicator of how successful they will be when selling your home. Firstly, it will let you know the level of their experience. Secondly, it will tell you how well they know the local market, including sales prices and demand.
Ask them what properties they have sold of a similar size or in the same area. Ask them the prices they were listed for and what they eventually sold for.
5. What Are the Costs?
Crucially, you need to know what using the agent is going to cost you. You also need a full breakdown, not just estimated costs. Essentially, you are taking the sale price, deducting any loans or mortgage owed on the property, minus any closing fees.
A large amount of the closing cost is going to be the commission received by the estate agent. This will usually be split between both the seller and buyer's agents. The commission is negotiable, but usually somewhere around the 5% range.
Other closing costs you may encounter could be title fees, escrow fees, and attorney fees. To keep the final predicted cost accurate, make sure your real estate agent provides you a copy of the estimated settlement statement, and to ensure the suggested property price is accurate. Finally, check the remaining balance of your mortgage.
6. What Is Your Sale to List Price Ratio?
The mark of a great estate agent is actually not in how many homes they sell or how much for, but the ratio of sale to list price rating. The number is arrived at by taking the selling price of all their sold homes, then dividing them by the prices that were listed.
Once you have this number, compare it to other agents. The higher the percentage rating the better. Low ratings will often suggest that a real estate agent gives estimates that are too high for their list price.
An agent that is overpromising may be doing so just to secure business. It also suggests they do not know the market, and the high price may actually put many people off the listing. You should be aiming for a ratio rating of over 95%.
7. How Long Will It Be on the Market?
It is impossible to know how long your home will be on the market. It all depends on the current demand, state of the housing market, and your property itself. However, you can get a rough estimation based on these factors, but you must understand it will not be exact.
Ask the estate agent how many days from listing to sale other similar homes have been on the market. The length of time it takes them to sell can be compared to other estate agents. If their average days on the market are much higher than other realtors, then it may start to raise some questions and could be a warning sign.
Signing With an Agent
Once you have asked these questions, you should be able to find a trusted real estate agent who will get you a great price, and make a sale quickly. Listen to their advice and don't be afraid to shop around for agents if you do not feel comfortable.
You can begin your search with Palmer Realty. We are an experienced company based in Fulton County PA, with an experienced staff who can answer all your questions. Click here to view our agents and start your sale today!