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Working with a Real Estate Agent
Sellers
How do I find the right agent for me?
Answer: To begin with, think local. Select someone who is very familiar with your neighborhood and the properties for sale in it. Then, if you are selling, say, a condominium, choose an agent with expertise selling apartments to potential homeowners. Because you will want the widest possible exposure for your home, you also will want a real estate firm that works with other agencies to get your property sold. The Multiple Listing Service (MLS) used by Realtors, licensed members of the National Association of Realtors, is still the most common and effective form of cooperation used today.
Beyond these parameters, select an agent who is competent, efficient, and ethical. Perhaps the agent who first sold you your home would be a perfect candidate. If not, ask family, friends, and neighbors for recommendations, or choose a firm headed by an individual who is known in your community.
What questions should I ask an agent interested in selling my home?
Answer: Interview a local agent who sells homes in your community. Grill them about the following:
  • The worth of your home. The agents should inspect the home and prepare a comparative market analysis.
  • Marketing plans. These are a must. Make sure they include internet exposure, the local Multiple Listing Service (MLS) - which gives your home maximum exposure to all local agents and Internet marketing through the agent's Web site.
  • Length of the listing agreement. A 180-day listing is reasonable for marketing your home.
  • Number of listings. Find out how many listings the agent now has and how many she normally sells. Too many listings - more than a dozen - with a low sales rate, may not be a good sign.
  • Get references. Ask for the names and phone numbers of recent home sellers. Call them and ask if they were satisfied with the level of service delivered by the agent.
What is the most common type of contract for listing properties?
Answer: The exclusive right to sell. It gives the real estate broker the exclusive right to sell your home during the term of the listing. If a sale occurs - even if you sell the home yourself - the broker gets a commission. The broker will share the listing with other brokers on the Multiple Listing Service (MLS) to get the widest possible exposure for your home. If you request that the property not be listed on a multiple basis, only the broker named in the contract and his or her sales agents can market and show it.
What if I am not happy with the listing agent and want to terminate the contract?
Answer: Experts say unhappiness is not a legal reason to terminate a valid home sale-listing contract. Legally, to cancel a listing, you must be able to prove the agent's lack of "due diligence." This means the agent isn't taking the normal steps to properly market your home, such as putting your listing into the Multiple Listing Service (MLS), advertising on the Internet and posting a for-sale sign on the property.
If your home is overpriced, perhaps you need to consider reducing the price to spark buyer interest.
 
Do I really need an agent?
Answer: Most home sellers hire real estate agents to list and sell their homes. Most of those who do not are known as For Sale By Owners, or FSBOs. They market and sell their homes themselves. However, a small number of people sell without marketing their homes. They include homeowners who transfer property to family members or landlords who directly offer tenants the first right to purchase property before they place it for sale on the market.
In the end, most FSBOs eventually hire an agent because the agent will handle all the details of a successful home sale - including the contract, forms, and disclosure statements - and expose the home to the widest range of prospective buyers through the local Multiple Listing Service (MLS).
Is the commission negotiable?
Answer: Yes. There is no standard commission. They are not set by law and vary depending on service, customer needs, and company policy. Some agents prefer not to offer sellers the option of paying a fee for an individual service. If you insist on overpricing your home, an agent may well insist on a higher commission to cover the added marketing expenses and time that are needed to sell it. Think of a commission as a point you must negotiate and evaluate. Also, expect the commission to be higher if your agent is providing you with additional marketing exposure.