How to Choose the Right Listing Agent

Two of the biggest mistakes home sellers make when choosing a listing agent are selecting an agent solely based on the two things: 

the highest list price for your home and the lowest commission.

At first glance, a seller might say, "What? Are you nuts?" because sellers want the highest possible price and to pay the least amount of commission. But those two criteria have very little to do with hiring a competent agent and, in many instances, are completely irrelevant. Let's look at why.

The highest suggested list price

Agents can't tell you how much your home will sell for. That's a fallacy. A listing agent can show you comparable sales, pending sales, and active sales. But YOU choose the sales price, and a buyer will tell you if the price is right. An agent can suggest the list price that will attract a buyer. Where it goes from there is generally left up to the buyer.

To Get the Listing, Some Agents Distort the Truth: Since agents can't guarantee your sales price, the listing agent who suggests the highest price could very well be untruthful. 

Ask the agent to show you numbers supporting the suggested list price. If the agent has no stats or the home sales are located in a different neighborhood, that could be a red flag.

Look for a Listing Agent Who Gives You a Range: There is often, but not always, a price range. It might be apart $10,000 on the low-end versus the high, or the spread might be greater. Many factors determine the range, among which are location, the temperature of the market, and improvements in the home.

Pricing Is an Art: If the home is priced right, you'll be much more likely to get an offer quickly. If it's priced too high, you might not get any showings at all; buyers might shy away from your home, and you'll eventually end up reducing the price.

Should you choose an agent based on commission?

Real estate agents are not equal; each is unique. Remember about 10% of the agents do roughly 90 percent of the business. Each has their own marketing techniques and advertising budget. By choosing an agent with a large advertising budget and company dollars to match it, you might gain greater exposure to the largest number of buyers, which is ideal. Reaching greater numbers of buyers equals better chances of a good offer.

Why would an agent willingly work for less than competitors? 

There is always a reason why a broker or real estate agent would discount a real estate fee. Sometimes it's the only way the agent feels it's possible to compete in a highly competitive business because the agent can't otherwise stand apart from the competition on service, knowledge or negotiation skills.
If the sole benefit an agent brings to a table is a cheap fee, ask yourself why. Is the agent desperate for business or unqualified? Do you want to work with a desperate agent?

Importance of agent marketing

Beyond the expensive car or fancy clothing, a good listing agent lives and dies by marketing. Because marketing sells homes. Ask to review a complete copy of the agent's marketing plan. Precisely, what is the agent going to do to sell your home?

Characteristics of a good listing agent

You will be in a relationship with your listing agent for a month or two or longer. Choose an agent you like and can relate to. Here are some of the characteristics sellers say they want in an agent:

• Experience: Let new agents learn the business on somebody else's dime.

• Education: Ask about degrees and certifications.

• Honesty: Trust your intuition. Your agent should speak from the heart.

• Networking: This is a people business. Some homes sell because agents have contacted other agents.

• Negotiation skills: You want an aggressive negotiator, not somebody out to make a quick sale at your expense.

• Good communicator: Sellers say communication and availability are key.

We live in a review economy

A great way to find a good real estate agent is to get a recommendation from someone you know and trust. If that’s not an option, start looking at local agents and their reviews from clients. 

In addition to Facebook reviews, ratemyagent.com is also a great tool to do some research.

Whatever your approach, be sure to choose someone you’re comfortable working with, and who’s knowledgeable and experienced enough to negotiate on your behalf and represent your best interests.