Most home sellers are ill-equipped to evaluate real estate agents and it’s not really their fault. There is no official ranking system and no agreed-upon database that tells you how how to evaluate a Realtor. Most homeowners meet with a few agents, listen to their presentations, and try to decide who to believe. Typically it comes down to a feeling and while that’s not a terrible idea, intuition is important, I would suggest a more thorough inspection.
What To Look Out For
One agent might tell you your house is worth more than anyone else says. Another might offer to do it for less money. For many homeowners these ideas sound like they would equate to more profit however neither answer tells you what you’re going to walk away with when the process is over.
I would be looking for the person who can convince me that their methodology, their techniques, and their advice are going to help me net the most money with a transparent process that’s designed to make it easy and sell quickly. You want somebody who can walk me through the decisions we’re going to face and explain how they would approach them for my house.
The price of a house is not a fixed amount of money, like a lawnmower at the hardware store. What you do to get it ready, what you decide not to do, how you price it, how you present it, and how you handle the sale all have an impact. There are a lot of moving parts, and your real estate agent is advising you through them. That is why I think the agent you hire can have a huge impact on how much you end up with.
Ask About The Preparation Plan
Preparation is a good place to start asking questions. Let’s say you have some money available to get the house ready, but you can’t do everything. What does the agent think you should spend it on? What should you leave alone? Why?
The goal is to do the least amount possible while using your budget to maximize the profit. That takes more thought than walking through the house and pointing out everything that could be improved. The agent needs to understand your situation, your timing, your budget, and the particular opportunity your property presents.
Then they need to explain how a buyer is likely to see the house. A repair that seems inexpensive to you may look like a much bigger expense and a lot of work to a buyer. On the other hand, spending money on the wrong project can leave you with less money at the end.
I would also ask what happens after the agent makes those recommendations. Do they help you figure out who should do the work and in what order? Do they stay involved when a contractor’s estimate changes the plan? Advice is useful, but the house still has to get ready for the market. You need to know what the agent is actually going to do to help you through that part.
Look For Trust And Competency
On a fundamental level, I think you’re looking for two things: trust and competency. You have to trust that the agent is telling you these things because they believe it’s in your best interest. You also have to believe they’ve done this enough times to recognize what matters and give you advice they can defend.
So bring up your concerns. If you don’t want to spend money on an improvement, tell them. If you think the house is worth more than they do, ask them to show you how they reached their number. Their answers should feel reasonable to you, even when they’re asking you to reconsider something you believed before they walked in.
Go Beyond The Sale Prices
Of course you should investigate their previous sales if you can but don’t stop at a list of addresses and sale prices. Ask what those houses were like when the agent first saw them, what they advised the sellers to do, and what happened along the way. This is your largest financial transaction, you should feel comfortable asking these questions.
You may not be able to measure exactly how much of a sale price came from the agent’s decisions. You can learn whether they have a process, whether they can explain it, and whether you have confidence in them to use it for you.
When the meeting is over, you should have a solid game plan in your head and understand why the agent is recommending it. If all you have is a number you liked hearing and a promise that they’ll work hard, you still don’t know how they’re going to help you get the most out of your sale.