Mistakes to Avoid When Choosing a Realtor: Hiring A Real Estate Agent
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by Richard Morrison
- January 15, 2020
- Selling
- 0
Choosing the right realtor to sell your home or help you find your dream house can seem like a daunting task. With so many options out there, it’s easy to make mistakes that could end up costing you time and money. Avoiding common pitfalls when selecting an agent to represent you is key to ensuring a smooth real estate transaction.
Key Takeaways
- Don’t choose based solely on personal relationships or first impressions
- Verify skills, experience, and expertise selling in your specific area
- Ask for references and read reviews from past clients
- Ensure full-time availability and access to a team of professionals
- Look beyond commission rates and sales numbers for quality service
- Overpricing risks longer market time and lower sale prices
As a realtor with over 15 years of experience, I’ve seen clients make all kinds of mistakes when choosing an agent. From hiring a family member out of obligation to picking the agent who promises the most money for their home, many of these decisions end poorly. Taking the time to carefully vet potential realtors and asking the right questions upfront will set you up for real estate success.
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Don’t Choose A Real Estate Agent Simply Because You Know Them
One of the biggest mistakes sellers make is hiring a family member or friend to sell their home just because of the personal relationship. While it may seem easier to work with someone you already know and trust, selling real estate requires specific skills and expertise. If your friend or cousin got their license last year and has only sold a handful of homes, they likely don’t have enough experience to effectively market and sell your property at top dollar.
As the saying goes, it’s best not to mix business with pleasure. Real estate transactions involve large sums of money, complex contracts, negotiations and potentially stressful situations. You need an agent who will represent your best interests, not feel obligated to bend because of your relationship.
Verify Relevant Local Real Estate Experience
Just because an agent has been in the business for many years or sells a high number of homes doesn’t mean they are the right fit for you. It’s essential that a potential realtor has extensive first-hand experience specifically in your local real estate market. This hyperlocal knowledge is key for accurate pricing, networking with local agents, and targeting the right buyers for your home.
A realtor should understand the intricacies of each neighborhood they work in – average sale prices, demand forecasts, inventory levels, permit activity. They should be able to articulate recent sales trends and activity in the micro-market surrounding your home. This granular perspective ensures your home is priced correctly from the start.
Ask For References and Read Reviews To Avoid A Wrong Agent
When interviewing realtors, always ask for references from at least their three most recent clients. Speaking directly with people who have worked with the agent on buying or selling a home will provide valuable insight into their skills and work ethic.
You can also look online for reviews from past clients. Sites like Zillow and social media profiles will often have feedback about an agent’s customer service, communication style, marketing capabilities and negotiation prowess. This helps verify that their previous clients have been satisfied with their services.
Seek Out Full-Time Agents with a Team
Many new real estate agents start out juggling another full-time job. While part-time agents may be capable, a recent NAR survey found that 87% of part-time agents make less than $10,000 a year in commissions. This gives them less motivation and fewer resources to market your home effectively.
Seek out established agents who do real estate full time and have extensive resources. A full-time realtor with an experienced team supporting them will ensure maximum exposure for your listing through high-quality marketing materials and online visibility. A team also provides flexibility to accommodate showings and the inevitable last-minute needs that come up during a real estate transaction.
Look Beyond Commission Rates
Don’t make the mistake of choosing an agent purely based on offering a lower commission rate. While any realtor’s commission is negotiable, the marketing budget for your home is directly tied to what they make. Hiring a discount realtor to save 1% could severely limit the advertising and exposure for your property.
Similarly, experienced high-quality realtors earn top dollar commissions because they invest heavily in marketing and have finely honed skills to get buyers in the door. Paying a higher commission directly translates to more money spent getting potential buyers to see your home. Plus, a savvy negotiator has the skills to make up any commission savings through the final sale price.
Verify Skills Beyond Sales Numbers & Number Of Homes Sold
Many real estate agents prominently advertise the high number of annual sales they have achieved. But simply selling a large volume of homes does not guarantee you will receive individualized service or top-level skills.
Rather than focus purely on sales numbers, dig into their sales-to-list-price ratio, average days on market for their listings, and direct references from past clients. High volume combined with satisfied clients, strong negotiation skills, and selling close to list price indicates far more about the quality of service they can provide.
Don’t Choose Based on Flattery or Empty Promises
Some agents will shower you with compliments, promise anything to make you happy, and assure you they can absolutely get the price you want for your home. But if this “yes man” mentality doesn’t align with market realities, it often leads to overpricing and eventually a lower final sale price.
The ideal realtor should balance empathy, market expertise, and listening skills to guide you to a listing price that maximizes selling quickly at top dollar. Rather than telling you what you want to hear, they will gently deliver the objective market facts – both positive and negative – to set realistic expectations. Good realtors know how to deliver hard truths with compassion.
Overpricing Will Backfire
One of the costliest missteps sellers make is choosing the agent who suggests the highest list price for their property. It’s enticing to pick the realtor who promises the biggest payout. But overpricing your home based on inflated estimates or unrealistic comparisons will almost always fail.
Each home has an optimal market value range that is supported by recent comparable sales and current local supply and demand. Experienced realtors derive pricing through careful analysis of adjacent sales and neighborhood trends. Listing above this objective market value leaves your home languishing on the market, creates the impression something is wrong, and attracts lowball offers.
Trust Your Instincts
At the end of the day, pick the real estate agent that you feel the most confident and comfortable with. The realtor you choose will be your closest advisor throughout a major life decision, so your gut feel about their integrity and advice is important. Don’t feel pressured by anyone else’s opinions or recommendations; you have to work with this agent and feel fully at ease putting your trust in them. The right realtor-client relationship is worth its weight in gold when navigating the stress of buying or selling a home.
When evaluating realtors, there are no shortcuts. Taking the time to understand their skills, experience in your specific area, and commitment to customer service will help you avoid critical mistakes. Following expert guidance tailored to your neighborhood will make a world of difference in how smoothly your real estate dreams unfold. With the right realtor as your partner, you’ll be well on your way to real estate success!
Q: What are the five mistakes that home sellers make when choosing a realtor?
A: Home sellers commonly make mistakes such as choosing a friend or family member, not interviewing one realtor before making a decision, not asking the realtor about their experience selling homes in the area, hiring a part-time real estate agent, or choosing the wrong agent for the job.
Q: What should I do to avoid making these common mistakes when selecting a realtor?
A: To avoid making these common mistakes when selecting a realtor, you should get references before hiring your realtor and interview several potential agents. Make sure that your realtor is more than likely going to do everything they can to sell your home for maximum profit. Also, look for an experienced agent that is selling homes in your area with speed and success.
Q: How important is it to choose the right agent for the job of listing my home?
A: It is very important to choose the right agent for the job of listing your home. The wrong agent can cost you money in your pocket if your home sits on the market too long or sells at less than market value. Hiring an unscrupulous realtor will agree to list your home for less commission than other agents may be one of biggest mistakes when it comes to selling homes.
Q: What benefits should I expect from my chosen Realtor?
A: You should expect benefits such as having a Realtor who is focused just as much on getting you top dollar for what you are selling as well as having a Realtor who knows how to market and advertise your property so that it gets maximum exposure. Additionally, many Realtors have access to networks and resources in the real estate industry that can help ensure a smooth and successful sale of your home.
Q: How much money are most home sellers paying their Realtor?
A: Most home sellers are paying between 5-6% of their final sale price for their Realtor’s services. This percentage may vary depending on where you live and negotiate with multiple agents prior to signing an agreement.
Q: Is there anything else I should do before hiring a real estate agent?
A: Before hiring a real estate agent, it’s important to ask them questions about their experience in the business and get references from past clients. This will help ensure that you’re choosing an experienced and qualified individual who is familiar with local markets and has what it takes to get top dollar from buyers interested in your property.
Q: What happens if I make a mistake when choosing a Realtor?
A: If you make a mistake when choosing a Realtor, it could result in costly delays or even lower sale prices than expected. In some cases, you could end up losing out on thousands of dollars by hiring the wrong person or agency for the job. Therefore, it’s important to take time during this process and always ask plenty of questions before signing any contracts.
Q: Are there any tips I can follow when interviewing one Realtor?
A: When interviewing one Realtor, some tips include asking them about their experience working in your area specifically; what strategies they plan on using for marketing & advertising; how quickly they think they will be able to sell your property; what kind of commission rate they offer; if there are any additional fees associated with their services etc.. Be sure that you understand all aspects of any agreement before signing anything!
Conclusion
Choosing a realtor is one of the top mistakes home sellers make. You want a realtor who has your best interests in mind and is focused just as much on selling your home as you are. Research shows that ninety percent of the home sellers are paying their realtors more than they should, making it even more important to choose wisely. An experienced real estate agent knows the nuances of both your particular home and the housing market, so they know how long it takes to sell your home and can look objectively at what your home is worth.
Would a real estate agent knowingly take less money than their services are worth? Also consider if the buyer calls for other properties, do you want an agent that will be able to represent them too? Carefully consider these points when selecting a realtor so you feel confident that you have made the right choice and get the best deal possible when it comes time to sell your house.
Ready to turn your real estate dreams into reality? Contact Richard Morrison, Vancouver’s top realtor with 20+ years of experience. As a Medallion Club member and RE/MAX Hall of Fame award winning agent, he’s the expert you need on your side. Whether buying, selling, or investing, Richard’s personalized approach and deep market insights ensure a successful transaction. Reach out to Richard today at (778) 900-2235 and make your real estate journey seamless and rewarding.
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