Sellers - Choosing a Realtor

Who is a REALTOR?
The terms agent, broker and REALTOR are often used interchangeably, but have very different meanings. For example, not all agents or brokers are REALTORS.

As a prerequisite to selling real estate, a person must be licensed by the state in which they work. Before a license is issued, minimum standards for education, examinations and experience, which are determined on a state by state basis, must be met. After receiving a real estate license, most agents go on to join their local board or association of REALTORS and the National Association of REALTORS (NAR). They can then call themselves REALTORS. The term "REALTOR" is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of REALTORS and subscribes to its strict Code of Ethics (which in many cases goes beyond state law). In most areas, it is the REALTOR who shares information on the homes they are marketing, through a Multiple Listing Service (MLS). Working with a REALTOR who belongs to an MLS will give your home exposure to the greatest number of buyers.

Understanding The Difference Between a Buyer's and a Seller's Agent
Read the publication from the North Carolina Real Estate Commission titled WORKING WITH REAL ESTATE AGENTS in pdf format found near the bottom of the NC Real Estate Commission web page.

How to Evaluate an Agent
Questions you should ask when evaluating a potential agent.

• Does the agent have an active real estate license in good standing? Check for agents with active licenses.
• Are you a full-time professional real estate agent? How long have you worked full time in real estate? How long have you been representing buyers? What professional designations do you have?
  Knowing whether or not your agent practices full time can help you determine potential scheduling conflicts and his or her commitment to your transaction. As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. The same issue can apply to professional designations.
• Do you have a personal assistant, team or staff to handle different parts of the purchase? What are their names and how will each of them help me in my transaction? How do I communicate with them?
  It is not uncommon for agents who sell a lot of houses to hire people to work with them. As their businesses grow, they must be able to deliver the same or higher quality service to more people. You may want to know who on the team will take part in your transaction, and what role each person will play. You may even want to meet the other team members before you decide to work with the team. If you have a question about fees on your closing statement, who would handle that? Who will show up for your closing?
• Can you give me multiple Websites that will list my home? Can I have your personal URL address? Who responds to emails and how quickly? What’s your email address?
  Most buyers prefer to search online for homes because it’s available 24 hours a day and can be done anywhere. So you want to make sure your home is listed on the agent’s Website, their company’s site, as well as many other IDX sites. By searching your agent's Website you will get a clear picture of how much information is available online. Have the agent show you other web sites that are closely associated to theirs and their company.  For best exposure of your home there should be several thousand.
• How many homes did you sell and how many homes did your real estate brokerage sell last year?
  By asking this question, you’ll get a good idea of how much experience the practitioner has.  I am sure you will agree that the success of a real estate agent is about selling homes. Some agents only sell 10 homes a year.  This kind of volume makes it difficult for them to provide all the services they promise without the money to support them.
• How many days did it take you to sell the average home? How did that compare to the overall market?
  The REALTOR® you interview should have these facts on hand, and be able to present market statistics from the local MLS to provide a comparison.
• On average when your listings sell, how close was the selling price to the asking price?
  Is the agent’s performance higher or lower than the MLS board average? Their performance is a predictor of how good a job they do in helping you price your home correctly to get the highest price possible.  They should be willing to show you printed information from the local board of realtors.
• How will you keep in contact with me during the selling process, and how often?
  Some agents may email, text, fax or call you daily to tell you that visitors have toured your home, while others will keep in touch weekly. The best agents will give you a web site on which you can log on to check for showings of your property 24/7. Asking this question can help you to reconcile your needs with your agent's systems.
• What do you do that other agents don't that ensures I'm getting top dollar for my home?
  Marketing skills are learned, and sometimes a real estate professional's unique method of research and delivery make the difference between whether or not a home sells quickly. For example, an agent might research the demographics of your neighborhood and present you a target market list for direct marketing purposes.
• Will you give me names of past clients?
  Interviewing an agent can be similar to interviewing someone to work in your office. Contacting references can be a reliable way for you to understand how he or she works, and whether or not this style is compatible with your own.
• Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our listing agreement?
  In the heavily regulated world of real estate, it can be difficult for an agent to offer a performance guarantee. Experienced agents will guarantee practically everything they do with the exception of the time it will take to sell your home and the exact price for which it will sell.  Obviously these two issues are dependent on our rather turbulent market conditions. Typically, the agent will outline what you can expect from their performance.
• How will you get paid? How are your fees structured? May I have that in writing?
  In many areas, the seller pays all agent commissions. Sometimes, agents will have other small fees, such as administrative or special service fees, that are charged to clients, regardless of whether they are buying or selling. Be aware of the big picture before you sign any agreements. Ask for an estimate of costs from any agent you contemplate employing.
• How would you develop pricing strategies for our home?
  Location and condition are major factors that affect the price, but price is the primary factor in determining if a home sells quickly, or at all. Access to current property information is essential, and sometimes a pre-appraisal will help. Ask your agent how they created the market analysis, and whether your agent included For Sale by Owner homes, foreclosed homes and bank-owned sales in that list.
• What will you do to sell my home? Who determines where and when my home is marketed/promoted? Who pays for your advertising?
  Ask your real estate agent to present to you a clear plan of how marketing and advertising dollars will be spent. If there are other forms of marketing available but not specified in the plan ask who pays for those. Request samples or case studies of the types of marketing strategies that your agent proposes (such as Internet Websites, print publications, and open houses).

Think About This
Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $200,000. If you had a $200,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $200,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be foolish to consider a deal in real estate without the professional assistance of a REALTOR®.