What is the number one mistake home sellers make?

Picking the wrong person to sell their house.

Knowing how to choose a Realtor to sell your home can require some major decisions. You need someone you can trust. You need someone who is competent. You need someone who will deliver the most profit possible.

But how to find that person?

Not all agents are great, in fact, not all agents are even Realtors! Let us help you ask the right questions to get the right real estate professional for your needs.

Read on to learn more.

Real Estate Agent or Realtor?

All Realtors are real estate agents, but not all agents are Realtors. The two terms are not interchangeable.

Almost anyone who takes certain classes and passes a state-level test can get a real estate license. In Michigan, for example, it takes just 40 hours of class (one week!) to get licensed. A real estate agent is anyone who is licensed to assist in buying and selling commercial or residential property.

A Realtor is an active member of the National Association of Realtors. Membership involves adhering to certain professional standards. Members must hold a valid real estate license, be active in the real estate business, have no record of official sanctions and have no current bankruptcies.

Years of Experience Count Only in Tree Rings

The old saying “10% of the agents do 90% of the business” holds true. You aren’t just looking for someone who has been in business a long, long time. You want someone who has statistics that show that they can sell your house.

Look for:

• At least two years of experience
• 20 or so sales in the past year
• 60% + sold listings in the past year
• Sales are 95%+ of asking price

You want your agent to have recent and complete experience with the sales transaction. 20 years in the business selling a house or two a year isn’t the right kind of experience for most listing agents.

Would you rather have the agent who sold 12 out of 12 listed properties or the one who sold 21 out of 45? The agent with the highest listing prices or the one with the highest list price/sold price ratio?

Not Just About Price

List price and commission are part of the criteria of how to choose a Realtor to sell your home. You want the highest possible selling price and the lowest possible commission. But they aren’t the top priority when you want the most competent agent.

You are the one who actually sets the list price. A good agent can show you comparable, pending and active sales to inform your decision. If the agent is showing you numbers outside the area or just ball-parking a number to get the listing, your house may sit on the market longer than necessary.

Commissions are based on the actual selling price. Listing agents use their commission to pay for advertising, marketing your property, and to compensate the buyer’s agent. Reducing the commission reduces the resources available to do these things.

A higher selling price and fewer days on market are often worth the extra percentage point. An agent may be willing to negotiate their commission, but be aware that a lower commission may reduce services.

Locals Rule!

Choose an agent who understands your neighborhood. Someone with great experience in Metro Detroit may not have the right kind of connections to get your home in Ann Arbor sold. Real estate is hyper-local. Click here for more information on how to fine-tune your search.

If you live in the kind of neighborhood where half a block in any direction can decrease the price by $100,000, you want the local expert in the market. Type of property matters, too. An agent who mainly deals with luxury homes might not be the right choice to list your investment townhouse on the other side of town.

Some agents specialize in homes of all types but limit themselves to a very small geographical area. But if your home is a modest 3 bedroom ranch, your listing is probably not going to be the top priority for an agent accustomed to more palatial offerings.

Advertising and Marketing Your Property

To get your house sold, you really only need one buyer.

However, to get your home to that buyer, your agent needs to reach a whole lot of eyeballs very quickly. Ask your prospective agent how they will market your home.

Most property marketing is now done online, but print materials have a place in many markets. Fliers, brochures, signs and other collateral materials should be a part of the plan. Don’t forget the caravan and open house, too!

Your agent should not be afraid to suggest staging or curb appeal improvements to get you the very best price. When you interview prospective agents, expect a clear marketing plan. Ask for examples from the agent’s sold properties.

Take a Look at Their Referrals and References

Word-of-mouth referrals are great, but be aware that the person doing the referral might be getting a commission. Not everyone who sends you the name of an agent is someone who sold a house through that agent. For example, is the referrer a relative?

You are looking for referrals from people who can communicate the agent’s competency, trustworthiness, and reliability. Is the agent a good communicator? How are the agent’s negotiation skills?

When you get to the references, look beyond the hand-picked ones. Try to talk to current and recent clients. Take a look at your agent outside their professional webpage. Google their details and find them on Facebook, LinkedIn, or Twitter. Does their social media match up with the service and professionalism you expect?

That’s How to Choose a Realtor to Sell Your Home

Now you have the basics of how to choose a Realtor to sell your home. Take your time to interview, ask questions and check references. No matter who you end up hiring, you want a smooth and profitable transaction.

For more interesting explorations, keep reading.