Working with a Real Estate Agent vs. FSBO Facts

The real estate agent:

• Your local real estate agent can be a valuable resource. Their services include:

— analyzing current sales and comparative markets
— setting price
— providing marketing materials: yard sign, flyers, etc.
— listing your house with MLS services (under exclusive listing)
— tapping into the real estate network representing buyers
— screening prospective buyers
— showing your home to prospective buyers
— negotiating contract terms with buying agents
— managing all contract offers / counteroffers
— assisting with closing and settlement
— other: as agreed to in the agent contract

• There is a cost for this service, which averages 5-8% of the home closing price depending on your area and services rendered.
• Most agent services require a 6-12 month contract. Make sure you understand the contractual terms before you sign. Avoid any lock-ins that binds you even in the event of unsatisfactory services.

Picking the Right Agent:

• There are several ways to find an agent. Suggestions:
• Talk to your friends and family. If they have experienced good service from a broker or agent, they will be willing to share their name.
• Check the local classified ads.
• Look for names and phone numbers on yard signs.
• Once you find your agent, test them out by applying some basic principles. Examples include:
• Does the agent return phone calls promptly?
• Does the agent show an interest in you and your needs? Do they work hard to estimate the best selling price for your home?
• Where does the agent work? Are there settings pleasing? When you visit the agent at the place of work, do the phone rings or are there other agents on the phone working. Idle phones or agents spell trouble.
• Does the agent spend time explaining the home selling process? Do they provide help sheets on getting your home ready to sell?
• View the agents past work, especially the Sales Sheet, the information that describes your home. This is going to be a big piece of your promotion to prospective buyers. It must look good.
• What other marketing materials does the agent provide — sign, take-ones, etc. Again, check their work for professionalism.
• Finally, check the agent's references. Talk to some other home sellers who have used their services.
• Ask those relevant questions:
• How long have they been in operation? Ask to see a listing of comparable homes that they have sold in the past.
• Inquire about the homes they represent? Are they comparable to yours?
• How do they pay cooperating brokers who represent the buyer? Generally the cooperative split is down the middle. But if they pay a smaller percentage, other cooperative agents may not work with them.
• What is their list-to-sale ratio? List-to-sale ratio is the difference between the list price of the home and the actual price. Compare this ratio with other real estate firms.
  
  You want to avoid firms whose ratio is high — means that they generally price your home high (to win your business) but eventually lower the price to sell the home.
• Inquiry about the time from market to sale? This can vary by-home, by-neighborhood. But they should give you a true opinion on how fast they could possibly sell your home compared to other sales on the market.