Choosing the Right Seller Agent

You’ve made the decision to sell and want to use a real estate agent to get the most out of your investment. Now what? Your agent will be your representative, your advocate and your key to a successful transaction so don’t hire a seller agent, hire the right seller agent. Here’s how…

Know What You Need

Unless you know what the job is it will be difficult to hire the appropriate professional. Before you start interviewing realtors, make a list of what you and your home need in a representative.

What are you selling? Realtors tend to specialize in geographic locations, types of properties and property price ranges. Some realtors work mostly with sellers while others focus on buyer representation.

Different types of properties, locations and situations require specialized knowledge. Most realtors have general knowledge of all types of real estate but experience in a particular kind of transaction within a specific geographic area. Defining your property and your needs will help you find a realtor with the right knowledge.

Not All Realtors Are the Same

It’s true that the real estate salesperson license exam is pretty standard across the nation. However, that doesn’t mean that all realtors have the same knowledge or expertise.

The National Association of Realtors® (NAR) recognizes specialized real estate knowledge through designations. Designations are the little acronyms that follow a realtor’s name, like John Realtor, GRI. Through nine NAR affiliated institutes, societies and councils, real estate professional can become specialized in specific real estate sectors.

Understanding realtor designations can help you pick the right seller agent. For instance, realtors with an Accredited Land Consultant (ALC) designation are recognized experts in land brokerage including farms and ranches, undeveloped land, subdivisions and site selection. If you are planning on selling your horse farm, an ALC designated realtor is a good choice.

Some other types of designations include Accredited Buyer Representative (ABR), Certified Residential Specialist (CRS), Residential Accredited Appraiser (RAA), Senior Real Estate Specialist (SRES), and Certified International Property Specialist (CIPS).

The little letters that relay the designation to the public are often overlooked but homeowners and buyers can find a specialized realtor by paying attention to their meaning.

Even if a realtor doesn’t have a specialized designation, it’s likely that their business derives from a particular market. Curious? Just check out their website to get a sense of what kind of properties they typically sell.

A realtor’s website will tell you how much marketing attention your home is likely to receive. Look at the “featured properties.” Do they look like your home? Do properties with smaller price tags get any time in the spotlight? Do the individual property promotional pages seem uniform in their photograph quality and content?

If you are selling a condominium and the seller agent you’re considering has a page full of condos for sale with “no photo available,” you might want to consider that your property won’t be a high priority for them.

Big vs. Small

There are advantages to both large real estate companies and small “boutique” firms. Large companies tend to have larger budgets. For sellers this means there is more money for advertising. It doesn’t necessarily mean more advertising for your property, but you can benefit from your home being part of large advertising campaigns.

Large companies also have more agents, something that is often touted as useful to sellers and buyers. However, agents in large companies tend to be operating in a highly competitive environment. There may be someone at the office to answer your call late in the evening but that doesn’t necessarily mean that agent is working for you.

Smaller firms tend to have more collaborative approaches to client service, a team effort. At some small companies, agents divide listing tasks and split commissions on properties. In this case, sellers listing with an agent get the support of the entire firm.

One myth about small firms is that they don’t offer clients as much advertising exposure as bigger firms. It’s true that if you work with a smaller firm your property is not likely to be featured in a two page newspaper spread. However, when your property does appear in print it’s going to take center stage.

You May Already Know the Right Realtor

In the firm where I work we get a large percent of business from repeat clients. In some cases, homeowners who found their homes through us come back after ten years when they’re ready to sell. In other instances, the next generation follows in their parent’s footsteps and hires us to help them find their first home.

It’s a matter of pride for our firm that clients return or recommend us to family and friends. A good “word of mouth” reputation is priceless in any business. The truth is that sellers should consult family and friends to find out about their personal experience with local realtors. I should clarify: their personal experience means an evaluation of the realtor’s professionalism, qualifications and service when your recommender hired them. It doesn’t mean their personal experience of how their friend Larry the realtor is such a great guy and a hoot at Friday night bowling.

Nothing against bowling and Larry might be a great realtor, but you should hire a seller agent based on their performance in real estate, not in the lanes. There are certain criteria that can give you an idea of a real estate agent’s qualifications and it’s not just numbers.

A simple way to get this information is to ask the agent you are considering for a MLS print out of the homes they’ve sold in the past. This will give you an idea of listing prices, selling prices and how long their listings were on the market. Again, you get an idea of what kind of properties they typically sell and how well.

A realtor with an eye on marketing will take the opportunity to highlight their accomplishments. For instance, last year our firm sold a property at a record setting $353 per square foot when comparable properties were selling around $175 per square foot. Of course, not every sale is the same but there was a lot of effort and knowledge that yielded that high sale price. If the realtor you’re considering highlights their successes, ask for details to find out how that will translate into the sale of your home.

On a Personal Level

You don’t need to be buddies with your agent but you will need to feel that exchanges are productive. The realtor you hire to sell your home should be able to listen to your concerns, acknowledge your objectives and offer their opinion in a constructive manner.

You need to feel confident in not only your agent’s abilities but also their integrity. You don’t need an agent that agrees with you 100%, you need an agent that can help you get the most out of your investment even if that means challenging some of your ideas. A good seller agent will tell you when you are about to make a mistake.

Shop Around

One of the most important steps in hiring a seller agent is to interview several potential realtors. There are significant differences between real estate agents. They are not all the same and you need to invest some time and effort before making a decision.

Avoid impulsive decisions, do some research, check references and don’t sign on until you feel it’s in your best interest. Each agent you interview should offer you a comparative market analysis (CMA), a reasonable asking price with documentation, references and some evidence that backs up their credentials.

They should also be able to produce a marketing plan specifically geared to your property outlining where the property will be advertised, how frequently and in what manner. This plan should specify the online resources where your home will be listed and for how long. It should be in writing (as everything else presented) so that you may take time to review it, ask any questions you may have and get answers.

It’s easy for homeowners to feel frenzied, the real estate market always seems to be spinning or racing the calendar. When you are hiring a seller agent, step back, take your time and think it through. Remember, you should get what you pay for so do some research and find the most qualified professional to sell your home.

*Note: The information in this article is general advice and not meant as a substitute for personal guidance from a financial advisor, real estate professional, home improvement contractor or legal counsel. Although the author is a licensed realtor, the advice given in this article does not constitute any client contract or agreement between the author and the user. The author is not responsible for any losses, damages or claims that may result from your decisions.