1. How long have you been selling real estate? Are you full or part time?
I do not recommend hiring a part time Realtor unless you want part time effort and knowledge. In real estate “time is of the essence” and you need a Realtor who will be available at any given time for showings, inspections, marketing, follow-up etc.
2. How many homes per year do you sell or what is your sales volume?
Many Realtors track their success on “sales volume” meaning they take the “sale price” of the homes they sold in a year’s time and calculate it into dollars based on the actual sale price (not list price). So you may see on a Realtor’s business card “Million Dollar Producer” or “Multi-Million Dollar Producer”. This can be deceiving as some companies calculate the entire sale price even if they had to split it with another agent. It’s all nonsense so just ask, “How many homes do you sell per year and what is the average sale price?”. Look out if they don’t know this info!
3. What are your fees?
Fees can be a flat fee, a straight percentage, or a percentage on a sliding scale. There is NO set fee for real estate so everything is NEGOTIABLE. In Ohio the typical fee is 7%; however, the more expensive the home, the more expensive the fee.
4. Show Me The Comparables!
Here, the Agent should be able to demonstrate their expertise in regards to your price range and in your area. They should be able to clearly educate you on what is going on in your market today! You will need this information to price your home competitively, so it is important to get 3 opinions. And that’s just what they are…OPINIONS!
5. Show me your Listing Agreement!
You will want to review this Agreement in detail prior to signing. The Listing Agreement should clearly state all fees and how they are split, options for Home Warranty, Megan’s Law, Lockbox agreement, Fair Housing, and more. However, one of the most important aspects will be the length of time for the Listing Agreement. Many will try for 6 months, this would make sense for unique or slow markets, and if it’s a luxury home it could be longer!
However, for the average home in the average market, I would not recommend any more than 3 or 4 months. Who wants to be stuck with and have their home tied up for half a year with an Agent who is not producing results? Many Agents’ will say, “It’s company policy”. Remind them that this is real estate and EVERYTHING is negotiable, including this! If they want your business, and have faith in their abilities, it should be no problem. Plus you can always extend the Listing Agreement.
And if you’re a Realtor reading this…
Yes, I understand that closing alone can take 30 to 60 days. No worries, once you go under contract you automatically extend the Listing Agreement. Plus think about it, working this way is best for you too! Who wants to be stuck with a sour seller for 6 months? Free yourself after 3 months and go find your real tribe. Find those sellers who appreciate you, are willing to price their house right, trust you and work collaboratively with you to sell their home!
