What a Seller Needs From a Realtor
When you sign a listing agreement, you are selecting the person who will present you and your property to the world. You'll work closely with your realtor for several weeks, perhaps even several months. You certainly want the right person. Of course, every seller's needs are unique, but here are some specific things you might look for in a realtor:
Experience:
Look for experience on the part of the agent, and the brokerage. An agent who has several years experience has sold a lot of houses, and of course has gained a lot of knowledge. The experience of the brokerage also counts for a lot. If an agent's managing broker has a decade or more of experience, and if that broker plays an active role in supporting the agent, you'll probably be in good hands if something unusual occurs in the sale of your home.
Ask how the agent's managing broker supports the agents in the office. Look for more than a supervisory role. You want a realtor whose managing broker will know about your transaction, make marketing suggestions, and actively participate in helping the agent find buyers.
Training:
All agents must pass a licensing examination, and receive ongoing education. Some agents do more than others. Ask how many seminars or training courses the prospective realtor has taken in the past year. Also ask how many of those classes had to do with selling, and how many had to do with real estate or legal topics. All of those are important.
Service:
All realtors claim to provide good service. Too often the client only learns what that means after it's too late. Here are some things you have a right to expect. (Suggestion: instead of showing this list to a prospective realtor, just ask what she or he plans to do to sell your house, and see how many of these things are mentioned.)
- Extensive analysis of comparative information to help you set the listing price
- Multiple open houses (with the agent participating)
- A broker open house, specifically for other agents
- Interior and exterior photographs of the house
- Brochures in a rack on the for sale sign (You can help by keeping the rack full.)
- Brochures walked or mailed around the neighborhood
- Listing on a multiple listing service
- Full-time service at the brokerage's showing desk to help agents set up showings
- Careful monitoring of showings to determine the needs for changes in the marketing strategy, including price changes
- Pre-showing phone calls, to help showing agents know your home's key features
- Follow-up phone calls to agents who have shown the house
- Consultation with you on preparing the house for showings
- Detailed comparative information to help you evaluate offers
- Consultation regarding a counteroffer
- Negotiation in the event of counteroffer disputes
- Submittal of comparative information to the appraiser to support the offered price
Here are additional things that some agents will offer:
- Arrange for loaned furnishings or accessories to enhance the showing appearance of the house
- Refer you to competent craftspeople for repairs or enhancements
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What a Buyer Needs From a Realtor
A Good Fit
You'll work closely with your realtor for several weeks, perhaps even several months. You certainly want the right person. Of course, every buyer's needs are unique, but here are some specific things you might look for in a realtor:
Experience:
Look for experience on the part of the agent, and the brokerage. An agent who has several years experience has sold a lot of houses, and of course has gained a lot of knowledge. The experience of the brokerage also counts for a lot. If an agent's managing broker has a decade or more of experience, and if that broker plays an active role in supporting the agent, you'll probably be in good hands if something unusual occurs in the purchase of your home.
Ask how the agent's managing broker supports the agents in the office. Look for more than a supervisory role. You want a realtor whose managing broker will know about your transaction, and will counsel with your agent on financing and other details.
Training:
All agents must pass a licensing examination, and receive ongoing education. Some agents do more than others. Ask how many seminars or training courses the prospective realtor has taken in the past year. Also ask how many of those classes had to do with selling, and how many had to do with real estate or legal topics. All are important.
Service:
All realtors claim to provide good service. Too often the client only learns what that means after it's too late. Here are some things you have a right to expect. (Suggestion: instead of showing this list to a prospective realtor, just ask what she or he plans to do to help you find and buy a house, and see how many of these things are mentioned.)
- Agent's thorough knowledge of the market in which you are searching
- A thorough interview to identify your housing requirements and preferences
- At least daily searches using a multiple listing service
- Careful screening to identify properties that closely meet your specific requirements
- Regular reporting to you, by phone, fax, or e-mail, of potential properties
- Careful planning of showings to fit your schedule, and minimize the usage of your time
- Detailed comparative information to help you evaluate properties
- Consultation regarding a counteroffer
- Negotiation in the event of counteroffer disputes
- Active participation in the inspection process for the home you offer to buy
Here are some additional things that some agents will offer:
- Teamwork with other agents to help find the property you need
- Recommendations for lenders and other professional services related to your home purchase
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The Special Needs of People Who Are Buying and Selling
You have special and critical needs when you are selling one piece of property, and replacing it with another. There is far more involved than just combining a purchase and a sale.
Timing
If the timing isn't right, moving from your old home to your new one can be an expensive nightmare. It's no fun to have two house payments for several months, or to have to move twice, or live in a motel for a couple of weeks until you close on the new house. Be sure to select a realtor who has plenty of experience with dual transactions. Ask how the prospective agent plans to make sure your move is smooth. Ask how you can be protected if your house doesn't sell quickly, or if problems develop with the purchase of your new home. No one can guarantee that difficulties won't develop, but careful planning may prevent most problems.
Buying first, then selling
Depending on market conditions, the relative value of the two homes involved, and personal conditions, such as a job change, you may want to buy before you sell, sell first, or pursue both at the same time. As you interview possible real estate agents, discuss your particular needs, and listen to be sure the agent is putting your needs first, and thinking about your best interests.
Tax considerations
When you sell a home for more than you paid for it, you may incur capital gains taxes. Reinvesting the gains in your new home will usually protect you from those taxes, but there are important details to consider. Be sure the real estate agent you choose has experience with the kinds of tax liabilities you may incur. It is always a good idea to talk to your tax accountant as well.
Commissions
The seller of a home typically pays the real estate commission. When you are using one agent for both your sale and your purchase, you may be able to negotiate some savings on the sale commission. Be careful, though. The lowest commission percentage may not be the best deal for you in the long run. It's foolish to save one percent on the commission, then pay two or three percent too much for the house because the real estate agent didn't investigate comparable prices carefully. There are countless details involved in both the sale and purchase of your homes. A careful and experienced agent can save you thousands of dollars on the transactions. That agent's commission will be a bargain.
Buy low, sell high
Pricing is doubly important when you are both buying and selling. Most people are very pleased with how much the value of their home has increased over the years they have owned it, and they may not know home prices well enough to be sure they are getting full value on the sale. An experienced agent has an up-to-the-minute working knowledge of prices, and has numerous resources available to research pricing. That agent won't let you profit by just $50,000 when you should have made $55,000. Of course, getting top dollar for the home you sell doesn't help if you also pay top dollar for the home you buy. You need the experience and capabilities of the agent again when you determine the price you'll offer for your new home. If you get the right price on both sides of the transaction, you will be closer to meeting your financial goals.
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