To find a good real estate agent, gather a list of names of candidates you will interview. You may want to consider recommendations from colleagues, friends, and professionals, as well as names listed on posted "for sale" signs, especially for houses that have been sold.
Once you have at least three names, schedule a telephone or in-person interview with the agent. You may encounter some resistance; if you run into a broker who refuses to take the time to answer your questions, just move to the next one.
Be sure to ask potential agents the following:
- What problems do you see in marketing our home?
The broker should be honest about potential problems in selling the home and able to think creatively about solutions.
- What would your plan be for marketing our home? What can we do to help you implement your plan?
Listen to the answer to find out whether the agent exhibits a willingness to think creatively in approaching whatever problems might exist with the selling process and whether he or she has a cooperative attitude.
- Will you include any ideas you have for selling the home in a listing agreement if we decide to sign with you?
- Where do you live?
You want a broker who lives nearby, who knows the good and bad points about your area.
- How much is your commission?
The average commission is 6% or 7%. Although brokers sometimes take a cut in their commissions during the negotiation process—in order to move a sale along—there is no point in trying to bargain down a broker’s commission at this point.
- Do you have a list of comparable homes?
Such a list is essential in helping you arrive at an asking price for your home.
Sign The Listing Agreement
The listing agreement is a contract between the homeowners and the agent. It states how much the agent will be paid and what services will be provided.
The exclusive right to sell type of agreement gives the broker the exclusive right to sell your house for a limited period of time. Other types of listing agreements vary either the exclusivity or time period of the listing. No matter which of these agreements are signed, the listing agent gets 100% of the commission if he or she sells the house, and part of the commission if another broker sells the house.
Tip: Generally, try to use an exclusive-right-to-sell agreement limited to a period of three months. This agreement will give the broker an incentive to sell the home, and it will still give you an out if you feel the broker is not doing enough for you. If you have substantial confidence in the broker, and you have seen and approved his or her plans for marketing the home, you may wish to sign for six months.
Tip: If, at any time during the marketing process, you feel that your broker is not as effective as he or she could be, switch brokers. Do not waste time with a broker about whom you have doubts.
Source: CPA Site Solutions