Selecting a Real Estate Selling Agent

by Dianne Molvig

Where to start?

Perhaps the agent who sold your house to you years ago is still active in the real estate business. If so, and if you were happy with that relationship, that person would be a logical choice now as a selling agent.

Or maybe you have a friend or relative in the business. Be sure, however, that this individual can help you sell your house. In other words, he or she has to meet the other criteria you'll read about below. If you decide you must hire someone else, inform your friend or relative up front, and explain your reasons for choosing another agent.

Friends, relatives, co-workers, and neighbors all can be good sources for agent referrals. Have they worked with an agent recently? Did they like dealing with this person? Did they get good results?

If no one you know can offer a referral, you'll need to scout for prospects on your own. Notice the "for sale" signs in your neighborhood to see which agents seem most active there. You also can glean such information from newspaper advertisements.

Whether an agent is an acquaintance, another person's recommendation, or a complete unknown, your next step is to ask questions. In "The Home Seller's Kit," 5th edition, real estate broker/author Edith Lank advises, "Even if you are pleased with the first agent you meet, it is prudent to talk with at least three, allowing them to inspect your house and make their listing presentations."

What to look for

• Credentials--The most basic qualification is that an agent must hold a state license to sell real estate. But check to see if the agent has gone beyond the basics. Ask about additional training he or she has obtained. Affiliations with professional organizations also signal someone who takes the job seriously.

• Familiarity with the market--An agent who knows your local market can do a better sales job for you. How many other houses in your immediate area has the agent sold? Ask how long those houses were on the market, and how the selling prices compared with the listing prices.

• Marketing plans--Find out what the agent will do to sell your house. Get specifics, in writing. Expect these marketing strategies to include listing your house in the Multiple Listing Service (MLS), a cooperative network among agents in your region. That puts information about your home in other agents' hands, vital to finding a buyer. Other typical strategies include media advertising, open houses, and Web listings.

  That's just a start, says real estate broker/author Robert Irwin. The most important attribute, he says in "Power Tips for Selling a House for More," is that an agent is plugged in to the local real estate network.

  "It's a mistake," Irwin says, "to think that you'll get greater exposure for your house through newspaper advertising, public open houses, or even Internet listings. The greatest exposure comes from a good agent spreading the word about your property to other agents."

  That can happen through personal calls, at area agent meetings, or at agent-only open houses. Look for someone, Irwin advises, who promises to "talk up" your property at every opportunity.

  Get specifics in writing about what the agent will do to market your home.

• Honest advice--Be wary of any prospective agent who suggests that your house is worth more than you know it is. Pie-in-the-sky promises are meant solely to lure your business. You need an agent who will offer honest opinions about the selling price, the repairs you'll need to make your house more attractive to buyers, the merits of a buyer's offer of purchase, and so on. And, yes, a good agent sometimes will tell you what you don't want to hear. Someone who is fawning all over you during an interview probably is incapable of being straightforward when you need it.

• Communication--You'll want an agent who will keep you in the loop throughout the selling process. Ask the agent how he or she will stay in touch with you, and how often. Also, how quickly did the agent respond to your initial inquiry? That may be a clue to the level of responsiveness you'll get later if you sign on as a client.

• References--A good agent gladly will steer you to several former clients. Then you can verify whether the agent produces on his or her promises. Did the previous clients believe they got straightforward advice? Did the agent stay in contact? Did he or she actively market the house and produce a timely sale? Were there any disappointments in the agent's services?

• A personality match--An agent need not be someone you would consider as a friend, but a basic level of compatibility helps. If in your estimation the agent is too hyper or too laid-back, too aggressive or too mousy ... then the process of selling your home will become an ordeal. You need to at least feel comfortable being around this person.

Or do without?

Listing with an agent isn't the only way to sell your home. You can do it yourself--what's known in the trade as a FSBO (pronounced fizzbo, meaning "for sale by owner"). Count on investing a lot of time to analyze the market, place advertising, host open houses, show the house to and "qualify" prospective buyers, and negotiate a deal.

Some sellers bypass an agent to save on commission fees or they automatically look for an agent requiring the lowest fee. Keep in mind that a low commission means nothing if the agent doesn't have the skills, experience, or networking skills to sell your house. Don't focus on commission alone.

Or you could take an in-between approach. In some areas you'll now find fee-for-service brokers who charge set amounts for specific services--for example, so much to do a market analysis or to list your house on the MLS. Discount brokers also offer scaled-down services and charge lower commissions. In any case, be prepared to do the rest of the work yourself.

Published October 13, 2003

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