Should I hire a real estate agent to sell my house ? Or should I do it myself ?
Selling on your own house is far less expensive than hiring a real estate agent, says Gerri Willis in her book Home Rich (Ballantine Books, $ 25 ) because you’ll save paying a commission, which can range from 5 percent to 7 percent of your house’s selling price. For example, if you sell your house for $ 165, 000 and you negotiate a sales commission for your agent of 5 percent, his services will cost you $ 8, 500.
The “For Sale by Owner” market is the object of much speculation but little analysis. Even so, it’s clear that some do-it-yourself efforts are more likely to be successful than others. Among them are sellers (with houses in desirable neighborhoods ) who are highly motivated, including those with little equity in the house, and those who find a buyer before they even start marketing the property.
There are downsides. You’ll have to be prepared to market your house on your own, host open houses and negotiate your own deal. For many people, this isn’t feasible — daily schedules and responsibilities may not accommodate these tasks. If you or your partner can’t drop everything at a moment’s notice to attend to a home-selling issue, you probably need to hire an agent.
Consider hiring an agent if you are in one of these situations: Your job gives you little flexibility to arrive late or leave early to meet potential buyers. The real estate market has slowed dramatically and prices are flat or falling. You’re intimidated by the prospect of pricing your house for sale. Your spouse is starting a new job next week in a location that’s hundreds of miles away and the pressure is on to sell your house quickly. You’re not sure how to market your house to get buyers through the front door. The idea of hosting strangers makes you uncomfortable.
A listing agent will be able to correctly price your house for the market, vet buyers, suggest improvements that could speed the sale of your house, and market a house efficiently.
The key to having a successful relationship with any professional is picking the right one in the fi rst place. Ask friends and neighbors for the names of agents they’ve found to be helpful. You may already have a sense of which agents frequently list properties in your area.
It takes only 50 to 60 hours of training to become a real estate agent. There are no federal standards as there are for, say, stockbrokers, and for most people real estate agents control a far greater proportion of their personal wealth than stockbrokers do.
State licensing requirements vary and standards can be low. Agents learn the subtleties of sales and marketing on the job. You should endeavor to determine how experienced, organized, trustworthy and professional an agent is. Avoid part-timers and newly minted agents. And it’s probably not a good idea to hire the first agent you meet.
Willis suggests contacting at least four agents and interviewing them. Her suggested questions:
1. How much experience do you have in my neighborhood or part of town ? Is this an area you specialize in ? Do you live here ? It’s best to use an agent who is already familiar with the neighborhood, knows where buyers typically come from and knows how to market to them.
2. What price range of houses do you specialize in ? It’s smart to hire an agent who is used to selling houses with the amenities and prices in your range.
3. Are you a member of the National Association of Realtors ? Agents who are members of the association are the only agents allowed to call themselves Realtors (the word is trademarked ). They are bound to follow a code of ethics that requires them pass along any pertinent information to you about a property. If a Realtor believes a buyer’s credit history is spotty, he is obligated to alert the seller. If you have a problem with a Realtor you can take the case to arbitration for resolution.
4. How many clients have you worked with this year ? An agent who juggles too many customers often leaves important details to underlings who may not follow up efficiently. This may require reading between the lines. If the candidate doesn’t respond to your phone calls in a timely manner, that’s a clue to look elsewhere.
5. How do you communicate with clients ? If you have to move away before your house sells, this will be particularly important. An agent who is accustomed to staying in touch by e-mail could be a poor fit for a buyer who requires a daily telephone conversation.
6. How will you market the property ? At a minimum, any real estate agent will get your house into the Multiple Listing Service (MLS ), the single most important marketing tool for broadcasting your home’s availability. It’s especially needed to alert other real estate agents, who could in turn alert their customers to your house. Good agents don’t stop there. Two-thirds of home buyers use the Web to shop for a house. You’ll want your agent to be technologically savvy enough to develop a Web page on the agency’s Web site to promote your house using 360-degree views of its best features. Check out each agent’s Web site to determine if it’s userfriendly and intuitively designed.
7. What is your commission ? Is it negotiable ? Real estate agents are faced with stiff competition, and many opt to cut their commission to get business.
8. Can you give me three references ? Following up with your candidate agent’s clients is essential. Ask for at least three since one is likely to be a relative or friend. Grill the others on the agent’s effectiveness, communication skills and marketing plan.
Compare the answers you get from all the candidates. Look for any gaps in service. Ask for details about houses in your neighborhood the agent may have sold.
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