Selling Your Home

Selling Your Home, Find and Compare Realtors®

20 Questions You Must Ask Your Next Agent Before Signing On the Dotted Line

You recently decided that the time has come to buy a HUD Homes, VA Reo or a Foreclosured homes. You probably met with several Realtors, asked each a few questions, then selected an agent. Or may be you already knew someone who sells real estate.

As a general rule of thumb, you’re looking for an agent who:

• Has the experience, qualifications and abilities to find and sell HUD Home, VA Reo Foreclosured homes and MLS Listings
• Knowledge of your area and the market in general
• Will work hard as a buyer Agent (on your behalf)
• Keep you informed during the process
• You are comfortable with Agent

This article, is designed to help obtain the information need to make the decision in choosing your next agent. Asking the following questions, you can improve your odds of having a successful home buying or selling experience.

How long have you been an active, full-time Realtor?

We recommend looking for an agent who has been actively working on a full-time basis for at least the last three to five years. You should also find out how long they’ve worked in your specific geographic area. There are several reasons for selecting a well-established agent. First, you want someone who has a track record you can confirm. Second, an established Realtor has a roster of contacts you will need: home inspectors, mortgage companies, lawyers, etc.

Finally, an experienced agent will have creative, time-tested ideas for marketing your home.

Yes, there are good agents who have been in the business for a short time. But there is a high drop-out rate in our industry, and it would be unfortunate if, three months down the line, your agent moved on to other things. On the other hand, a part-timer often can’t keep up with the pace or complexity of today’s marketplace. And they might not be available when you need them most. Your home is your most important investment—doesn’t its sale deserve an agent’s full-time commitment?

"How many homes have you sold in the past six months? The past year?"

Here’s where we separate the listers from the doers. Just because an agent has a knack for signing up sellers doesn’t mean he’s good at finding, negotiating and closing deals—and that’s what you want..

"How many homes have you listed in the past six months? The past year?"

While an agent’s length of time in the field is important, the quality of that time is even more important. You need to gauge just how active—and successful—the Realtor is. A large number of listings is often the sign of a successful agent. However, no matter how many listings an agent has, make sure that he has the resources and systems to market each of them effectively. Getting a listing is only half the job.

"What's the average amount of time one of your listings is on the market before it sells?"

You may think that a quick turnaround is a good sign. It could be. However, a faster-than-average selling record could indicate that an agent is quick to sacrifice a seller’s profits in negotiations—which is why the next question is so important.

How does your average sales price compare to the original price?

There’s a difference between a Realtor who gets you a good deal and one who gives away too much in order to sell your home. That’s why it’s important to compare the original list price to what a home actually sold for. For example, an agent who consistently gets 90 percent of the asking price is probably a better negotiator than the agent who only gets two-thirds of the asking price. Again, this goes to the question of effectiveness. Make sure your agent has the systems in place to handle them all. A successful top-producing agent may be more effective at managing many listings than a less experienced agent is with a handful.

How many homes are you currently marketing?

A Realtor who does big business in condominiums, or homes sub¬stantially less or more expensive than your own, probably isn’t the best person to sell your home. Look for someone who has experience selling homes of your type and price range, preferably in your neighborhood.

What kind of property do you specialize in

Again, you’re looking for indications of success. A Realtor with a competitive piece of the market usually has better connections in the community and greater resources at his disposal.

What can you tell me about your share of the marketplace compared to other Realtors in the area

While it doesn’t necessarily indicate better service, a Realtor® who has a support staff to handle office chores and routine details can usually devote more time to the business of serving a client’s highest-priority needs. Ask about the composition of the Realtor’s® staff, the duties each member has, and how they will be involved in the marketing of your home

Do you have a personal staff? How many are licensed?

Make sure you’re very clear as to the involvement you can expect from your agent compared to your agent’s staff. But don’t assume that you’re being treated poorly just because the agent isn’t doing every¬thing herself. If you were having major surgery, you wouldn’t want your surgeon handling anesthesia and monitoring vital signs and every other detail of the operation—that’s what the rest of the medical team is there for. The important thing is that your listing is handled in an efficient, professional manner, that you are kept well-informed as to what’s being done to sell your home, and that the operation is successful

How will you market my home?

Most Realtors have at their disposal the same tools for selling your home: the Multiple Listing Service, company tours and Realtor® caravans, open houses, marketing flyers and brochures, direct mail, advertising, personal networking—the list is long. What differentiates the best agents from the rest is their marketing philosophy and the strategies they’ve developed to achieve their goals. You’re looking for a Realtor who tailors his approach to your specific circumstances, and then puts the tools at his disposal to your best advantage. What you want is someone who does more than provide a physical description of your home and area to prospects. Your Realtor® should be enthusiastically selling your home’s benefits. You’re spending a good deal of money with an agent, and you should expect a detailed marketing plan—in writing—before you sign a listing contract. As you discuss the marketing plan, make sure you include the following issues

Flyers and Brochures

Carefully review the quality of the materials the agent shows you. Do the design, style of writing and print quality do a good job of selling the attributes of a particular home? Poorly-done materials reflect badly on your home and say something about the quality of the agent’s marketing efforts in general.

Classified Advertising

Don’t be unduly impressed with the huge sums of money some agents spend on classified advertising of their listings. I’ll let you in on a little secret—classified advertising is great for keep¬ing a company’s name in the public eye, but it rarely sells a home in and of itself. An agent who stresses advertising at the expense of other efforts should be avoided. There’s no substitute for hard work on the agent’s part.

Other Forms of Advertising

Many of the marketing and technological advances found in other fields are also being put to good use in the real estate industry. Some agents now use toll-free hotlines and fax-on-de¬mand marketing to provide potential buyers with 24-hour access to information on your home. Ask the agent what he does that he considers unique or special.

Open Houses

Again, be wary if the agent sings the praises of open houses. As a rule, they’re good for your Realtor’s prospecting efforts, but not very effective in selling your property. And a home held open too frequent¬ly can begin to look like a loser, making it a prime target for lowball bids.

Multiple Listing Service

The MLS is one of a Realtor’s most important resources. But here’s another little secret—many agents fail to use the MLS effectively as a marketing tool. Make sure that your agent takes the time to craft a strong, detailed sales pitch that extols the benefits of your home, and doesn’t just list a lot of dry facts. When you consider that a listing in the MLS is like a free “classified” that reaches every other Realtor in town—many of whom have clients who might be interested in your home—don’t you think you should take advantage of it? I do.

Other Forms of Promotion

Exposure is the key to any home sale. One of the most common ways a home is sold is when another agent knows a buyer who is look¬ing for a home like yours. Ask the agent about techniques other than the MLS, advertising and open houses which he will use to maximize your home’s exposure.

Will you help me stage my home?

Three things go into selling a home: price, condition and agent effort. If you choose a hard-working agent who helps you set a com¬petitive price, make sure that she also will advise you on how best to present your home to prospective buyers. Some agents are reluctant to say anything in this area because they don’t want to offend their client. Ask the agent what kind of information she will provide to help you stage your home—the more detailed and honest, the better.

How will you keep me informed?

One of the biggest complaints sellers have about their agents is that they didn’t receive enough feedback. I’ve found that the best communication occurs when clients let me know up front what they consider to be “enough” feedback. Only you know what level and type of communication works best for you. Do you want weekly progress reports? Daily reports? Are phone calls and letters acceptable, or would you prefer to discuss matters in person? Find an agent willing and able to give you the time and attention you require. And agree on the appropriate level of communication at the beginning of the relationship—don’t wait until you see a problem.

What listing price would you recommend for my home? How did you arrive at it?

Ask about the current market and how it affects your price and sell¬ing strategy. A good agent will be able to back up his assertions with solid proof. By running a comparative market analysis, he should be able to give you a sound argument and documentation on how he arrived at your home’s proposed market value and price range.

The comparative market analysis should include the following:

* Listing and selling prices
* Description of comparable homes
* Length of time homes have been on the market
* Listings of any price reductions that were made

The agent should also explain how differences between your home and the comparable properties affect your home’s value. "What's your pricing/marketing philosophy 30/60/90 days down the road?"

If your home isn’t seeing any interest after two or three months on the market, what is the agent going to do to generate activity? You shouldn’t have to go to your agent and suggest things to try, such as lowering the price. You want a proactive representative, not someone who simply reacts to whatever happens.

What's your commission on a sale

A Realtor’s commission isn’t set by law; it can vary from agent to agent. Make sure you know up front what you’re paying. While you are legally entitled to negotiate a lower commission, some agents may be less willing to list your home as a result. In a soft market, an agent has even less incentive to push your home when there are others on the market whose sale will result in a higher commission. And an agent who’s too quick to give up his money may be quick to give up your money during the negotiation process.

Can you provide me with references?

A Realtor’s reputation is one of his most valuable assets; most will work hard to protect it. Surprisingly, most sellers don’t bother to check references—you should. This is one of the easiest and most important steps you can take. And yet I’ve seen more people make the mistake of not checking references.

Talking to past clients is an excellent way of learning how an agent operates beyond what he says he’s going to do. You can get a good idea of whether a Realtor is a good match for you by finding out how he handled other clients.

Here are some questions to ask your agent’s past clients

• How long was your home on the market?
• Do you feel the agent priced it realistically?
• What was it originally listed at? What did it sell at?
• What type of marketing did the agent do?
• Did the agent suggest how to make your home more marketable?
• Did the agent keep his promises. Did he do what he said he'd do?
• Were you kept informed along the way? How often did you talk?
• How many offers did you get?
• During the closing process, did the agent have good follow-up?
• What did you like the most about the agent?
• Was there anything about the agent that you didn't like?
• Would you use this agent again?

What professional orga¬nizations do you belong to?

At a minimum, your agent should be a fully licensed professional who is a member of the local real estate board and Multiple Listing Service, as well as the state and National Association of Realtors. Other memberships worth noting are the local Chamber of Commerce, professional organizations and community groups. This kind of involvement can reflect good networking and better insight into the community. But what really matters is your agent’s commitment to selling your home.

Do you have any personal marketing materials I can review?

The quality of a Realtor’s own marketing pieces—brochures, direct mail, listing presentation book, etc.—is a good indicator of how well she’ll represent you and your property. If she hasn’t already sent them to you, she should provide them at your first meeting.

Sean L. Spencer, Realtor
Vance Realty Group, Inc.
http://www.SeanLSpencer.com
866-383-0707

Real Estate Investing: Infomercial and Mentoring Scams

Flipping through late-night infomercials recently, I saw two real estate get-rich quick schemes, and I couldn't help but wonder why people still fall for those old scams? Has anyone really talked a seller out of his home for no money down with owner financing lately?

Real estate infomercials do great harm to beginning investors, who waste hundreds of dollars on old information. Worse yet, those beginners soon get discouraged and miss out on the true (and profitable) adventure of real estate investing.

One of the most popular late night infomercial shows tells beginners that it's possible to make a fortune by buying houses with no money down and then renting them out to cover the monthly payments. It's true that you can buy a home for no money down, but the requirements include having good credit, good income, and the home should be owner-occupied.

Rentals don't normally qualify for no money down financing. Institutional lenders aren't supposed to make no money down loans on investment properties, and even if you could buy an investment home with no money down, the monthly payments would generally eat up the rent.

Late-night scammers also claim that investors can get owners to pay the closing costs, including the down payment. But when a lender asks where your down payment will be coming from, saying, "the seller" is not the right answer! Today's sellers are also fairly savvy, and understand that with no money invested in a property, a buyer could easily walk away and leave them with a home that's been ruined by careless tenants.

Another TV program offers a bogus system for buying houses at ridiculous prices, but think about it: has anyone bought a home, free and clear, for $345.00 at a tax sale recently? Hordes of investors flock to the tax sales in the area where I live, bidding up the prices of foreclosure properties far beyond a few cents on the dollar. It just doesn't happen.

Today, another real estate investment scam is popular in Southern California. Here’s how it works: a young person we'll call Charles charged $4,000 on his credit card to hire a real estate "mentor," after the mentor wined and dined him at a fancy Beverly Hills restaurant.

In exchange for the fee, the mentor instructed Charles to find distressed houses by driving around the area and writing down the addresses of ugly houses in nice neighborhoods. Once Charles had given him the addresses, the mentor obtained the owner's address and sometimes a phone number. Then it was up to Charles to call the owners and talk them into selling their houses for no money down, and carrying the paper, too!

I met Charles when he called me about buying a property that my husband and I had on the market for $1.2 million. When I asked him how such a young man was going to make the payments on $1.2 million home, he told me that he planned to rent the house out for enough to make the payments.

As a real estate investor myself, I tried not to laugh at his naivete, and after talking to Charles and listening to his frustration about trying so hard to follow his mentor's advice, I offered to help him find a property, and I'm happy to say that Charles now owns his own home. But he'll still have to spend years paying off a $4,000 credit card bill.

If you want to make money as a real estate investor, a good first step is to buy your own home, like Charles did. You can do that for no money down if you have good credit, or for a relatively little amount of money down if your credit is poor. Once you've purchased your own home, fix it up and then either sell it or refinance it and use your profits as the down payment on an investment property.

Don't pay hundreds of dollars for out-dated methods that may have worked in the middle of last century! They're a waste of your time and money. Real estate investing is truly a great way to make a fortune, but you must stick to tried-and-true proven strategies, ones that work in today’s real estate market.

Article Source: http://EzineArticles.com/?expert=Jeanette_Joy_Fisher