Interviewing a Listing Agent

When you're selling your investment, you want someone on your side. You need someone with the experience and skills to get you the best return on investment with as little turbulence as possible. That person is the Listing Agent – but finding a great agent is not always simple.

The best way to find a terrific real estate agent is to get recommendations from people you trust. But even then, you'll need to pick an agent who will work well with you and who understands how to meet your needs. Keep in mind that your needs may differ from those of the friend or relative who has recommended a realtor to you.

To help you in your search for the right Listing Agent, I've created a list of questions to ask all agents you talk to. I hope these questions, and some thoughts about what to look for in an answer, will help you find the right person for you.

1. Why are you with (Company)? (e.g. Prudential, Pacific Union, Paragon, etc.)
Brokerage firms offer many benefits for agents. It’s important to know whether the agent representing you understands and uses those valuable resources. An agency’s network of brokers can often help you find off-market properties and give you an edge when submitting an offer. Also, with real estate lawsuits abundant, an agent that takes cues from talented and experienced upper management can keep you out of these sorts of unsavory situations.

2. What did you do before real estate? Is this your only career?
Review your agent’s resume, verbally at very least. Does s/he have the skills and experience to complete the job successfully? Many real estate agents are also mortgage brokers, which, however they spin it, is still a major conflict of interest (and a red flag) or they’re into some kind of network marketing. This is a bad sign. Unfortunately, a lot of people get into real estate to make a quick buck. I suggest you choose your agent the way you choose your financial managers and attorneys. What would you think if your attorney also sold candles at home parties?

3. Please tell me about your last real estate transaction.
This is an important open-ended question that will help you determine the agent’s strategy and skill level. Hearing how the agent “won” the deal or “sold” the property using their skills is a key factor. Did they negotiate in the client's best interests? Did they make the deal happen or were they just an order taker or a “buddy” of the client?

4. How do you plan to market my property?
Marketing experience is a plus when you’re evaluating the resume of an agent. Successful agents have prepared marketing plans with goals, critical dates and flexibility. Marketing plans start with property presentation (repairs, staging and cleaning), and should include: the target markets plus professional advertising that speaks to those markets. The entire plan should be designed to drive traffic to your property. It should be built on success and failures of the past PLUS track results for future decision-making. Remember, your investment is your product.

5. What percentage of your commission will you spend on marketing?
If an agent doesn’t have a general idea of what they spend marketing each property and how long takes to sell properties, they are not spending enough to impact their bottom line and are unlikely to be effective marketing professionals. An agent who understands their personal return on investment will be sensitive to yours. It takes money to make money.

6. What distinguishes you from the competition?
To be successful at anything, you need to know what works and what doesn’t. An agent who doesn’t know themselves or the competition isn’t competing at a level that will bring you the most buyers. An agent who doesn’t have a firm grasp on how they measure up to the other agents out there may not be the agent to get you that solid deal you want so you can move on to your next real estate investment.

7. How often will you be showing the property and who will be showing it?
Property exposure sells. How can a buyer see and decide to purchase your property if it’s not being shown? A posting on the Internet is not good enough. Regular open houses and private showings are a must. Having too many open houses can make a property look “desperate.” A licensed agent should be the only person showing a property. An assistant, spouse or friend is not an acceptable replacement. All agents showing the house should be trained on the features and benefits of the property. And, just an inside tip, people who are not licensed agents are not allowed to discuss particulars of the property. So, if all they can do is sit there, open the door and be a warm body in the room, how do you think this will reflect on the potential buyers out there?

8. How will you set the price of my investment?
There are four prices associated with the sale of a home. 1) The market value or the story that comparable properties tell. 2) The buyer’s value or the price a particular buyer will pay. 3) The seller’s value or the price the seller would like to get for the property. 4) The strategic price or the price that an agent sets to achieve a particular sales price. An agent may use different terms for these values but they should explain all of these to you during their presentation. Listen for indications that the “strategic price” is being set with the input of other agents and valid market data.

9. How often do you go out of town? Do you have a trip planned any time soon?
You want to make sure your agent has a balanced life, but also that you’re not going to get stuck with a junior agent or assistant while your agent is in Tahoe skiing all winter. Is your agent leaving the country for a month during your home search? It’s important that your agent share with you their designated time off and set your expectations for when they will be unavailable. If they are consistently unavailable, this is a red flag. If the agent will be out of town, be sure that they have a business partner that is an experienced and licensed agent handling their business while they are gone.

10. References, References, References!
You wouldn’t hire an employee without checking them. Don’t trust your life savings, future investments or retirement to someone without first checking their references. Buying real estate is one of the biggest investments you will ever make in your whole life!

Copyright © Katy Dinner Not for Reproduction.