When interviewing real estate agents, the questions you ask will dictate the quality of the information you receive, which in turn affects your decision on which agent to hire.
The answers given by the agents you interview will provide all the information needed to decide which agent’s strategy and philosophy are right for you.
1. WHAT SETS YOU APART FROM OTHER AGENTS?
Be wary of agents that are self-focused. They are easy to identify as they often simply sit and gloat about property they have sold. The right agent will focus on you and your goals, and how they can help get you where you want to go. Good agents are well trained in methods and strategies of sale that benefit you, the seller.
2. HOW WOULD YOU TAKE MY PROPERTY TO THE MARKET?
When asked this question, good agents will provide a strategy that is risk-free.
The golden rule of selling is: Pay no money* until your property is sold, and you are happy with the result.
The Smartre Sale (Smart Real Estate Sale) is being used throughout Australia with great success, and is one of the most recognised risk-free methods of sale available to property sellers.
As well as providing financial safety, the Smartre Sale allows home sellers to test the market without damaging their property’s Digital Footprint. A Digital Footprint is important; it is your property’s online history and can greatly affect the final price you receive.
To avoid underselling a property, it’s important to understand the methods of sale various agents are likely to recommend, what they are designed for, and the significant part the agent plays in selling the property.
3. WHAT PRICE DO YOU THINK MY PROPERTY IS WORTH?
The two most common lies* told in the real estate industry involve the price estimate quoted to potential sellers. They are:
The Improbable Lie – This is when an agent intentionally inflates a property’s potential selling price; it’s the lie most people are aware of and dislike about real estate agents.
The Lie of Omission – This is when an agent, knowing the probable selling price, chooses not to tell the owner; it’s a more subtle lie, but still prevalent in the industry.
Both lies have the capacity to hurt you financially and emotionally. An agent who is honest about all facets of selling, including price, is a rare, true professional. They deserve your trust.
Ensure that any price agents discuss with you is based on evidence in the form of comparable, recently sold properties in your area. They should also reference other properties you would be competing with and current demand for your style of property.
Important point: when discussing price with agents, NEVER disclose how much you are hoping to get, and NEVER, NEVER disclose the minimum price you are willing to accept. Doing so will almost certainly cause you to achieve a lower sale price.
Remember, a real estate agent should be chosen on their ability to find the best buyer for your property and to negotiate that buyer’s maximum price. This can mean as much as $30,000 or more in your pocket.
4. HOW MUCH DO I PAY IF THE PROPERTY DOESN’T SELL?
Agents often claim that ‘you can’t sell a secret’. However, in the age of online marketing – with detailed buyer databases, filtered searches, and new property alerts – agents still attempt to convince smart sellers to pay upfront for largely unnecessary marketing campaigns. No property is a secret on the Internet.
Agents and media companies encourage sellers to focus on the amount, size and positioning of advertising, all of which come with extra cost. However, quality marketing has been shown as a cost effective alternative that generates the same, if not better results.
Quality marketing will always attract buyers to a property. Quality marketing consists of the right price, good quality photography, a great script and smart recording of buyer enquiries. It does not require extensive, expensive advertising. Quantity and positioning, the two factors that add cost, run a long way behind in a quality marketing campaign.
Has the property sold? If the answer is no, then why should you, the home seller, pay?
5. HOW DO YOU CONDUCT PROPERTY INSPECTIONS?
This question is two-for-one. Smart sellers will look to see if the agent has given consideration to how buyer inspection styles affect the final sale price. Does the agent understand how the inspection process is tied to the negotiation?
One-on-one inspections should always be available to buyers. This is particularly important in a stable or falling market. If the power tips towards the buyer, a property should be available for inspection at a time that suits them.
Smart open homes should be conducted to attract buyers that may otherwise be unlikely to enquire on the property. When conducted, professional agents check identification and collect contact information before anyone enters the property. Effective follow up enables an agent to develop an understanding of an interested buyer, their motives and budget. Information necessary to negotiate you the best price.
Many agents will only use one method of inspection. To guarantee the best price, a combination of open homes and private inspections is essential. Good agents will have given serious thought to their inspection strategy and be able to articulate it to you.
6. CAN YOU EXPLAIN YOUR NEGOTIATION STRATEGY?
An agent’s negotiation ability is their true value to you as the seller – a point that is often overlooked or misunderstood. The skills and tactics employed after an interested buyer is found – the method of sale, the marketing, the pricing and the inspections, all lead to this final negotiation.
The contract negotiation is the final chance to ensure you get the best price in the market today. An agent with great negotiation skills and the right strategy could make a difference of tens of thousands of dollars.
Agents need to have the skill and ability to help achieve your goals. You and your requirements must be their sole focus. In doing so, the buyer will still get what they want, a great property.
7. HOW DOES YOUR FEE COMPARE TO YOUR VALUE?
Agents must add more value than they charge.
Consider this, if an agent charges an extra $5,000 but negotiates an extra $20,000, wouldn’t you agree that this agent is $15,000 more valuable to a you than a cheaper competitor?
Often people will hire an agent based on the answers to these two questions: How much will you get me? How much do you charge?
Quite simply they are the wrong questions to ask. Smart sellers understand that superficial questions invite superficial answers.
Any agent being interviewed must be able to prove their value. You have to dig deeper than the superficial to make a smart decision.
Always consider value as opposed to cost when selecting an agent.
8. WILL YOU GUARANTEE TO LIVE UP TO YOUR PROMISES?
Under various guises, almost all agents offer some sort of guarantee, such as ‘Our promise’, ‘Service Plan’, or ‘Our Commitments’. Unless there is recourse for the owner to terminate an agent’s agreement if they do not live up to their commitments, such promises, plans and ‘guarantees’ are all but useless in holding an individual agent or agency to account.
It is an unfortunate truth an agent’s promises cannot be taken at face value. Therefore, along with their listing agreements, agents should offer a dismissal clause. If the agent doesn’t deliver on their promises, you can end the selling agreement.
Smart sellers know that if an agent is not prepared to back their service with a guarantee that contains a dismissal clause, then they are not the right agent for them.
