Selling my home - Is it just a matter of trust?

Question

I am ready to sell my house to get ready to retire. I don't know any listing agent personally. My question is: in the current seller market, is there a way for the owner to oversee the selling agent so that they don't just show their friend's offer as the highest offer (and throwing away higher offers from other buyers). Is this simply a matter of having to trust your listing agent (whom you don't really know)? Close to where I live, there are homes selling for several hundred thousands over asking price. Did those home owners just totally depend on their listing agents to bring in the highest (or most qualified) offers? Thanks in advance for all comments.

Michael Dumler · Answer

@Jim Vinh always wise to use a referral from someone else in my opinion. Do you know anyone recently who sold their home and used a resourceful agent? The listing agent is a fiduciary and must present all offers to you. At the end of the day, you have the final call as to which offer you want to proceed with. I would not be concerned about an agent holding back highest and best offers, as that would affect their commission. With current market conditions, the buyer's agent is doing a majority of the leg work to get the deal under contract. Hope this helps!

Jonathan Greene · Answer

Legally, an agent has to send you all offers for review, but as many have said it's really not that hard to find a great listing agent that you can trust. Put it this way, an agent makes more when they sell your house for more so why would they want to give a deal to their friend to make less? For on-market real estate, Zillow reviews are a pretty vetted source and you can also see how many homes they currently have listed which is an indication of how much they list and often how good they are at it if you look at their past sales. What city are you in? It is a specialty though, listing, you don't just want any agent.

Theresa Harris · Answer

Realtors have rules that they need to follow.  If there is an offer you are presented and you don't like it, then you don't have to accept it.  Talk to a couple of realtors, have them tour your home and tell you what they'd list it for.  Also look at some of their listings, ask them if they specialize in a certain area, how long homes they have listed are taking to sell and what they sell for compared to the list price.

While realtors are paid on commission, they want to sell your home.  The difference between an offer of $250K vs $260K to them, isn't a lot as far as their commission is concerned; but to the seller and buyer it is.

Joshua Janus · Answer

Make sure to have a solid, comprehensive idea of what your home is actually worth before signing an exclusive agreement and listing. If your worried about malpractice, you will know you are getting the proper value out of your house by being informed previous to the listing. Chances are you won't run into a realtor that is looking to take advantage of you as that is rare; interview a few! Good luck!

Josue Vargas · Answer

It should not be a matter of just trust. They should clearly explain how the brokerage/agency business is done.

If you don't have an Agent already, visit other brokerage offices and compare what they have to offer.  Not all brokerages/offices are the same, not all agents are the same.  Chances are if you list with a large brokerage team/group, you should not have any issues.At some point after signing a Seller Representation Agreement the agent should give you a detailed Comparative Market Analysis (CMA) of properties sold ideally within 1-3 months, some cases back to 6 months. You set the price, not the Agent.  The agent job is to inform you. The agent should show you ALL offers, good or bad.  Also, if in doubt, pay an appraisal (avoid his recommendations again if you are in doubt).Also, if in doubt, pay an appraisal (avoid his recommendations if you are in doubt).

However, unless the properties going on closing are over several hundred thousand $ beyond asking price in your area, you may be listing a property worth couple millions $.

Good luck.

Jim Vinh · Answer

Thanks everyone for your comments and valuable suggestions (I will certainly reread all posts multiple times and gather all your suggestions). I will interview a small number of listing agents, ask lots of questions, and hopefully be able to pick out a good agent/team with a strong network. Your replies do make me feel better heading into this adventure. Cheers.

Marcus Auerbach · Answer

@Jim Vinh - trust but verify. As with a lot of things the 80/20 rule applies. 20% of the agents do 80% of the business. Why? Because they are good in what they do and that earns them referral and repeat business - personal reputation is everything you have in this business. The difference in skill, expertise and professionalism is much larger than people generally think. And you have a lot of rookies and amateurs, because it's easy to get started.

If I can give you only one tip, then this: look for an agent who personally closes at least 25 transactions per year, better 50. They know what they are doing and a significant portion of their business is referral and repeat!

Selling my home - Is it just a matter of trust?

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