How do you select a Realtor?

Question

My parents listed their house and shortly after, their agent had a family emergency and moved across the country. Their contract just ended and they're receiving calls from other agents. They plan on listing it again with someone new, but  what qualities/criteria should they be looking for in an agent?

Christopher Phillips · Answer

@Marcus Brown

If they didn't receive any offers then the price was too high.

Typical way to look at pricing:

Too high, buyers don't request showings.

Slightly high, buyers will take a look but you won't receive offers.

Slight discount, you'll receive multiple offers and drive up the price.

Your best offer always comes within the first 2-3 weeks. After that, it's time to adjust the price.

There are some nuance opinions on pricing strategy to consider as well. This is a marketing thing, not about the value of the property... The price should be in round numbers in $25,000 increments. Reason being, search engines list properties in order of pricing (low to high or high to low). or based on upload date (newest vs. oldest). Pricing at $500,000, as an example, will show up at the top of the list versus $499,999. This is because of the way search sites let people bracket their search budget requirements. People tend to search based on their preapproval amounts, which tend to be in round numbers.

Charlie MacPherson · Answer

@Marcus Brown You want someone who:

- Is full time.  Part timers and those with other income sources are not usually as hungry as a full time agent.  And part-timers aren't always available when a buyer wants to see the property, to be there for inspection and appraisal or to get documents signed.  I did a deal with a part timer who was working full time at an ice cream and sandwich shop.  It was like pulling teeth the entire way.

- Knows the market.  At least a few years experience selling in the area.  Exact proximity isn't important, but fairly close.

- Presents REAL comps.  I do mine fully manually and NEVER use any of the automated systems.  Automated value models don't know the ins and outs of a local market, nor do they know the condition of the property.

- Will tell you whether the property is over priced (and it sounds like it is) and will show you where the price needs to be in order to sell.

Have the agent show you very similar properties sold over the last 6 months and look at the average days on market.  Fall will be a little slower than spring and summer, so you'll want to adjust for that.  That will give you an idea of what the days on market should look like.

I'd caution you to move very quickly though.  Around here at least, the market gets VERY slow once you get to mid-November.

Good luck!

Christopher Phillips · Answer

@Marcus Brown

Being local doesn't matter. Job of the listing agent is to market the home. If they are in the zip code or the zip code next door doesn't matter. Buyers are likely not currently living in the same town. Buyer agents show the property.

At the end of the day, a properly priced home will sell itself.

Lien Vuong · Answer

I cannot speak specifically about the IL market but most in the Boston market (my local market) and other fast growing areas, market absorption should be around 2-3 weeks or at least the first month of the listing even in slower markets.

Seeing that the property has been on for six months without any offers tells me two telling facts - the property is not priced accurately and that it is also not marketed well enough to get the right buyers in (this includes door knocking neighbors, social media ads, and campaigns around the community). Any property with the right price strategy will be able to sell even in the dead of winter.

I think you shlkld perhaps go over your selling strategy with the agent again and plan how you all can improve and market it better to capture the market. Perhaps it is staging, getting professional photography, doing a different open house time, etc. As it is you have already lost time by letting it sit for six months. People will start to wonder why it hasn’t sold or if there’s something “wrong” with the house.

Hope this helps and best of luck!

Marcus Brown · Answer

The agents broker took over and they did showings, I don't know if the listing broker was there. They didn't receive any offers,  I suspect  because it needs updating. I think it was on the market for 6 months.

Christopher Phillips · Answer

@Marcus Brown

Interesting. The agent didn't have someone from their office step in and help?

My first concern is about the pricing on the home. The listing agent doesn't need to be in town for buyer agents to show the house and to put in offers.

Did your parents keep showing? Any offers at all? The best offers are usually within the first 2-3 weeks. How long was the property on the market? 6 months or 1 year?

You should interview  2-3 agents. Look for someone that has a clear marketing plan, and a system for communicating with your parents. Also, make sure they have a clear pricing strategy. The market is starting to shift towards a buyer's market. You don't want to waste time being over priced.

Marcus Brown · Answer

How local to the area should an agent be, as far as where they work and where they live?

How do you select a Realtor?

Most Popular Reply