Advice on Finding a Really Good Agent in a Really Bad Market (buyer's agent, commission)

[Twinkle]

Hi everyone --

Wondering if you can offer some advice on finding a good agent when the market you're dealing with is less than rosy? The one and only time I've ever dealt with a realtor it was a bad situation to say the least. But that's in the past and I do love my little house. It turned out ok. However, it's time to move on and sell it because even though I love my litte house, I hate the city I live in

Boise, ID, here I come.

Ahem. First I have to sell the house, though, and putting aside all thoughts of going FSBO, I need to find a good realtor I can trust -- one who knows how to sell in a lousy and quickly (or so it seems) declining market in good old Phoenix (Gilbert to be exact). I just don't even know where to begin, honestly. How many agents should I talk to? I did speak with one a few weeks ago and I was totally put off by the fact she priced my home over the phone and told me what it would "definitely" sell for (her price) and what price at which it would sit and sit (any other price). Now granted, her price may be right, but pricing it over the phone turned me off. I would at least like a realtor to come out and see it and then decide what they believe it will sell for. So after that I just got overwhelmed and stopped looking. But now I've found somewhere I want to move and so I'm more than motivated to get going on this once I get the house in suitable shape.

So where to start? Is there a public site for realtor referrals? Are there things I need to know before I interview -- for instance should I get an appraisal first? An inspection?

I'm just really confused as to how to even search and I know how important it is to have a really wonderful realtor... To me it will be the difference between being stuck here for a long time or actually getting to move on to the place I want to be.

Thanks so much for any advice/suggestions in advance.

[Gretchen B]

I agree, it is hard to know where to start when it comes to looking for a really top notch agent who knows the market, will work hard to market your home, and who truly cares about their clients.

Since I'm up here in Prescott I have dealt with a few of the Phoenix area agents and I've been impressed with two or three in particular. If you'd like to send me a PM, I'd be glad to pass along their names so you could put them on your list of ones to interview. Of course you'll want somebody that is especially familiar with Gilbert and practices almost exclusively in Gilbert.

I always recommend interviewing at least three. Ask them tough questions about the local market, where it's been, where it seems to be heading, what they will do to help you get the edge on the competition. Ask them how they plan on marketing your home to local buyers. What will they do to attract out-of-town buyers? What do they feel would be the ideal pricing for your home and why? Have them show you their CMA and explain how they arrived at that price (range). An agent that takes the time to do a thorough CMA and has answers to tough questions about your local market should be a good choice.

After you've interviewed at least 3, one should stand out among the rest. If not, continue interviewing until you've found an agent with whom you have a rapport and one that appears to have the expertise and level of professionalism you're looking for.

As far as appraisal - no. Inspection - that's not a bad idea, especially if you repair any items that show up on the inspection and have copies of both the inspection and repairs ready for buyers to look at.

The best to you on your relo to Boise!!!

[KMCopeland]

Originally Posted by Twinkle

Ahem. First I have to sell the house, though, and putting aside all thoughts of going FSBO, I need to find a good realtor I can trust -- one who knows how to sell in a lousy and quickly (or so it seems) declining market in good old Phoenix (Gilbert to be exact). I just don't even know where to begin, honestly.

Well, you're asking questions. That's always a good way to begin. Well begun is half done, or so they say.

How many agents should I talk to?

You're looking for quality. The number you talk to is less important than how you feel after talking to them. No need to turn this into a marathon. It can actually be fun.

Depending on your own confidence level, there is nothing wrong with hiring the first one you talk to. I'm sensing your confidence is a little shaky, so talk to at least 3. Keep talking to them until you find someone with the right chemistry to be able to do things the way you want them done. I don't think it will take you very long.

I did speak with one a few weeks ago and I was totally put off by the fact she priced my home over the phone and told me what it would "definitely" sell for (her price) and what price at which it would sit and sit (any other price).

This is a good example of what I mean. She may be 100% right, but the chemistry was all wrong. Not the realtor for you.

You won't have any trouble finding competence. What will make all the difference is how you get along. Of course if you have a great time with a wild-eyed ditz who can't talk and chew gum at the same time, you won't want that realtor. Common sense rules here. And trusting yourself. This is not hard -- people just try to tell you it is. Ignore them.

And for goodness sake, purpose in your heart at the beginning that you absolutely will not engage the services of someone you really don't like at all, but who comes highly recommended. People are all very, very different. Your brother in law may love the high-powered top-producer with the take-charge personality and you may find him so unpleasant you can't wait until he leaves. Again, this is your house, and your transaction. Work with someone that makes sense for you, without apology.

Are there things I need to know before I interview -- for instance should I get an appraisal first? An inspection?

No, don't get an appraisal. The buyer's lender will require another one anyway. It's a waste of your money. Ditto for inspection -- you're wasting your money on both.

You should ask these questions of a prospective realtor. Perhaps one of them will contradict me, and if it makes sense for you, they are probably right and I'm probably wrong.

The world is filled with licensed, credentialed professionals that I wouldn't be happy working with, so simply checking credentials although important, has its limitations. I can give you the things I value in a realtor/broker, but they are hard things to see up front. For instance, I like to be able to depend on their advice as sound without having to go behind them and check, but I don't know how to assess that in an hour interview beyond trusting my own instincts about them. It has worked extremely well for me. I know it doesn't sound very scientific, and there's a reason for that -- it's not. I stand by the advice anyway. Go with the Force. It can be very reliable.

Once you commit to a particular person, replace them only for a good reason. You will inevitably find things about them along the way that annoy you. Your task is to decide if it's important. Learn to tell the difference between what matters and what doesn't. Be fair. But expect results.

[Tish Thompson]

1. Are you a full-time professional REALTOR®? How long have you worked full-time in real estate? What geographic areas do you specialize in?


2. Do you have a Website? What information can I find there?


3. How will you keep me informed during my home search and throughout the transaction?


4. Do you have a staff or a team? If so, what roles will they play in my transaction?


5. Will you show me properties from other companies’ listings? (Some real estate companies do offer their buyers’ agents a higher commission if they are able to sell “in-house” listings. In those instances, there can be added incentive to limit the range of homes you are shown. This may affect your home search and how much you your agent’s fee will be.)


6. Will you represent me exclusively, or will you also represent the seller (or buyer, whichever applies)? May I have that in writing?


7. How will you get paid? How are your fees structured? May I have that in writing?


8. What distinguishes you from other real estate agents? What is your negotiating style?


9. May I contact some of your recent clients as references?


10. Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our buyer agency agreement?

Hope this helps!

[chatty56]

Interview as if it's a job interview and you're the boss. It actually is. Ask if there is a quarantee - if they don't do the job they promise can you cancel the contract? This is something you want in writing. How much advertising do they do and where? This is very important. Don't use the first one, interview several and let them know you are interviewing others. Sometimes when you use agents who have several listings you don't get as much personal attention; make sure you tell them what you expect, like a phone call every week for updates. Good luck.

[ntfeldman]

Twinkle,

I think my colleagues have given you excellent advice.

I am horrified that someone in our profession quoted you a listing price over the phone. Horrified. I don't care how well you described your home/it's view/location/floor-plan/upgrades etc... it is IMPOSSIBLE to value a home accurately without seeing it and then applying it to current market data. It's not rocket science but it at least requires responsible collection of information..

I disagree with the prior opinions on one point. The appraisal issue.

I would recommend that you get an appraisal first. I do also recommend that you get the inspection complete too just in case there's anything you need to address in the home but most buyers won't trust a seller's inspection so they will want to get their own. Appraisals are different. A certified appraiser must follow a national standard (Uniform Standards of Professional Appraisal Practices - USPAP) which are set by non other than the Appraisal Institute - a national body that regulates the licenses for appraisers. Their valuations are tied to lender risk so their opinions are taken very very seriously. Almost all lenders require the same form (it's a lender guideline form)

Here (in Tampa) an appraisal would cost you approx. $375 and you could actually provide it to a buyer to update (for approx $50) at the time of contract and the lender will in most cases allow a buyer to use it (the updated copy) for their loan. You could charge it back to the buyer or at the least split the difference in costs.

The appraisal will come back either: higher than you expected, lower than expected or right where you were hoping. Here's my recommendation for each situation:

Higher than expected - congratulations! List your house for sale for $100 less than appraisal and advertise it that way! The buyer's will know they are getting a deal and you'll feel some confidence that the price is solid. (the market in AZ is soft at the moment and prices are dropping. I don't mean this to imply your price won't go down... just that you'll at least have a bankable number a buyer can use on the date you get it.

Lower than expected - I suggest you listen to the numbers, look at the comps that were used and consider adjusting your expectations. If you decide to market your home for an amount higher than the appraised value - keep your ownership of the appraisal and it's valuation to yourself. Don't even share it with your Realtor thank you... I for one wouldn't want to know about it.

Right where you had expected - this one kind of goes with "higher than expected" but again taking the market direction into consideration over time.

As for choosing an agent to assist you, there are a couple of criteria that make a big difference in the success of the Realtor you choose and their ability to help you.

Where your buyer will ultimately come from is impossible to tell - internet, drive by, referral, open house, advertisement, MLS, any of them are possible. In most cases (85%-95% of the time in fact) your buyer will come via another Realtor - so the MLS is your best marketing tool. Love it or hate it, it works very efficiently.

Also, if you discount your fee offerings - which of course you're free to do - it shouldn't affect how many agents show your home but unfortunately in some cases it might. Some agents will deter a buyer from viewing a property that does not pay them well. Or, they just delete it from the show list entirely - you never make the cut. This shouldn't happen but I know it does. If you discount your fees, make sure you're listing agent takes or shares the discount "hit" rather than deducting the discounted amount from the other agents share and keeping a larger share for themselves. Discounting below what other seller's are offering in the area (your agent can show you this) will hurt you in marketing. I am not saying however that you can't do it - there is no price fixing - but your also allowed to see information that will allow you to make a choice about being competitive.

All "Realtors" are board members and have access to the MLS. But just being in the MLS is not enough. There are aspects of the MLS that can help you or really really hurt you. Errors for one can be deadly and you won't even know it. (Once you have an MLS number, make sure you can find your listing on Realtor.com for your city and price. Ask to see the print out from the MLS and make sure the information put in is accurate.

So I highly recommend that you hire an experienced Realtor - it won't cost you more, in fact in the end - because of efficiency - it will cost you less and it will assure you that you have fewer headaches along the way. Getting a buyer/contract is only a small part of what your Realtor will do for you.

Experience is actually more important than liking your Realtor but the ideal situation is to find an experienced agent you like working with.

As for interviewing agents, how much dollar value they have closed is almost irrelevant. Agents use these figures to indicate experience but they don't offer you a per year number and some roll up their entire career closings in those numbers and it's nearly impossible to verify anyway. You want an agent that knows your area well, works properties in your price range and possibly has sold homes in your neighborhood.

Also, if your home is in the mid $200K values, you frankly don't want an agent that closes million dollar homes. Your transaction value will be low compared to what they typically earn and they may not give your transaction all the attention it deserves. We're human. It's not a criticism, it's just human nature.

How do you find an agent that works your area? You can collect names on yard signs in your area but this is not an indication of experience and I caution you about making a final decision this way. I recommend collecting some advertisements for homes in your area. There's probably a Homes and Land, The Real Estate Book, a local real estate publication put out by your area newspaper (but here the Sunday section is worthless so I wouldn't look there unless it's an effective tool in your market). I would also go on line to Realtor.com and type in your zip code and see which agents/offices have listings in your area and price range. Look for the Realtors on Realtor.com that have the better marketing packages.

Here's the test. Call these Realtors about one of the homes they are advertising. Do you get them or the "office"? Do you have to leave a message or are you put in touch with someone immediately? Can the person you speak with answer questions on the home you call about? If the agent gets all the calls on their own listings, how quickly do they call you back? Do you get to deal with them or an assistant (it's ok to get an assistant - it shows the Realtor uses their time efficiently). What kind of questions do they ask you as a buyer? Do they try to engage you without being pushy? Do they ask you questions about being qualified without putting you off? Do they encourage you to see the home? Do they invite you into their office to discuss your needs? Do they treat you the way you want your prospective buyer's to be treated and do they encourage you to view the home you called about???

A word about Realtor.com - there are various marketing levels on Realtor.com that allow an agent to add multiple photos and virtual tours of homes. The records show that 80% of buyers look on line to start their home search and people want photos, photos, photos. Look for an agent that uses the most sophisticated Realtor.com package. It will attract more buyers to your listing, even if they go through another agent.

So, interview them. Make sure they are advertising (on-line and in print) and using photos and tours.

Ask for references. If their prior clients were happy they will tell you. Even If there were little things or communication lapses or misunderstandings, you'll learn about them. Make sure the client's provided as a reference transacted within the last year.

One in four agents has been licensed less than 1 year. Half off all agents has been in the business less than 3 years. Your odds of getting an inexperienced agent are very high - so interview carefully. Experience will go a long way toward helping you get a QUALIFIED buyer for your home, protecting you in the negotiations and acceptance process, keeping the buyer in the transaction and communicating along the way and working through any unusual circumstances that come up along the way. I also suggest selling your home "As-Is" which here in Tampa is a legal term that does a good job of keeping seller's out of court later. I'm a big fan of this agreement as it gives buyers a chance to check out the property and walk away up to a certain date and it keeps contracts from blowing up over repair issues after the date passes. "As-is" doesn't mean your house is less than perfect. It means you're not going to try to make it perfect for someone else and then when they don't think it is, they can come back to you because of it. IT ALSO DOES NOT MEAN YOU CAN CONCEAL ANYTHING WRONG WITH YOUR HOME THAT YOU HAVE A LEGAL OBLIGATION TO DISCLOSE.

A quick word about discount brokerage firms and By Owner or flat fee services is in order here. These are legitimate ways to sell your home and if you're so inclined you should consider using one. However, you should go in with your eyes open. Most of these firms use listings to write mortgages to buyers and then to service/sell homes to those buyers. But they take those buyers to the full service firms listings to collect a full commission fee - not to your listing. I'm not making this up to make them seem awful - I did my own personal research of these firms in our area and I was STUNNED at how many of their own listings went expired or withdrawn - even though they were a very low price for the area! You see, they don't get paid as much to sell your home (it's discounted), so it's not where they put their time. They write mortgages and focus on listings to attract buyers. They higher listing agents - at least in our market - on a salary - so their listing agents are not incentives to sell and close on the same "paid when you perform" standard that other agents are held to (on the listing side). The company takes the fee on the buyer's side which is why they are incentives to sell other listings (rather than yours) to their buyer clients.

Also, some agents in the real estate business have a personal vendetta against them and refuse to show any of their listings in a "one mans effort" to put them out of business spirit. It's wrong but it's real. If you use a discount brokerage firm, there will be some agents who refuse to show your home OR, require the buyer to pay them if the buyer chooses to buy your home (a cost the buyer does not incur with other properties). This buyer-pays-the-fee issue is not illegal or frankly unfair - it's been deducted from the seller's side but it is not the agent who should take the hit. If the buyer wants your home they will incur the fee. Unfortunately this tends to drive buyers away from your home and into others.

These services also are a waste of your money if they put your home in the MLS but offer no compensation to agents. Just know going in that you're really on your own with these services - you will save money - but you will not get services that you are not paying for. There's no such thing as a free lunch. There is also one really awful side affect of using a discount firm that goes largely undiscussed for some reason... the way they drive buyers to themselves is with under priced listings that buyer's can't resist. That under priced listing is yours. But since they don't get paid to show and sell it, they actually want it listed as long as possible to drive the most buyers out there to them. Once you get fed up with your home not selling and you take it to another firm (full service or otherwise) the low price they recorded in the MLS is there for years. The record is there for all Realtors to see - the low price you are willing to accept on the sale of your home. Of course it was based on paying lower fees but it's still in there. We go look at all history on a home before making an offer. If I were a buyer's agent making an offer on your home, I wouldn't recommend offering more than that amount. It can really hurt you if you don't actually sell your home through the discounter.

Now, the most important part - yours. You absolutely must be an active participant in the process. You must make your home available to showings, you must clean, clean, clean and de-clutter. You must get your home as close to a "model" as you can with the least amount of disruption and cost as possible. You must communicate with your agent, you must be open to changes as necessary in the market conditions (we don't make the market) - we would love to sell your home for tons of money - we hate to see people lose money or be in a difficult situation and we will use all of our professional skills possible to help you achieve your goals and keep you from making mistakes that cost you time or unnecessary fees - but once you find a good agent - listen to them. They are on your side and they should/will tell you the truth. You can always get a second opinion if you're not comfortable with what you're being advised.

So recap: Find an agent that knows your area, sells homes in your price range, advertises, engages buyer prospects, responds to your calls and questions quickly and has experience in the industry (I recommend no less than 5 years). It will help if your agent has other designations - CRS and GRI are good ones. The actual brokerage firm the agent is affiliated with is totally irrelevant. Real Estate is a personal business and has nothing to do with brand.

Good luck in your search. There are lots of wonderful professional agents out there - you will find one. It's a tough market out there right now - give your agent at least 30 days more than the average days on the market for a home in your area and price range. They deserve an average shot at marketing your home. If you're going to price it above the market initially, don't start their time clock until you've brought the price in line with the market for your specific home.

[Northwoods Voyager]

Keep one thought in mind, if you will. It is NOT always the most experienced, top producer that will meet your needs. If honest, all of us Realtors/agents will have to admit to being 'brand new' at one point in time. We may have no experience in the R.E. business at first, but most of us come from backgrounds that somehow seem to qualify us for this business.

Even though I have been around as Realtor for over 20 years and have been a 'Top Producer" on and off, this does not make me the best and most compatible agent with everyone. My style of presentation may be different from that guy down the road who is a fast talker and Type A personality that may just suit you to a T.

So, while you are interviewing these '3 agents', take note of how they speak to you, their body language, eye contact, and manner of dress. Some of us are way too pushy for some sellers and others of us are so laid back that you may wonder how in the world have we stayed in business this long or will we make it if new?

All of the previous posts are correct in asking for a Comparable Marketing Analysis (CMA). And you need to view it! No appraisal is required at the time of listing your property since you do occupy the home. Now if you had the home passed down to you or never occupied it, then an appraisal might not be a bad idea. Moot point here.

Inspections? Check with the Realtor that you 'hire' if there appears to be major and visible flaws. I hope that this will be a better experience for you and Good Luck.

[Gretchen B]

Originally Posted by ntfeldman

Twinkle,

All "Realtors" are board members and have access to the MLS. But just being in the MLS is not enough. There are aspects of the MLS that can help you or really really hurt you. Errors for one can be deadly and you won't even know it. (Once you have an MLS number, make sure you can find your listing on Realtor.com for your city and price. Ask to see the print out from the MLS and make sure the information put in is accurate.


A word about Realtor.com - there are various marketing levels on Realtor.com that allow an agent to add multiple photos and virtual tours of homes. The records show that 80% of buyers look on line to start their home search and people want photos, photos, photos. Look for an agent that uses the most sophisticated Realtor.com package. It will attract more buyers to your listing, even if they go through another agent.

So, interview them. Make sure they are advertising (on-line and in print) and using photos and tours.


It will help if your agent has other designations - CRS and GRI are good ones. The actual brokerage firm the agent is affiliated with is totally irrelevant. Real Estate is a personal business and has nothing to do with brand.

ntfeldman adds some good points I forgot to mention in my earlier post:

1) Make sure you use a REALTOR (member of NAR) because we have a Code of Ethics that requires that we have a higher standard of practice than a "real estate agent". Most of the agents you'll encounter are members, but it's always good to ask.

2) Totally agree about the CRS and GRI designations. Both require a real committment to a higher level of customer service and expertise. However, I tend to agree with Northwoods Voyager about using a newer agent. Sometimes, a "long-timer" can be much worse than a newer agent, because they've become very nonchallant in their level of service and in keeping up with the latest Internet marketing techniques. A lot of times a newer agent still has an enthusiasm and committment that's a step above.

3) Realtor.com "enhanced" listings and top quality virtual tours are a "must" in this slow market with so much competition out there.

4) Ask to see the online listing/presentation of any current (active) listings the potential agent has. Check out what the "customer" MLS printout looks like - lots of high quality photos? Does the listing have a virtual tour? What's the quality of the VT? How's the ad copy - catchy, no misspelled words?

Now a couple of points that I have a different take on:

1) I think the company does make a difference. Yes, it is the individual you're hiring, however a top notch company can offer the following: a really good company will expect a higher level of professionalism from their agents, some companies have a better Internet presence than others. This is an important aspect in attracting out-of-town buyers.

2) Back to the appraisal issue. I understand where ntfeldman is coming from on that one. The problem I've encountered with "pre-contract" appraisals to establish value is that they tend to be low. Yes, it is an independent estimate of value, however we all know that when an appraiser is aware of the contract amount, he can choose comps that will support that amount (unless the purchase price is waaay high or waaay low). I've personally known "pre-contract" appraisals to come in as much as 10% below market value, and when the home sold, it appraised just fine. So just be cautious about doing that. If you've got a really, really, unique house that's hard to value, I might recommend an appraisal to establish value. However, if you live in a tract home in a subdivision, I really think a CMA would be more than adequate to establish a competitive list price.

Obviously, all of us have a little different "take" on things, depending on what state we practice in, etc. You'll find as you interview, that even local agents will have a difference of opinion about certain things. This can help you determine which one will be a good "fit" for your team.

[Twinkle]

I am completely blown away at the generous advice you have all given me. I know this message board is a wonderful source of information, but the fact that you have all taken so much time to thoughtfully reply to my silly little call for help?? Well, I'm just humbled and thankful that I've found this place. I want you to know that when I get closer to being ready to hire a realtor, I will be coming back to this thread and printing out all of your suggestions and following them very closely. I can't tell you how much I appreciate this and I will certainly keep you updated on what happens in the near future. Yesterday I was nervous to come in here and ask for help and today I'm just so happy I did.

My sincere thanks to you all.

Kimberly

[frogpajamas]

I want to thank you all for your great advice too, and I'm not even the one who asked! I made sure to look at your locations....wish you were in the market I need an agent in, I'd talk to each of you for sure.