You're asking your real estate agent the WRONG questions.
With so much competition in the real estate market, asking the right questions is key to hiring an agent who’ll sell your home for the best possible price.
If your key question is “How much is my property worth?” you’re asking the wrong question.
Real estate agents are not property valuers. Asking “How much is my property worth?” won’t tell you anything about the agent’s ability to actually market, negotiate and drive demand for your property. It may not even be an accurate estimate either - never confuse professional desperation (an agent giving you a higher value because they want to win you over) for professional enthusiasm!
Instead, you should always hire an agent based on two key things:
1. Their negotiation skills
2. Their ability to create a market for your property
Here are the five questions that you need to ask to choose the right real estate agent.
1. What comparable sales have there been within the last month?
Rather than directly asking how much your house is worth, you can get an appraisal through asking about the agent’s recent similar sales. Markets move faster than people & data, so you want to ask for comparable sales no more than a month old to determine an estimate of your home’s value.
2. What’s the on the market price of comparable sales?
Don’t ask about the “selling” price of comparable sales, ask about “on the market” prices.
The market price is the price that a property is listed and advertised at, it takes into account previous comparable sales in the area, house and land size, finishes, additional features, and so on. It’s essentially the “true value” of your property.
The selling price is how much a home actually sold for. It’s how much the individual buyer was willing and able to spend on that particular home.
Selling prices are not a valid appraisal, they’re unpredictable. A house’s true value can be drastically different from the price it happens to sell for - that doesn’t change its true value though. Hire an agent who knows the market prices - not just the sale prices!
3. Are you a strong negotiator?
Instead of asking about the fees of selling your home, look for an agent with a strong reputation as a good negotiator.
The agent with the lowest fees might end up being the one who sells your home for the lowest price - garnering you less profit in the long run.
Ask your agent about how they are prepared to negotiate on their fee or perhaps even the last time they did a trade. A trade is a swap where the buyer offers to trade, say, a house and a sum of cash for a more expensive house.
Negotiating on their fee is not something that should be done at the start, but rather - if the agent has delivered top notch service and helps to achieve a sales price that you’re more than happy with, then, what is there to discuss? On the other hand, if the experience was lacking in some areas, then why does the agent feel that a full fee is warranted.
An agent’s ability to discuss their fee for service and the possibility of a trade shows their skillset as a savvy negotiator - they’re able to make a good deal for their clients when an easy one isn’t there.
4. What is your company’s policy on conjunctions with other agencies?
Some agents will refuse to work with buyers affiliated with different agencies, meaning that you could miss out on valuable buyers and bidders who could leverage the selling price of your property.
Asking about the agent’s company policy on conjunctions with other agencies will help you to gauge whether an agent truly has your best interests at heart, or if they’re simply concerned with the interests of their agency and their own pocket.
5. How have you marketed properties in the past?
When it comes to selling your home, marketing is everything. The more eyes you can get on your property, the better!
Hiring a digitally savvy agent can make a world of difference to the selling price of your property. You should ask prospective agents about the various digital marketing campaigns they have run for previous properties including information on buyer profiling, and click-through rates.
For local expert advice and a full service plan that will deliver, call Paul today on 021 606 460 - or email [email protected]
If your key question is “How much is my property worth?” you’re asking the wrong question.
Real estate agents are not property valuers. Asking “How much is my property worth?” won’t tell you anything about the agent’s ability to actually market, negotiate and drive demand for your property. It may not even be an accurate estimate either - never confuse professional desperation (an agent giving you a higher value because they want to win you over) for professional enthusiasm!
Instead, you should always hire an agent based on two key things:
1. Their negotiation skills
2. Their ability to create a market for your property
Here are the five questions that you need to ask to choose the right real estate agent.
1. What comparable sales have there been within the last month?
Rather than directly asking how much your house is worth, you can get an appraisal through asking about the agent’s recent similar sales. Markets move faster than people & data, so you want to ask for comparable sales no more than a month old to determine an estimate of your home’s value.
2. What’s the on the market price of comparable sales?
Don’t ask about the “selling” price of comparable sales, ask about “on the market” prices.
The market price is the price that a property is listed and advertised at, it takes into account previous comparable sales in the area, house and land size, finishes, additional features, and so on. It’s essentially the “true value” of your property.
The selling price is how much a home actually sold for. It’s how much the individual buyer was willing and able to spend on that particular home.
Selling prices are not a valid appraisal, they’re unpredictable. A house’s true value can be drastically different from the price it happens to sell for - that doesn’t change its true value though. Hire an agent who knows the market prices - not just the sale prices!
3. Are you a strong negotiator?
Instead of asking about the fees of selling your home, look for an agent with a strong reputation as a good negotiator.
The agent with the lowest fees might end up being the one who sells your home for the lowest price - garnering you less profit in the long run.
Ask your agent about how they are prepared to negotiate on their fee or perhaps even the last time they did a trade. A trade is a swap where the buyer offers to trade, say, a house and a sum of cash for a more expensive house.
Negotiating on their fee is not something that should be done at the start, but rather - if the agent has delivered top notch service and helps to achieve a sales price that you’re more than happy with, then, what is there to discuss? On the other hand, if the experience was lacking in some areas, then why does the agent feel that a full fee is warranted.
An agent’s ability to discuss their fee for service and the possibility of a trade shows their skillset as a savvy negotiator - they’re able to make a good deal for their clients when an easy one isn’t there.
4. What is your company’s policy on conjunctions with other agencies?
Some agents will refuse to work with buyers affiliated with different agencies, meaning that you could miss out on valuable buyers and bidders who could leverage the selling price of your property.
Asking about the agent’s company policy on conjunctions with other agencies will help you to gauge whether an agent truly has your best interests at heart, or if they’re simply concerned with the interests of their agency and their own pocket.
5. How have you marketed properties in the past?
When it comes to selling your home, marketing is everything. The more eyes you can get on your property, the better!
Hiring a digitally savvy agent can make a world of difference to the selling price of your property. You should ask prospective agents about the various digital marketing campaigns they have run for previous properties including information on buyer profiling, and click-through rates.
For local expert advice and a full service plan that will deliver, call Paul today on 021 606 460 - or email [email protected]
Your BONUS essential seller information
Selling your home involves significantly more than just placing the 'For Sale' sign out the front of your home.
There is a lot to think about, and a lot to get right - including who you choose to help you in the successful sale of your property.
Anyone can tell you how good they will be, my aim is to show you first, even if we never work together I know that the information on this page will be extremely helpful for you with your real estate moves. So just click on any or all of the 4 guides below to download your own copies.
Deciding to work with an agent is a big decision, and now more than ever you need someone who is:
A navigator - to show you the path and process that’s best for your situation.
A collaborator - to work with everyone needed to get you sorted.
A connector - to put all the pieces together for you.
An innovator - because what worked 12 or even 6 months ago, might not work anymore.
An energiser - to keep going for you, I don’t stop.
A companion - we’re in this together to get you a result.
And, above all you need someone you can trust to help you out. How do you know if you have found that person?
A good sign is that they give first before ever asking for something in return. I have created the guides on this page for you to take as needed, just click on the below options to download any or all of them. The "Getting It Done" e-book is 100% worth downloading, trust me on that one!
I'm here when you need me.
Cheers, Paul
There is a lot to think about, and a lot to get right - including who you choose to help you in the successful sale of your property.
Anyone can tell you how good they will be, my aim is to show you first, even if we never work together I know that the information on this page will be extremely helpful for you with your real estate moves. So just click on any or all of the 4 guides below to download your own copies.
Deciding to work with an agent is a big decision, and now more than ever you need someone who is:
A navigator - to show you the path and process that’s best for your situation.
A collaborator - to work with everyone needed to get you sorted.
A connector - to put all the pieces together for you.
An innovator - because what worked 12 or even 6 months ago, might not work anymore.
An energiser - to keep going for you, I don’t stop.
A companion - we’re in this together to get you a result.
And, above all you need someone you can trust to help you out. How do you know if you have found that person?
A good sign is that they give first before ever asking for something in return. I have created the guides on this page for you to take as needed, just click on the below options to download any or all of them. The "Getting It Done" e-book is 100% worth downloading, trust me on that one!
I'm here when you need me.
Cheers, Paul