CHOOSE A REALTOR®  TO SELL YOUR HOME

Once you’ve decided to sell your home, finding a Realtor®  is the next step in the process.  In making this important decision you should understand:

Who a Realtor® is

How to evaluate an agent

What a Realtor®  will do for you

If you’re not in a “must sell” situation (job transfer, career opportunity, family upheaval, financial hardship), but rather in an “elective” one, you may want to consider adding on to your current home (if you need more space) or refinancing to lower monthly mortgage costs (if finances are a concern).

Who is a REALTOR®?

The terms agent, broker and Realtor®  are often used interchangeably, but have very different meanings.  For example, not all agents (also called salespersons) or brokers are Realtors®   .  Learn who is a Realtor®  and the reasons why you should use one.  As a prerequisite to selling real estate, a person must be licensed by the state in which they work, either as an agent’salesperson or as a broker.  Before a license is issued, minimum standards for education, examinations and experience, which are determined on a state by state basis, must be met.

After receiving a real estate license, most agents go on to join their local board of Association of Realtors®   and the National Association of Realtors®  , the world’s largest professional trade association.  They can then call themselves Realtors®   .  The term “ Realtor®   “ is a registered collective membership mark that identifies a real estate professional who is a member of the National Association of Realtors®   and subscribes to its strict Code of Ethics (which in many cases goes beyond state law).  In most areas, it is the Realtor®  who shares information on the homes they are marketing, through a Multiple Listing Service (MLS).  Working with a Realtor®   who belongs to an MLS will give you access to the greatest number of homes.

How to evaluate an agent

Without any obligation, you can invite local Realtors®  to visit your home and give you a “listing presentation” about why they’re the best ones to market it for you.  Two to three presentations will probably give you a good opportunity for choice.  A listing presentation includes having the Realtor®   review with you the reasons why you should list with that particular individual, and providing you with information that will assist you in making initial decisions about selling your home.

Recent laws in every state have defined the duties of someone speciically retained as a real estate agent.  Most states require a real estate agent to explain his or her role at the outset of any conversation.  A professional agent will promptly provide this such a disclosure.  Look for an agent who:

Is a member of the local board or association of REALTORS®

Explains and discloses agency relationships (the role of the agent, i.e., who they are
representing--the buyer or the seller) early on in the process, at “serious first contact”

Advises you on how to prepare your home for the market

Shows some enthusiasm for your property, listens attentively, instills confidence,
operates in a professional manner, and has a complementary personality style to yours

Has already researched your property in the public records and the MLS

Brings data on nearby homes that have sold (or failed to sell) recently

The following are important questions to ask a potential agent:

Are you a Realtor®?

Do you have an active real estate license in good standing?  To find this information,you can check with your state’s governing agency.

Do you belong to the Multiple Listing Service (MLS) and/or a reliable online home buyer’s search service?  Multiple Listing Services are cooperative information networks of Realtors®  that provide descriptions of most of the houses for sale in a particular region.

If there’s no nearby MLS, how often do you cooperate with other local brokers on a sale?

What have you listed or sold in this neighborhood lately?

Do you cooperate with buyer’s brokers?

What share of the commission will you offer a cooperating broker who finds the buyer?

And in addition to the criteria mentioned above, there are a number of very important reasons you will typically prefer to work with a Realtor®.  Among them are the fact that they adhere to the NAR’s highest standards of ethical conduct and professional training.

WHAT A REALTOR® WILL DO FOR YOU

There are many important reasons to use a Realtor®.  Some of the duties your Realtor®  will perform for you include:

Walking through the process of selling your home from beginning to end

Providing comparable information about the prices for which other properties have
sold and analyzing data for you to gain a true comparison

Supplying information regarding local customs and regulations you may want to consider

Sharing information about your home through the Multiple Listing Service and on the Internet

Placing advertisements for your home

Fielding phone calls

“Qualifying” potential buyers to make sure they would be financially able to buy your property

Negotiating the sales contract

Alerting you to potential risks

Complying with the disclosures required by law

Providing you with an estimate of the closing costs you will incur

Helping you prepare for a smooth closing of the transaction

Selling on your own

“You can get rid of the broker, but you cannot get rid of the broker’s work” is an old caution for those who intend to offer their homes “For Sale By Owner” (FSBO).    Selling on your own is not an easy undertaking.  It requires a significant amount of time to study the process, understand your obligations, and do some of the complicated work that a real estate agent does.  In addition, selling on your own requires extra help from outside professionals, such as a REALTOR®  , accountants or attorneys for some of the jobs that require specific expertise.

The following are some major pitfalls to avoid:

As a personal safety measure, only show your house to those individuals with whom you’ve made a prior appointment that’s been confirmed by phone.

Don’t price the house so low that it sells too quickly - pay for a market value appraisal by an experienced appraiser.

Hold out for a buyer with written pre-qualification from a lending institution.

Find out your legal obligations.

If you require only limited services, some Realtors®  will agree to help with the transaction for a predetermined fee.  You can call teal estate companies and ask for the managing broker and see if they’re interested in furnishing “unbundled services.”

SALES  COMMISSION  IS  REAL  BARGAIN

It’s time to sell your home.  You’ve contacted a Realtor® and begun the paperwork to put your home on the market.  You look at the commission rate on the listing contract and begin to picture your agent sitting on the beach in Maui after the sale of your home closes.

Your Realtor® is a professional who has worked hard to obtain the knowledge and abilities to sell your home as fast as possible for the best price available.

Unlike your doctor, lawyer or accountant, your Realtor® is not paid a per hour or per service fee.  He or she only gets paid when you receive your proceeds from the home sale.  Results have to be obtained or a Realtor® won’t get paid.

The real estate sales commission is one of the best bargains in town.  While sometimes it seems like a lot of money, it is important to remember what you are getting for your money.

The real estate commission, in most cases, is an all encompassing fee.  For one fee you receive a variety of services, including your Realtor’s® and his or her firm’s time, knowledge and expertise, advertising in newspapers and other publications, marketing flyers and promotional materials as well as exposure to over 7,000 Realtors through the Multiple Listing Service.  A large part of the commission you pay goes to cover these expenses.

The real estate commission you pay compensates all Realtors® involved in the sale of your home.  The commission is split between your agent (the listing agent), that agent’s broker, the selling agent (buyer’s agent) and that agent’s broker.

Exact commission rates and splits vary from company to company.  In some cases, agents keep 100 percent of the listing or selling commissions.  In those, cases, however, the agents pay their broker’s management and office fees.  Often, the agent who is working so hard for you may receive only about one fourth of the commission you are paying.

Realtors® are independent contractors and are responsible for their own business expenses.  The costs of flyers and newsletters, which may have attracted you to your agent to begin with, were paid by the Realtor out of his or her commission.

Expenses for marketing, liability insurance, taxes, professional education and transportation take a big chunk out of every commission.

Many Realtors® in our industry do very well financially.  But, they earn it by spending countless hours and days serving their clients and customers.  When they’re not with clients, Realtors® are working hard to stay up-to-date with the latest rules and regulations, and changes within the industry.  They pursue new ways to improve service and increase efficiency.  The successful Realtor®  is a trained professional ready to guide you through the entire home buying and selling process.

So when you think that your Realtor® is spending the weekend basking in the sunshine with the money you paid in commission, chances are they are really at an open house instead.  It is not a 9-to-5 job.

The financial success of a Realtor® greatly depends on their ability to provide impeccable service, and that entails much time and effort.  You as the consumer can know that the commission fee is well worth the satisfaction you will receive when you find your perfect home.

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