8 Questions Smart Home Sellers Ask
When choosing a real estate agent, the questions you ask are vitally important to uncover the best agent for you.
Approach the process of finding an agent as a job interview and consider these 8 Questions as the structure of your interview. The answers to these questions provide you everything you need to decide if their strategy and philosophy is right for you.
Question #1 – AGENT SELECTION
“What sets you apart from other real estate agents?”
Look for answers beyond the superficial. Examples may include “I sell lots of houses in this area”, or “our average time on market is only 22 days”.
Be wary of agents that are self-focused, especially those who brag about property they have sold. Good agents will focus on you and your goals, and how they can help get you where you want to go. Good agents are well trained in methods and strategies of sale that benefit you.
Decide what it is YOU are looking for in an agent.
Hiring the right agent to sell your property is crucial. Hiring the wrong agent costs a lot more than just their selling fee. Take great care when deciding which agent to trust.
Question #2 – METHOD OF SALE
“How would you take my property to the market?”
When answering this question, good agents will discuss the Smart Sale method currently being used throughout Australia that provides you with financial safety.
Many home sellers have a legitimate fear (a very real danger) of underselling their property. Because, once it’s sold, you’ve lost the chance to make any more money from that property.
Agents should be able to discuss the many factors that can drive a sale price below market value, including poor marketing, a price indication that is too low, or an asking price that is too high.
To avoid underselling a property, it’s important to understand the strategies and methods agents are likely to recommend, what they are designed for, and the significant part agents play in selling property. The chosen method of sale will affect the final price achieved.
Question #3 – PRICE
“What price do you think my house is worth?”
While seemingly an obvious question, agents rarely give a clear and direct answer.
The two most common lies told in the real estate industry involve the price estimate quoted to potential sellers. They are:
- The improbable lie: This is when an agent intentionally inflates a property’s potential selling price; it’s the lie most people are aware of and dislike about real estate agents.
- The lie of omission: this is when an agent, knowing the probable selling price, chooses not to tell the owner for fear of not winning the listing. It’s a more subtle lie, but still prevalent in the industry.
Both have the capacity to hurt you financially and emotionally. An agent who is honest about all facets of selling, including price, is a rare, true professional. They deserve your trust.
Ensure any price discussed with a potential agent is based on evidence in the form of comparable, recently sold properties in your area.
Agents should not be chosen on their ability to simply quote the highest price.
Question #4 – MARKETING
“How much do I owe you if the property doesn’t sell?”
Agents love to discuss marketing. It’s often glossy, exciting and the main part of their presentation. How much of it is necessary, and how much will it cost you even if the property doesn’t sell?
Not all property sells with the first agent. It is not uncommon for auction clearance rates to be as low as 35%, yet sellers bear the marketing costs of these failed campaigns, as the agent walks away for free.
The true test of any marketing campaign is its end result. Is the property sold? If the answer is no, then why should you pay? In fact, why should you pay at all?
To attract buyers to a property you need quality marketing. Quality marketing includes the right price or pricing strategy, good quality photographs, a great script and smart recording of buyer enquiries. Smart marketing should be included by your agent without an additional cost to you.
Question #5 – INSPECTIONS
“How do buyer inspections impact your negotiation strategy?”
Smart sellers will look to see if the agent has given consideration to how buyer inspection methods affect the final sale price. Does the agent understand how the inspection ties into the negotiation?
Any time a genuine buyer wants an inspection, the agent should arrange it. In a stable or falling market when there are fewer buyers and more property for sale, forcing buyers to wait for a scheduled open home increases the chance they will purchase elsewhere. A private appointment to inspect, set promptly, increases a buyer’s expectation this property will sell quickly, which strengthens the seller’s negotiation power.
When conducting an open home, a professional agent will always record buyers’ details and contact information. After the open home, effective follow up is essential to understanding a buyers motive and budget. Good agents develop a relationship with the buyer that is the key to successfully negotiating you the highest price.
Question #6 – NEGOTIATION
“Can you explain the framework of your negotiation strategy?”
Does the agent have a negotiation strategy? The answer in the majority of cases, is no.
Be careful, many agents don’t understand negotiation and instead choose to discuss their ‘offer process’. This is NOT negotiation. It is simply the conveying of an offer from the buyer to you. Smart sellers realise this isn’t a negotiation strategy, but rather an expensive alternative to a messaging service.
Home sellers often overlook the true value of a real estate agent, which is found in their negotiation strategy, skill and tactics employed after an interested buyer is found. The method of sale, the marketing, the pricing and the inspections all lead to this final negotiation.
The contract negotiation is the last chance for you to profit from owning this property, an agent with great negotiation skills and the right strategy can make a difference of tens of thousands of dollars.
Smart sellers understand an agent’s most important duty is that of a negotiator. Ensure your agent has a proven negotiation strategy focused on one goal: achieving the best possible result for you.
Question #7 – COSTS
“How does your fee compare to your value?”
With regard to agent costs, an agent must add more value than they charge.
Often people will hire an agent based on the answers to these two questions:
- How much will you get me?
- What do you charge?
On the surface these questions appear to be a fair and reasonable way to choose an agent. However, they are the wrong questions.
Smart sellers understand that superficial questions invite superficial answers. You must dig deeper than the superficial to make a smart decision.
Consider this, if an agent charges an extra $5,000 yet obtains $20,000 more for you because of superior negotiation knowledge and strategy, that agent is $15,000 more valuable to you than the cheaper competitor.
Any agent being interviewed must be able to prove their value to you.
Always consider value as opposed to cost when selecting an agent.
Question #8 – GUARANTEE
“Can you guarantee you’ll live up to your promises?”
Guarantees give you the peace of mind that IF you choose the wrong agent you won’t be not stuck with this agent.
Under various guises, many agents offer some sort of guarantee, such as ‘Our Promise’, ‘Service Plan’ or ‘Our Commitments’. These promises, plans and guarantees are a step in the right direction, but ineffective unless they help you out of a difficult situation.
It is an unfortunate truth that you should never accept these promises at face value. Along with your agreement, agents should offer a dismissal clause; allowing you to end the agreement if the agent doesn’t deliver on what they said they would.
A fair dismissal clause should allow the agent a brief period to resolve any problems and continue as your agent if they do.
Smart sellers know that if an agent is not prepared to back their service with the guarantee of a cost-free dismissal clause, then they are not the right agent for them.
Your Journey of Discovery
As a seller, approach the process of finding an agent as a job interview, and remember that you are the employer. Ask these questions and see how they handle the interview. As a potential seller you are the most in-demand person in the real estate industry and at the forefront of every agent’s mind.
Put potential agents to the test. If you’re not satisfied, keep interviewing agents until you are.
Be a Smart Seller.
