When it comes to hiring a listing agent, homeowners often make two huge mistakes. They make their choice based on the highest list price for their house and the lowest commission.
At first, the seller may say, “Are you crazy?” since sellers typically want the highest price there is and to pay the lowest amount of commission. However, these two criteria have nearly nothing to do with hiring a reliable and competent listing agent. In many cases, they are totally irrelevant. So let us discuss why.
Highest Suggested List Price
Myrtle Beach listing agents cannot tell you the value of your home. That is a fallacy. A listing agent can show you pending and comparable sales, as well as active sales. However, you pick the sales price and a buyer will let you know if the price is perfect. An agent can recommend the list price that can attract a buyer. What happens next will generally depend on the buyer.
To get the listing, there are agents who distort the truth – because agents cannot guarantee the sales price, the listing agent who recommends the highest price could very well be lying to you. Don’t forget to ask the agent to show you any supporting numbers for their suggested listing price. In case the agent does not have any stats to present or the home sales are found in a different neighborhood, you may need to consider it as a red flag.
Search for a listing agent who can give you a range – There is usually, but not always, a price range. It may be apart $10,000 on the low-end compared the high, or the spread might be greater. Several factors determine the range including the location, market’s temperature, and home improvements.
Pricing is considered an art – the perfect time for an offer is usually within the first 30 days on the market. But the ideal period is 21 days. If your home is priced correctly, it will be easy for you to get an offer. It is priced way too high, you won’t likely see any showings; buyers will ignore your home and you will wind up lowering the price, leaving buyers thinking that there might be something wrong with your house.
Choosing An Agent Based On Commissions
Real estate agents are different. Each of them possesses their own unique characteristics and abilities. Keep in mind that around 10% of the agents will handle about 90% of the business. Each of them has their very own advertising budget and marketing techniques. By picking an agent with a significant advertising budget and company dollars to compliment it, you may gain greater exposure to more potential buyers, which is ideal. Being able to reach several buyers means you will have higher chances of getting an offer.
Why would an agent willingly work for less than competitors? – There’s always a reason why a real estate agent or a broker would discount a real estate fee. In some cases, it is the only way the real estate agent feels it is possible for him or her to compete in a today’s highly competitive business since, without it, the agent will not stand out from the competition on knowledge, service, or negotiation skills. In case the sole benefit an agent can offer you is a cheap fee, you need to ask yourself why. Why is the agent desperate for your business? Is he unqualified? Would you like to work with an agent who is desperate?
There are instances when full-service agents will negotiate a much lower commission under some circumstances like:
- You are buying a home and selling a home at the same time, awarding both transactions to a single agent. I do not give discounts like that, but there are some agents who will.
- You are willing to do all of the legwork like marketing, advertising, and paying for the expenses that are associated with the sale.
- You promise to give more business to the real estate agent, which would lead to several transactions.
- You are selling more than one home.
- You do not have enough equity to cover a full commission.
- The agent accepts you as a pro bono case.
- The agent will lose the listing if he or she matches a competitor’s fee.
- The agent would like the signage, overcharging a full commission.
In case you are interviewing agents who provide comparable services and cannot decide between them, request if you can see a track record of their original list prices as well as final sale numbers. The odds will be that the lowest free agent will present to you more price reductions and longer DOM. The difference between an agent who charges 6& and 5% is 1%. Ask yourself how you will come out ahead if your price winds up 2% lower since you chose a much lower fee real estate agent who cannot afford to market your house actively.
Importance Of Agent Marketing
Without the fancy clothing or the expensive car, a good listing agent lives and dies by marketing. Since marketing helps them sell homes. Don’t forget to review every copy of the agent’s marketing plan. What does the agent want to do to sell your home? A few of the basic ones are as follows:
- Daily electronic tracking of lockbox access
- Professional signage, which includes the phone number of the agent
- Incentives for office/broker previews
- Staging advice
- Virtual tour
- Digital targeted marketing
- Distribution to websites
- Flyers for buyers
- Four color flyers
- Open houses
- Direct mail
- Introduction at Board of Realtor meetings
- Updated CMAs after a month
- Updates on facts, trends, as well as recent sales on neighborhood
- Email feeds of new and competitive listings
Always remember that no single strategy sells homes. It will always be a combination of all these methods that can help you market your home.
Qualities of a Good Listing Agent
You will be in a special business relationship with your listing agent for at least a month. Pick an agent you prefer, someone who you can relate to. Here are a few of the characteristics that most sellers want their agent to have:
- Negotiation skills
- Good communicator
Lastly, ask for a personal guarantee. In case the agent will not guarantee performance and will release you from a listing if requested, do not hire that agent.
Call Full Potential Real Estate, LLC if you want to work with a professional, reliable, and competitive listing agent.
Full Potential Real Estate, LLC
Myrtle Beach, SC 29577