When planning to sell your property, you want to meet a valuable buyer within the shortest time possible. However, this may not be easy, especially when you lack experience in the real estate industry.
You’d want to consider working with a realtor to ease the process for you. Here are the common questions that you should ask your real estate agent.
How much fee do you charge?
Real estate agents often charge fees for services rendered. The fees can be a certain percentage of the property value or depending on your agreement with the realtor. Some real estate agents charge a fixed upfront fee, which can be risky since you may lose money if the agent fails to sell your property.
In this case, you might have to pay two agents if the first one failed to sell your property. This can be a substantial financial loss. So, ensure you know the agent’s fees, and you make informed decisions.
Will I have to pay other costs?
Some agents often have hidden charges that you may not be aware of if you do not ask. You may want to assume that you only owe your agent a commission. But you will be surprised when the agent expects you to pay additional costs.
To avoid confusion, ensure the agent clarifies whether you will need to pay other costs apart from the commission. While some agents have all costs catered for under the commission, others charge separately.
How will you get a valuable buyer?
This question can help you know the kind of person you’re dealing with. The agent should show that he/she is capable of selling a home no matter its value and type.
Let your agent give you practical strategies for getting a buyer for your property. Find out the channels the agent uses to advertise houses and how successful such channels are.
How fast can you sell my property?
Whether you want to sell your property faster or you’re not in a hurry, it is vital to know when the agent can close the deal for you. This will help you plan well, especially when you plan to move to a new location or use the money for other things. The agent should tell you how long it takes to sell a home similar to yours.
What Type of Contracts Do You Issue?
Real estate agents provide paperwork and contracts once you agree to work together. Ensure you find out the type of contracts used by the agents. Below are the several types.
• Sole Agency: This contract means that it’s only your agent allowed to sell your property and not any other agent. However, you can also search for a buyer yourself, but the buyer should not come from your agent’s marketing activities.
• Sole Selling Agents: This contract states that your real estate agent has the sole responsibility of looking for a buyer without another party’s involvement. If you have someone who wants to buy your property, you shouldn’t include the buyer in the contract terms.
• Joint Agency: This contract allows you to have more than one agent, often two, to look for a buyer. Once the property gets sold, the agents share a 50/50 commission. In some cases, the agent who found a buyer can get a slightly larger share. It is worth noting that fees for this contract are higher than sole contracts.
• Multi-Agency: In this contract, you can work with as many agents as possible. But you will only pay commission to the one who successfully sells your property. The commissions for this contract are higher, but its significant advantage is that realtors compete with each other, and you can be sure of getting a buyer within a short time since every agent strives to close the deal and earn a commission.
What other similar properties have you sold recently?
This is a critical question showing that the agent is serious and active in the business. It also indicates that the agent has good knowledge of the local market and can help you get the best deal for your property.
Using an agent who sold a property recently can help you find a buyer since such agents often have a list of potential buyers.
The Bottom Line
Use the questions above to help you identify the best real estate agent. You want to ensure that you sell your home within your expected timeframe and at the best price worth your property’s value.