Two of the biggest mistakes Plano real estate sellers make when choosing a listing agent are: selecting an agent solely based on how high they will list their home for or how low of a commission they will charge. Of course sellers want the highest possible price and to pay the least amount of commission but these two things have very little to do with hiring a competent listing agent and, in most cases, are completely irrelevant.
The Highest List Price
Agents can't tell you how much your home will sell for but they can show you comparable sales, found in the Plano MLS, and what your current competition is. But you are the one who ultimately choose the listing price and a buyer will tell you if that price is the right price.
Choosing an Agent Based on Commission
Plano Realtors are all not equal. Remember about 10% of the agents do 90% of the business in any market. Each of them has their own marketing techniques and advertising means. By choosing an agent with a large advertising budget you will gain greater exposure to the largest number of home buyers. Reaching these greater numbers of buyers means you will have a better chances of a good offer sooner rather than later.
•• Why would an agent willingly work for less than competitors?
There is a reason why a real estate agent will discount their commission. Sometimes it's the only way the agent feels it's possible to compete in this highly competitive business. Maybe they think this because the agent can't seem to stand apart from the competition on service, knowledge or skill. If the sole benefit an agent brings to a table is a cheap inexpensive fee, ask yourself why. Is the agent desperate for business or unqualified?
Sometimes a full service agent will negotiate a lower commission with you under special conditions such as if:
•• You are buying a home and selling a home at the same time with the same agent.
•• You are willing to do the legwork, marketing. advertising, and pay the cost for expenses related to the sale.
•• You are selling more than one house.
•• You don't have enough equity to pay the full commission.
•• The agent will lose the listing unless he matches a competitor's fee.
When you are interviewing real estate agents who offer similar services and you can't decide which one to higher, ask to see their track record of the each agent's original list price and final sale price. More likely than not, the agent with the lowest fee will show more price reductions and longer days on market. The difference between an agent who charges 5% and 6% is only 1%. Ask yourself how you come out ahead if your price ends up being reduced 2% because you chose a lower fee agent who could not afford to effectively market your home.
Importance of Agent Marketing
A good listing agent grows their business by marketing. Because marketing sells homes. Ask to review an agent's marketing plan. Find out what they are going to do to sell your home? Here is the bare-bones minimum you should expect:
•• Professional signage.
•• Electronic Lock Box.
•• Follow-up reports on buyer and agent feedback.
•• Incentives for broker / office previews.
•• Staging advice.
•• MLS exposure with many photographs.
•• Virtual tour.
•• Listed on major Web sites.
•• Updated CMAs after 30 days.
•• E-mail feeds of new listings that compete.
•• Updates on neighborhood facts, trends and recent sales.
Remember, no single marketing item sells homes. It's a combination of all those methods that sell homes.
Characteristics of a Good Listing Agent
Here are some of the characteristics sellers say they want in agent:
•• Education. Ask about designations and certifications.
•• Experience. Honesty. Trust your intuition.
•• Networking. This is a people business. Some homes sell because agents have contacted other agents.
•• Negotiation skills. You want an aggressive negotiator, not somebody out to make a quick sale at your expense
