Sellers need a good agent
More than a million realestate agents belong to the National Association of Realtors (realtor.org), but a number have become inactive in recent years.
“The bad real-estate market knocked out many bad agents,” says Karen Rittenhouse, author of “The Essential Handbook for Selling a Home” and owner of a realty firm.
She recommends homesellers search for an agent who is “energetic, motivated, self-starting and go-getting.” Also, look for someone familiar enough with your area to recommend a list price that’s neither too high nor too low.
“Pricing a house right is 90 percent of the battle to getting it sold,” Rittenhouse says.
Although many sellers take a casual approach to choosing a real-estate agent — picking a friend or relative — she suggests a more methodical method.
Here are a few tips for sellers:
» Interview agents thoroughly.
Homesellers are routinely advised to interview at least three agents. But Rittenhouse says most sellers hire the first agent they call and do a cursory interview at most.
“You need to interview at least three agents and go in- depth with your questions. Take the process as seriously as if you were hiring a nanny to care for your kids,” she says. » Seek a straight-talker. Michael Crowley, a veteran real-estate broker who works solely with homebuyers, says an all-too-common mistake involves putting an overly high starting price on a prop- erty to “test the market” and then taking the price down peg by peg until the place sells.
“Overpricing costs you in the end. By asking too much at the beginning, you actually lengthen your selling time and probably reduce your net proceeds,” he says.
» Select an agent to help with mortgage snags.
Because so many mortgages have gone into foreclosure in recent years, it’s understandable that lenders are nervous about making new loans. Also, they’re facing increasing scrutiny from government regulators.
“A knowledgeable seller’s agent who has mortgage contacts can help clear obstacles to get an endangered transaction through,” Rittenhouse says.
» Choose an agent who’s an effective negotiator.
As a real-estate investor who is continually buying and selling property, Rittenhouse knows how much skill is involved in doing deals.
“Whether you’re on the buyer’s or seller’s side of the table, there’s a tremendous amount of negotiation that goes on,” she says.
Housing bargains are harder to find than they were a year or two ago. Still, many would-be buyers, as well as investors, continue to troll for deals. These so-called bottom fishers are likely to offer a first bid well below the true market value of your property.
Sellers were once advised to merely dismiss such “lowball offers.” But if you live in a neighborhood where the supply of homes still exceeds demand, you may want to think twice. And a listing agent who is persuasive can sometimes bring a lowball bid up to a realistic level through skillful counteroffers.
As Rittenhouse says, one effective way for the listing agent to shape a strong counteroffer is with a comparative analysis of recent sales of similar homes in the same neighborhood.
» Pick an agent with good interpersonal skills.
Crowley says many people underestimate the importance of choosing an agent whom they find personable. Yet it can be very awkward and uncomfortable to go through the entire selling process with someone you dislike. Also, as Crowley notes, hiring a listing agent who’s on favorable terms with others in the local real-estate community can hasten your sale.