Selecting a REALTOR® when selling

Over the next couple of days I would like to share a few tips regarding the selection of a REALTOR® - whether buying or selling. Today I will speak on selecting a REALTOR® when selling. I should clarify a point right away. Not all real estate sales agents are REALTORS®. A REALTOR® is a member of the National Association of REALTORS® (NAR) and, as such, is bound by a professional code of conduct and ethical handling of all real estate transactions. Being a member of the NAR is a commitment and speaks volumes concerning what you can and should expect from an NAR member. Bottom line: Be certain your real estate sales agent is a REALTOR®!

As in most situations, people are generally attracted to someone who they enjoy associating with and also instills confidence. This is the 'comfort' factor and, as important as it is, there should be a little more included in the equation. Let's take a quick look at some of the other considerations next.

First, I believe it is important to step back to assess the situation and understand there are really 5 key factors involved in placing a piece of real estate on the market. The first 3 factors are controlled by the seller and the final two are not. The factors controlled by the seller include the condition of the property, the listing price, and the selection of a marketing strategy (choosing a REALTOR®). The factors beyond the control of the seller are the property location and the market response.

All too often sellers will select a sales agent based on the outcome of a 'bidding war.' Basically, two or more agents review the property and the seller picks the agent who suggests the highest list price. These situations are generally destined to become a bad experience for a number of reasons. Typically what happens is the seller now has artificially high expectations regarding the market value of their property, the property doesn't sell in a timely manner (in fact, all it does is help sell other realistically priced properties), and, in the end, the listing price is reduced one or more times until buyers will take a serious look.

The misfortune for the sellers is that a great deal of time was lost in the process and the property becomes 'shelf worn' until the sellers realize they need to reduce their asking price. Very often, because the property does not sell in a timely manner, buyers become suspicious that there might be something wrong with the property because it hasn't sold and end up offering even LESS for the property than what it would have sold for if it had been properly priced at the onset. The lesson here is to not list a property with the highest bidder.

So what should you look for when listing a property with a REALTOR®? Look for results! Ask questions about the market strategy. Be absolutely certain your agent has a strong web presence. Why? Over 80% of home buyers turn to the internet when considering a purchase. If your agent does not have an effective web presence, your property is not going to receive the exposure it deserves. More buyers mean more competition and more competition ultimately means more dollars in the seller's pocket at closing. This is a good thing.

This is probably enough information for now. I plan to continue this discussion over the next few days. By the way, if there are any questions, I would love to hear from you! Talk to you later.

Jon
www.SearchFergusFalls.com
www.FergusFallsProperties.com