What to expect when listing with a Realtor
Sometimes the best way to sell a house is to hire a professional to do it for you. However here is what you need to know before hiring a realtor.
- Hire only the best, do not hire the hungry and weak who are scratching out a living. There is a reason they are hungry. Its because they can’t sell houses. They will be motivated to convince you to lower the price to sell for lower then what you should because it is in their best interest to sell the house in order to claim a commission and pay their mounting bills. The best real estate listing agents are cheaper then the worst because the commissions is the same but your holding costs are greatly reduced. Plus the agent won’t be in a hurry to convince you to sell your house for a cheap price against your better judgment.
- Use agents who know and work in the area of the house. Don’t fall for the west-side agent telling you she or he can sell east-side houses. From first hand experience that ain’t likely at all.
- Get a buyout agreement which is nothing more than a handwritten sentence or two on the listing agreement which states you can buy out the agreement and void it $500 or $1000 or something you negotiate. Although this would assume that your agent does not already have a buyer. Make it clear, no buy out than no listing. Move on! With this in place, why not list all your houses?
- Pay the agent more for a faster sale. An example would be something like this:
- 8% if 30 days – Under Contract
- 7% if 60 days – Under Contract
- 6% if 90 days – Under Contract
- Note: After 90 Days it should be irrelevant because you should not be signing listing agreements for longer terms than that. (Average holding costs of a home are 1.5% of the value every 6 months.) Of course you will get resistance to this request because some agents won’t take the listing as they are not confident to sell it that quickly. On average most agents take 8-14 months to sell a home so this type of a clause will scare the bad agents off. So What!