How to find a great real estate agent
Introduction
Whether you’re a first-time seller, or have a few previous experiences to lean upon, the task of selecting the right agent to sell your property will heavily impact your selling experience. In the wild seas of real estate, the role of a trustworthy sales agent is like that of a confident ship captain. While there are shark-infested waters to avoid, the following tips will help you navigate the process of selecting a great agent. And hopefully avoiding the sharks.
While the following blog post is written from my personal experience as a local Real Estate Agent in Bunbury, Western Australia (a somewhat biased perspective, of course!) similar principles would likely apply in most locations.
1. Trust Your Instincts. (So will the Buyers)
It may be tempting to suppress your instincts when something feels “off.” But it’s important to remember that the people looking through your home are also going to be responding instinctively to the agent you choose. If you feel a bit uneasy or unsure, chances are your potential buyers will feel the same.
On the other hand, a great agent should be a master salesperson, while also being completely authentic. They should build rapport easily, be engaging, and answer questions with humility and a genuine, listening ear. This person’s confident and friendly demeanor will ensure there’s not unnecessary tension coming between a potential buyer and the purchase of their dream home. Rule 1: Remember to trust your gut.
2. Do They Add Value?
A good real estate agent will sell your home for its market value. A great real estate agent will help you sell it above market value. How do they do this? A great agent will give suggestions on how to improve the presentation of your home, so with a relatively small investment of time or money, you can multiply your return on investment (R.O.I.) and maximise the sale result.
While some people don’t want the bother of doing extra work, the best real estate agents will at least present suggestions on what improvements could make a big difference to the sale, and what tasks will end up being a “sunk cost” that can’t be recovered.
Another way great real estate agents demonstrate value, is helping do the legwork when it comes to arranging or suggesting contractors prior to sale, or in fixing structural issues that were brought to light through a building inspection. They will go the extra mile with ensuring a smooth process, and work with the conveyancers or settlement agents to communicate clearly with everyone who is involved in the transaction.
A diligent agent will be skilled at reading contracts, and able to negotiate bumps in the road that often arise through the course of a transaction. They have a fiduciary duty to their client, which means that they are responsible for decisions that impact another person’s finances. They are legally bound to act in their client’s best interests. They must also balance this fiduciary duty towards the Seller, with the legal duty they have towards the Buyer to be honest and disclose material facts pertaining to the property offered for sale. This tension is where a great agent can shine, helping to solve issues and disagreement between Seller and Buyer through creative problem solving and emotionally intelligent negotiation.
3. What’s Their Appraisal Justification?
A great real estate agent will bring sales evidence to the appraisal, or at least provide it for you in a follow up email. Sales evidence in the form of a Comparative Market Analysis – or CMA – is an important part of doing an appraisal as it demonstrates the research that underpins the potential sales figure. The strongest indicator for market value on your property is recent, local sales of a similar nature. The CMA will take into account the size of land, size of dwelling, proximity to desirable amenities such as the beach, CBD or parkland, age of the house, and any renovations undertaken.
But neither an accurate appraisal, nor a sworn valuation, can provide a guarantee of a sales price. At best, these are close estimates of what the market is likely to pay for your property. Ultimately, the market will make the final decision – either with their wallets, or with their feet. Despite an agent’s complete lack of ability to predict the future with any certainty, the fact they provide you with a thorough appraisal is evidence that the agent has done their homework, which should provide greater confidence than an agent who shoots from the hip and says “Trust me. I know what it’s worth.”
When there are no comparable properties, a great agent will still provide details on a recently sold property that – although somewhat different to yours – can explain why the appraised price has been adjusted to account for those differences.
4. What’s Their Selling Strategy?
Another way that a great agent adds value, is by suggesting a thorough marketing plan. Some agents try to attract new clients with ‘no marketing’ options. However, if there’s nothing being spent towards marketing the property, chances are your potential buyers will see the amateur-looking photographs and conclude it’s a discount listing. Apart from the exception of selling ‘off-market,’ for a specific reason, usually if you invest nothing towards marketing, you can expect to receive discount offers.
Some agents are nervous about giving an appraisal figure because they know that one of the main ways people compare between agents is based on what figure they provide.
If the agent appraises too low (or even accurately), they are nervous that they will miss out on the client’s business because another agent might appraise higher than them. On the other hand, if they appraise the property too high, they run the risk of the house just flopping when it goes to market, with nobody showing interest because it has clearly been overpriced. So, the agent will herald a wonderful strategy of “All offers considered.”
The reason I believe this is generally an inferior approach is the same reason people like to have price tags on items in shops. If there’s no price tag, then it’s probably too expensive! Think about it – do you like approaching a shop owner to ask, “How much is this?” Neither do I. So, we’ve got to imagine ourselves in the buyer’s shoes, and a great agent will be transparent about price, suggesting you start with a realistic price, so people will know roughly where it sits in the market. This way, potential buyers aren’t afraid to enquire further.
In the case of auctions or online auctions, a “guide price” can help to start the bidding process, which should generally be set lower than the reserve price. An attractive price encourages more people to take steps towards buying, which builds social proof around the property, and the interest it is receiving.
Each property is unique, but the best agents think through a custom strategy, and explain how they intend to market, negotiate, and sell your house for the best result. They shouldn’t have to resort to smoke and mirrors or lazy opt-outs like “expressions of interest” or “make me an offer.”
5. Ask Plenty of Questions
Have a list of questions ready to grill your prospective agent. What is the market doing right now? What can you provide for me that is different to other agents out there? What’s the agent commission? Why do they think they are worth that amount? How much does it cost for marketing? What’s included in that? How long could it take to sell my house for the price that I want?
You get the gist.
But please, please, please have a short and courteous conversation with your agent first before you ask for their fee! As an agent myself, I would like to think that I’m worth the slightly higher commission I may charge than some others out there, because of the superior result that I can deliver my clients.
You often get what you pay for. If you’re looking for a discounted selling result, hire a discount agent.
6. Check Their Past Reviews
Read through testimonials of past clients. Nobody will have a completely perfect track record – even the top performing companies in the world receive their fair share of customer complaints. But if a review shows there was an altercation of some kind, how did the agent respond to it? Hopefully with tact, grace, and humility.
7. Is the “Best Agent” Really the Best Agent?
It’s easy to make the mistake of assuming that the number one listed agent in a particular region is guaranteed to be the best person to sell your property. Most “top agent” lists are based off the total number of sales. So, while the top agent will have plenty of sales experience, it doesn’t necessarily mean they are achieving the best possible result for any one individual client they serve.
Remember, Top Agent or Best Agent lists only work on total sales, not on how much bottom-line-sales-result value they deliver for each of their clients. But because it’s hard for property owners to choose between agents, often the ‘Top Agent in Bunbury’ or ‘Best Agent in Bunbury’ lists (or your local equivalent) are frequented by people who are time poor and need to make a quick decision.
Sometimes an agent will pay to be featured by a website such as Rate My Agent or Real Estate.com. They will appear at the top of the Google search results because they’ve paid to have a sponsored ad position, that appears when you search for “Best Agent in Bunbury,” or your local equivalent.
The other thing to consider when selecting to work with the “Top Agent in Bunbury” or any similar accolade, is that the busiest agents churn through a high volume of sales while passing a lot of daily handling of the property to their often big and less experienced team.
Perhaps a diligent agent with a slightly lower sales volume will be able to invest more time and effort into achieving a better result for your unique property.
8. Could I Sell it Myself to Save Money?
With such an array of choices when it comes to finding a great real estate agent, it could be tempting to venture into the choppy waters of ‘for-sale-by-owner’ (FSBO). However, the statistics of FSBO transactions aren’t particularly desirable for sellers, who fare poorly compared to sale-by-agent results, even after the agency commission is subtracted. People who view online FSBO listings – even when they have nice professional looking photographs – instinctively believe that they will get away with giving a low offer.
For this reason – and to avoid the stress of unexpected hiccups which happen frequently in real estate – the vast majority of homeowners recognise that finding a trained professional to do the job is an essential part of the process.
While your friend may have had a great experience selling their own house “without having to spend fifteen thousand dollars on an agent” they may have left more than sixty thousand dollars on the table without realizing that they lost more than they gained.
Conclusion
Let’s face it – nobody wants to get screwed over by a self-serving real estate agent who seeks an easy commission but won’t go the extra mile to sell your home for the best price. Thankfully, there are some good real estate agents out there. Even some great ones.
While you may feel overwhelmed searching for an agent, the key is looking for someone with strong skills in sales, negotiation, and marketing, who is a good listener, and places a strong value on honesty and diligence.
Read past reviews, and make sure they have a track record in exceeding their client expectations. Jump on a quick phone call with someone who seems to tick these boxes, and remember: trust your gut instinct!
Ben Colman
Ben is a Real Estate Agent with Elders Real Estate, Bunbury, Western Australia. He is also a successful author and motivational speaker, exploring topics of self-improvement and mindset. He is a proud father of two, along with his wife Anthea.
