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26
questions to ask your REALTOR® before you
sign on the dotted line
 Before
you even think about selling your home, read this
important report. Ask these 26 critical questions
before you sign!
Buying or selling a home is probably one of the
largest investments you will ever make. That's
why it is important to choose the correct REALTOR®
that will work to your benefit, to guard your
equity and your future.
Which REALTOR® should you choose? Some people
have the mistaken notion that all REALTOR®s
are the same. They sign with the first REALTOR®
that comes along. Later, they realize they should
have interviewed several people prior to signing.
This report will help you avoid this mistake
by providing you with some selection criteria.
When you are choosing a lawyer, doctor or health
care practitioner you would interview several
people before you select an individual you're
most comfortable with. The same rule applies to
a real estate agent.
When it comes to your next home, it makes sense
to choose an expert. You'll save time, money and
aggravation. Here's some of the areas to review
when you're considering a REALTOR® to represent
your interests:
- he/she must have the experience, qualifications
and abilities to sell your home
- he/she must have in-depth knowledge of your
area and the market in general
- he/she must work hard on your behalf
- he/she must have the resources to support
the sales effort
- he/she must keep you informed during the process
- you must be comfortable with his/her personality
To begin your search you might want to check
with friends and neighbors. Satisfied customers
are usually a reliable source. From this list
of names, you may want to conduct some preliminary
investigation and then an interview. Be sure you
are completely satisfied with the answers to the
following questions.
Question
1
Do you have any personal marketing materials I
can review?
Everyone has an image that is portrayed in their
personal marketing materials including brochures,
direct mail, listing presentation books, etc.
Call all the names on your list and ask this individual
to send you information prior to your meeting.
When you receive this information you'll get an
impression about the person. Do these items look
professional? If not, you may find yourself asking
the question,"If they are not marketing themselves
professionally, how will they market my home?"
Also, keep track of this person's communication
with you. Do they respond to your request for
information, quickly and in a friendly, helpful
manner? Do they treat you with dignity and respect?
What is your sense of this person? Do they appear
pushy and overbearing? Are you comfortable with
them? Trust your feelings. If this person handles
your requests in a less than professional manner,
it's likely they will also handle potential buyers
for your home the same way. You could lose a sale
and even worse - the best price for your home.
If you feel comfortable with this initial communication,
invite the REALTOR® to make a listing presentation
to you. You may want to meet with three or four
REALTOR®s from different companies before
you make a final decision.
Question
2
Are you a full-time or part-time REALTOR®?
How long have you been working in my neighborhood?
Ideally, the REALTOR® should be working full-time,
with at least three to five years experience,
preferably in your neighborhood. A part-time REALTOR®
may not be able to keep up with the pace or complexity
of today's rapidly changing marketplace. They
may not be available when you need them most.
When you select an experienced REALTOR®, you'll
be getting a track record, a roster of contacts
for any services you need, and a host of creative,
time-tested ideas for marketing your home.
Question
3
How many homes have you listed in the past six
months and the past year?
A REALTOR®'s record of longevity is important.
Even more important is the quality and success
of this time, as reflected in a large number of
listings. At the same time, however, a REALTOR®
must have the resources and systems in place to
market each of these homes successfully.
Question
4
How many homes have you sold in the past six months,
and the past year?
A REALTOR® may have demonstrated his/her
ability to list homes. However, the real test
is in the finding, negotiating and closing deals
- that is, selling homes.
Question
5
How long do your listings remain on the market?
Some people assume that a shorter time on the
market is to their advantage. However, this may
not be in their best interests. Keep in mind:
If the average time on the market is faster than
the average for the neighborhood, ask why. Is
the REALTOR® really effective, or is he or
she low-balling the asking price to sell the home
more quickly?
Carefully examine the original asking price compared
to the selling price. This gap will tell you how
effective the REALTOR® is at establishing
and obtaining the right asking price.
Question
6
What professional memberships do you hold?
The minimum should be a fully licensed professional
who is a member of the local real estate board
and Multiple Listing Service®.
Other affiliations are beneficial. However, the
main focus should be the selling of homes.
Question
7
Do you have support staff working for you?
Depending upon the nature of his or her business,
some REALTOR®s hire additional staff. While
this may not be an indicator of better service,
it does suggest that a REALTOR® treats his
efforts as a business. When an assistant handles
the details, the REALTOR® is free to spend
more time serving your needs. At the same time,
however, you don't want to end up feeling like
you're passed off to someone else. You should
be kept informed of exactly what the REALTOR®
is doing to get your home sold.
Question
8
Do you have any questions for me?
A REALTOR® who is effectively working for
you should ask pointed, specific questions about
your home and situation. They should not simply
fill in blanks on a form. By asking about your
needs, a professional REALTOR® can create
a plan of action for you, rather than using a
cookie-cutter approach.
Question
9
How will you market my home for my best advantage?
REALTOR®s have many tools in their toolbox,
which includes MLS® (Multiple Listing
Service®, open houses, advertising,
flyers, Internet, brochures, for sale signs and
personal networking. A REALTOR® shouldn't
use the same plan for each client. What worked
for yesterday's seller may not get you the results
you want. A REALTOR® should understand the
effectiveness of each of these items, as it relates
to your needs.
Question
10
Will you create a professional looking brochure
and how will it sell my home?
A REALTOR® should create a professional
piece that makes the most of quality, design and
words, so that your home's best features are presented.
It should give the buyer all the information they
need, at a glance.
Question
11
Can you explain your position on open houses?
Will they be public, broker-only or by-appointment?
How will this help to sell my home?
Selling your home for the best price involves
more than placing a sign on the lawn and having
an open house every Sunday afternoon. If too many
open houses are held, a home could be perceived
as a loser, making it ripe for low-ball bidders.
Be sure that your REALTOR® has a reason for
an open house.
Question
12
How do you plan to advertise my home?
Ask to see the plan (including ads) for your
home, which should include the latest technology
(Internet, fax, toll-free hotlines), combined
with more traditional vehicles of newspaper and
magazine advertising.
Question
13
How will other REALTOR®s be advised of my
home?
While a REALTOR® uses the Multiple Listing
Service®, he or she should have
a network in place to present your home to additional
REALTOR®s. Exposure is the key to any home
sale. Often, another REALTOR®'s client is
looking for a home like yours.
Question
14
How will you help me in staging my home?
To make the most of your home, you'll want to
present your home in the best possible light for
potential buyers. Your REALTOR® should not
be afraid to tell you about the positive areas
of your home, while suggesting improvements to
the negative areas. If he or she doesn't mention
the subject, it's likely he doesn't have this
in his toolbox. You should expect a confident
and competent REALTOR® to provide you with
workable ideas to make your home more salable.
Question
15
How will you keep me informed?
Be sure to tell your REALTOR® how you'd like
to receive regular communication, whether weekly,
daily, via letters, Internet or phone. Or, would
you rather meet in person? Since you're dealing
with one of the most important investments of
your life, you deserve all the time and attention
you need and want.
Question
16
How did you arrive at the listing price?
The right or wrong listing price affects the
length of time your home stays on the market and,
ultimately, your net profits. If a REALTOR®
suggests too high a price, your home could languish
on the market. At the same time, don't settle
for a too low price, to sell too quickly. Your
REALTOR® should be able to justify the price
with a comparison to other properties and the
market.
Question
17
What if I need other resources?
Your REALTOR® should have a network of professionals
in place to assist you with other items you will
need, including mortgages, home inspection, carpet
cleaning and carpenter. While you're not obligated
to choose any of these people, it's likely your
REALTOR® has established a relationship with
these people that is reflected in the referral.
Question
18
Can you give me some references?
A REALTOR® should be happy to provide you
with several names of satisfied clients. Be wary
if they are defensive when you ask the question.
If they can't supply references then choose another
REALTOR®. Many sellers don't check references.
But you should. This is one of the easiest and
most important steps you can take. Talking to
past clients is a good way of learning how a REALTOR®
operates beyond what he says he's going to do.
Here are some questions to ask your REALTOR®'s
past clients:
- How long was your home on the market?
- Do you feel the REALTOR® priced it realistically?
- What was it originally listed at? What was
the selling price?
- What type of marketing did the REALTOR®
do?
- Did the REALTOR® suggest how to make
your home more marketable?
- Did the REALTOR® keep his promises? Did
he do what he said he'd do?
- Were you kept informed along the way? How
often did you talk?
- How many offers did you get?
- During the closing process, did the REALTOR®
have good follow-up?
- What did you like most about the REALTOR®?
- Was there anything about the REALTOR®
that you didn't like?
- Would you use this REALTOR® again?
Question
19
What is involved with the listing agreement?
This is a very important step. Before you sign,
be sure you understand every detail of the contract.
This is a legally binding document, which places
responsibilities on both the REALTOR® and
the seller.
Question
20
When does the listing agreement begin and end?
Details and dates are important. In a dispute,
these items could determine commission payments.
Generally speaking, three months is sufficient
for a listing agreement. Be wary of a REALTOR®
wanting a longer period without a valid reason.
Question
21
What are your commission fees?
These fees are negotiable. You should also weigh
the merits of each REALTOR®'s fee versus the
benefits he or she provides. Be wary of a REALTOR®
who is willing to reduce their commission, up
front. Perhaps he or she does not intend to spend
the time, effort or money to sell your home.
Question
22
Do I need to consider any other fees or charges?
Additional items could be title insurance, closing
costs, pro-rated insurance, taxes, rent, inspections,
levies, etc. Be sure that your REALTOR® explains
any of these costs that could affect your bottom
line.
Question
23
Do any disclosure laws or zoning restrictions
apply to my home?
A REALTOR® should be familiar with any provincial
or civic laws and restrictions that apply to your
home and neighborhood. They should also have the
necessary disclosure forms required when selling
or buying a property.
Question
24
How do you qualify potential buyers?
Your REALTOR® should be proficient in determining
whether a potential buyer has the desire, means
and resources to purchase your home. This way,
you won't be wasting your time with dead-end offers
or deals that cannot be closed.
Question
25
What happens if my home doesn't sell in the specified
time? What happens if I change my mind about selling
my home?
These items should be clarified in the listing
agreement. A listing contract may also contain
a"liquidated damages" clause, meaning that you
could be liable for a dollar amount, should you
take your home off the market before the listing
expires.
Question
26
Am I comfortable with this REALTOR®?
You should ask yourself this very important
question. Are you comfortable with his or her
personality and how he conducts business? When
it comes to your investment, don't settle for
anything other than honesty, respect and integrity.
If you don't like this person, choose another
REALTOR®. The last thing you want is a personality
clash when you're trying to sell your home, and
maximize your equity. Your REALTOR® should
look after your interests!
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