The market is back in business, so let's review!

It's hard to believe that I posted this nearly seven years ago. But after all that we've been through in the real estate market since September of 2008, nothing has changed. 

If you really want to sell your house, 

or if you really need to sell your house, read on.

Tuesday, October 24, 2006

Things to think about before you sign a contract with a realtor!

There are a lot of things to consider when you choose a realtor and his agency, and first and foremost among them is your pototential agent's sense of personal responsibility and ownership in the listing of your property.

Personal Commitment and Focus on Your Home
Particularly as home prices soften and inventory increases, your first instinct may be to hire an agent who already has a lot of listings. Choosing someone who seems to have blanketed the market with signs is a natural reaction, but it's not necessarily in your best interest to do so.
In the first place, the more listings an agent has, the more difficult it will be for him or her to focus his marketing effort on your property, especially if the agent has many listings that are comparable to yours.

We know of a case where an agent had two virtually identical homes at virtually the same price, and not only were they in the same neighborhood, they were right next door to each other!!! An agent in this situation may try to sell you on the idea that any buyer who comes to see one property will invariably look at the other, but that would be true in any case, no matter which agent or company had the listing next door.

If the listings are substantially different--for example, one is a ranch and the other a colonial, or one has 1500 square feet and the other 2500, or one is priced $50K to 100K over the other, then they aren't comparable, and then it's an advantage to have both houses listed by the same office because of the extra attention your particular street will receive from that company, and because the sellers of one house won't be competing with the sellers of the other house for the same pool of buyers.

But if both houses have the same number of bedrooms, bathrooms, square feet, and are close in price, how can one agent possibly market both homes equally? He can't, any more than he could marry two people or vote for two candidates for the same office.

Bottom line, think about how you'll feel if your agent sells your neighbor's house first. Believe me, you won't like it, especially when the house that sells first will almost certainly be perceived as somehow superior, and people start wondering what might be the reason that your house still hasn't sold. The pressure to drop the price will be strong, and not unreasonably so.

Think about it: if the house next door sells first, then the next buyer may well perceive that your house is worth less, irrespective of the current listing price. If there are two nearly identical pairs of pants in the store and one pair sells and one doesn't, the merchant will eventually lower the price of the second pair.

So, if the agent already has a listing on your street, ask this question:
"If I list with you, how can you assure me that you'll devote your full marketing efforts toward the sale of my home?"

If the agent can demonstrate how the other home differes substantially from yours in several aspects, then you can make an informed decision. It may also be to your advantage to investigate the other listing yourself, to see how a prospective buyer would compare them. If the agent can't satisfy you that your house won't be competing for the same pool of buyers, you should keep interviewing.