For sale by owner or Realtor??? Part 3 of 3

If you decide to sell through an agent, you can ask friends and neighbors for recommendations. You should talk to several agents before picking the one you want to work with. Taking a walk through your home with an agent should give you a feel for how that person will handle prospective buyers. Ask prospective agents how they plan to market your home. Don't sign with an agent just because he or she suggests the highest asking price. Some agents use this tactic just to write your listing... only to lock you into a lengthly listing period, with the intentions on nibbling you down on the price later. Don't fall into this trap-- it will just cost you a lot more money in the long run. Read more about this in my blog called "Setting the Sales Price."

Always, ask the agent if there is an exit clause in their listing agreement should you  decide that you don't want to work with that agent or to take your home off of the market prior to an agreement of sale. Most agents and agencies want to lock a seller in to a three, six or even twelve month listing agreement with no chance of release. Once you hire the agent you are stuck. If the agency is unwilling to sign an unconditional release should you decide you want to terminate the listing, you are obligated to that agency until the term expires.

One time an agency listed the home of an elderly couple that because of their severe health conditions decided they needed to sell their home and move to a senior care facility. Within days, their only adult child decided he would move home to prevent his parents from leaving the only home they had owned for the last 50+/- years. They soon transferred the deed into his name because of their failing health. The broker of this office decided that the commission on the listing agreement was due because the owners transferred possession.  The owners did pay the Agency a reduced commission because of their attorney's recommendation. Is this right? Should this couple pay a Realtor to transfer ownership to their son because of their failing health? I think that this is a very
unscrupulous thing for this agency to do, and actions like that will not keep any commissioned sales person in business for long. Unscrupulous or not... things like this happen every day.

You should also inquire if the agent and/or agency is confident enough in their abilities they will offer a service guarantee. This guarantees that this agent/agency will work hard for you... even after you sign the listing agreement, or they could lose the listing. This service guarantee not only assures you that the agent is a dedicated hard working agent looking out for their sellers best interest, but also will give you peace of mind in the event that you change your mind, or you are unhappy with the service or lack of service you are receiving. I have sold many homes for sellers that were devistated that they couldn't make the move they had hoped to because their home didn't sell. Their previous agent listed their home, and that was the first and last time they heard from them until their listing was going to expire. They didn't service the sellers at all. The sellers were locked into an agreement, with an agency that did nothing but put the home in the Multiple Listing Service. They could have avoided this with a written performance guarantee signed by the broker.

Posted Sunday Oct 07

Post a comment

Temporarily disabled — coming soon!

ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.

Powered by the ActiveRain Real Estate Network

© 2008 ActiveRain Corp. All Rights Reserved