Choose a Realtor

B - Selecting an Agent: What are common mistakes in selecting one?

Many people decide to interview "big name" agents because they continually see their picture in ads or from having received an avalanche of their fliers in the mail. Here are other common mistakes sellers make in the selection/interview process. 

Asking the manager for a recommendation:

Don’t ask the person answering the phone or even the manager of an agency to recommend an agent. Your selection should be based on your observations and individual needs. Receptionists or managers could be feeding calls of this nature to their best buddy or even their spouse. Managers could decide to throw a lead to a new agent or possibly just take a lush listing for themselves.

Interviewing one agent:

Do not list with the first agent who walks in the door. Interview several agents. You’ll hear different justifications for the recommended asking price, what you should do to prepare your home, plus their promotion methods and marketing plans. No two agents will give you the exact same information. This interview process gives you the opportunity to get to know the agents and ascertain their grasp of the selling process.

You can even interview agents from the same office. If a real estate office had 20 agents, you could probably invite each one to your home individually without the other agents ever finding this out. Agents typically have too much pride to let other agents know that they weren’t chosen to list a home.  As a result, agents keep their CMAs and homeowner contacts confidential.

Do not miss out on the knowledge and insight gained from talking with several agents. It’s better to talk to a dozen agents than just one.

Buying the listing: 

Homeowners often mistakenly select the agent who suggested the highest value for their property. “Wow, this agent thinks my house is worth that much!” Well, that agent just “bought“ the listing, knowing that over time the owners will come to the conclusion that the price must be dropped. This happens with inexcusable frequency. Sadly, a home that is initially priced too high will often be sold for less than it would have, if it had been priced right from the start. (See Pricing Pitfalls in the PRICE Step.)

All agents are aware that homeowners can be swayed by being told that their house is worth more than it is. The persuasive power of a high home value creates a tendency for agents to lean toward the high side when recommending an asking price. Therefore, when you interview agents, never reveal to them what you think your home is worth. Otherwise their recommendation will be headed right toward your number. If one agent's recommended price is obviously too high, it should be suspect.           

Nosy agents:

During the listing presentation the agent may ask if you are interviewing other agents. It’s in your best interests not to divulge the answer, let alone whom you are interviewing.
 
If an agent feels he or she is the only agent being interviewed, then they are more likely to give you frank opinions. Otherwise they may try to out guess their competitor or slant their answers according to shortcomings of the other agent.

When agents start telling you what they think you want to hear, they lose their effectiveness as an experienced consultant–and it becomes your loss.

Customer references:

Every year the real estate column in the local newspaper will have an article on selecting an agent. They always suggest that the agents provide you with a list of past customers. When you interview for a job and are asked to supply references, do you list anyone who could give you a poor reference? Of course not. The same holds true with agents.

Friends that are agents:

When you personally know an agent, you stand a much better chance of not getting their best commission rate. By calling in a friend to do a CMA, you feel highly obligated to use them. They know that. Real estate agents are taught to get by with as high a commission rate as possible–a real conflict with your objective. 

Call in agents you don't have a close personal relationship with. Listen to their presentation and their commission rate. It's given at the end of the presentation. It’s always negotiable unless the company advertises itself as a discount broker, which should mean that they already offer a discount.

Which is easier, asking a friend for a discount or asking a stranger?
 
If your friends ask why you didn’t list with them, let them know that you didn’t want to have a business relationship potentially ruin your friendship or that you have too many friends in the business and didn’t want to chose one over the other. They'll understand. It happens all the time.