Hiring mistakes by owners:
Here are common mistakes sellers make in the interview / hiring process.
Ask the manager for a recommendation:
Don’t ask the person answering the phone or even the manager to recommend an agent. Receptionists or managers could be feeding calls to their best buddy, their spouse, throwing a lead to a new agent or just take a lush listing for themselves.
Interviewing one agent:
Interview several Realtors. You’ll hear different justifications for an asking price, what to do to prepare your home, plus their promotion and marketing plans.
You can interview agents from the same office. If a real estate office had 20 Realtors, you could probably invite each one to your home individually without the other agents ever finding this out. Agents keep their 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 asking price. “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. A home that is initially priced too high takes a lot longer to sell and is often be sold for less than it would have, if it had been priced right from the get-go.
When you interview agents, never reveal to them what you think your home is worth. Otherwise their recommendation will be headed toward your number.
An agent may ask you who else you're interviewing. It’s in your best interests not to divulge the answer.
If an agent feels he is the only agent being interviewed, they are more likely to give you frank opinions. When agents tell you what they think you want to hear, they lose their effectiveness as an experienced consultant – and it's your loss.
You may feel that agents should provide you with a list of past seller references. When you interview for a job and supply references, do you list anyone who could give you a poor recommendation? Of course not. Skip this idea.
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 obligated to use them. They know that. Agents are taught to stick with the agency's standard commission rate.
Call agents for a presentation - ones you don't have a personal relationship with. The commission rate is always negotiable unless the company advertises itself as a discount broker, meaning 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.
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