7 Questions To Ask An Estate Agent When Selling?
What evidence did
you rely on when valuing our property?
We are all
susceptible to believing what we want to hear. If an agent quotes a high price
for your property, it’s natural to want to believe them. However, if an agent
cannot justify their price to you as the owner, they will have an even harder
time convincing a buyer! If the property sells below your quoted price, do we still have to pay full commission?
When you sign an agency agreement to sell, the agent must provide a written
assessment of value. You, as the seller, enter into the agreement, in part,
based on the written assessment of the agent. If the agent fails to achieve
their promised assessment of value, you should have an ability to penalise the
agent for getting it wrong.
By being firm on this point when interviewing
agents, you will flush out what the agent really thinks your house is worth.
How do you have an
auction with one buyer?
rely on competition i.e. multiple bidders. Unique homes often require unique
buyers. In soft markets, you can be fortunate to have even one buyer. What
happens if only one buyer attends the auction? What if two buyers attend the
auction, one who absolutely loves the home and one who is a bargain hunter?
The bargain hunter sets the price at which the
emotional buyer becomes the highest bidder. Don’t sign with an agent until they
offer a plausible explanation on how they handle a situation where they only
have one buyer at the auction.
What strategy will
you employ to get the highest price for our property?
Agents love to talk
about ‘clearance rates’ when selling and marketing their firm. As a home
seller, you want a high price, not to take place in an agent’s clearance sale.
Focus on the agent with the best strategy for achieving the highest price, not
If you already
have buyers, why do we need to pay advertising upfront to reach those same
It’s the greatest paradox in the market. The agent
claims to have readily available buyers, then asks for advertising money to
find them. Why?
Who is the agent
that will attend the inspections with buyers?
Many leading agents
will list the property and then palm off the selling of the property onto a
junior or assistant. Get it in writing that the agent you list with will be the
agent handling inspections and negotiations. You don’t want the sale of your
home to be treated as a training exercise.
Can we have the
names and numbers of 10 previous clients?
Real estate agents
sell houses to buyers and services to sellers. The house is tangible yet the
service is intangible. Judging the value of any service in advance of actually
receiving the service is difficult. Speak to the agent’s recent clients to
ascertain whether the promises match the delivery.