Listing With A Realtor

By far, the easiest way to sell your home is through the use of a Realtor. Of course, as with buying with a Realtor, make sure she/he is a professional sales associate. Stay away from part time Realtors and avoid referral agents altogether.

Selecting A Real Estate Company
Do Your Homework!

Selecting a Realtor to sell your home is a lot different than choosing one to help you buy one. To sell your home you need to pay more attention to the Broker the Realtor works for. Selecting the right company is very important.

To begin your search for that company, drive around your area and the neighboring areas as well. Take note of the For Sale signs that are there and write down the property addresses and the agents phone numbers. If you see several signs for one Company but with different phone numbers, it simply means that this company has several offices, some of which may be out of your area.

Next - and this is important - call the offices and inquire about the home they had listed. Make your calls on a Sunday. If you get an answering machine, hang up and scratch this company from your list. I have experienced numerous occasions where a prospective buyer wanted to see a home but the Listing Realtors office was closed. No appointments could be made. In the competitive world of real estate you need everything working for you. Lost showings don't help you get your home sold.

When you call a company and get an answer, make sure you talk to the Realtor on Duty. If the person is not a Realtor they cannot talk to you about the property. If there is no Realtor on duty or if the receptionist says she has to contact the listing agent, then put this company aside for now as well. As before, you want a company who has agents available when someone inquires about your home.

Obviously, the company you are looking for will be open 7 days a week and have a Realtor available who is prepared to answer any question you may have about the property you are inquiring about.

A small consideration may be the size of the company. An advantage of a larger firm is the immediate access to maybe 40 to 50 agents, most of whom have a select list of three or four prospective buyers. When a new listing hits the office these agents all check for a match to their clients. Many times a home is sold internally before the paperwork is even finished.

It is estimated that over 75% of real estate transactions are a result of the listing being placed in the Multiple Listing Service (MLS). In a large metropolitan area that could mean access to between 3000 and 4000 Realtors. You should never list your home with a Realtor who does not use the MLS.

With the advent of the Internet and its wide use in the real estate market, it is highly recommended that you use a Realtor who has access to this market. There are still a few techie challenged Realtors but they are fast disappearing. If they tell you their listings go on the Internet, check out the site before signing the listing contract.

Finally, find out how appointments are handled. Make sure they are made by the company you select. Don't work with any company that gives out your phone number to another broker.

The Commission:

The cost of doing business with a Realtor is, of course, the commission. The standard commission is 6%. The National Association of Realtors (NAR) legal position is that all commissions are negotiable, but the facts are that the rate is 6%. Many Brokers tell their associates they are a 6% company and in some cases will penalize the agent if they take a listing for less than this standard rate.

There are a few companies who try to charge 7%. They will try to tell you how much more they do for this higher commission but in reality don't do anything more than all other companies.  There should be no reason for you to pay more than 6% to a Realtor to sell your home. If the agent insists on a higher rate you should move on to another company.

Note: When I talk about commission, I am referring to a single family home which will be your personal residence. If you are looking for a second home or vacation home or commercial property, the commissions on could go as high as 10%. These are specialty Realtors which command higher percentages.

When a Realtor reviews listings on the MLS System, one of the items they look for is the co-op commission. Among cooperating Real Estate Companies it is usually a 50-50 split between the listing Broker and the selling Broker.

Although equal distribution of the commission is the norm that isn't always the case. For example, the 7% listing could most likely show a 3% co-op. The listing agent would then keep 4%. I have known circumstances where a Broker took a 7% listing but only offered a 2% cooperative fee. Word of this kind of activity quickly gets around and Professional Realtors will avoid doing business with a company that engages in this practice. Always look for a company who is fully cooperating with other companies to get your home sold.

Working with a Realtor gives you the freedom to come and go!

A major advantage of listing with a Realtor is most of the work is off your shoulders. All appointments to show your house are made through the Realtor and a prospective buyer is always escorted. The Realtor will get the contract drawn up with all appropriate addendums. They will schedule Termite Inspections, Septic and Well Water Inspections, and Radon Inspections if required. They have a list of contractors they have access to but you are free to request your own. They will also follow the mortgage processing to make sure no problems are occurring with the buyer. They will make sure all inspections are made in a timely manner in accordance with the contract specifications. If troubles arise, they know where to go and whom to call to correct the problem. Finally, they will be at the closing to make sure things are proceeding smoothly. However, if LEGAL issues arise you will need an attorney. If you hired a Real Estate Attorney, he should also be at the closing.

Bottom line is, for a relatively hassle free experience, list with a Professional Realtor. A good solid For Sale By Owner company is also a good second choice if you need to save some money. Look for those that do more than give you a sign for the yard.

I recommend that you do not try to sell your home by yourself. If you do, you might as well not plan on going anywhere. Prospective buyers want to look at property at their convenience, not yours. If they call for an appointment and get no answer they will move on. There are too many exceptional listings available to waste time trying to track you down.