Many sellers do not fully understand the sales process and the role of a real estate agent. Here are some of the most often asked questions agents receive from sellers.
What is a “Listing Agreement”?
A “listing agreement” is a document which lays out the contractual terms between the seller and the real estate firm/broker who will be listing the property.
Who pays the buyer’s agent?
The seller is responsible for paying the listing commission on the home—the listing office and agent then split that commission with the buyer’s agent and office. Commissions are typically paid only at closing, out of the proceeds of the sale of your home.
What is a “dual agent”, and do you practice dual agency?
“Dual agency” refers to the practice of a single agent representing both the buyer and the seller during the real estate transaction. When an agent acts in a dual capacity, they owe the same fiduciary responsibility to both parties. Most states have a required brochure or pamphlet which details the responsibilities of buyer’s agents, seller’s agents, and dual agents. Sellers considering the use of a dual agent should pay particular attention to the difference in responsibilities when an agent acts as a representative of both the buyer and the seller.
When an experienced, competent agent undertakes the responsibility of acting as dual agent, the agent no longer acts as an “advocate” for one party or the other. Rather, the agent becomes more of a mediator. In theory, because the agent knows the details of each party’s bottom line, the agent can negotiate a solution that will please both parties.
What type of information will my agent need from me?
To do the best job for you, your agent will need the best information you can provide. This would include such things as:
- your financial goals regarding the sale of your home
- willingness to listen to your agent’s advice
- flexibility in accepting terms and conditions
- preferred timing for a sale
- disclosure as to any defects the property may have
- details about the positive aspects of the home
How does an agent figure out the asking price?
In order to determine the asking price for a home there are several factors I will look at.
- Comparable home sales
- Pending to active ratios for your area (how much demand is there?)
- Your active competition
- Condition of your home as it relates to other properties
Taking these things into account, the “Market” determines a price range for your home, with the two of us working together to finalize that price. Continuing to carefully watch the market as it relates to your home will allow me to put you in the best position to succeed.
How will an agent market my home?
In order to succeed we must first have a plan. Marketing a home for sale is an ever-changing challenge but with my tools and systems, I am up to that challenge. It starts with the home itself and making it show-ready. I will create a custom print and online marketing plan for your home which will include both a print and online presence. From professional color flyers and direct mail to potential buyers to syndicating your listing to sites all over the web and networking with other agents, marketing your home is at the top of my priority list and it stays there until it is sold. I also stay on top of new ways to create exposure for a listing whether it is technology, word of mouth, or an even-better house flyer.
Can’t I just sell my house by myself?
Of course. Historically, many sellers have sold their homes as For Sale By Owners (FSBOs). Back in the day, buyers would get in their cars and drive around for hours on end to locate a property. With the advent of the internet, Multiple Listing Services (MLS’s) and real estate websites are the ultimate source of property information. However, MLS sites are available only to the real estate agents who subscribe to them. Having your home listed by a real estate agent vastly increases your visibility in the marketplace. Statistically, 89% of homes which are sold each year are listed by a real estate agent via an MLS.
What if a buyer approaches me directly?
If your home is listed and a buyer contacts you directly, please refer them to me. I would be happy make arrangements to show them your home. If they have any interest in moving forward with an offer and you are uncomfortable with me acting as a dual agent, I can put them in the hands of a good agent who can help them prepare an offer.
I’m torn between two agents. Can more than one agent list my property?
Possibly. If both agents are licensed in the same office (and both agents are amenable to a shared listing), your property could be “co-listed” by two agents. It’s rare – although possible – to have agents licensed with competing companies involved in a co-listing situation.
What if I am unhappy with my agent?
Let your agent know that you’re unhappy, and the reasons why. It may be a simple misunderstanding that can be corrected. If the issues are more substantial, or the relationship simply isn’t the right “fit”, tell the agent you no longer wish to work with them and ask for your listing to be released.
Don’t let a less-than-perfect relationship keep you from finding another agent to work with. Buying and selling real estate are complex transactions, and it’s important that you have an agent to represent your interests.