Real Estate Agents

How NOT to Hire a Real Estate Agent

March 1st, 2017

If you do NOT read this report you will almost certainly lose thousands of dollars when you sell your home…

Home sellers don’t know how to spot a good real estate agent

This is understandable when you consider that you will only buy and sell one or two properties in your lifetime. Your home is probably your biggest asset. So, be careful whom you choose to sell it; one slip-up from an agent will wipe thousands off your selling price.

Ask the right questions

Many home sellers ask the WRONG questions when they interview an agent. They ask questions such as “How much do you charge?” or “What’s my house worth?”. While these questions are important, they should only be asked after the agent has told you what they’ll do for you and how they’ll get you the best price.

This report is your guide to hiring a real estate agent. I’m going to show you how to spot and select the best agent to sell your home. After all, I believe there’s no one better to sell your home than a highly skilled agent. The problem is that highly skilled agents are hard to find.

WARNING! Don’t settle for second best. Too many sellers make the mistake of picking the ‘best of a bad bunch’. You could be better off without an agent

Check out your agent

It’s a sad fact, but many people don’t check-out their agent until after they have signed with them – by then it’s too late. After you sign you’re stuck; you could be locked into a ‘minimum 90 day’ contract.

The questions and information in this report will give you the knowledge you need to keep the power when you’re selling a house. After you sign you lose your power.

Agents love to say they are all different but basic research will prove most are the same. It’s the ‘cookie cutter’ approach when it comes to selling your home – every property is sold the same way.

What to look for when choosing an agent

In 2006 Neil Jenman (my Dad) was asked to provide a list of questions, comments, and hints to help home sellers choose an agent for a TV show he was hosting. He called his list of questions and comments, GUIDE TO GRILLING AGENTS. Over the last few years I have given the guide to many home sellers. This report contains many of the questions and comments in his original guide.

What does a good agent look like?

Most agents will be well dressed, on time, and prepared. But the best real estate agents will be the ones who put your interests first. They will offer solutions that suit you first, not them.

Agents who ask for money to advertise your home should rarely be hired. After all, if advertising was the only reason your home sold why do you need a real estate agent?

Questions are the answer

Sometimes the answer to one good question will give you the confidence you need to hire the best agent to sell your home. Good questions do the hard work for you. Before you jump in and start grilling real estate agents, take a step back.

Put your home buyer shoes on. And start with a mystery shop…

MYSTERY SHOP

Department stores do it, so why shouldn’t you? Use the ‘process of elimination’ to weed out the poor agents. Why bother interviewing a real estate agent who doesn’t bother to return buyer’s calls? Start with an email. Approximately half of all buyer enquiry arrives via email.

If you send out 10 emails to 10 local real estate agents, I can almost guarantee that you will not receive 10 replies. If only 5 reply, then you have just saved yourself having to interview 5 agents. Include your phone number in your email. Do they call you back? Or do they just email a standard response? An agent who follows up with a call has a much better chance of ‘closing a sale’ than an agent who sends a standard reply.

QUESTIONS ARE YOUR BEST WEAPON

If you don’t ‘test’ your real estate agent before you hire them – one thing is for sure – the buyers for your home will do it for you.

What follows are questions that have proven to be a huge help to sellers.

REMEMBER: You are the owner of the property. You are considering employing an agent to sell your property. You are the boss. You have the power BEFORE you sign up. Make sure you keep that power at all times. Control the agents, do not let the agents control you.

Your home’s selling price is determined by your agent’s ability to negotiate

• HOW ARE YOU GOING TO GET THE BEST PRICE FOR MY HOME?

When you ask this question many agents will start throwing around the word negotiation. You want to be certain that they are capable of negotiating a high price for your house, ask them to teach you something about negotiation.

Question their ability to negotiate.

Ask them what they know about negotiation. It’s a big point that most home sellers miss because they focus on what the agent says rather than on what they do.

Here’s one of my favorite questions to ask a real estate agent:

• WHEN/IF YOU BRING ME AN OFFER, HOW CAN I BE CERTAIN THAT IT’S THE ABSOLUTE BEST PRICE THAT THE BUYER CAN PAY?

Many real estate agents will have difficulty answering this question. It’s a question that’s rarely asked of agents. Ask it. The answer will tell you a lot about an agent.

Some more questions you can ask are:

• Are you a good negotiator?

• Can you tell me some of the main points you know about negotiation?

• Can you give me some examples of the results of your negotiating ability?

The Biggest Liar Gets the Job

When hiring a real estate agent, the biggest liar (the agent who quotes you the highest price) often gets the job. It’s an old (and very true) real estate saying.

Unfortunately many home sellers hire liars. This happens because people who hear what they want to hear don’t perceive the information as being a lie.

One of the best questions you can ask is:

• WHAT WILL YOU DO TO GET THE BEST PRICE FOR MY HOME?

Once you are satisfied with the answer then ask:

• WHAT PRICE DO YOU THINK YOU CAN SELL MY PROPERTY FOR?

Most agents will try hard to hedge around this question. They may be vague and say such things as “It depends on the market,” or they may use the common ploy of answering a question with a question, such as, “How much do you want?”

Sellers should stand firm and press the agent on this point by making such comments as:

You are the agent, you sell lots of properties in this area, surely you know how much you can sell my property for – even if you have to give me a range. After all, you are the expert, aren’t you?

Once the agent has given a [verbal] quote, ask the following:

1. Will you give me that quote in writing?

2. Do you usually sell properties for the price that you quote the sellers?

Regardless of the answers, don’t dwell too long on any point at this stage. Just keep the questions rolling…

It’s not what you pay an agent, but what they cost you, that counts.

• How much commission do you charge?

Most agents will talk about ‘standard rates’ or they will say that the rate is recommended by the Real Estate Institute – this is to soften the shock. Sellers should make comments such as:

Is your fee negotiable?

Have you ever reduced your fee for anyone?

If you should ask me to accept a lower price than the price you have quoted me, will you also accept a lower fee?

NOTE: Be wary of agents who cut their commission to get your business.

These agents are often poor performers who rely on discounts to get you to sign with them.

• What is it about you and your agency that makes you better than other agents?

This is a great question. The agents all want to say that they are “the best” but they will struggle to define what is meant by “best”. Of course, “best” to a seller means the highest price with the lowest risk and the lowest cost.

The Issue of Advertising

With almost every agent, advertising will be a big point. Be careful, this is the most common way in which thousands of home-owners lose thousands of dollars without selling their homes!

The Golden Rule when selling a home: Never pay any money for any reason to any agent until your home is sold and you are satisfied.

The Silver Rule is this: Don’t sign anything that requires you to pay any money [in the future] for any reason if your home is NOT sold.

Some agents will say “you don’t have to pay for advertising until your house has sold” but what they fail to mention (or make clear) is that if your home fails to sell you will still have to pay.

Here are some comments and questions that can be made to an agent which show the absurdity of the advertising policies in most real estate offices.

• Why do you expect me to pay for the advertising to find a buyer? Surely the commission should include advertising?

• Why should I pay twice – once for advertising and once for commission?

• If you put ads in the newspapers [and charge sellers for those ads] and the buyers are going to come via you, what are you doing that sellers can’t do for themselves?

• If you advertise my home and I pay for the ads and you get calls from buyers and those buyers buy a home other than mine, do you give me any money back? If not, why not?

• If I pay you [thousands of] dollars for advertising and you do not sell my property, what happens to the money I paid?

• I notice that your advertising has your name and the name of the agency prominently featured. Surely I don’t have to pay the cost of advertising you and your agency?

• Based on the length of time you have been in business and the number of people who contact your office, don’t you already have a list of buyers on your books?

• I am not going to be paying any money to any agent for any reason until my home is sold. Once my home is sold within the price range that you quoted me, I will be delighted to pay you a GENEROUS commission as a reward.

This is my firm policy as a seller. Do you accept my policy?

Random comments and questions… [or other ways to make the same major points] might include…

• I want an agent who will get me the highest price at the lowest cost with the lowest hassle and, of course, without any risk of loss if there is no sale. Are you comfortable with being able to meet these simple requests of mine?

• How many properties do you sell? (Let them ask you if you mean weekly, monthly or annually, to which you reply that the time frame doesn’t matter. You just want to know that they are capable of getting results).

• What provisions do you take to ensure the security and safety of my home when it is being shown to prospective buyers?

• If I find a buyer – such as a close friend or relative – will you want me to pay you any commission?

• Have you ever had any unhappy clients?

• What were they unhappy about?

• If I employ you and I am not happy with your performance, I want to be able to dismiss you without any penalty to me. Is this okay by you?

• The agent I choose will be given an initial time period of 30 days on the selling agreement between us. If my property is not sold in 30 days and if I’m happy with the performance of the agent, I will be happy to extend the term of the agent’s appointment. Is this okay by you?

SELLERS’ TERMS & CONDITIONS

Get the agent to agree to your terms BEFORE you agree to the agent’s terms.

Finally, the biggest and most important point of all for home sellers – DO NOT SIGN the document that the real estate agent asks you to sign – at least NOT on the agent’s first visit.

Ask the agent the following questions:

• If I decide to employ your agency to handle the sale of my home, what document will you be asking me to sign?

• Can I have a copy of that document so that I can get some independent advice about it?

• The following is the start of your final words to the agent at the end of the agent’s first visit…

As I am the owner of the home and as I will be employing an agent, I will be preparing a list of my own terms and conditions under which I employ an agent. I will be asking the agent to sign my terms and conditions before I sign any terms and conditions prepared by the agent. Further, if any of my terms conflict with the agent’s terms, then, of course, my terms will take precedence.

• Are you okay with me, as the owner of the home, telling you, the agent, what I require you to do?

Thank the agent for coming and tell the agent that you will be in touch should you require the services of his/her agency. Stand up, shake hands, walk towards the exit or front gate. Wave goodbye.

Smile, you have done well. You are in control.

Lloyd is founder and chief of The Real Estate Helpers – a real estate start-up based launched in November 2010.

He’s the son of real estate ethics crusader Neil Jenman, and at 29, he is an 11 year veteran of real estate

His concept of offering help to home-sellers is set to revolutionise property selling in Australia.

Top 7 Mistakes Rookie Real Estate Agents Make

January 1st, 2017

Every time I allocution to anyone about my business and career, it consistently comes up that “they’ve anticipation about accepting into absolute estate” or apperceive anyone who has. With so abounding humans cerebration about accepting into absolute estate, and accepting into absolute acreage – why aren’t there added acknowledged Realtors in the world? Well, there’s abandoned so abundant business to go around, so there can abandoned be so abounding Absolute Acreage Agents in the world. I feel, however, that the inherent attributes of the business, and how altered it is from acceptable careers, makes it difficult for the boilerplate accepting to auspiciously accomplish the alteration into the Absolute Acreage Business. As a Broker, I see abounding new agents accomplish their way into my appointment – for an interview, and sometimes to activate their careers. New Absolute Acreage Agents accompany a lot of abundant qualities to the table – lots of activity and appetite – but they aswell accomplish a lot of accepted mistakes. Actuality are the 7 top mistakes amateur Absolute Acreage Agents Make.

1) No Business Plan or Business Strategy

So abounding new agents put all their accent on which Absolute Acreage Allowance they will accompany if their agleam new authorization comes in the mail. Why? Because a lot of new Absolute Acreage Agents accept never been in business for themselves – they’ve abandoned formed as employees. They, mistakenly, accept that accepting into the Absolute Acreage business is “getting a new job.” What they’re missing is that they’re about to go into business for themselves. If you’ve anytime opened the doors to ANY business, you apperceive that one of the key capacity is your business plan. Your business plan helps you ascertain breadth you’re going, how you’re accepting there, and what it’s traveling to yield for you to accomplish your absolute acreage business a success. Actuality are the essentials of any acceptable business plan:

A) Goals – What do you want? Accomplish them clear, concise, measurable, and achievable.

B) Casework You Provide – you don’t wish to be the “jack of all trades & adept of none” – accept residential or commercial, buyers/sellers/renters, and what area(s) you wish to specialize in. New residential absolute acreage agents tend to accept the a lot of success with buyers/renters and again move on to advertisement homes afterwards they’ve completed a few transactions.

C) Bazaar – who are you business yourself to?

D) Annual – accede yourself “new absolute acreage agent, inc.” and abode down EVERY bulk that you accept – gas, groceries, corpuscle phone, etc… Again abode down the new costs you’re demography on – lath dues, added gas, added corpuscle usage, business (very important), etc…

E) Allotment – how are you traveling to pay for your annual w/ no assets for the aboriginal (at least) 60 days? With the goals you’ve set for yourself, if will you breach even?

F) Business Plan – how are you traveling to get the chat out about your services? The MOST able way to bazaar yourself is to your own apple of admission (people you know). Accomplish abiding you do so finer and systematically.

2) Not Application the Best Possible Closing Team

They say the greatest businesspeople beleaguer themselves with humans that are smarter than themselves. It takes a appealing big aggregation to abutting a transaction – Buyer’s Agent, Advertisement Agent, Lender, Allowance Agent, Title Officer, Inspector, Appraiser, and sometimes more! As a Absolute Acreage Agent, you are in the position to accredit your applicant to whoever you choose, and you should accomplish abiding that anyone you accredit in will be an asset to the transaction, not anyone who will accompany you added headache. And the closing aggregation you accredit in, or “put your name to,” are there to accomplish you shine! If they accomplish well, you get to yield allotment of the acclaim because you referred them into the transaction.

The deadliest duo out there is the New Absolute Acreage Abettor & New Mortgage Broker. They get calm and adjudge that, through their accumulated business efforts, they can yield over the world! They’re both absorption on the appropriate allotment of their business – business – but they’re accomplishing anniversary added no favors by allotment to accord anniversary added business. If you accredit in a bad allowance agent, it ability could cause a accessory discharge in the transaction – you accomplish a simple buzz alarm and a new abettor can bind the acreage in beneath than an hour. However, because it about takes at atomic two weeks to abutting a loan, if you use an amateur lender, the aftereffect can be disastrous! You may acquisition yourself in a position of “begging for a arrangement extension,” or worse, accepting denied a arrangement extension.

A acceptable closing aggregation will about apperceive added than their role in the transaction. Due to this, you can about-face to them with questions, and they will footfall in (quietly) if they see a abeyant aberration – because they wish to advice you, and in acknowledgment accept added of your business. Application good, accomplished players for your closing aggregation will advice you always in administering business aces of MORE business…and best of all, it’s free!

3) Not Arming Themselves with the All-important Tools

Getting started as a Absolute Acreage Abettor is expensive. In Texas, the authorization abandoned is an investment that will bulk amid $700 and $900 (not demography into annual the bulk of time you’ll invest.) However, you’ll run into even added costs if you go to arm yourself with the all-important accoutrement of the trade. And don’t fool yourself – they are all-important – because your competitors are absolutely application every apparatus to advice THEM.

A) MLS Admission is apparently the a lot of big-ticket call you’re traveling to run into. Joining your bounded (and accompaniment & national, by default) Lath of Realtors will acquiesce you to pay for MLS access, and in Austin, Texas, will run about $1000. However, don’t skimp in this area. Accepting MLS admission is one of the a lot of important things you can do. It’s what differentiates us from your boilerplate salesman – we don’t advertise homes, we present any of the homes that we accept available. With MLS Access, you will accept 99% of the homes for auction in your breadth accessible to present to your clients.

B) Mobile Buzz w/ a Beefy Plan – These days, anybody has a corpuscle phone. But not anybody has a plan that will facilitate the akin of use that Absolute Acreage Agents need. Plan on accepting at atomic 2000 account per month. You want, and need, to be accessible to your audience 24/7 – not just nights and weekends.

C) Computer (Preferably a Laptop) – There’s no way about it, you accept to accept a computer & be adeptness abundant to use email. You would be astute to advance in some business administration software, as well. If you’d like to save some money (and who wouldn’t) again you can get the applicant The abandoned downside to these programs is that they do not accompany with your PDA or Smart Phone. A Laptop is a BIG additional because you’ll be able to plan from home or on the go. New Absolute Acreage Agents are generally afraid by just how abundant time they absorb AWAY from the office, and a laptop helps you break on top of your plan while on the go.

D) Absolute Acreage Friendly Car – You don’t accept to accept a Lexus, but your Miata will not do the trick. Accomplish abiding that you accept a 4 aperture car or SUV that is adequate and presentable. Accumulate it clean, and for God’s sake, don’t smoke in it! You’re traveling to absorb a LOT of time in your car, and put a lot of afar on it, so if it’s ammunition efficient, it’s a BIG plus. If you’re active a adventurous convertible, or still accept your KILLER Jeep from college, it’s time to barter it in.

4) Abridgement of Proper Funding

If you’ve taken the time to actualize your business plan, than you should absolutely accept your budget, but I can’t accent abundant the accent of accepting and afterward your budget. However, the annual abandoned doesn’t abode the important aspect of funding. 90% of all baby businesses abort due to abridgement of funding. Typically, new agents will wish to accept 3 months of affluence in accumulation afore demography the bound into abounding time agency. However, money in the coffer isn’t the abandoned way to acknowledgment the catechism of funding. Maybe your accomplice can abutment you for a assertive aeon of time. You can accumulate a part-time job that will not baffle with your business as a Absolute Acreage Agent. Abounding acknowledged waiters accomplish the alteration to acknowledged absolute acreage agents with no money in the bank. If you alpha your new business, don’t apprehend to acquire any assets for, at the least, 60 days.

5) Refusing to Absorb Money on Marketing

Most new Absolute Acreage Agents don’t apprehend that the hardest allotment of the business is award the business. Furthermore, they’ve just shelled out about $2000 for their authorization and lath dues, so the LAST affair they wish to do is to absorb added money! Again, the botheration lies in the abridgement of compassionate that you’ve just jumped into the Absolute Acreage Business, you haven’t taken a new job. And any acceptable businessperson will acquaint you that how abundant business you GET is anon allusive to how abundant you SPEND on marketing. If you accept the appropriate brokerage, again you will get some acceptable entering leads. However, don’t carelessness a good, claimed business attack from the alpha to get your own name out as the Absolute Acreage Abettor to go to.

6) Not Absorption Their Business Efforts in the A lot of Able Areas

One acumen why abounding new Absolute Acreage Agents who do activate spending money on claimed business stop is because they absorb it in the amiss place. The easiest place, and breadth accepted Absolute Acreage tells you to absorb your money, is in accepted book business – the newspaper, absolute acreage magazines, etc… This is the a lot of arresting abode to see absolute acreage advertising, it’s breadth ample offices absorb a acceptable allotment of their money, and so abounding new agents afield absorb their money here. This becomes actual arresting to new agents because of its low return. Ample brokerages can allow to absorb their money actuality because they’re bushing two needs – they’re business their own backdrop for auction while creating new client cartage for their buyer’s agents. New Absolute Acreage Agents should attending to their own apple of admission and barometer business to see the a lot of able acknowledgment on their investment. An abettor can absorb as little as $100/month business to their family, friends, and colleagues and see an absurd return. There are abounding abundant barometer systems about that all focus on the aforementioned apriorism – that if you consistently bazaar yourself to your apple of admission as the Absolute Acreage Abettor to go to – again you will get added business. The key is to aces a arrangement and to chase that system. You will see results.

7) Allotment the Amiss Allowance for the Amiss Reasons

New Absolute Acreage Agents accept their new abettor for a array of affidavit – they accept a acceptable reputation, they action the a lot of aggressive split, the appointment is abutting to their house, etc… While these abandoned aren’t bad affidavit to accept a broker, they aren’t traveling to do a lot to advice you in your success. The #1 acumen to accept a broker, and the catechism to ask is, “What do you action your new agents.” If the acknowledgment is, “The a lot of aggressive breach in town” you should absolutely accumulate looking. Remember, 100% of $0 is still $0. If you’re aptitude appear the better abettor in town, who has a abundant reputation, bethink this: You’re starting a BUSINESS not a JOB. While it ability be absurd to blow to your accompany about landing a job at a celebrated company, it’s no ability to adhere your authorization on the aforementioned bank in the aforementioned appointment as added acknowledged agents.

Your #1 affair if interviewing new Brokers is what they action you as a new agent. Do they accept admission leads? What does their training affairs abide of? What’s their assimilation level? What’s their boilerplate sales price? Do they animate their agents to advance themselves? A Broker’s purpose is to advice new agents alpha acknowledged careers and to advice accustomed Agents advance their careers to the next level. As a new agent, affair yourself beneath with bureau breach or bureau name and added with specific programs and bureau standards.

A new career in Absolute Acreage is actual exciting. Starting a Absolute Acreage business provides the new Abettor with opportunities for bottomless abeyant and freedom. New Agents accept a awfully top abortion rate, however, so a new Absolute Acreage career can aswell be a actual alarming prospect. However, if you abstain the 7 Top Mistakes Amateur Absolute Acreage Agents Make, again you’ll be far advanced of the competition!

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