When you’re considering listing your property for sale, there are some questions you’ll need answers to. The first thing that you need to realize is that you are asking questions to find out the capabilities of the person that you want to hire to sell your home. There are many realtors in this day and age that actually do the real estate business as a hobby where is the sideline for supplemental income. You will find that more prevalent in the senior communities market than any other market.
When you have a novice come in and discuss listing a house they’re usually part of a large company. Large companies like getting new people to the business because they have training classes. The large companies understanding is that they every person that has a real estate license has a sphere of influence. Within that sphere of influence there’s usually someone looking to buy or sell property. Then that new senior real estate agent is going to be helping them sell their property and the managers of the office help that agent along the way to get the first and second and third transaction done. During this period of their career, they’re doing good to get a 50% split from those large offices. (big companies make more money).
The way they come in and show you that they (the company) are big closers of transactions, but that senior agent is going to be the agent for you. They show you how many transactions the large companies do. It is true that the large companies do more business than the small companies. When you have over 3,000 agents working for your company and they sell 1,200 homes in a month it sounds like there’s a lot of business being done. At those numbers, one out of two or three agents actually do any business at all in a given month and it is actually 20% or so because some do 4 or even 10. The agent you are talking to may not have done any business in the last 3 months yet they’re part of a company that has done a large number of business transactions. So the big question is: is that the person to list your home with?
Unfortunately, many of the people today select their agent by which one that tells them their house will sell for the most money. True professional will come in and show you from the eyes of a buyer how your home fits in the marketplace. Then suggest a few things you could do to your home to make it more valuable in the eyes of the purchaser. Those are some reasons why most professionals in real estate are frustrated. They go and spend their time educating the client and that person comes in behind them with the big dollar price gets to list the house for the wrong numbers. Those agents are then being trained by managers in their office and they tell them the price is too high and explain it in a way so they actually understand it. They then go to work lowering the price over the next 6 months so the home will sell. Usually that home sells for less than what they would have sold it for if they listed at the right price in the beginning. Once you get to the realistic price, you have lost 4 to 8 thousand for holding it and sell it for 10k less than expected. After all this, you realize you’re working with a person who doesn’t understand real estate at all and has no power to negotiate. In some cases, the general public has more knowledge in real estate than the person who’s trying to help them sell their home.
To understand the way the real estate business works, you will need to realize that every agent within the board of realtors is an agent helping you sell your home. That includes all of the agents from large companies. There are hundreds of ways agents try to meet buyers and all of them work. It does not matter how they found that buyer, only that your home has its best foot forward to get the most for the property as possible.
What does your real estate agent really do? What are the big things your professional real estate agent can do? One is to help you get your home ready for sale and the sources to assist with that activity. Make sure that your home is at its best when being shown and as available as possible. The power to negotiate for you and not work against you is key. Know where the best possibility is for every transaction is so you can decide in each transaction to accept or move on for your consideration. Know the market well enough to recognize a good transaction or if it is one to move on from.
Keep in mind when an agents initially are setting up the showing of homes to their client they first look for the homes that are the easiest to show in the beginning with good options they think the client would like. Once they have figured out what the client is looking for from the first showing, they focus in on the properties that best suit them. That is when they see all they would like and the harder to show listings get inspected. They then help the buyer to see what property best suits them and discusses offers that would fit their needs.
I have talked to many escrow agents who actually close the transactions. They tell me over 90% of the senior agents don’t understand the closing statements and they cannot explain them. Escrow people then explain it to them prior to their client showing up. That is only if they want to attend the closing with their client. Most agents don’t attend the closing at all and may not know how closing costs are applied.
Within the duties owed of a transaction in the state of Nevada is says that we keep our clients in our mind to do the best we possibly can for a client. It also says that it’s our job to make sure how all the money gets calculated and applied in the transaction. One of the things you should definitely ask for is an estimated net sheet for you to look at when your listing your property. If the agent you are considering doesn’t bring one with them they might not be the agent for you and worse they might not know how to put one together. It’s a fairly basic form but they should know the costs involved in the transaction. The small thing we all will leave out is the prorations (Taxes, Sewer, HOA’s, Garbage Sids). That is impossible to calculate until you know the actual date of closing. Basically that is the amount that you’re getting back from paying money ahead when you own real estate.
When your purchasing a home there are basic cost that any agent should be able to tell you in the purchase of the property. if you are getting a loan in the purchase of the property. A
professional agent should send you to the lender to actually get those numbers. It is impossible for the realtor to know what the costs are for every lender in the valley. Certain loans have cost that other loans don’t have and the lender is the one that needs to provide that statement that tells you what your cost will be.
A good real estate agent can be a huge benefit for you when buying or selling property and in some cases not so much. I have watched houses get listed for 75 to $100,000 too high of a list price and sell for 50,000 less than what they should have sold for six months later. Once the person signs the contract to work with that realtor, the rest of the agents need to stay away. That means you’ve made your selection as to who you’re going to work with and the input you get in your transaction has to come from them. The biggest question you should ask yourself when selecting a real estate agent is: is this the person that I would like having represent me in the transaction and will they sell me down the road to make a few dollars.
The advice you should be aware of if you run into another agent and ask them about the selling of your home. Worse the agent asks you about selling your home when it is listed with another agent. That is a breach of duties under the Nevada law if the continue to solicit your business under that scenario. The listing needs an unconditional withdrawal form the market for them to negotiate with you.