Q: How do I find the best real estate agent? And, how do I choose which real estate agent to use?
I’m learning a lot going through the process of “properly” selling my house. I interviewed five real estate agents the Saturday before last, and I was amazed by the range of differences in their attitudes and approaches to selling real estate.
The real estate agent I selected seems to be the most aggressive in terms of her advice for preparing the house, marketing the house and just generally wanting the listing. She sent a staging expert to my house who suggested I replace all the door hardware, replace all seven ceiling fans, remove all the window screens and replace the countertops in the kitchen. This kind of work is going to cost a bunch of money.
Is it smart to follow the advice of this real estate agent or just offer money back with the house to let the new owner pick those things?
A: Let’s start with your real question: How do you find the best real estate agent? And, it isn’t just about finding the best real estate agent in town, it’s finding the best fit for you.
Whenever we talk to home sellers, we advise them to interview at least three or four different real estate agents because, as you’ve noted, each will have an entirely different approach to the process of selling a home. (You’ve gone beyond that and interviewed five different people, but still found that they all had different approaches and thoughts about your home.)
Real estate agents, like people, are motivated by different things. Some will say or do anything to get your listing, even going as far as to promise you a “pie in the sky” price that they predict you’ll collect at the closing table. Some try to be honest about where the local marketplace is, hoping that you’ll find their honest approach appealing. Some will take a data-driven approach and show you what else is selling in the neighborhood, and then break that down into price/amenity and compare your home with other comps.
What type of real estate agent should you want? The best real estate agent will match your temperment. So if, for example, you’re a laid back sort of soul, you probably don’t want someone cracking the whip and making you feel like a failure if you have a piece of lint on the floor. If you don’t smoke, you shouldn’t hire a smoker. If you are detail oriented, don’t hire a real estate agent who is disorganized.
In general, when you are looking to hire a real estate agent, you’ll want to invite a handful into your home to do a comparative marketing analysis (CMA). The CMA will dig into other homes that are similar to yours that are currently on the market as well as those that have sold in the last 6 months. These are normally referred to as “comps.” The best real estate agent will have analyzed all of the comps, compared your home to those, developed a sophisticated marketing plan for getting your home sold (and maximizing buyer interest) and providing a suggested list price.
Now let’s turn to your situation: The agent you hired is, by your definition, “aggressive.” She clearly thinks that to sell your home would benefit from a few improvements. The question you need to ask is, “How much money will I get from the house if I don’t make these improvements vs. if I do make them.” If you estimate that the cost of making these changes is $10,000, and the agent thinks you’ll be able to up your sales price b y $25,000, and sell your home in an instant, then we think you should make the changes as quickly as possible. On the other hand, if the cost of the changes she wants is $10,000 but she doesn’t think you’ll get a dime out of it, nor does she think it will sell that much faster, then it’s a tougher call.
The best real estate agent for you is the one who is going to help you understand, in as kind a way as possible, what you have to do in order to get your home sold as fast as possible, for the most money possible.
Ilyce Glink is the Publisher of ThinkGlink.com, and the Founder/CEO of Best Money Moves. Sam Tamkin is a real estate attorney in Chicago.
It’s a really nice post. Actually, I want to invest in real estate so your answer is really helpful to me for choosing a real estate agent.
My husband and I are looking to find a new home, and we want to make sure we have the right realtor to help us. It’s important to look for these characteristics of a successful agent. I hadn’t thought about the importance of finding someone that can match your temperament. We’ll be sure to look for this.
Annika:
Working with a real estate agent is like being in a short-term marriage – one thats highly charged and very stressful. You just don’t want to layer anything else onto the relationship, which is why finding someone who is emotionally and intellectually suited to you is so important.
Best of luck with your house hunting!
Ilyce Glink
Publisher, ThinkGlink.com
It really made sense to me when you said that you aren’t looking for the best real estate in town, but rather, you are looking for the best agent for you. I think that is something that a lot of people forget when they are rushed to buy or sell a home. In the end, it’s not about whether or not the agent is good for most people, it’s about if they can assess your needs and help you in your specific search according to those needs. My husband forgets that a lot; I’ll remind him so that our search for a home will be as painless as possible.
I really like how you talked about choosing a real estate agent who will do a comparative marketing analysis. I think that making sure our home is priced competitively is a great way to know what we’re going to get out of it, as well as a way to get more people to contact our realtor about it. I’ll have to make sure our real estate agent does a CMA for us like you mentioned!
I love your ideas for finding a real estate agent. It’s great to take into account my own personality style when searching for one. I am definitely laid back, so I wouldn’t want someone who tried to get the home as quickly as humanly possible.
I thought it was interesting that you suggest interviewing at least three real estate agents before picking one. I guess it makes sense since you could get a better idea about which agent would be a better fit for your needs. I’ll pass the tip onto my sister who is looking to hire an agent to sell her home later this summer.
I really like that you emphasize how important it is to find a real estate agent that can mesh with your personality. After all, the two of you will have to work together in order to sell your home. Because of this, you want to make sure that you can stand being in the same room as the agent when they come by to check out your home before the sale.
I agree that you want to find a realtor that matches your temperament. It would make sense to find someone who you get along with because it takes time to buy a home. My sister is looking for someone to help sell her home, so she’ll have to find someone who matches her temperament.
Impressive ideas. I agree that finding the best real estate agent is finding the best fit for you. Great post!
Your idea to find a real estate agent who has the same sort of temperament as you is a really good one. I have two kids, and my husband and I have decided that we want to move into a real home that we can raise them in. A real estate agent would really help us out, so we’ll have to find one who’s kind of like us.
Getting the best advice or finding the best real estate trainor is essential in your growth as a real estate investor. There are two types of people who do not improve or grow and these are because they are either unwilling to listen or they listen to the wrong people. Finding the best real estate trainor means you have to look out for these following trait:
I’m really glad you talked about finding the best real estate agent that fits for you. I can definitely see how not all agents are the same, which means that there isn’t one that works for everyone. We will have to be more specific in our search so that we can find the right one for our situation. We have a lot of details that we want taken care of, so we need to find an agent that is very detail oriented.
My husband and I really want to sell our home, and so I really like your idea of inviting a handful of real estate agents into our home for CMAs. However, I know nothing about marketing plans. How can I know which realtor’s marketing plan will work the best for my house?
I like what you say about interviewing a couple different real estate agents. I think it’s important you find someone that understands what your needs are and is able to deliver on those needs. My and I are in the market for some property right now, so I’ll make sure and set up some interviews with different prospective agents in our area.
I like how you mention that it’s important to find a real estate agent who has a similar temperament to yours. It can make the process less stressful when you know that you’re on the same page as your agent. My sister is selling her house, and she has carefully been looking for an agent because she wants to make sure that she finds one who has her best interests at heart.
Thanks, Cameron. It’s important to have a really good fit.
Being a beginner in real estate property investment, you need to surround yourself with the right people. Read this article to know what to look for in a best real estate trainor!
My husband and I are looking for a real estate agent, and it is overwhelming. I appreciate your advice to find a real estate agent that works for you, and not the one that’s the best in town.
It is good to know that one should not necessarily hire the realtor with the lowest commission. Realizing that you may get what you pay for when it comes to buying or selling a home is important. Something else to think about would be to find a local realtor. This would provide you with the advantage of the agent knowing the area.
I appreciate your suggestion to meet with at least three or four real estate agents before choosing one. My husband and I are going to be purchasing our first house, so we’re going to need some really good professional help. Talking to several real estate agents would let you get a feel for their professionalism, knowledge, and communication style, all of which are important factors to consider.
Your emphasis on finding the best agent for me as opposed to just the best in general really strikes well with me. My sister lives in another state and was trying to tell me to use the agent she had when she moved, but I don’t think her agent would be familiar with the area and type of home I’m selling like you said for CMA. I’m not too worried about temperament, but I really want my home sold quickly and well with relevant data analysis.