Saturday, January 24, 2009

10 Questions to ask your realtor

These questions came across my desk the other day and I thought I would post them here.

I think that every buyer and seller should ask these questions to their prospective agent, you'd be surprised at the answers that you will get!

All the best!
Mark


10 Questions to Ask a Real Estate Agent - How to Interview an Agent

By Elizabeth Weintraub, About.com

Smart consumers interview potential real estate agents before deciding on whom to hire. Just as you are sizing up the potential for a good fit, rest assured that the real estate agent will likely be interviewing you, too. Be wary of agents who don't ask you questions and probe for your motivation. You wouldn't work with just any agent off the street, and good agents are just as selective about their clients, too. Caution: Don't interview agents from the same company! Ask your Scotiabank Mortgage Specialist to introduce you to a Scotiabank Key Partner Realtor.

1. How Long Have You Been in the Business? The standard joke is there's nothing wrong with a new agent that a little experience won't fix. But that's not to say that freshly licensed agents aren't valuable. Much depends on whether they have access to competent mentors and the level of their training. Newer agents tend to have more time to concentrate on you. Some agents with 20 years of experience repeat their first year over and over. Other 20-year agents learn something new every year.

2. What is Your Average List-Price-to-Sales-Price Ratio? Knowing the agent's average ratio speaks volumes. Excluding sizzling seller's markets, a good buyer's agent should be able to negotiate a sales price that is lower than list price for buyers. A competent listing agent should hold a track record for negotiating sales prices that are very close to list prices. Therefore, listing agents should have higher ratios closer to 100%. Buyer's agent ratios should fall below 99%.

3. What is Your Best Marketing Plan or Strategy for My Needs? As a buyer, you will need to know: How will you search for my new home?; How many homes will I likely see before I find a home I want to buy?; Will I be competing against other buyers?; How do you handle multiple offers?; Do you present offers yourself? As a seller, you will need to know: Specifically, how will you sell my home?; What is your direct mail campaign?; Where and how often do you advertise?; Will you show me a sample flyer?; How do you market online?

4. Will You Please Provide References? Everybody has references. Even new agents have references from previous employers. Ask to see them. Ask if any of the individuals providing references are related to the agent. Ask if you can call the references with additional questions.

5. What Are the Top Three Things That Separate You From Your Competition? A good agent won't hesitate to answer this question and will be ready to fire off why he/she is best suited for the job. Everyone has their own standards, but most consumers say they are looking for agents who say they are: Honest and trustworthy; Assertive; Excellent negotiators; Available by phone or e-mail; Good communicators; Friendly; Analytical; Able to maintain a good sense of humour under trying circumstances.

6. May I Review Documents Beforehand That I Will Be Asked to Sign? A sign of a good real estate agent is a professional who makes forms available to you for preview before you are required to sign them. If at all possible, ask for these documents upfront. As a buyer, ask for copies of the following: Buyer's Broker Agreement (is it exclusive or non-exclusive?); Agency Disclosures; Purchase Agreement; Buyer Disclosures. As a seller, ask to see: Agency Disclosure; Listing Agreement; Seller Disclosures.

7. How Will You Help Me Find Other Professionals? Let the real estate agent explain to you who he/she works with and why he/she chooses these professionals. Your agent should be able to supply you with a written list of referring vendors such as mortgage brokers, home inspectors and title companies. Ask for an explanation if you see the term "affiliated" because it could mean that the agent and his/her broker are receiving compensation from one or all of vendors, and you could be paying a premium for the service.

8. How Much Do You Charge? Don't ask if the fee is negotiable. All real estate fees are negotiable. Typically, real estate agents charge a percentage, from 1% to 4% to represent one side of a transaction: a seller or a buyer. A listing agent may charge, for example, 3.5% for him/herself and another 3.5% for the buyer's agent, for a total of 7%.

9. What Kind of Guarantee Do You Offer? If you sign a listing or buying agreement with the agent and later find that you are unhappy with the arrangement, will the agent let you cancel the agreement? Will the agent stand behind his/her service to you? What is his/her company's policy about cancelled agreements? Has anybody ever cancelled an agreement with him/her before?

10. What Haven't I Asked You That I Need to Know? Pay close attention to how the real estate agent answers this question because there is always something you need to know, always. You want an agent to take his/her time with you - to make sure you feel comfortable and secure with his/her knowledge and experience. He/She should know how to listen and how to counsel you, how to ask the right questions to find out what he/she needs to know to better serve you.

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