"It's critical that you make the right decision about who will handle what is probably the single largest financial investment you will ever make."

 
Not all real estate agents are the same. If you seek an agent's help when selling or buying your home, you need some good information before you make any moves.

An agent can cost or save you thousands of dollars.
Picking an agent is one of those critical issues that can cost or save you thousands of dollars. There are particular questions you should be asking to ensure that you get the best representation for your needs. Some agents may prefer that you don't ask these questions since the knowledge you'll gain from their honest answers will give you an excellent idea about what outcome you can expect from using them as an agent. And let's face it - in real estate, as in life - not all things are created equal.

Hiring a real estate agent is like any hiring process - with you on the boss's desk. It would be best to decide who will handle what since this is probably the most significant financial investment you will ever make.

1. What makes you different? Why should I list my home with you?
It's a much more challenging real estate market than a decade ago. What unique marketing plans and programs does this agent have to ensure your home stands out favorably versus other competing homes? What things does this agent offer you that others don't help you sell your home in the least amount of time with the least hassle and for the most money?

2. What is your company's track record and reputation in the marketplace?
It may seem like everywhere you look, real estate agents are boasting about being #1 for this or that or quoting you the number of homes they've sold. If you're like many homeowners, you've probably become immune to much of this information. After all, you ask, "Why should I care about how many homes one agent sold over another? I only care about whether they can sell my home quickly for the most money."

 Well, because you want your home sold fast and for top dollar, you should be asking the agents you interview how many homes they have sold. I'm sure you will agree that success in real estate is selling homes. If one agent sells many homes while another sells only a handful, ask yourself why this might be. What things are these two agents doing differently?

You may be surprised that many agents sell fewer than ten homes annually. This volume makes it difficult for them to do full-impact marketing on your home because they can't raise the money it takes to afford the advertising and special programs to give your home a high profile. Also, they probably can't afford to hire an assistant at this low level, meaning they're running around trying to do all the job components themselves. The bottom line is that their service to you may suffer.

3. What are your marketing plans for my home?
How much money does this agent spend advertising the home's s/he lists versus the other agents you are interviewing? What media (newspaper, magazine, TV, etc.) does this agent advertise? What does s/he know about the effectiveness of one medium over the other?

4. What has your company sold in my area?
Agents should bring you a complete listing of their own and comparable sales in your area.

5. Does your Broker control your advertising, or do you?
Suppose your agent is not in control of their advertising. In that case, your home will compete for advertising space with this agent's other listings and the listings of every agent in the brokerage.

6. On average, when your listings sell, how close is the selling price to the asking price?
This information is available from the Real Estate Board. Is this agent's performance higher or lower than the board average? Their performance on this measurement will help you predict how high a price you will get for the sale of your home.

7. On average, how long does it take for your listings to sell?
This information is also available from the Real Estate Board. Does this agent tend to sell faster or slower than the board average? Their performance on this measurement will help you predict how long your home will be on the market before it sells.

8. How many Buyers are you currently working with?
The more buyers your agent works with, the better your chances of selling your home quickly. This will also impact the price because an agent with many buyers can set up an auction-like atmosphere where many buyers bid on your home simultaneously. Ask them to describe the system they have for attracting buyers.

9. Do you have a reference list of clients I could contact?
Ask to see this list, then spot-check some of the names.

10. What happens if I'm not happy with the job you are doing to get my home sold?
Can I cancel my listing contract? Be wary of agents that lock you into a lengthy listing contract they can get out of (by ceasing to market your home effectively), but you can't. There are usually penalties and broker protection periods that safeguard the agent's interests but not yours. How confident is your agent in the service s/he will provide you? Will s/he allow you to cancel your contract without penalty if you are unsatisfied with the service provided?

Evaluate each agent's responses to these ten questions carefully and objectively. Who will do the best job for you? These questions will help you decide.