Ten question to ask a Realtor

Picking the right Realtor is one of those critical issues that can cost or save you thousands of dollars. There are very specific questions you should be asking to ensure that you get the best representation for your needs. Many Realtors would prefer that you don't ask these questions, because the knowledge you'll gain from their "honest answers" will give you a very good idea about what outcome you can expect from using a Realtor. And let's face it - in real estate, as in life - not all things are created equal.

Question 1: Are you a full-time professional REALTOR? How long have you worked full time in real estate? What professional designations do you have?
Knowing whether or not your Realtor practices real estate on a full-time basis can give you a piece of the puzzle in foreseeing scheduling conflicts and, overall, his or her commitment to your transaction. As with any profession, the number of years a person has been in the business does not necessarily reflect the level of service you can expect, but it is a good starting point for your discussion. The same issue can apply to professional designations. Do they invest in their self to keep up with technology and industry trends?

Question 2: What type of business relationship would we have?
You should understand from the beginning your relationship with your Realtor what type of relationship exists. In Colorado all real estate brokers are required by law to let consumers know whether he or she is working as an agent for the buyer or seller or as a transaction broker.
If you hire a real estate broker as an agent, you are the principal and the broker is your agent. An agent owes duties to the principal which include utmost good faith, loyalty and fidelity. A transaction broker may assist you through out the real estate transaction with communication, advice, negotiation, contracting and closing but is not an agent or advocate for you. A transaction broker can be hired by a seller, buyer or both. Also when a seller or buyer hires a real estate broker, either as an agent or transaction broker, that broker may communicate with the opposite party (buyer or seller) and provide certain assistance without violating the obligations of the brokerage relationship. You should expect an oral and written disclosure of that brokerage relationship.

Question 3: How will you keep in contact with me during the process, and how often?
Its reasonable for you to set your expectations in accordance with how your Realtor conducts business. You may be looking for a Realtor who will call, fax, or email you every day to tell you about prospective buyers who have seen your home. On the other hand, your Realtor may have access to systems that will notify you automatically each time a new visitor tours you home (which could happen several times a day or several times a week). Asking this extra question can help you to reconcile your needs with your Realtor's systems, which makes for a far more satisfying relationship.

Question 4: Do you have a personal assistant, team, or staff to handle different parts of the sales transaction? What are their names and how will each of them help me in my transaction? How do I communicate with them?
It is not uncommon for high real estate sales producers to hire people to work for them or with them. They typically work on a referral basis, and, as their businesses grow, they must be able to deliver the same or higher quality service to more clients.
You may want to be clear about who on the team will take part in your transaction, and what role each person will play. You may even want to meet the other team members before you decide to work with the team overall. If you needed help with a certain part of your home sale, who should you talk to and how would you communicate? If you have a question about fees on your closing statement, who would handle that? Who will show up to your closing? These are just a few of the many important considerations in working with a team.

Question 5: Can You Refer Me To A Reputable Mortgage Lender, Banker, Appraiser, Inspector, Home Warranty Company, or Lawyer?
This question reveals how active the Realtor is, and how well connected professionally they have made themselves by associating with reputable, competent lenders, appraisers, title companies, home warranty company, etc. If your Realtor is active, committed, and diligent with their practice, they should be able to give you a few names of each right on the spot.

Question 6: Do You Have A Formal And Written Marketing Plan?
If you’re a seller, you want to price your home correctly, and be regularly updated with important buyer activity. How many calls did you get on your home this week, what marketing strategies did you use, how many home visits from other real estate professionals did you have (and what were their comments), how many people visited your open house?

Question 7: How would you develop pricing and marketing strategies for our home? Will you commit to the marketing strategy in writing?
Pricing a home correctly is the single most important factor in determining if a home sells quickly, or at all. Although location and condition also affect the selling process, price is a primary factor. Access to all current property information is essential, and sometimes a pre-appraisal will help. Ask your Realtor where he or she obtained the information to create the market analysis, and whether your Realtor included For Sale by Owner homes, foreclosed homes, and bank-owned sales in that list.

Question 8: Who determines where and when my home is marketed/ promoted? Who pays for your advertising?
Ask your Realtor to present to you a clear marketing and advertising budget, and how those dollars will be spent. Ask if there are other forms of advertisement/marketing media that are also available but not mentioned in the budget/plan, and who pays for those. Request samples of the various media that your Realtor proposes (such as Internet Web sites, print magazines, and local publications).

Question 9: How will you get paid? How are your fees structured?
This is an issue that can also be related to agency. In many areas, the seller still customarily pays all Realtor commissions through the listing broker. Sometimes, REALTORS will have other small fees, such as administrative or special service fees, that are charged to clients, regardless of whether they are buying or selling. Be aware of the big picture before you sign any agreements. Ask for an estimate of costs from any Realtor you contemplate employing.

Question 10: Do you have a performance guarantee? If I am not satisfied with your performance, can I terminate our listing agreement?
Understand that, especially in the heavily regulated world of real estate, it can be increasingly difficult for a Realtor to offer a performance guarantee. Sometimes you may find a Realtor who is willing to guarantee that if you are dissatisfied in any way with their service they will terminate your listing agreement. If your Realtor does not have a performance guarantee available in writing, it is not an indication that he or she is not committed to perform.

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