1- Commission.
An agent should be able to speak at great lengths about commissions. From what
they are paid to what they are going to offer the other agent who brings a
buyer, to what they need to share with their agency. Too often sellers simply ask, "What is the commission?" and listing agents give a percentage that they will charge. This should not be the extent of the conversation.
The advantage Real Estate model for commissions is to encourage agents from other agencies to sell our listings by compensating them at higher rates. We also Keep a smaller portion of the commissions earned by our agents in order to make sure that they are able provide the best possible service. Read more on this topic in paragraph 4.
2- Word of mouth and
referrals.
All agents sell homes. The sellers of those homes are almost always happy
with their agent. What past clients can’t know is that another agent may have
been able to sell faster and for a better price or terms. Consider asking a
bank mortgage officer, real estate lawyer, closing agent, home inspector, or
another professional that works with a variety of real estate agents on a daily
basis for their recommendation. Never trust any website that screens agents for
you. Those websites and services will only recommend agents that are willing to
pay referral fees. Banks and closing agents are not allowed to receive referral
fees or kickbacks from agents.
3- Disclosed dual agency.
This is a practice where a single agent will represent both the buyer and the seller in a single transaction. While this practice is legal in Maine. Maine law requires that the listing agent receive the consent of the seller prior to listing the property. The existence of a law requiring this consent should be an indication of the importance of the topic. Decide if it is in your best interest to allow this
practice. The agent must share the same information with all
parties. The agent cannot take any action that would benefit one party over the
other. Ask the agent to provide you with an example of how this practice could
help you as well as an example where this could hurt you.
4- Agency policy on
sharing compensation.
When signing the standard listing agreement you will be notified regarding the
listing agency policy for compensating other agencies. There will be a check
box for yes or no. If yes is checked the listing agent should pay all other
agents the same amount of compensation for bringing a buyer to your listing. It has however been my experience that many agents are not selecting the correct option on their contracts. They are in fact compensating buyer agents they like or think that they will do business with again in the future at a higher rate.
At Advantage Real Estate we do not set the commission that the buyer's agent will be offered. We believe that this is a matter to be discussed and mutually agreed on with our seller clients after conversation about how to best me our client's goals.
5- Read the listing
agreement.
Read the listing agreement carefully. Never sign it on the day that you see it
for the first time. Ask the agent that you are interviewing to provide you with
the listing agreement prior to meeting them for the first time so you can ask
questions during the interview. The listing agreement should be completed as
much as possible based on the agent’s preferences.
6- View other listings.
Prior to meeting the agent for the first time ask for a list of all the
properties that they currently have listed. Review those listings on
mainelistings.com and make sure that they are doing a good job representing
their current listings. Look for quality photos, and well written property descriptions.
7- Interview more than one
agent.
Don’t be impressed by the first agent that you talk to. Don’t be afraid of
letting agents know that you are interviewing other agents for the job. A good
agent will have confidence that they will get the job. I believe that
interviewing other agents will only make me look better and encourage sellers
to make well informed decisions.
8-
Understand appointed
agency.
Most agents in Maine practice appointed agency. This practice means that you
are hiring an agent at an agency not the entire agency. Do not look at the
other agents in that agency as allies unless their names appear on the listing
agreement. The only way that they will be compensated in the sale of your home
is if they bring a buyer. If they bring a buyer they will be representing that
buyer. The other agent’s job will be to use everything that they know about you
and your property to negotiate the best terms for the buyer.
This is another fact that Separates Advantage Real Estate from the other agencies. We do not practice appointed agency. When you list with this agency any and all agents that work for Advantage Real Estate will work for you the seller.
9-
Brokerage relationship
form.
Before you begin discussing your home or your sale requirements the agent is
required by law to provide you with a document titled REAL ESTATE BROKERAGE
RELATIONSHIP FORM. Please read it. If the agent does not provide it to you
prior to any meaningful conversation they may be violating the law. Do you want
to hire a professional that starts out your relationship by violating the law?
10- Free CMAs are not the same as a BPO.
Many agents will provide you with a free CMA, Current market analysis. In
theory this will tell you what your house should sell for if it sold today. The
real estate commission classifies this as a marketing tool used for the purpose
of gaining listings. Most agents believe that a seller interviewing several
agents will hire the agent that tells them that their home is worth the most.
There is definite pressure to produce data that will result in the listing job.
Alternatively, you could hire an agent to provide you with a BPO, or Broker
Price Opinion. These are not free. You can obtain these from an agent without
even telling that agent you are thinking about selling. Do you think that the
price might be different if an agent was not trying to get a listing but
instead was being compensated for providing an accurate opinion of value?
Brian
Walker holds a Broker’s license in the State of Maine and practices
real estate brokerage as the owner of Advantage Real Estate. While he is
a licensed broker, he is not your broker. The information in this article dos not
constitute customer or client advice and does not create any type of
relationship. The opinions expressed are solely those of Brian Walker and are
not necessarily shared other
affiliation.
