Takeaways
- Listing agents assists you in navigating the transaction of selling your home.
- Listing agents help with marketing your house and making sure it looks attractive.
- Listing agents create negotiation tactics to secure the best bid from prospective buyers.
- Aligning your listing agent’s financial incentives with yours helps the process run well.
- Listing agents referred by former clients tend to have high conversion rates.
Even if you bought your house years ago, you probably remember the stress of buying your first home. Selling your home might cause those same emotions to return. Whether you are trying to downsize or upsize your next home, the home-selling process is a high-stakes transaction.
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A listing agent can help alleviate those feelings by bringing a seasoned view into the local market, home-selling process, and marketing chops to help you get the highest price for your home. If you are like most Americans, most of your net worth is in your home equity. Listing agents help extract your home equity value and turn the home-selling process into a liquidating event.
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What is a Listing Agent?
A listing agent, also known as a seller’s agent, is a licensed real estate professional who represents you during the sale of your home. When you are about to put your home on the market, countless tasks go into a successful sale. Hiring a listing agent will help you check off all the essential tasks to convert a listed home into a sold home.
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Here are some of the responsibilities a listing agent hands during the sales process:
- Pricing Expertise: Listing agents use in-depth market analysis to help you establish a competitive and profitable asking price for your home. They have access to proprietary databases that allow them to pull information to elicit the best market-based price.
- Marketing Insight: Putting up a “For Sale” sign in your front yard is not enough to market your house. Listing agents know exactly how to showcase your home to potential buyers. They use online resources like Zillow and Realtor to market your property and make your house look as beautiful. Listing agents usually help secure professional photography, staging, open houses, and online and print advertising.
- Negotiation Skills: With a successful marketing strategy, you will undoubtedly have potential buyers knocking at your door. This is where a listing agent’s negotiation skills come into play. A talented listing agent handles negotiations on your behalf and fights for the best possible price and terms for the sale of your home.
- Transactional Guidance: There is a mountain of paperwork associated with real estate transactions. Your listing agent helps you navigate all you need to know and ensures the process stays on track. Additionally, they keep your interests at the top of their mind every step of the way.
A great listing agent acts as your partner throughout the sales process. Listing agents have sold many houses before and understand the steps intimately. Part of their job is to ease the stress of selling your house and conversely maximize your outcome. Some sellers want to handle the home selling process on their own. But if you haven’t done it before, many financial professionals will tell you that hiring a listing agent is an absolute must.
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5 Steps to Hire a Listing Agent
During the process of selling your home, there are many variables to consider. One of the most critical factors to how well the process will go is finding a highly qualified listing agent. Hiring a listing agent before you put your house on the market is a smart money move. Here are five steps to consider when vetting potential listing agents:
1. Get Referrals
One of the best ways to find a reliable listing agent is to tap into your existing network. Ask these sources for recommendations:
- Friends and Family: Have any of your connections recently sold a home? Ask about their experience with their agent. Did their home sell quickly and for the price they wanted? How was the agent’s communication and overall work ethic?
- Coworkers: People you work with might have recently used a listing agent they recommend.
- Neighbors: If you see “For Sale” signs in your neighborhood with names you do not recognize, those sellers might have had a positive experience with their agent. Additionally, these listing agents might have a pulse on the market in your neighborhood.
- Mortgage Lender: If you are working with a mortgage lender, they often have strong relationships with real estate agents in the area and can make informed recommendations. Most of the time they are willing to give you a list of three to five names they work with regularly.
Getting firsthand accounts from people you trust will provide valuable insight into an agent’s work style, success rate, and overall likeability. Satisfied customers will spread the word about a great seller’s agent.
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2. Search Online and Review Experience
After compiling a list of potential agents, it is time to take your research to the web. The internet hosts a trove of information that you can scrape to review potential agents. Read about their recent deals, credentials, and experience level. When you are doing your due diligence, consider the following:
- Company and Individual Websites: Explore the agent’s company website and see how they brand and position themselves in the market. Then, dive into the agent’s website or profile for a deep dive into their experience and specialties.
- Online Reviews: Many resources exist for reviews and testimonials on listing agents, such as Realtor, Zillow, and other specific real estate agency websites. Look for patterns in positive and negative feedback to get a sense of the agent’s strengths and possible weaknesses.
- Recent Sales History: A proven sales record speaks for itself. Prospective agents with a consistent record of selling homes in your neighborhood within your desired price range should be coveted. Reviewing a listing agent’s sales record will help determine if they understand your local market dynamics.
- Specializations and Designations: Some agents specialize in specific property types (luxury homes, condos, etc.) or hold particular designations, like Certified Residential Specialist (CRS) [1]. Part of the matching process is considering whether the listing agent’s expertise matches your immediate needs.
It is vital to bear in mind that online information should serve as a starting point. Always schedule interviews (virtual or in person) with the potential agents to understand their personality and selling strategies in greater depth.
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3. Meet with Multiple Listing Agents
After narrowing down your initial list, schedule interviews with at least three top candidates. Prepare for the meeting like you would for a job interview because selling your house is one of the largest transactions of your life. Here is what to focus on:
- Market Knowledge: How well does the listing agent understand the current state of your local real estate market? Can they provide data and analysis on recent sales in your area? What do they think is unique about your house, and how will they use that as a selling point?
- Marketing Plan: Have them outline their specific strategy for attracting qualified buyers to your home. Ask about their use of photography, staging, online listings, social media, and traditional marketing techniques.
- Communication Style: Do you feel comfortable talking with this agent? Do they explain complex topics clearly? Clear and responsive communication is essential throughout the listing process, and ensuring you work with someone you can be honest with is the best policy.
- Personality Fit: Selling your home can be stressful. Good agents will be your calm and collected advocate, not someone who adds drama to the mix. This can be alleviated by telling your potential listing agent exactly what you want from the transaction (highest price, speed of sale, only cash buyers) to see if they can actualize what you want. If so, it might be a good match.
You should not feel pressured to decide during the first meeting. Discuss the interview questions with other parties involved in the sale so you can choose the agent best aligned with your needs. After you have narrowed down your top candidates, you can start a vetting deep dive.
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4. Check References
Even if an agent looks fantastic on paper or has stellar online reviews, contacting recent clients provides even more confidence in your decision. Sometimes, recently failed transactions take time to percolate into internet reviews. Checking references will elucidate an agent’s temperament.
- Request References: A great agent will readily provide a list of recent clients to contact. Make sure that these include their recent sales to ensure they are not cherry-picking only successful transactions.
- Ask Probing Questions: Go beyond simple pleasantries. Inquire about specific challenges encountered during recent sales and how the agent helped sellers overcome them. Did they feel satisfied with the final price and negotiation process?
- Red Flags: Be wary of any agent hesitant to provide references or whose clients offer overwhelmingly negative feedback. These red flags are probably there for a reason.
These are valuable tips to bear in mind as you search and research potential agents. You might feel compelled to hire the first agent you speak to, but you should treat this as a shopping exercise. Because a listing agent earns a hefty fee, you should take the time to explore your options before deciding.
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5. Hire Listing Agent
You have finally found the perfect listing agent, now it is time to get down to brass tacks. Once you have the listing agent who checks all the boxes, it is time to make it official. Here are some key terms you need to know:
- The Listing Agreement: This contract clarifies the terms of your arrangement with the agent. Pay close attention to these specific details:
- Commission Rate: This is the agent’s fee, typically a percentage of your home’s final sale price. While rates are negotiable, remember that experienced agents with a strong sales record may charge higher commissions.
- Contract Length: Consider the duration of the listing agreement carefully. Too short of a period might not give the agent sufficient time, while too long ties you to an ineffective representation.
- Termination Clause: Understand under what circumstances you can terminate the agreement if dissatisfied with the agent’s performance. This can be awkward to negotiate, but it puts the listing agent on notice that you are serious about getting your house sold.
- Ask For Clarification: If there is something in the agreement you do not completely understand, always ask questions before signing. A reliable agent wants you to feel informed and comfortable throughout the process.
- Trust Your Gut Feeling: After thorough research and interviews, a clear standout will likely emerge. When combined with a rock-solid contract, that gut feeling about an agent is generally a strong guide. It’s okay to trust both your logic and intuition.
Hiring the right listing agent is a critical step in the home-selling journey. By following these steps systematically, you will significantly enhance your chances of finding the perfect professional to bring a speedy and profitable sale.
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Smart Summary
Selling your home can be just as nerve-wracking as buying a home. While you are not worried about saving up for a down payment, selling a home has its own laundry list of stressful points. Finding the best listing agent to guide you through this process will alleviate most of the friction so that you can focus on finding the next owner of your home. Selling your home can be incredibly lucrative and increase your net worth drastically. Getting this process right will pay dividends in the future.
(1) National Association of Realtors. Certified Residential Specialist. Last Accessed February 21, 2024.
