How To Choose A Listing Agent To Sell Your Home

Five of the biggest mistakes people make when choosing a listing agent to sell their home are:

• Choosing the highest initial listing price
• Assuming all agents provide the same services
• Choosing the lowest commission
• Hiring a friend, relative or neighbor
• Choosing an agent the focuses on signing up listings

Mistake #1. Choosing The Highest Initial Listing Price

A top producing listing agent can show you comparable sales, pending sales and active sales. They can use their experience to guide you in setting a realistic listing price, but you as the owner ultimately choose the sales price and buyers will then confirm if the price is right or not.

If an agent you are interviewing suggests a price that seems to good to be true it likely is. This practice is called ‘buying the listing’ and it is more common then you think. Since no agent can guarantee your final sales price, the listing agent who suggests a high listing price could be attempting to buy the listing now and convince you later to reduce the price. Look for an agent that suggests a realistic value range.

Mistake #2. Assuming The Same Service Levels?

Not every agent in the Palm Springs area offers equal client services or experience. The average agent only completes seven transactions per year (1). In my opinion it’s hard to stay on top of things professionally if you only work at it just a few times each year. And you certainly would not have much experience negotiating those seven transactions on behalf of your clients.

By choosing an agent with a large marketing budget and ideally with their own in-house marketing team, your property will be exposed to a much wider pool of qualified buyers. Reaching a greater number of prospective buyers means a better chance of receiving a good offer and in less time. Newspapers and most print media is no longer effective in selling homes so you'll want to pay a lot of attention to the online media opportunities that each agent presents.

Mistake #3. Choosing A Discount Real Estate Agent

Top agents don’t discount their services. They don’t have to. A discount agent has to cut corners and services and their marketing budget for your property will be at the top of the list.  If the main benefit an agent offers is a cheap service fee, why not ask yourself why? Could the agent be new, desperate for business or possibly unqualified (even paid minimum wage)?

Experienced full-service agents will sometimes negotiate a lower commission under special circumstances. This includes buying or selling multiple properties, or you don’t have enough equity in your property.

One final point on commissions: The difference between an agent that charges 5% and 6% is 1%. Would you come out ahead if your selling price were reduced by just 2% because you choose to work with a discount agent who did not have the resources to effectively market your home?

Mistake #4. Hiring A Friend, Relative Or Neighbor To Sell Your Home

With thousands of agents in the Palm Springs area, many people have a friend, relative or a neighbor in the business. If your friend or family member has a proven track record of success (how many homes did they sell last year?) and they have the resources to effectively market your home that’s great. If they need the work however, hurry on down the road to someone that can effectively market your home. The days of putting up a for sale sign, snapping a few photos and placing the home on the MLS are long gone–or at least they should be!

Mistake #5. Choosing An Agent That Focuses On Signing Up Listings

The ultimate goal for many agents is to list a bunch of homes for sale and then let other agents find them buyers. The industry term for them is Listing Agent. The best agents will also be working with a large number of buyer’s. This greatly expands the pool of qualified buyers for your property. When interviewing agents find out how many buyers they brought to homes in the last 12 months and how many active buyers they are currently working with. The more buyers the better for you!

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(1) Source: National Association of Realtors 2010 member survey