10 Reasons To NOT Hire An Agent

Reason 1 – They Are A Close Friend (or family member or Friend of….)

You want and need an Agent that you are comfortable having open, honest and direct communication with. This can be nearly impossible if the Agent is a close friend or family member. Not only could it be tough for them to tell you what you may not want to hear about the list price, staging, marketing showing feedback etc., and/or responding to offers on your property, you may also find it equally hard to convey your frustrations and concerns about the activity, marketing, feedback etc.

Friend or family member aside professional successful agents can appreciate that selecting an Agent to sell a home is typically the largest single decision you will make and its business first and last.

Reason #2 They Were The First Agent To Respond and/or Meet With You

While you want an Agent to be responsive you also want to make sure the agent’s quick availability is not because they are not successful and have nothing else to do. If you called two surgeons, in need of surgery, and one doctor told you they could schedule surgery any day, anytime in the next 3 weeks and the other said they could work you in to a handful of openings they have over in two weeks... which doctor would you select?

It’s also always best to look at more than one presentation and consider the advantages and disadvantages of working with each agent. Making an impulsive decision when you are caught up “in the moment” could be difficult to correct later. The most important time for selling you home is the initial 30 days it’s on the market. While you may be able to switch agent’s later you cannot get back those 1st thirty days and unfortunately statistics prove that the longer it takes to sell your home, the lower price your home will ultimately bring.

Reason # 3 – They Agreed To List The Property At My Desired Sales Price

Good agents are not in the business of Listing homes they are in the business of Selling homes. So, start by asking yourself if you want to List or want to Sell your home? Then understand that determining a Sales Price is not an exact science. So, it would be very common to have different agents tell you slightly different sales prices. Make sure that every agent shares with you the current and recent sales that they believe will impact the sales price of your home.

Keep in mind that there are 3 factors that will impact what your home should sell for but none of these items include what you as the seller think it should sell for, how much you previously paid for the home, how much you currently owe or how much you need to sell the current place for in order to purchase your next place. We have all heard the phase that lawyers who represent themselves have a fool for a client and we all understand why physicians should not diagnose or treat family members. Similarly, you as the seller, may not be able to be objective about how potential buyers will feel about your home.

Also, agents that just tell you what they think you want to hear regarding a list and sales price are showing an indication of a poor negotiation skills. If your Listing Agent cannot site to you the relevant comparable data that supports their price, or any price of your home, then what will that same agent tell a buyer’s agent who has done their own homework when the buyer's offer reflects a lower price than you as the seller had anticipated.

Good agents realize that the value of your home is 1/3 about the home itself. The location, finishes, size, configuration floor plan etc.

1/3 of the value of your home is about what else a buyer can buy at the same time for comparable dollars with similar location, finishes etc. Note that if a comparable home is listed for less than it should be, than until that home sells, then your home’s value will also be lowered. Why would a buyer spend more money for your home if it’s very similar to a lower priced comparable property?

The last 1/3 of what a home is worth is based on the comparable sales in the last 6-9 months. Since most buyers will need to have a mortgage if the purchase price of the home is not supported by the appraisal than lenders will not provide a mortgage regardless of how much a buyer loves the home. In a typical/normal real estate market, when a home does not appraise you as the seller will be forced to lower your purchase price or more often than not a deal will die.

Good agents will also discuss the impact of proper pricing on both your timeline and the ultimate sales price. Although perhaps not what you want to hear, good agents will be very open and direct. They will offer to show you the active listings that buyers might consider when also considering your home. Great Agents won't just tell you what you want to hear and then hope the agents that show your home will do their dirty work for them telling you the price is to high etc.

Reason # 4 – I Did Not Need To Check References... I’m A Good Judge Of Character

There is an adage that says, "The slower you go, the faster you go." That's true of making a snap judgement about who to have list your property. Part of your process should be to determine if the agent is competent and very familiar with the specific portion of the local market that includes your property. The best way to do that is to check up on references. Ask for references on recent sales — check up on references of recent customers. Be sure to find out how an agent’s customers feel about their overall selling experience including the agent's ability to deliver both the anticipated list price and the expected days on market.

Remember that how long an individual has been in real estate isn’t necessarily all you should look for. Experienced agents can grow jaded and not work as hard – newer agents sometimes make up with enthusiasm and effort what they lack in experience. Likewise, a newer agent that has done 3-4 transactions in your local area will likely be a better choice than an older "more experienced" agent who hasn't done any recent transactions in your area.

Reason # 5 – They Charged The Lowest Commission

We have all heard the phase “You get what you pay for!” The notion that a home can or will sell itself, that all agents are the same... so why pay more, or that the only important objective is to get the home in to the multiple listing service, are clearly not true or else all homes listed would sell in 30-40 days or less.

Good Agents will market your home not only to potential buyers but to other agents with effective marketing and exposure that will cost more.

Commission not only compensates your listing agent, but it compensates the buyer’s agent. And lower commissions typically mean a lower commission for the Buyer’s agent. We would like to think all agents remain objective and put their clients’ interests first. Still, when a buyer is trying to decide between two similar properties and looks to their Agent for advice, even giving any benefit to the doubt to the agent, if all other things are equal and the other listing pays more than your lower commission listing then which property do you think the agent will probably say is a better fit for their buy etc.

Lastly, do you want an agent Negotiating on your behalf, with a buyer’s agent, when they do not have great negotiating skills. If an agent is not able to able to successfully negotiate even a typical market rate commission for themselves, then how successful do you think that agent will be in negotiating the highest sales price for you?

Reason # 6 – The Agent Is What Counts – Not The Company

Beyond the List Price, selling your home is first and foremost about “exposure.” While there are exceptions to every rule, and so some agents may be very effective on their own through a smaller office or a “boutique” agency, typically larger firms offer their agent’s more and better resources.

For example larger brokerages generally have more marketing resources available to their agents… resources like expanded internet presence to increase the odds that all buyers will be made aware of your property. Things like access to showing services, with longer office hours to make sure that a buyer’s agent can easily schedule a showing when their client is available, and specialized relocation services team that can expose your property to buyers that may be moving to the greater Indianapolis area.

Lastly large real estate companies often have many more agents. This is important because when your house is newly on the market, the company may stage an “office preview” where every agent in the office comes through and tours your home. Ultimately your goal should not only be to expose it to the most buyers. You also should want the greatest exposure to the most agents since every agent who views your home, and is impressed, is effectively another agent on your sales team.

Additionally, larger companies are often better at offering ongoing education to their agents. As a result, your agent may be better qualified and prepared to offer a quality service. Although most states require real estate agents to enroll in “ongoing education” to keep pace with changes in the real estate market, many agents only take the “bare minimum” in ongoing education courses. Sometimes, larger offices are just better at convincing their agents to go beyond the minimum.

Reason # 7 – All Agents Passed The Same Test So They Must All Know The Same Things

The real estate profession is constantly changing and as mentioned above, the best real estate professionals stay abreast of those changes by continuing their education. Some go beyond the required minimum requirements.

Additionally, great agents have a focus in their practice. That means they may know more about your community, your neighborhood, builder etc. That knowledge not only helps them better price and market your property, but it also gives them a better ability to provide clarity and insight to a buyer’s agent which can mean the difference between a great offer and no offer!

Reason # 8 – The Agent Will Hold An Open House Every Week

Open houses can and do sell homes, but usually not your home. Only a small percentage of the homes held open are sold as a direct result of the open house. More often, “open houses” are a way that real estate agents’ “prospect” for potential clients. If they develop a rapport with those visitors to your open house, then they can find out about their housing needs and sell them the home that most closely matches those needs. Meanwhile, the person who eventually buys your home may be visiting someone else’s open house.

Good agents are not counting on an open house as the way to sell the property. They have proven and effective marketing programs to highlight your property. The most effective marketing is not directly to the public, but to other agents. By getting other agents interested in your home, your listing agent multiplies your sales force beyond just one individual.

Reason # 9 – I Want An Agent Who Lives In My Development Or Neighborhood

Reason 9 – I Want An Agent Who Lives In My Development Or Neighborhood

Knowledge of the local market isn’t only acquired by living in the immediate neighborhood. While, your agent should have intimate knowledge of recent sales, comparable places, schools, businesses, and so on, living in the neighborhood does not automatically guarantee that an agent will be fully informed.

Many buyers worry that an agent with a vested interest in a neighborhood's sales prices as an owner themselves, may be selectively sharing only the positive vs the both the good and bad about a neighborhood or development.

Reason # 10 – The Agent Listed More Homes Last Year Than Anyone Else

That should only be the beginning. What is more valuable — an agent who listed 32 homes and sold 25 – or an agent who listed twelve homes and sold all twelve? So, you need to ask some questions. How many of their listings did not sell? How many were reduced over and over before they sold? what was the average sales to the initial list price percentage? How long were the houses on the market? How smoothly was the process handled? How accessible was the agent when there were questions, concerns or problems?

Quantity is important, but only if all the quality questions have been answered satisfactorily.

Quantity may also come at an expense like an attention to detail and great customer service. One of the best ways to determine if you will be a big fish in a small sea, or a small fish in a big sea, is to call the agent. Do they only publish their office phone, or do they publish their cell phone? When you call the office do you get a live person or do you often, get a recording? When you get that recording are you being told that the agent’s time is more valuable than yours since they will only accept your call during limited hours or days? Realize that access to the agent, for you as a seller, is the same access the buyers and their agents will have! If buyers can’t easily and quickly reach an agent, they will move on. If other Agents can’t easily and quickly reach and agent to ask a question or get information to submit an offer that agent’s buyer may grow frustrated and also just move on!

The best agent is the one who has a great understanding on what the home should and will sell for, and then will do the most effective job of marketing the property, negotiating the most favorable terms and conditions, and communicating with the you and other Agents to make the process as smooth as possible.