Four questions to ask your selling real estate agent

What better way to test your real estate agent’s ability to answer tricky questions from potential home buyers than by asking a few curly ones yourself?

Published in the Australian Property Investor (API) Magazine in Australia, this article was written for the December 2006 issue. Please visit apimagazine.com.au for more useful real estate and property information.

Property sellers can’t afford to simply assume their chosen real estate agent will get the best possible price and should test their negotiation skills, according to the Independent Real Estate Consulting group. The group’s director, Robert Williams, says inexperienced sellers often make the mistake of assuming the best of their agent. “most real estate agents offer priceless expertise and do their best to negotiate the best possible real estate deals for their clients,” Williams says. “However, there is a worrying small percentage of agents who are clearly out to look after themselves.” “The idea of asking your real estate agent specific question is simply to feel out how they would deal with a potential home buyer and to assess if they have the ability to increase your sales price.”

“The way they treat potential home buyers is likely to reflect the way they will treat you.” With that in mind, Independent Real Estate Consulting suggests sellers ask agents four tricky questions including:

1. How much do you allow for real estate negotiation?
The real estate agent’s answer to this question will give you a clue as to what you can expect your property to sell for. “The best response from your agent should be along the lines that they don’t allow anything and they’re after the asking price,” Williams says. “in most cases, how your real estate agent responds is often what they’re also telling potential home buyers, so if their answer is ‘we usually allow about 10 per cent’, the best price you’re likely to get from that agent will be 10 per cent under your asking price.”

2. How would you respond to the question, “How long has this real estate property been on the market?’
This is an extremely common question among potential home buyers who want to determine how urgently you need to sell the real estate property – and thus get an indication of how much yhou’re likely to negotiate on the price. “It’s important that the agent does not give out such information,” says Williams. “They need to be skilled enough to answer the question without giving the details away.”

3. How negotiable are your real estate fees?
While many real estate sellers might like to hear that their agent is willing to lower their fees, this can also be a warning sign that they’re too quick to negotiate. “if the agent easily drops their fees without much pushing, you can assume that they may just as easily drop your selling price just to make a sale,” says Williams.

4. What can you teach me about negotiation?
You want your agent to be a skilled negotiator with considerable knowledge and experience of the best approach to dealing with real estate property buyers. This question can help you to decide whether you’ve found the right person for the job. Williams advises, “If you’re not impressed with their response, or don’t learn something worthwhile, then it may be time to reconsider your choice of agent.”

The Right Person
When choosing a real estate agent to sell your home, keep the following guidelines in mind.
a. Shop around. Get the names of one or two real estate agents from other homeowners in your area who have recently sold. Talk to at least three agents.
b. Make sure your agent has a valid license.
c. Get a list of all their fees.
d. Find out if they have good knowledge of your area.
e. Ask if they adhere to a code of ethics.

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