Choosing a real estate agent is the first and most important step in the property selling process. The sale of your property may be one of the biggest, if not the biggest financial transaction of your lifetime. So, to find an agent who can help you achieve your selling goals, we’ve collated an expansive list to consider before making your final decision.
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9 steps to choosing the right real estate agent
When it’s time to choose the right agent to sell your property, you ideally want someone who’s motivated, skilled and has an abundance of local experience. After all, the difference between a good and a great agent can be tens of thousands of dollars. So here are some integral steps to follow when choosing the right agent for you and your home.
1. Take a good look at their sales history
First, it’s time to do your research. When you’re comparing real estate agents, there are a few key factors to focus on:
- How many properties the agents have sold, and the subsequent sale prices.
- Their number of current listings.
- How they advertise both their listings and agency.
- How quickly it took to sell other properties in the area.
When you’re chatting to an agent, you can also ask if they’ve had recent comparable sales. This includes not only the size of the property but also the property’s era and style. There’s a vast difference between a modern studio apartment and a five-bedroom family home in the suburbs, so you want an agent that has experience selling your property type.
You also ideally want to choose an agent who has a proven track record of strong results in your area. Average days on the market and auction clearance rates give you an insight into the service you can expect from the agent.
You can compare agent and agency sales histories at LocalAgentFinder, along with commission rates, marketing fees and homeowner reviews.
2. Ask about their local knowledge
It’s imperative you find an agent with a deep understanding of the local market. When you hold agent interviews, ask them how long they’ve worked in the local area and don’t be afraid to test their knowledge. For example, ask them what they know about nearby schools, zoning, the average demographic and public transport links to get a sense of their experience.
You preferably want to find an agent with local knowledge who also has experience selling properties similar to your own. This is beneficial for a number of reasons, but most importantly, they’re likely to have a comprehensive database of potential buyers before your home is advertised to the public.
If agents have sold other properties similar to yours, especially recently, their database will be filled with committed buyers who are actively looking for a property but have missed out on recent sales. The best part is that these buyers will be highly motivated and likely to pay full price. No homeowner can say no to a strong and quick sale.
3. Discover what’s included in their marketing strategy
The success of selling your home comes down to how well your real estate agent advertises your property. A good real estate agent will identify the key buyer demographic and structure their advertising campaign accordingly. They’ll use a mix of traditional and digital marketing methods to attract as many buyers as possible.
It’s a good idea to ask whether your real estate agent will advertise using the following:
- Online listings on real estate portals such as realestate.com.au and domain.com.au.
- An online listing on their agency website.
- Listings in print media such as local newspapers and magazines.
- A signboard for the front of your property.
- Brochures or flyers for inspections.
- Professional photography.
- Email blast to their database.
Some real estate agents will go the extra mile to advertise your property on their social media platforms and use Instagram and Facebook ads to their advantage. Furthermore, creating virtual tours using your property’s latest technology and drone photography can give it an edge over the competition. That extra mile might also include after-hours private appointments that better suit the buyer demographic.
An excellent real estate agent will know what buyers in your area are looking for. So, your real estate agent may also suggest different ways you can style your home to attract more prospective buyers. If you’re looking to save on marketing costs, you can talk to your real estate agent about which advertising channels to cut and which to keep.
Related Post: What to look for in your real estate agent’s advertising strategy
4. Compare agent commission rates
It’s always a good idea to look at agent commission rates. These rates can vary greatly depending on the state you’re in and whether you live in a metropolitan versus regional area. Generally, we see higher commission rates in regional areas, where there is less competition among agents to secure a property listing.
Choosing an agent with a lower commission rate could save you thousands of dollars. However, choosing an agent with a higher commission rate generally means they’ll be motivated to secure a higher selling price, as a higher price means more money in their pocket too.
However, it’s important not to rely solely on agent commission rates when choosing an agent. Fortunately, you can find all the data you need and more here on LocalAgentFinder. To get an idea of how it works, see the example agent results page below, where you can view sales history, commission rates and agency insights.
If you’d like to compare agents in your area, you can register here in just a few minutes.
5. Read homeowner reviews
To boost your confidence and get an understanding of agents’ personalities, skills and attributes, it’s a good idea to do your research and check out reviews from other homeowners in your area. At LocalAgentFinder, you can get an idea of the agent’s service, skills and experience.
You can also discover if they’re a top negotiator, provide accurate valuations and have a strong team working hard to achieve the best outcome for your property. LocalAgentFinder asks homeowners to review agents at the end of their selling process, so we can share insights on what real estate agents in your local area excel the most.
6. Book in a property appraisal
As soon as you have compared a few agents online, it’s a good idea to book an appraisal with your shortlisted agent/s. Experts recommend getting two to three appraisals from potential agents to compare.
A market appraisal is when they visit your house and give you an estimate of the property value. The appraisal process is based on the real estate agent’s professional knowledge of the local market, mixed with an assessment of the property’s physical features.
Remember, the agent with the highest valuation isn’t always the best agent for the job. Compare their valuation with your research to find the right agent.
You can book a property appraisal at LocalAgentFinder.
For a complete guide on preparing for a property appraisal, check out our article:
How to Prepare for your Property Appraisal7. Interview real estate agents
Once you have booked your property appraisal, this is the perfect time to prepare yourself with any additional questions you have for your real estate agent. You can interview the agent while completing their appraisal or ask to interview them beforehand.
Here are some questions to consider asking:
- Can you tell me about comparable properties you’ve recently sold, including how long the property was on the market, the buyers and the selling price?
- If going down the auction route, do they have an in-house auctioneer?
- Are your colleagues incentivised to introduce potential buyers?
- What are your fees? This includes commission, auctioneer fees, if applicable, marketing fees and other costs.
We’ve prepared a handy checklist you can download and use as a question guide to help you appoint a suitable real estate agent.
It’s essential you feel comfortable with the experienced real estate agent you choose to sell your investment property or home and that they have an amiable communication style. You want to work with someone who has your best interests in mind and that you’re confident can guarantee a successful sale at the highest price possible.
8. Find out how they interact with potential buyers
One of the best ways to determine how agents interact with potential buyers is to see them at open house inspections. Once you have your shortlist, attend the inspections of a few potential agents to discover how they present their listings and interact with buyers. The right real estate agent knows how to engage with potential buyers and entice them to make an offer.
Here are some questions to ponder while attending open homes:
- How does the agent communicate and interact with attendees?
- Did they greet you at the door?
- Were they proactively highlighting the home and the local area’s best features?
- Could they effectively answer all of your questions regarding the property for sale?
- Did you receive further communication from them following the inspection?
- How effective is their marketing style?
If they tick all of these boxes, you may have found the right agent for you.
9. Agree on a suitable method of sale
As you make your final decision on an agent, you’ll want to feel comfortable with your chosen method of sale. Common selling methods include:
- Public or private auction.
- Private treaty.
- Tender/expressions of interest.
- Negotiation.
- Selling off-market.
The right choice will depend on your location, the market conditions in your area, your real estate agent’s experience and a myriad of other factors. A good agent will know the most appropriate method of sale and the best price for your property.
Real estate agencies may charge you more for an auctioneer if you’re selling via auction. It’s a good idea to find out who will be auctioning your house and whether they’re new to auctioning property or have years of experience in the market.
A shortlist of real estate agent responsibilities
In case you didn’t know, here’s a list of what you should expect from a good agent:
- Organising the selling process from beginning to end. They work with homeowners to set the listing price and then connect with buyers to get the best price for their clients. This might also include undertaking an auction if applicable.
- Advertising properties. This includes organising photography, writing compelling content to highlight your home’s best features and listing the property on real estate websites.
- Holding open homes and subsequently presenting you with offers.
- Handling negotiations, facilitating settlement and ensuring you meet all legal and financial requirements.
How to choose a real estate agent – what’s next?
Now that you’ve got an idea of the best approach to choosing the right agent, you can begin your search at LocalAgentFinder. You’ll be able to access independent advice and compare an agent’s commission rates, marketing fees, sales history and homeowner reviews for the top performing agents in your area so you can make an informed decision.