Following are some of the warning signs we believe anyone selling a home should be on the lookout for when choosing a Realtor©. If the Realtor© displays one of these characteristics, it doesn't mean you should automatically reject their services, but it should be taken into account when making your final decision.
Does the Realtor© try to talk you into an exclusive listing? This is the number one warning sign to watch for. An exclusive listing occurs when a Realtor©/Broker attempts to sell your home without putting it in the computerized Multiple Listing Service for all realtors in your market area to see. The Realtor©/Broker tries to find the buyer themselves and is attempting to earn both ends of the commission. As a general rule, you want as many potential buyers as possible to see your home. Normally, the only ones who benefit from an exclusive listing are the Realtor©/Broker and the buyer.
Although there may be circumstances where this approach seems desirable (e.g. there is a new baby at home and the seller wants to limit the number of people going through the house ) there is almost always a way to attract a significant number of potential buyers and still guard the homeowner's privacy without using the 'exclusive' approach. It may be more work for the Realtor©, but will give the seller a better chance of receiving the maximum for their home.
One final comment on this subject. If your Realtor© knows of someone who wants to purchase your home, the buyer is not going to disappear if you put your home in the multiple listing, and, in fact, may be willing to pay more.
Does the Realtor© work primarily with listings? This is a warning sign, but you should not necessarily exclude a Realtor© who works primarily with listings. The reason this is a warning sign is twofold. First, many agents who work primarily with listings are in the business of getting listings, not servicing them. Once they have a listing, they move on to the next one. Secondly, you want your representative to understand the psychology of the person buying your home. If the Realtor© doesn't normally work with buyer's, how well will they understand the buyer's perspective during negotiations?
One final note: if you are looking to purchase in the same market as you are selling, you will probably want to use the same Realtor© to buy and sell; in this case, you definitely want someone who understands the buying side of the business and the overall market.
Does the Realtor© tell you that open houses are a waste of time? First of all, open houses are not a waste of time (see Our Marketing Strategies Page), however, you may decide that open houses are not right for your lifestyle, and that's okay. But don't tell this up front to the Realtor© you are interviewing. Ask if they believe in open houses. If they do not, it may be that they don't want to spend the time doing them. They should. That is what you are paying them for. If they try to talk you out of holding open houses, you should be concerned about how hard this individual will work for you.
Be concerned if you are told your home is worth considerably more than you thought. Be aware if you are told your home is worth more than seems reasonable. It may be that the Realtor© is quoting an unrealistically high price so that you will choose them.
Note: there is more danger in listing a home at too high a price than too low. If too low, the market still has a chance to self correct through multiple offers. If too high, you will rarely get full value.
Will you be turned over to an assistant? It is all right for a Realtor© to have an assistant to complete mundane tasks, and, in fact, should free up more of the Realtor's© time to work with you. But the assistant should not be handling functions that you are paying your Realtor© to do. The Realtor© should control the escrow process and not turn it completely over to the assistant. Will the Realtor© be at all the inspections? Will the Realtor© be the one handling escrow issues with the buyer's Realtor©? Find out what the duties of the assistant are.