How To Find & Choose The Right Estate Agent Or Realtor

When selling you have many options on how you list your home but one of the most popular is to use an Estate Agent. So what's the problem? You pick an esttate agent, he lists your property, shows viewers around and you find a buyer ... right? Well if only it were that simple.

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How do you know you are choosing an Estate Agent that you can trust?

This article is going to give you both the information and the questions to ask both yourself and the prospective agents so that you know that you are choosing an Estate Agent who will get you results.

First lets take a look at what an Estate Agent will do for you, as the seller of a property.

They will value your property and give you their opinion of how the market is at that moment.
They will write up your property's particulars. They are knowledgeable of what are likely to be the selling points that will get your property noticed.
They will know who the most likely buyer will be for your property. This is important to know if you are selling a property in an area that you don't know, for example when you have inherited a property.
They will advertise your property - in their window, in local papers, in their own magazine (if they have one), on the internet both on their own website and/or on a national portal (again if they have one and are linked).
A good Estate Agent will have a list of potential buyers that may be interested in your property.
They will handle the viewings - unless otherwise instructed.
They will handle the preliminary negotiations - until the legal team step in at the contract stage.
They might be helpful in arranging mortgages, surveys, conveyencing, Home Sellers Information packs and other important property selling oriented services. Some Estate Agents offer these services however you are under no obligation to take up all or any of them. Be sure that you are getting the best advice and not just the products that the Estate Agent is a reseller for. Check out my article 'Things to ask a mortgage lender' and 'Choosing a solicitor'.
They may be able to suggest how you could improve the look or appearance of your property to help it sell faster and for more...but you know what to do because you have read all of my articles...haven't you?

Always remember that when choosing an Estate Agent, they are working for you to sell your property...not the buyer! You will be paying the Estate Agents fees. So make sure that you are getting what you need from your agent.

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How do Estate Agents Work?

Like I said, when selling a property the Estate Agent is working for you.

Style of Estate Agent
Certain Estate Agents work with certain types of property, Country Properties, Apartments, the run-down end of the market, the suburban family homes etc. This is important to remember because you will be wasting time and loosing potential sales by putting your property in the hands of the wrong type of agent.

Lets say that you have a country cottage and you put your property in the hands of a local Estate Agent who generally handles large country estates. They will not be advertising in the right places for your typical buyer, they will not be attracting the likely buyer so although you may think that they are local, you will be disappointed by their lack of results.

Estate Agent Fees
Agents generally work on a fee that is a percentage of the eventual selling price. Anything from 0.5% to 4% depending on the contract. Consider 'sole' agency agreements and 'multiple' agency agreements. See Question Questions.

You may be able to negotiate a fixed fee, which is becoming more common in the Estate Agency business. See later on 'negotiating the fee'.

Selling the property
Once you have agreed and signed a contract with the Estate Agent, see 'contracts' later, the Estate Agent will begin to market your property using a number of methods that may include:

The Estate Agents window.
Local & National advertising in the press.
Their own glossy magazine or newsletter.
Online on their own website and/or larger portals such as 'primelocation' or 'rightmove' (see below for details).
'For Sale' boards.
Calling his/ her contacts.

See later in asking questions, on finding out how they propose to market your property.

Once an offer is made
The Estate Agent will be the point of contact for the buyer and seller of the property and often the point of contact for the solicitor, mortgage lender and third party surveyor.

The Estate Agent should be abreast of how the negotiations are progressing.

Remember that your Estate Agent will be holding the keys to your property and be entering your home with strangers.Be sure that you are comfortable with the Estate Agent that you commission to sell your property.

Questions to ask and things to consider when choosing an Estate Agent

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By recommendation?
One of the best ways to choose an Estate Agent is to have a personal recommendation from someone you trust or to use an Estate Agent that you have used before. However remember:

In either of the above cases, it is only useful if the agent handles the type of property that you are selling (see earlier point on 'Style of Estate Agent').
In either of the above cases, it is no use if the recommended agent of agent that you previously used isn't local to the area of the property you are selling.
Do not automatically choose the same Estate Agent that you are buying from.

Check out the local high street!
Take a wander down the local high street and have a look in the Estate Agents windows. Look for agents that are:

Selling your sort of property.
Have plenty of properties in their windows.
Are showing properties that have 'Sold' or are 'Under Offer'. Keep an eye out to see that properties change in the window and aren't ones that were sold months ago.

Drive or walk around the area
of your property to see what agents have 'For Sale' boards up, and which ones have 'Sold' or 'Under Offer' on them. This is an indication of a successful Estate Agent (if they are getting the right price for the properties).

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Questions Questions - To ask prospective Estate Agents

When you are ready to call up and arrange for at least 3 Estate Agents to come round to your property to give you a valuation and for you to ask them questions about how they operate.
Make sure that you organise a day that is convenient for you not them, and allow at least 30 minutes for each visit, 45 if you don't want the embarrassment of them meeting on the doorstep...though they all know each other and will be civil.

Have your questions ready:

What is your initial valuation of my property - some agents are a little reticent at giving this figure 'on the doorstep' but ask them for a 'ball park' figure to be going on with.
Who do you think this property will appeal to? - So that you know how to present the property correctly.
What is the current state of the market - are their many potential buyers?
What are similar properties, to this one, selling for? How quickly are they selling? Are they achieving their asking price?
How will you market the property? - Do you guarantee an advert in the local/ national paper and how often will it appear.
How many visits does your website get are you on any of the large portals such as 'primelocation' or 'rightmove'?
How many pictures or property shots does your property have on the particulars or website - Colour?
What other marketing methods do they have? Floor Plans, Virtual Tours (video tour of your property). These are very popular on the internet as potential buyers like to get as much information about a property as they can before they view it.
Are you a member of any of the professional trade bodies? See below?
How long have you been in business? selling in this area?
Are you one of a number of offices/ part of a larger chain? This is relevant because someone who is looking in Richmond, might consider a property in say Barnes or Mortlake...if they are looking for a certain type of property.
Will the agent, who comes to value, be handling this sale personally or will 'anyone' in the office be handling it?
How do you normally conduct viewings? Do you organise evening and weekend viewing or do I have to show buyers around at these times?
What is the tie-in period? i.e. for how long do I have to stay with you before I can go with another agent, if the property isn't selling.
If they are a 'Sole Agency' what are their fees? Can you negotiate with them to incentivise them to work for a maximum price? i.e. if they achieve the asking price they get 1.5% but if they only get 90% of the asking price they only get 1% of the asking price.
If they are one of a number of agencies you need to check with all the agencies to see what their fees are. Some may say 2% but some may say 4%...beware.
Does the Estate Agent have any recommendations on how you could improve the marketability of your property. Remember that I always recommend that you 'stage' or 'Prepare' your property before the Estate Agents come around, to ensure that they value the property at its highest price.

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There is no legal body that regulates Estate Agents however there are two recognised bodies that represent the industry:

The National Association of Estate Agents (naea) - see below for details
The Guild of Professional Estate Agents -see below for details

Also you might find that your Estate Agent is a memeber of:

The Royal Institute of Chartered Surveyors (RICS) - See below for details

Although very little can be done if you suffer poor service at the hands of an Estate Agent, the professional bodies all have 'Codes of Practice' that members should adhere to.

All these questions and considerations should be used so that you can gain a 'feel' for the Estate Agent. Your final choice has to be to go with the agent who not only gives you the most satisfactory answers to your questions but who knows a bit about the locality.

It is really important to feel comfortable with whoever you choose. After all he will be showing your property to the potential buyers. If he puts you off he may also put off potential buyers also.

Useful Resources

Selling protals on the web -
www.primelocation.com
www.rightmove.co.uk
www.fish4homes.co.uk
www.themovechannel.com

Professional bodies -
www.naea.co.uk
www.property-platform.com
www.rics.org

House price portals -
www.mouseprice.com
www.houseprices.co.uk
www.ourproperty.co.uk
www.myhouseprice.com

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Why not send me your article and I'll post it on the website with your name and website link.

There are loads of good ideas on how to 'Use What You've Got' or buy and use second hand furniture and furnishings in The Property Coach 'Home Staging Handbook'.