Imagine that you want to invest in the market. Imagine that you’ve been saving up for years and have thousands of dollars accumulated. Would you go to the first stock broker listed in the yellow pages and ask him for advice? How about if he sent you a postcard in the mail that told you he was the best stock broker in town? Would you trust him then? Of course not!
When you are looking for investment advice you go to an established broker. You go to one that has a good reputation and one that has experience. If that is true for people’s equity investments, then why don’t they put as much time into researching the one that will market and sell one of their largest assets, their home? In this article I want to look at how to pick a Realtor in a slow housing market.
In 2005 the National Association of Realtors (NAR) took a survey that revealed over half of its members have four years or less of experience under their belts. This slump that we’re seeing in the housing market is the first in 11 years. That means that more than half of the Realtors in the United States have never seen a slow housing market! So what do you look for in picking an agent? Well, I think you already know my first point – Look for a Realtor with experience.
Why is that important? It’s important because there is a big difference in a market where houses sell in a matter of days with offers higher than the asking price (like we’ve seen over the past several years) and a market where homes may sit for months before any offer is submitted (the market that inexperienced Realtors have never seen.) In this market a buyer can literally look and look and look until he finally goes home and says, “Forget it! I’m not moving. There’s too many homes to choose from.” (No kidding I actually heard that this week.) You need a representative that knows how to market your home. That skill comes with experience.
That leads me to my second point. Look for is an agent that uses effective marketing channels. At Realty 1 (the real estate investment firm that I am involved with) we advertise above and beyond the local Multiple Listing Service (MLS). For instance, we advertise all of our homes on 14 different websites, we have a 24-hour 1-800 number dedicated to each property, we send out flyers, we have open houses, we hold brokers opens, and we send our listings to several relocation services around the country. We track all of our advertising channels and we know what works. Find an agent that knows how to market.
Finally, look for a Realtor that has a good personality. This seems so simple, but so many people miss it. They look for the guy that is flashy; the guy that says things like “I can get you top dollar on your house.” When you’re interviewing your next prospective Realtor look at how your conversation is going. Does he seem warm and friendly? Does he seem genuine? Does he have your interests at heart? If he makes you feel uncomfortable, think about how prospective buyers will feel that come to look at your home. Don’t fall for the slick Realtor that uses flashy words and phrases that put dollar signs in your eyes. Look for the one that you can work with and the one that you think will make your buyers feel at home in your old house.
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I totally agree, you NEED to have a realtor with years of experience. Especially in this day and age where for the first time since the great depression there is negative savings. You need someone who will steer them in the right direction.