How to Select a Real Estate Agent to Sell Your Property?

Selling a house is sometimes a stressful process for most people especially who are first timers in the real estate arena. Some of the things got out of hand and you are left with a problem that needs an expert advice. Such advices you need are: right pricing of the property you are selling, marketing it to the right buyers, going through the process if its purchase is to be financed by a bank or other financing institution, executing a contract and transferring it to new owner. These are just the few examples that we encounter that we need to consult or hire an expert real estate agent.

In this article, I will discuss a step by step process and some criteria on how to select for an agent that is perfect for you.

Search an agent
Though most of the time the agents are the ones who will search for you, it is not a bad idea that you will be aggressive that you yourself will search for an agent. Here are some suggestions on how to search:

• Ask some of your friends who once sold a property because through this you will get firsthand information on their experience towards the agent.
• Go online and search for brokerage offices in the city you are in. Most of the time this brokerage company have websites where you can see their business registrations, company profile, past deals and transactions, and some testimonial of their former clients.
• Or get into your directory and check brokerage offices near you and have a visit.

Have at least 2 or 3 agents on your list and set up an interview meeting with them.

Interview the agent This is almost unknown to everyone who wants to sell a property that they have to interview the agent before giving him authority to sell your property. You should have the mindset that you are hiring them and that they will be serving you. Here are some of the qualifications you must check:

• Are they licensed? Usually before meeting the agent for the interview you should have already ask him if he is licensed. This is for your security and you only want to deal with a professional. Ask for their license number and verify it in the office of Professional Regulation Commission. You can also verify it online: http://www.prc.gov.ph/services/?id=16
• What can the agent put into the table? Ask the agent if ever you will list a property or authorize him to represent you on a deal, what will they do for you. Is he going to be aggressive in marketing your property? How will he do it? Does he know the market where your property is located? Is he going to be a strong and be the expert negotiator for you? Will they always be available for you? Will he do open houses? These are just some of the question you will ask.

Best rule of thumb: “you must be comfortable and that you can trust the agent.”

Pricing the property
In this part as a seller, you must be open to hear your agent on how he will price your property. Most of the time sellers already have a price in mind but it will do no harm to hear the agent because in the first place they are the expert in this field and they know the market. Also once you get to hear the agent; it will build up your set of qualifications if this agent is right for you.

In cases that both of you won’t come up with a win-win solution for the price, sellers must be ready that the agent will walk away or you as a seller can be up front to tell the agent that you will not hire him.

Put it in writing
Once you, the seller, have selected the right agent for you, the agent will ask to sign an agreement authorizing him to sell or represent you and your property. This document is called the “Authority to Sell.” In the Philippines, there are 2 types of Authority to Sell: the exclusive and non-exclusive. (I will explain in detail on my next post)

Other details in the Authority to Sell are the price of the property, location, the professional fee of the agent, and other expenses.

In case you are wondering about how to pay the agent, his professional fee is already computed in with the price of the property. On the other expenses, its either you as the seller who will take full responsibility or have to be very specific on what expenses you will shoulder. Your agent will guide you through all of this and show you the computation break down of the expenses.

Once everything written above is done, you are now officially in business.

Final thoughts
The success of your real estate business deal often lies on the people who are credible enough to work with you. It is good to take risks and do it by your own, but it is much better to share the risk with someone whose main goal is for you to win.