What To Expect From Your Listing Agent
The moment you decide to sell your house, you're faced with a long list of decisions and
chores. A listing agent can help you through the process, from listing to closing.
You're putting a major financial transaction into his or her hands. And once you sign a
contract, you must stay with that agent or firm for the duration, typically two to six
months. You will pay a pre-agreed commission of four to six percent of the sale price of
your home or a flat fee stipulated in your contract. So meet with several listing agents and
ask about their plans for marketing your home. Here's a guide to what you can expect a
listing agent to do for you.
A competitive market analysis
After doing extensive background research, an agent should present you with a detailed and
free competitive market analysis (CMA). The CMA
compares your house to similar homes in your area that have recently sold based on size,
features and market data, including current economic conditions, crime statistics and school
information. Using this information, the agent suggests a listing price.
Recommended improvements
The listing agent tours your home and suggests improvements that will increase its appeal
to potential buyers. Buyers are attracted to houses that don't require much work and your
agent may recommend you do some minor repairs, install new carpet, redecorate or paint.
Marketing plan
Go over an agent's detailed marketing plan thoroughly before you sign a listing contract.
Here are a few common marketing techniques you can expect an agent to include in the plan:
- the "For Sale" sign in your yard, which should identify the agent,
the agent's company and give a phone number. Make sure that there will be somebody on
the other end of that number from morning till night, seven days a week, to answer any
questions from house-hunters.
- fliers that include a picture of your home and a description of its
size and features. A box of fliers can be attached to the For Sale sign. Your agent may
also distribute fliers to other real estate offices in the area, which may have clients
who are looking for a home like yours.
- a preview of your house for other real estate agents. The tour
usually takes place within the first week or two your house is on the market. Ideally,
the agents will return with clients. You may want to offer a perk such as food or a
raffle to entice agents to attend.
- a listing in the Multiple Listing Service (MLS), which is a database
of all the homes in a given area that are listed by registered users (which includes the
vast majority of agents). Your listing agent will write up a listing that details your
home's qualities and attach a photo. Other agents will see it when searching the database
for properties that match their clients' criteria. You may want your house to be listed in
several MLSs, as some areas overlap.
- advertising in local newspapers, magazines and the Internet, which can
generate viewings of your home by house-hunters. According to a 2003 survey of homebuyers
and sellers conducted by the National Association of REALTORS®, 93 percent of homebuyers
use the Internet to search for homes.
- open houses, which -- like ads -- are meant to generate traffic through
your home and create some word-of-mouth interest.
- showings of your home. Your listing agent should coordinate times to
show it to potential buyers and for other agents and their clients to see the house. Your
agent should give you enough warning that viewers are coming so that you can tidy up the
house. He or she should also give you feedback from the people that tour your home, which
will help you improve it for the next showing.
Offers and closing
Soon after your home goes on the market, offers should begin to come in. Your listing agent
can ensure that potential buyers have adequate financing, though you may still require
buyers to have pre-approval from a lending institution. The agent can also accompany the
inspector when he or she examines your house, help you negotiate a sale and estimate closing
costs.