When you hiring a Realtor to sell your home, there are many things to consider. For the majority of people, signing a listing contract is a difficult decision, especially if they do not have full trust in the real estate agent or broker. In order for you – and your agent of choice – to feel completely comfortable with the contract and the sale of your home, here are some questions you might consider asking, and some things to ponder before signing on the dotted line.

Listing Contract Details: How long is the listing for, and what is the provision for an extension if required? Can you get out of it at any time should you be unhappy? Is there any clause preventing you from re-listing your home with another Realtor within a certain time period in the event that you either cancel the listing or it expires (this is extremely common and catches many homeowners off-guard)?

Commission: While it is the daily challenge of real estate agents to justify their commission, the truth is that most are not worth the commission they charge. While you must remember that the agent does not see all that money (the commission is split between the brokers representing the buyer and yourself, the seller, and then part of that split is given to your actual agent), it is appropriate to ensure the person you hire to sell your home is going to earn the money. How much advertising will they be doing for your specific home, and where, and how often? How will they be letting the neighborhood know (many successful sales come from friends of locals who have visited and loved the neighborhood)? What is their action plan, and how will it change if the house doesn’t sell quickly? Have they given you compelling reasons for how to price your house? What will they do to make your home stand out and give it a competitive advantage in the marketplace (see our ‘Listing Home Inspection‘ article for a great example)? Once you have found a Realtor who answers these and other questions to your satisfaction, then be prepared to pay a reasonable commission, as a good Realtor is worth it.

References:My former broker likes to say that every Realtor promises the sun, moon and stars when giving a listing presentation. However, actions speak louder than words and this is where the rubber hits the road. Ask for examples of promotional pieces your eager agent has done for prior listings – a good agent will have brought along a portfolio. Ask for references and call and speak with them. Find out how satisfied former clients are with the service and professionalism of the agent/s, and whether they stood out and how. Did they sell the property, and what is their listing to sales ratio (ask the agent)? Did the agent call and communicate regularly? This is a BIG issue for many homeowners, as their agent becomes less and less communicative as time goes by. Make sure you hire someone who is going to keep you in the loop, no matter what the news is.