Choosing Rght Broker is Crucial to Sell Property (Bill McClard Commentary)

When it’s time to sell real estate, there should be some serious thought put into which agent to use. Just as one would not have a dermatologist perform heart surgery, or a divorce attorney handle a bankruptcy case, real estate brokers should be selected by their area of expertise.

Selling a home, a farm and an industrial, office, or retail building would likely require three different brokers in order to get the best representation available to you the seller. Do your homework and a good agent will make you money.

Having listed and watched the sale of real estate for 29 years, I am continually amazed at the number of transactions that go astray, or even worse, go into litigation because the broker didn’t know or understand the complexities of the property being sold.

In many cases, the property being sold represents the vast majority of the seller’s assets. Mistakes in marketing and negotiating the sale of a property can cost a seller a lot of money.

There are several questions that I would ask a broker before listing a property (see chart, p. 25), starting with how long they’ve been in the business or in a given market. You don’t want a broker to learn on your property unless you tchoose to allow that to happen.

Ask about their industry-accepted designations and training. Professional designations are the best indication of professionalism in the real estate industry. Brokers with designations have spent many hours to learn the many different techniques necessary to properly market properties and complete transactions. Examples include CCIM (Certified Commercial Investment Members), SIOR (Society of Industrial and Office Realtors), GRI (Graduate Realtors Institute) and CRS (Council of Residential Specialists).

Then there’s the process of evaluation. An appraiser uses three analysis methods. The methods are: The Income Approach (most often used for investment properties), Reproduction Approach and Comparable Sale Price Approach. Your broker should use a minimum of two of these methods to determine the value of your property.

Comparable sales are the market standard for realistic pricing. The rumor mill typically contains a lot of false information. Revenue stamps on a deed are by law correct. Remember there are no two properties exactly alike, but close calculations can typically be made when information is gathered from other properties on the market.

Experience with similar properties to the one you’re selling gives a broker great insight. Ask for the names of sellers of similar properties for an evaluation of the broker’s skills.

Marketing is another key component. A broker should show you brochures and advertising he has done on other properties listed. He should explain what efforts will be taken to find a buyer, i.e. signs and advertising, bulk mailings, follow-up procedures for interested parties.

Buyers moving to an area from long distances will search the market before they come to an area to buy. A Web site helps meet the needs of prospective buyers and will expand the marketing area of your property.

Another crucial factor concerns how many properties an agent is currently listing. Are they stretched thin?

A new broker with two listings will have your property at the top of his or her “to do” list. A broker with fifty listings may have more than can be reasonably serviced. A broker with a staff of assistants can obviously handle many more properties than a new broker.

Sales volume shows the true colors of a broker. Great brokers will be able to show turnover in the properties they have listed.

You want an agent who is full time. Trying to keep up with the market and pricing changes can be a full-time job by itself.

And finally, check the real estate company’s profile.

Let the agent sell you on the services of their company. A company with several top agents tends to have business gravitate to that company. A good real estate company can help a broker in many ways. Companies allow agents and brokers advertising opportunities neither could achieve alone. The company’s reputation in the community for having reputable agents is very important. Many companies are very involved in local charities beneficial to the communities where they sell.

After discussing the above questions ask for a list of satisfied customers who have worked with the agent. Good agents should have a list of satisfied clients who are happy to praise the work of their broker.

I believe it is important to talk to more than one broker before making a decision. The ideas presented from different views and differences in values should be of great interest to a seller. If you want a certain agent to work on your property, it is important to list with that agent.

The oldest trick in the real estate business is a broker telling you they thave a buyer waiting if you list with them. Sometimes they will go as far as to tell you they have several people interested in your property. This sounds great, but is usually a scheme to get more listings. If an agent truly has possible buyers he should be willing to give you the names on a one time showing agreement which would guarantee that his prospects are protected for him.

Keep in mind no broker is a miracle worker. The biggest negative to real estate is lack of liquidity. It takes time to properly market a property. Be patient and let your broker do the job you hired them to do. You will be glad you did when the deal is done.

Bill McClard is senior vice president of Lindsey & Associates Realtors. He has served as state president for the Certified Commercial Investment Members as well as the Society of Industrial and Office Realtors.

Gotta Ask

Bill McClard, senior vice president of Lindsey & Associates Realtors, said there are at least 10 questions any prospective property buyer should ask a broker:

t1 tHow long have you been a broker and how long in this market?

t2 tDo you have any industry-accepted designations and how are they beneficial to me? What formal training have you received in dealing twith the type of property being marketed?

t3 tHow will you go about evaluating the price of my property?

t4 tAre you familiar with any comparable properties that have sold intthe market? How old are the comparable sales?

t5 tHow many properties have you sold that are similar to the property I thave to sell?

t6 tHow did you market those properties and how will you market mytproperty?

t7 tDo you have a Web site and is it connected to other sites?

t8 tHow many properties do you currently have listed? Is this consideredthigh or low, and do you have the time or staff to properly serve thetexisting listing and the new one contemplated?

t9 tWhat volume of sales did you complete in the previous year? Are youta full-time or part-time agent?

t10 tWhat type of profile does your company have in the market?

Source for above list: Lindsey & Associates Inc. in Rogers