Seller's Tips

Two of the biggest mistakes home sellers make when choosing a listing broker are selecting a broker solely based on:

• Highest List Price for Your Home
• Lowest Commission

These two criteria have very little to do with hiring a competent broker and, in many instances, are completely irrelevant. Let's look at why.

The Highest Suggested List Price

Brokers can't tell you how much your home will sell for. A good listing broker can show you comparable sales, pending sales and active sales. But YOU choose the sales price and a buyer will tell you if the price is right.

Look for a listing broker who gives you a range

• There is always a price range. It might be apart $10,000 on the low-end versus the high, or the spread might be greater. Many factors determine the range, among which are location, the current market and home improvements needed.

Pricing is calculated skill.

• The best time for an offer is within the first 30 days on market. If the home is priced right, you'll get an offer. If it's priced too high, you might not get any showings at all; buyers make not look at your home and you'll eventually end up reducing the price, buyers may not wonder what's wrong with your house.

Why would a broker be willingly to work for less than competitors?

There is always a reason why a broker or real estate broker would discount a real estate fee. Sometimes it's the only way the broker feels it's possible to compete in a highly competitive business, because the broker can't stand apart from the competition on service, knowledge or negotiation skills.

If the sole benefit a broker brings to a table is a cheap fee, ask yourself why. Is the broker unqualified? Sometimes full-service brokers will negotiate a lower commission under special circumstances such as:

• You're buying a home and selling a home at the same time, giving both transactions to one broker.
• You're selling more than one home.

Importance of Broker Marketing

Marketing sells homes. Ask to review a complete copy of the broker's marketing plan. Know exactly what the broker is going to do to sell your home? Below is the minimum you should expect:

• Professional signage, including broker's cell phone number.
• Lockbox.
• Daily electronic monitoring of lockbox access.
• Follow-up reports on buyer showings / feedback to the seller.
• Broker previews.
• Incentives for broker / office previews.
• Staging advice.
• MLS exposure with 8 to 12 professional photographs.
• Virtual tour.
• Distribution to major Web sites.
• Color flyers.
• Financing flyers for buyers.
• Minimum of 2 open houses, providing its location is a candidate.
• Direct mail to surrounding neighbors, out-of-area buyers / brokers.
• Feedback to sellers on buyer sign calls and buyer showings.
• Updated CMAs after 30 days.
• E-mail feeds of new listings that compete.
• Updates on neighborhood facts, trends and recent sales.

Remember, no single tactic sells homes. It's a combination of all marketing strategies that sell homes.

Characteristics of a Good Listing Broker

Here are some of the characteristics sellers say they want in broker:

• Honesty, trust your intuition, your broker should speak from the heart.
• Networking, this is a people business. Some homes sell because the broker has great contacts.
• Negotiation skills, you want an aggressive negotiator, not an broker who is looking for a quick sale.
• Good communicator, sellers say communication and availability are key to their relationship with their broker.

If the broker won't guarantee performance and release you from a listing upon request, you may not want to hire that broker.