Ten Questions Every Homeowner Should Ask an Agent

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As you embark upon what will be one of the most important transactions of your life – whether buying or selling a home – you should be absolutely certain that you are happy with the real estate agent you have hired to help you manage it. 

To help you with this all-important hiring process, here are ten important questions to ask an agent before you decide on whether or not to hire them:

Question #1

How Close Do You Get in Sale Price Related to Asking Price?

It is important to ask for this information as it relates to the past 60 days.  Given that many agents are not that active in the market, you would be best served to obtain the most recent information possible.  As a seller, your agent’s ability to come close to the asking price is a strong attribute and can mean a difference of thousands of dollars in your transaction.

Question #2

How Many Days on Average Does It Take You To Sell a Home?

What’s the average number of days on the market for properties listed by your prospective agent? Since this statistic can reach as high as six to nine months and in some cases and as much as a year, it is important to ask how your prospective agent ranks on the scale.

Question #3

What is the Rate of Homes Sold on a Monthly Basis?

Knowing the absorption rate of homes similar to yours that are on the market allows valuable insight as to how the market is performing for your particular needs.  Not only does it give sellers a glimpse into the system and how it would translate to their own sale but it also presents a broader view of the entire market in general.

Question #4

What Do You Do Differently To Get Homes Sold?

Especially with the current trying economic times, many agents have been faced with adversities trying to sell the homes on their list.  One of the best ways to learn whether your agent is a self-starter is to find out what they have done in the past when they were unable to successfully sell homes.  Ask why the agent feels the home(s) did not sell and then find out what they are doing differently to get them sold.

Question #5

What Percentage of Deals Do You Represent the Buyer Versus Seller? 

Some agents work primarily with sellers while others work mostly with buyers and still others are experienced with dual-agency deals.  Depending on your needs, you will benefit from an agent that specializes in one of the two.  It is important to ask which side of the fence your prospective agent tends to represent. 

Questions #6

How Many Homes Did You Sell Last Year?

Nothing speaks louder than numbers.  A very important statistic, ask what the total number of homes sold last year was and if possible try to get a more long-term picture of the agent’s performance in this regard. You can also ask for a month-to-month breakdown to see if there are certain stronger months.

Questions #7

Can You Provide a List of the Ten Most Current Clients You Have Worked With?

Rather than rely on the given list of referrals that many agents have handpicked, it’s a good idea to obtain a list of clients that are currently working with this Realtor.  It will provide a much-needed glimpse into the agent’s performance on various stages of real estate transactions.

Question #8

How Much of Your Work Day Do You Dedicate to the Real Estate Industry?

You want an agent that is 100% committed to their  job and if they are focusing more on a day job with real estate being a secondary thing, you run the risk of inaccessibility, lack of knowledge and experience plus lackluster motivation.  Find out how they feel about the real estate industry and whether they are passionate about their work.

Question #9

What is Your Style of Marketing – Proactive or Reactive?

What is your potential agent’s style of working?  Does he or she speak to a large number of people each day? Are they proactive or reactive in nature when it comes to marketing? See how this lines up with your real estate needs.  Are you in a hurry to buy or sell?  Does a laid back agent hinder your efforts? Or does slow and steady work better for you?

Question #10

What Does Your Daily Schedule Look Like?

The typical schedule of a real estate professional can be very telling.  By asking for a copy or general idea of how they conduct their day in terms of their work, you can get a good idea of how much time is devoted to the profession and what kind of business they are running.

Property Investment Now Promises Huge Returns Later

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You have probably heard over and over again lately about the phenomenal buying market out there for property enthusiasts. In fact, even if you are not a bona fide investor it is still a great time to get into the business of investing in property. One of the reasons for this ripe environment to invest and actually make significant amounts of money on that investment is the low costs of obtaining property that we are seeing today.

Today’s Low, Low Cost of Financing

Not only are homes priced lower but also the actual cost to borrow money to purchase the homes is also lower. Not too many years ago the cost of a mortgage was as high as many credit cards are today and when you compound that into 30-year fixed mortgages, the finance charges become astronomical. With today’s interest rates, however, monthly payments for the same house you might have purchased at the old interest rates are much lower.

Let’s look at a $200,000 home. If you financed it back in the 80s when rates were as high as 16% (or more) the total monthly payment amount would be about $2,900. Factor in today’s record-setting interest rates and the monthly payment is more than fifty percent less at around $1,200. This is for the same house!

Home Prices Remain Very Low

After the infamous market crash of 2007, housing prices plummeted and they have remained at or near bottom for quite some time now. For buyers and investors this translates to one of the best opportunities – especially when combining low home prices with record low interest rates. Not only is the home affordable, but so is the cost to borrow money to buy it.

Consider the example above of the $200,000 home. If your budget is $200,000 and you were not buying in today’s market – how much home would you be able to afford within that amount?  Of course, what you would be able to get will depends on location, neighborhood, style of home and other factors. But in general, the amount of house you would be able to afford ten years ago does not even compare to what you can get today for the same amount of money.

Invest for Pennies on the Dollar Now – Enjoy Sizable Returns Later

When billionaire investor Warren Buffett was recently asked about the best investment sectors of today he suggested investing in single-family homes on a 30-year fixed rate mortgage. This advice came in light of current market conditions that end up in pennies on the dollar investment schemes. Buying a home today for under $200,000 will easily yield more than double the returns by the time the mortgage is paid off. Many savvy homeowners today are also making extra payments to shorten the term length of their mortgages.

With the plethora of investors and buyers that are delving into the property market to seize the opportunities out there, many have been turning to any means possible to come up with the down payments. Whether dipping into savings, obtaining a home equity line of credit on an existing home, converting the purchased home into a rental property – buyers are getting creative.
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If you would like to explore your options and find out how you can take advantage of the amazing investment opportunities right now, contact us today. We would love to guide you and come with up with some ideas that work for you.