Top Questions to Ask your Real Estate Agent When Selling
What to Ask Your Real Estate Agent When Selling Property
When selecting a selling agent to represent your property, it’s crucial to ask the right questions to ensure they align with your goals and have the experience necessary to achieve the best outcome. Here are the top questions to ask your real estate agent when selling, along with key insights into identifying potential red flags.
1. What is your track record with selling properties in this area?
A must-ask question to assess their local market expertise and past performance. An agent with strong local knowledge is more likely to achieve a better outcome for your property.
2. What is your marketing plan for my property?
How will your real estate agent promote your property? This should include online listings, print ads, open homes, and digital media. Understanding their marketing reach can give you an idea of how widely your property will be seen.
(Follow-up if needed): Do you see drone shots as a waste of money or the best thing ever?
Red Flag: Not liking or using drone shots can signal a lack of modern marketing techniques, which may result in your property not being showcased to its full potential.
This is an important question to set realistic expectations and to understand their timeline forecast. While no one can guarantee a sale within a certain timeframe, an experienced agent should have a solid sense of the market.
Red Flag: Not dealing with buyer’s agents can limit your property’s exposure to a wider buyer pool. Buyer’s agents can represent serious buyers who have already done their research and are ready to make competitive offers.
A proactive agent will offer specific suggestions for repairs, improvements, or staging that can enhance your property’s appeal. Their recommendations should be practical and designed to maximise your property’s value.
This is their opportunity to highlight what makes them stand out from the competition. This question will give insight into their unique selling propositions and how they’ll bring added value to the sale of your property.
This will help you understand their process for pricing, including whether they rely on market data, their experience, or buyer demand analysis. An accurate appraisal is crucial to ensuring a successful sale, as pricing too high or too low can affect how long the property sits on the market.
Be clear on what you’ll be paying and if there are any hidden costs (e.g., marketing, admin, or auctioneer fees).
Important Note: If the agent is too willing to discount their fee, they may do the same to your property and lack the understanding of how to represent value properly. Discounting their fee too quickly could indicate that they may undervalue your home and negotiate poorly on your behalf.
Red Flag: Not standing by their appraisal range, along with the commission setup from question 11, signals a lack of confidence or accountability. An agent should be able to justify the range they propose and be willing to stand behind it.
Important Note: If the agent replies with something like, “The appraisal range I’ve given you shows sales over the last 3 months. The market is always changing and could change overnight,” this worries me.
However, if the agent says something similar but framed differently, like, “The appraisal range I’ve given shows sales over the last 3 months, and I’m seeing the market maintain those prices over the next 3/4 to 4/6 weeks. If you take 3 months to get the home ready for market, then we may need to revisit the appraisal,” I feel more comfortable with this. It shows they have a good understanding of the current market in the local area and where the market is currently at. This kind of response signals confidence in their short-term forecast while being realistic about potential shifts in the future.
For example: If the sale price falls below the price range, you agree to 2% flat (including GST and marketing fees). If the price is within your range, we pay your standard fee and marketing fee, and if you achieve $40,000 or more over the range, we pay 3.3% (including GST) along with the marketing fee, or an increase of 0.55% over your standard fee.
Important Note: This is the most important question in my opinion. It will reveal what type of selling agent you have.
If the agent appraises high to get your business and later manages your expectations by showing market results to justify selling at a lower price, they will likely dislike this structure, as it holds them accountable for their appraisal range.
On the other hand, if the agent lists low, they will likely love this question and get excited by the performance-based incentive.
If the agent is neither here nor there about this structure, they would be your top pick.
By proposing a tiered commission structure as in question 11, you can gauge whether the agent is truly confident in their appraisal range or if they are hedging their bets. This will quickly reveal how strongly they stand behind the price range they’ve given and whether they are prepared to be held accountable for achieving it.
Communication is key, and this ensures you’re kept in the loop regularly. Ask how often you can expect updates and whether they will be by phone, email, or in-person meetings.
Red Flag: Not being able to provide recent client references can indicate poor performance or client dissatisfaction. A trustworthy agent should have recent and happy clients who are willing to vouch for their work.
Ensure these are all questions you ask your real estate agent when selling
By asking your real estate agent these questions and paying attention to the red flags, you can make an informed decision when choosing a selling agent. Selecting the right agent is critical to the success of your property sale, so it’s essential to ensure they align with your goals and expectations.
Questions 10 and 11 are my most important questions to ask your real estate agent when selling.
The agent could answer all the other questions poorly, but if they are on point and give confidence in just these two questions, they would make my shortlist. Of course, I would choose the agent that answers all the questions well, but these two are the key indicators of a good agent.