Home Seller Mistakes

Home Seller Mistakes When Choosing A Real Estate Agent

Gustan Cho Associates are mortgage brokers licensed in 48 states

This ARTICLE On Home Seller Mistakes When Choosing A Real Estate Agent Was UPDATED And PUBLISHED On March 23rd, 2020

What could be the mistakes of the home seller when choosing a real estate agent

Julie Hayward Explains About Home Seller Mistakes When Choosing A Real Estate Agent:

Selling a home should be similar to other business transactions, but often sellers make emotional, impulsive decisions that cost them time and money. Here are the most common mistakes:

First Home Seller Mistakes Is Using Family Member Who Is A Realtor

Ever hear the saying that family and business do not mix?

Using a family member or great friend can be a good thing is everything works out, but the home buying process can become stressful and most often does.

Here are some pointers on why using a great friend or family member is one of the main home seller mistakes:

  • Friendship isn’t enough to establish good credentials
  • Use high standards when hiring an agent, just as you would if you were hiring an attorney or a doctor
  • Does your friend or family member practice full-time?
  • If they are only doing a few transactions a year, they may not fully understand the market and trends or have the experience necessary to appropriately serve you
  • They also may not have the time if they do it part-time and have another job
  • If you have an issue and can’t get a hold of your friend because they are busy working at their “real job,” you are going to be frustrated

If a problem arises while selling your home, you can risk damaging your relationship or have a hard decision to make, such as deciding to fire your friend or risk losing money by not firing them.

“You’re the only agent that agrees with me on the asking price”

Are you the only agent who agrees with me about the asking price?

Some agents will tell you what you want to hear to try to win your business.

  • When several agents disagree with your asking price, and you finally find one who does, you need to rethink it
  • You may feel someone is finally on your team
  • But that team will quickly fall apart if your price is too high, since showing activity will be low if any, and the home will sit on the market for a long time if not priced correctly—and ultimately not sell
  • Then, when you finally drop the price to the appropriate value, your house becomes stigmatized and buyers believe something must be wrong with it
  • Offers will come in lower
  • You may find yourself accepting a price lower than what you could have received had the price been properly priced when it first went on the market

Pricing a property too high will only make your competition look that much better.

“I’m going to list with the agent that charges the lowest commission”

You get what you pay for.

  • Paying a low commission will often get you a sign in the yard and your listing in the Multiple Listing Service, but little additional marketing or effort from your agent
  • Real estate companies and agents put up their own funds to market and advertise your property
  • Marketing and advertising costs money
  • So the lower the commission, the less incentive an agent has to put up their own money to market your home and expend the extra effort necessary to get it sold
  • The incentive is an important component in sales

A full-service agent earning a full commission will often drop everything to deal with issues and make sure you are a happy customer.

Home Seller Mistakes Trying To Save Money On Realtor Commissions

What Are The Mistakes Of A Home Seller's Trying To Save Money On Broker Commissions

For an agent earning a small commission, your home will not be the priority.

  • The incentive is also important to the buyer’s agent
  • So be sure to offer a fair commission to that side as well since there are almost always two agents involved in every sale
  • One agent is the listing agent and the other is the buyer’s agent. If a listing agent drops their commission, did they also drop the commission paid to the buyers’ agent?
  • If that’s the case, you won’t find as many agents willing to show your house.
  • Instead, they’ll be showing the neighbor’s house that does offer a fair commission to the buyer’s agent.
  • Finally, negotiating is an important skill for a listing agent
  • You want a strong negotiator on your case
  • It’s actually a good thing when the agent doesn’t drop the commission at the drop of a hat and instead negotiates it!

Think about that skill being used in your favor for the sale of your home and putting money in your pocket!

About The Author Of Home Seller Mistakes

Julie Hayward is the President and Managing Broker of EDGE REALTY LLC and a guest writer for Gustan Cho Associates. Julie Hayward and her team of licensed real estate agents are experts in the following Areas:

  • Chicago Real Estate and its suburbs
  • Cook County
  • Lake County
  • Kane County
  • Will County
  • Mc Henry County
  • Du Page County

Most top producing loan officers in the Chicagoland area consult with Julie if they have any real estate questions. Julie is an author and will be releasing her book, OPPORTUNITY KNOCKS, shortly.

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