Two Real Estate Hiring Mistakes To Avoid

If you want to put your house on the market, then you likely want your house to sell as quickly as possible. Choosing the right real estate agent is essential when it comes to selling a property quickly. However, home sellers rarely take the time to look around, and they go for one of the first real estate agents they find. If you want to find the best professional, then do your homework and try to avoid some these common real estate hiring mistakes.

Choosing The Agent Who Supplies The Highest Asking Price

It only makes sense to choose the real estate agent who thinks that your house will sell for the most amount of money. After all, the majority of the money will go to you. However, this is often a mistake since the highest listing price may not be an accurate assessment of your home's value. Many realistic real estate agents will not even give you a single distinctive price to set your home at. A range is typically provided, and one that is $10,000 to $20,000 between the high and the low is typically a good estimate. 

Ranges are better and more realistic because a great many things need to be taken into consideration when a house is priced. The general home sale market, the ranking of the school district in the region, the sale prices of other homes in the area, and even the season when the home is listed must be taken into account. For example, home sales during the late spring and summer are about 7% to 11% higher than they are in late fall and winter. If you are selling in the fall, then a lower price or a greater sale range may be suggested. 

A range and a lower asking price may also help to sell your home quickly. It is extremely important to sell your home within the first few months that it is listed on the market. Buyers will often look to see how long your house has been listed for. If it is on the market for six months or more, then buyers may question if something is wrong with the home. Buyers may see you as desperate to sell and offer you a much lower amount than the asking price. Overpricing a home is one of the top reasons why a house will sit on the market for a long period of time. To avoid this problem, ask for a price range from real estate agents and also inquire about the market research that went into coming up with the range.

Picking The Person With The Lowest Commission

Your real estate agent will be paid a commission that comes directly out of the money that is paid for your home. An average commission is 7% on the first $100,000 and about 3.5% on anything above $100,000. You also will need to pay the tax on the amount that is paid to the real estate agent. This can come to quite a hefty bill. However, since this is an industry-standard commission for larger real estate firms, you should expect to pay similar fees, even if you go with a smaller business or an agent who represents themselves. 

You may be able to find agents who offer their services at much lower commissions. However, these agents may have a reason for offering lower commission rates. Agents who have recently received their real estate licenses will often offer lower commissions so they can gain clients and a good reputation. Sometimes, these agents will work extremely hard for you so they can gain new clients from word of mouth. However, the agents will be lacking experience, and this may prolong your home sale. 

Other agents may offer lower commissions simply so they can compete with other agents in the area. While this may be beneficial to you as a home seller in a competitive market, your agent may take on too many clients at once to make up for the reduced commission rate. This means less time dedicated to find a buyer for your home.

It can be difficult to immediately understand why a real estate agent may be offering a reduce commission rate. Make sure to ask so you can gauge whether or not the savings is really worth it or not.