If you are considering using a realtor to help buy or sell your home there are several things you should consider in your decision process. Selecting the wrong realtor, particularly when your selling your home, can have a significant downside affect on the price or whether you sell the home at all. Here are some tips and ideas to consider when selecting a realtor.



Timeframe - How much time you have before you must complete the buying or selling of your home is an important consideration when deciding whether or not to use a realtor. A recent job change can be a big motivator to buying or selling a home quickly. If you have time, you can consider selling your home yourself but be sure to consult with legal or other real estate specialists when working through contractual issues.

Market - The market can also be a determining factor in your decision to use or not use a realtor. Looking for used or new homes in your area is much easier without a realtor than if you are looking outside of your local market. Real estate agents are normally very knowledgeable with their local market, but can also help find real estate property listing in other markets.

Homework - Be sure to do your homework on a realtor before you make a final decision. Agents come in a wide spectrum of personalities and capabilities. Be sure to do some analysis to determine how they market, how they plan to expose your home, their educational background, their track record for selling and buying homes in the market you are considering, types of advertising they will use, whether they have a good track record in your price range and how long they typically take to close the transaction. Be sure to get referrals and check up on them to ensure their past customers were happy. Consider the personality of the realtor. If you are selling a home, you want an energetic, confident and congenial realtor even if that is not your personality style.

Commissions - Realtors get paid by commissions on both side of the buying/selling transaction. Be sure to check their commission rates. Keep in mind that commission rates for realtors can be negotiable - especially if you are selling and buying using the same realtor. Typically realtors want six percent, but you can often negotiate a point or two off this rate if you are selling and buying with them which is money straight back into your pocket. Be careful of agents who low ball commission rates on selling a home. If they are only getting two or three percent commission on the sale, they are not likely to be as motivated to sell your home. If you are building a new home, consider whether you really need a realtor on the buy side. If you work straight with a new home builder rather than through a real estate agent, you can often get the builder to negotiate more on upgrades or other amenities since they do not have to pay the realtor commissions.

Contracts - Realtors will expect you to sign a contact so that you will list your home with them or to work with them to find a new home. Be sure to leave yourself a clause that allows you to terminate the contract if you are not satisfied with their progress after a certain time period. The amount of time can vary, but a four to six month out-clause can allow you to reconsider realtors if the one you have selected is not performing. If the realtor is confident in his or her abilities, they should provide this type of out-clause without hesitation. Avoid an agent who doesn't and don't sign a contract if you are locked in for one year.

For Sale By Owner - If you decide not to use a realtor, be prepared to spend the time it will take to do it right. Do your research on setting your price. Home prices are based on comparables in your area. Your three bedroom, two bath one story home is worth about the same amount as other comparable houses in your neighborhood. The value is driven more by the comparable homes than how much money you have put into the kitchen or backyard landscaping. Home prices tend to be slightly higher in the spring and summer. Aim to list the home in the spring if possible. Be sure your advertising is enticing grab potential buyers attention. Kick off your sale with an open house. Invite your neighbors and their friends. Many homes are bought by friends or relatives of people who already live in your neighborhood.

There are many real estate agents in your desired market. Finding and selecting the right one is an important decision when buying or selling your home. Hopefully these tips will help you in your decision.