Will you get full service?
Originally appeared in Hills Publications, October 19, 2002
Real estate salespeople tend to tout their service. Some will tell you they provide the “best” service, others will say they give “full service” at a lower fee. As a seller, knowing what to expect and demand is vital to maximizing your net.
Even the most willing individual can work only to the limits of his knowledge, based on experience. Generally speaking, it takes years, and many escrows, for an agent to develop a full understanding of how to well represent clients.
What to look for
The following is a sampling of activities agents need to carry out when representing sellers:
Listing presentation. A fat listing book does not necessarily mean you should choose a particular agent. Conversely, not having professional materials could be a reason to not select someone. It is the explanation of how the materials and comparable sales data relate to your home that is significant.
Pricing. Sellers, naturally, are interested in the Realtor’s opinion of price. Ask how he arrived at his suggested asking price. How close does he think it will come to the selling price? Does he offer to show you current listings that could give you a better sense of market reality?
Pre-sale inspections. To be on target regarding pricing, the agent must know the condition of the property. The only way to be sure is to have pre-sale inspections. Full service professionals suggest this.
Going through this inspection process before marketing involves more service to the seller than waiting for the buyer to do it during escrow. Failing to do pre-sale inspections can result in nasty surprises later.
Marketing. This is an area where many shortcuts are taken. For example, how many open houses will the agent arrange? In a slow or normal market, this could mean two to three a month until the property sells.
In our current, long-lived seller’s market, two open houses before you look at offers is optimum. But wait! Some agents are saying the market has slowed, so maybe you should have one open house and take “offers as they come.” Or, schedule one open house and have a second only if you did not receive multiple offers.
Which is correct? It is difficult to say without knowing the details about a particular home and the seller’s needs. As a rule, more exposure is better than less.
What about broker’s tour? Will it be advertised in the two places local agents look, or just one? Will the salesperson have it on the correct day for that neighborhood? Does the Thursday tour get scheduled for an extra half hour at the end so more brokers can see it? Full service people do all the right things; others do not.
How will flyers and ads be handled? Will they be designed for your house or simply a template with your address? Will you receive a high-level internet presentation? The best agents do quality, personalized work. Ask for samples of how they marketed their past listings.
Full service sometimes means making an extra effort and doing something out of the ordinary. I recently placed a huge artist’s easel in one of my listings. On it was a customized list, “Why This House Is Special.”
Handling offers. Thousands of dollars ride on the way your agent takes care of the bid process. Does he know how to ensure the largest number of offers? What questions does he ask the buyer’s agent on your behalf? If the buyer is getting a loan, does your Realtor take the time to personally call the buyer’s lender and verify the pre-approval letter?
Does your agent explain to you about the Liquidated Damages Clause and suggest the maximum deposit from the buyer? Will he tighten up terms and time frames to protect you?
Escrow follow-up. Full service agents are organized and know when each contract milestone is due. The first one is to confirm that the buyer’s deposit was received by escrow. Do not allow the excuse that the “escrow coordinator” was at fault. Some agents make a sale and then turn the details over to clerks, without ever checking that things are going smoothly. You only find out later. That is not full service.
Escrow signing. Those who provide full service review terms and conditions with the escrow holder, validate that the settlement papers are correct, and personally go to the signing with you.
Small things that matter
Full service agents offer to do things sellers had not considered. When you are at an open house that has signs at all doors reminding agents to lock before leaving, this is an instance of a listing agent who cares about the seller.
Other items, such as having a flyer box on the “For Sale” sign, and an “Open Sunday” rider on top, reflect the actions of a full service Realtor.
Another example of going the extra mile is making reports and disclosures available online so it is easier for agents and their buyers to access this information.
Final Thoughts
Before committing to an agent, be sure to get a satisfactory answer to these two questions: 1) Do you provide full service? 2) What does full service mean to you?
Think of full service as what you need in order to walk away with the most dollars in your pocket. Look at less than full service as the burning up of your money. You deserve full, professional, competent service. Accept no less.
Related Articles:
How To Interview Agents, Part 1
How To Interview Agents, Part 2
How To Interview Agents, Part 3
How To Interview Agents, Part 4
5 Ps For Sellers
Communication Skills Are Crucial