HOW TO INTERVIEW REAL ESTATE AGENTS

Most experienced interviewers say the “Golden Rules” of interviewing would have to be; “Be Prepared” and “Ask the Hard Questions”.

The two big questions most sellers ask a Real Estate Agent they are interviewing to sell their home are:

1. How much will you get me?

2. How much will you charge?

Human nature dictates that many sellers pick the agent who gives them the HIGHEST PRICE and the LOWEST FEE.

The problem is of course they could be hiring the biggest liar and the worst negotiator.   Before interviewing anyone to sell your home you must be prepared.

To be prepared sellers need to understand a concept known as the Endowment Effect.  The endowment effect is a natural tendency to place an unrealistically high value on something to which we are personally attached.

TRANSLATION:  “To think that our home, our little castle, where we’ve slaved, brought up the kids, had all those great times is worth more than it is due to our emotional attachment to it”.

The endowment effect can harm sellers because it can cause them firstly to choose an agent on price and fee alone, secondly to reject early offers which are more than likely good offers and thirdly, cause much regret when the home gets stuck on the market.

One excellent tip for all sellers is, before you interview any real estate agent, call in a valuer.  A valuer is a highly qualified professional and totally unbiased about the value of your home.  They get paid no matter what price they tell you and can be legally liable for what they tell you.

Real Estate advocates and experts often advise sellers to always interview at least two agents and others advise sellers to keep interviewing until they find one they like.  Be prepared, have a list of questions and have your valuation on hand.

If you don’t want to go to the expense of obtaining a valuation, do your homework by doing the open house circuit, following the property guide and surfing the internet to compare your property with others.

After all, for the agents it’s a bit like a job interview.  The job of selling your home for the highest price. So ask the hard questions and listen carefully to the answers.

If you’d like some questions to ask agents we’ve included a suggested list. See "A Guide To Grilling Agents"