For most homeowners purchasing a home is the largest single investment they will make in their lifetime. Any time you are making a substantial financial decision it’s important to seek the guidance of an experienced professional. Let’s face it, your Aunt Susie may or may not be the right person for the job. Even if you’re considering a relative for the job it’s important to interview numerous other candidates and ultimately choose the best person for the task.
When selling a home it’s critical to hire a real estate agent that specializes in your area and has experience selling at your price point. If you are selling a luxury property don’t be afraid to ask how many homes they have sold in your neighborhood, and how many properties over $1 million they have sold in the last 12 months. If you’re interviewing the right person for the job these questions should be very easy to answer.
When you list with an agent, you are at the mercy of that person’s personal marketing budget. Most offices do not pay for marketing so the advertising that is done on your home will be paid for by the real estate agent you have hired. When selling a luxury property the marketing costs could easily exceed $10,000-$20,000. It’s imperative that you hire a real estate agent with a substantial annual sales volume so they can afford this kind of investment for a single listing. The average real estate agent makes $30,000 a year so you will obviously need an above-average real estate agent to sell a luxury home.
The final question you should ask is where your home will be marketed. I will give you a hint, Realtor.com
, Trulia, and Zillow are free so they don’t count. Ask for a marketing plan that details where your home will be promoted locally, and more importantly, how will it be marketed on an international level. A luxury property requires far more effort than simply placing the home in the local multiple listing service and waiting for buyers to find it online.
In summary, listing your home with the wrong person could potentially cost you hundreds of thousands of dollars. If you hire the right person for the job they will typically achieve the highest sale price in the shortest period of time. If you were told that you needed brain surgery you wouldn’t hire your uncle the podiatrist because you felt obligated to do so.
Selecting the right real estate agent to sell your largest investment should be no different. The great news for homeowners is that hiring an exceptional agent to sell your home will typically cost the same as hiring an average one.