Questions to Ask a Realtor Before Hiring Them

Dave,

My parents have sold several homes over the years, but leave the experience with only a lukewarm feeling towards their agent. It seems like they generally are disappointed with the process and the outcome. They are going to sell their home in Arizona this summer and we would love some suggestions as to what questions they should ask when they interview agents this time around. I am not sure it will help, but I figured I would at least try. I am confident you have some questions that will help them find a quality agent. Thanks for the insight.

Andrea, Grand Junction          

---

Andrea,

This is a funny question, as it is still surprising to me that more sellers don’t ask more questions. I guess they just generally assume I know what I am doing, however, this could be a very costly assumption depending on who they are interviewing. Real Estate is such a relationship based business model that often times the relationship outweighs the expertise and if you take this stance it can cost you thousands of dollars. I also think most people are not very good at asking questions or don’t want to seem pushy. I must admit that I am not a great question asker, as it is a real art and gift. Asking the right questions is “THE” key to finding a good real estate agent. Here are a few:

1. On average, how many homes have you sold each year for the past 3 years?
   You are looking for an answer that is somewhere north of 25 homes. Any less than 2 per month and it would be hard to call it your profession.
   

2. Is Real Estate your full time Job?
   You want to hear “YES”. If not, end the interview.
   

3. What will be your marketing strategy for my home?
   You want to see a comprehensive strategy with several marketing avenues in place with an emphasis on consistency and frequency of message.
   

4. What separates you from your competition?
   This should tell you a lot. They should know their competition and better yet, know their marketing plan, office processes and how those are superior.
   

5. How will you communicate with me?
   This one may be the most important. If you get an answer that feels like there is no plan that means there is no plan. Again, end the interview if the answer is not specific on when and how you can expect communication.
   

6. What negatives do you see with my home?
   If they are unsure of what negatives exist or what the barriers of sale may be, then either they are not willing to confront the issues or they don’t have the skill set to identify them. Again, unless they provide you with some insight, end the interview. Even the most perfect house, has flaws.
   

7. Will you provide references?
   Ask for them and call them. You are interviewing. Do your homework or don’t blame the agent if it does not work out!

“Notice, the question about how much the house is worth is not on the list. Make your decision based on the answers to questions similar to the ones listed above, not what value the agent tells you your home should sell for.”

Notice, the question about how much the house is worth is not on the list. Make your decision based on the answers to questions similar to the ones listed above, not what value the agent tells you your home should sell for. Trust me, if the answers to the above questions all fit, then you and the agent will be able to find a real market value for your home and have a great relationship through to closing. I hope this helps your folks and that the process is enjoyable. Part of making the ride enjoyable is doing your homework up front so you are comfortable with the driver. Then you can sit back and relax knowing you are in good hands. 

Dave Kimbrough
The Kimbrough Team

Have a Question? Ask Dave!

How Effective is Staging Your Home When Selling?

Dave,

We would love to get your opinion on if we should or shouldn’t stage our house while it’s up for sale. Our plan right now is to be completely moved out before our house goes on the market. We have seen all the shows on getting your home staged to sell and we’ve recently started to question if we are making the right decision.

We’ve heard that houses that are not staged get lower offers than house that are. Should we change our plans to completely move all our belongings before selling the house? Is staging a house really worth it? 

Shawn and Kathy, Fruita

---

Shawn and Kathy,

Great question with many options and angles, so let’s get right to it. I have said it before, but I will say it again, I love to watch HGTV and the DIY Network, but unfortunately it is not “reality” television. Sure, their intent is to inform, but their primary goal is to entertain! I think it would be a good life practice to not assume or expect real life to reflect what you see on television! A little more real life and a little less entertainment might actually be more helpful and enjoyable in the long run, but I digress and am starting to really show my age…Ugh, you know when you get that “I’m becoming just like my Mom/Dad moment? Well I just had it! Okay, back to the task at hand, does a house show better furnished or unfurnished? 

It has been my experience that 80% of the time I recommend to home owners that their home will show better furnished, however this answer is somewhat dictated by your furnishings! The furnishing knife cuts both ways. I have sold houses where the furniture is so nice that it is actually a distraction to buyers. They can come away from the showing loving the house, but saying “my furniture is not that nice and the house will never look that good when we move in!” The buyers assume, and in some cases rightly so, that the cost to get it to look that good again will be too significant. On the other hand, when the furnishings are meager, old, worn out, super personalized or just plain ugly and out dated, the buyer often times can’t see past them and they distract from the positive features of the home. Many times in this instance, the house can take on the personality/condition of the furniture and leave a bad or less than desired impression. Being somewhere in the middle or on the nicer side is the place to be. 

“When you make the decision to show it furnished or empty, go with one or the other…don’t hedge and try to live in both camps.”

When you make the decision to show it furnished or empty, go with one or the other…don’t hedge and try to live in both camps. Generally I am not a fan of half staging, with the exception of when you have a difficult layout and furniture placement is not easily identified or you are staging a brand new home. A half furnished home brings a bevy of questions that have everything to do with the situation of the seller and little to do with the house. If the only furnishings in the house are a blow up bed, kitchen table, futon and 65 inch TV and Xbox it will invite lower offers than if the house was empty…half furnished homes show poorly and give off the vibe of a family or home in flux! A situation in flux can give the impression of desperation, even if desperation doesn’t reside there! The smell of desperation to a buyer is like the scent of blood to a shark…get ready to welcome lower offers and the longer an empty home is on the market, the stronger the scent becomes!

A fully furnished and lived in home will typically provide no indication of motivation and the same can be said with an empty home! With an empty home, the buyers may make assumptions, but any good real estate agent can quickly dispel any of the buyers’ preconceived notions of assumed motivation and get things back on a level playing field. I personally think empty homes provide the opportunity for buyers to envision where they will place their own furniture!  If they start placing furniture in their minds, you are getting closer to setting the hook. 

In close, focus on the basics but either stay in your home until you get a contract or completely move out! There are always one off situations where you just have to punt, but in most cases those are your best two options. Hope that helps!

Dave Kimbrough
The Kimbrough Team

Should we install central AC in place of our swamp cooler?

Hi Dave,

I have lived in Grand Junction for nine years. A year and a half ago my husband and I bought an older home with a swamp cooler. We love the house but really miss the central AC that we had in our previous home. As summer approaches we are considering installing central AC in our house but are wondering what sort of return on that investment we would see if/when we ever decide to sell this home.

Thanks!

Jenn L, Grand Junction

---

Jenn,

Great question!  It is funny, I grew up in Grand Junction and spent most of my childhood living with a swamp cooler and that was all we knew. I don’t believe, or at my advancing age am I able to recall if, anyone had refrigerated air. My how times have changed!

Swamp coolers have many advantages. They are inexpensive to operate, they will drop the ambient temperature approx. 20 degrees, they add moisture to the dry air here, thus not only cooling, but providing needed moisture to the air in our typically dry climate! They sound incredible, right? As Lee Corso of College Gameday says, “not so fast my friend”. A swamp cooler will do all those things I listed and for all but about 30 days of our summer work incredibly well, however they are typically considered vastly inferior to central air conditioning units. We find that the vast majority of buyers from out of town have no idea what a swamp cooler is or has any idea how they really work or how to maintain them. To sum it up, they don’t like and don’t want what they are not familiar or comfortable with.

This is not to say that a home with a swamp cooler is inferior, as my own home has a swamp cooler, but as more and more people move here from areas outside of Grand Junction the swamp cooler is becoming a dinosaur and is almost NEVER preferred by buyers over Central AC. In fact most of the time adding AC to an existing house is considered a significant upgrade and can absolutely be a difference maker, especially to an out of town buyer. We regularly have requests from buyers to look at ONLY homes that have AC. 

“I believe that converting to central AC in your older home will absolutely be seen by future buyers as an upgrade and will prove to not only be a good investment, but will lead to a higher sales price and increase the number of potential buyers who will look at your home.”

I believe that converting to central AC in your older home will absolutely be seen by future buyers as an upgrade and will prove to not only be a good investment, but will lead to a higher sales price and increase the number of potential buyers who will look at your home. Lastly, adding central AC will prove to be a creature comfort that you and your family will enjoy for many years, so adding it would be something I would encourage. We don’t always want to do things or add features to our homes simply for a good investment or to get a good return. Sometimes we should add them to increase our quality of life and overall home enjoyment! In my mind, loving where you live is the most important factor to weigh! Put it in and don’t look back, especially when all your friends who live in swamp cooled homes come over and comment on how nice and cool your home is compared to theirs. That is when it will really feel good! 

Dave Kimbrough
The Kimbrough Team

Have a Question? Ask Dave!

When is the correct time for a final walk through?

Dear Dave,

My wife and I recently sold our home. Prior to the closing a final walk through was scheduled so that the people buying our home could take a look at it right before closing. We had not planned on their visit and no one told us this would happen until that morning. We were in the middle of packing and moving and it was very uncomfortable for us. They were there for over an hour!

We would like to know if this is a usual occurrence. What do you recommend?

Thank you,
Name Withheld, Fruita, CO

---

This is a very common occurrence. In the Colorado Contract to Buy and Sell Real Estate, section 19.4 specifically spells out the right of the buyer to a “Walk-Through and Verification of Condition”. This is intended to allow the buyer to verify the condition of the property, prior to close, and make sure the property and its inclusions comply with the contract. Our team does a walk thru prior to close on every transaction when working with the buyer and this is to allow everyone to verify that the condition is the same as it was at the time the contract was written and accepted. It is far better to find that the fridge is missing prior to close than after close. Finding problems after closing are then the problem of the new owner. If a fridge was supposed to stay with the house and it was moved to Texas and we discover that after closing somebody is buying a new fridge and deciding who that will be may not be easy. I have bought a few too many fridges, washers, dryers etc.

“What you were victim of was poor agent planning and communication. Your agent should have filled you in advance and let you know that a walk through verification was standard fare and sometimes they can take an hour or so.”

What you were victim of was poor agent planning and communication. Your agent should have filled you in advance and let you know that a walk through verification was standard fare and sometimes they can take an hour or so. The buyers are not trying to be troublesome, they are just excited about their new home and probably can’t wait to make it their own. When you are in the closing stages of moving an hour can be quite inconvenient and seem like a lifetime, especially if you were not planning on it.  I am sorry it was uncomfortable, however it is every buyer’s contractual right and your agent should have provided you with some notice so you could plan for it.  Next time you will be prepared and expect their visit and it will not be uncomfortable and you will probably find getting to know them enjoyable!

Dave Kimbrough
The Kimbrough Team

Tips for Choosing the Best Realtor to Sell Your Home

Hello Dave,

 Let’s assume that I have done my homework and I have decided on a Realtors’ office based on brand name recognition, market share, aggressive marketing, reputation and other factors. Now what? Is there a way that I can pick an agent within that company based on their success, professionalism, enthusiasm, abilities, etc.?

There are good, better and best (most productive) in any office. How can I decide who or which company is better for me to list my home with?

Thanks,

Dave, Cedaredge

---

Dave,

I could write a book answering your question, however, I am going to do my best to not be overly verbose or opinionated and stick to facts and try to be as objective as possible. First, I applaud you for “doing your homework”! For most people, their home is one of, if not their largest investment, and it always shocks me how little “real” homework people do when choosing an agent or real estate company. If you stop and think about it, trusting such an investment with someone who does not have a proven track record just does not make sense.  However,  people make that choice every single day!

All of the qualities you listed in your question are important when evaluating agents and companies. Brand name recognition, market share, reputation and other factors are all key elements in choosing a real estate company and evaluating those factors should allow you to narrow down your choice in the real estate company you choose. You mentioned aggressive marketing and I suggest you use that element of evaluation as one you use when evaluating agents, not your real estate company. The reason I suggest this is that each individual real estate agent markets their properties differently. No two agents do things just alike and to ensure your agent of choice has an “aggressive marketing” plan you MUST evaluate every aspect of how they will market your property and the vision they have for YOUR specific marketing plan. How an agent presents and prepares your marketing plan will tell you all you need to know about your potential for success and their abilities.

When you evaluate the agent’s specific marketing plan you will learn a lot about their professionalism, enthusiasm and track record of success…or lack thereof. My suggestion would be to choose your agent on all the aspects you have listed! Trust me on this one, the level of marketing expertise and understanding displayed is likely a VERY strong indicator of your chances of a positive outcome. Just putting a property on the MLS does not cut it anymore! They should have a strong plan across many mediums like internet, social media, agent to agent promotion, direct to consumer programs, newspaper, radio, television and more. If they have this in place, you can bet they are enthusiastic about their job and work at it as a profession, not a hobby or way to collect some extra vacation money. Search for someone who is full time and HAS A PLAN for you and your property.

“If the agent checks the boxes listed above, then I can almost guarantee they are productive and achieve results on a high level. Really, who doesn’t want a top level agent working on the sale of their home?”

If the agent checks the boxes listed above, then I can almost guarantee they are productive and achieve results on a high level. Really, who doesn’t want a top level agent working on the sale of their home? I would pray that nobody ever hires an agent based on an average marketing plan or expecting an average result. Don’t settle! Follow some of the selection methods I have listed and you will find the best agent in any office or town. It is just like anything else, the cream rises to the surface and typically it’s pretty clear who performs and who doesn’t. Remember, success does leave clues.

Lastly, Happy Father’s Day to all the dads out there. Being a father is not easy—it’s a tough job that requires leadership, dedication, patience, understanding, selflessness and unconditional love! Keep up the good work and remember it is far more important to be a dad than it is to be a friend. Friends will come and go, but your Dad will always be there! Thanks Dad.

Dave Kimbrough
The Kimbrough Team

Countless showings, but no offers? What you should do next...

Dave,

Our house has been on the market for what seems like ages! We would really like to sell it as soon as possible because the whole process is beginning to wear us out! We’ve had countless showings and even a few open houses. Why we don’t have any offers is a mystery to us. The house is in good condition and we think we are in a great location. Have you had houses in the past that just don’t seem to sell? Do you have any ideas on why we aren’t getting any offers? What can we do differently to ensure our home gets sold in the near future?

Judy and Bob, Grand Junction

---

 Judy and Bob,

Fear not, you are not alone! Yes, I have had houses that just would not sell and believe me, there is no magic bullet or secret sauce to end the frustration of the house that is a chronic non-seller! There are times when, even if you reduce the price to a below market value buyers still find them unsavory and not offer worthy. I have heard it said in the medical field that the disease with no diagnosis and no known cure is always the hardest one to treat! The same is true in real estate, but ultimately in real estate there is always an answer! Keep the faith, because unless you have one of the chosen few that just stubbornly refuse to sell, I am going to be able to give you some idea of where to look and adjust to get your desired result.

I tell people all the time, I am not the sharpest knife in the drawer and I am living proof you don’t have to be a rocket scientist to be successful at selling homes. The process, when boiled down to the basics, is really quite simple regardless of how complicated people choose to make it.  You want to be on target with the three things you can control, Price, Condition and Marketing. It sounds like your agent is doing their job effectively from a marketing perspective. You have had many showings and they have even held open houses to help generate traffic and attract buyers to your home, yet no offers. It also sounds like the condition is good. If you have not received feedback that indicates that you need to make some changes to the condition in order to entice buyers, then it is likely that you are in good. Now what we have left is price. Price is always the most difficult subject to tackle for any agent or any seller!

“Where price is concerned there are a couple ways to attack it. You will either be willing to listen to the market and adjust the price accordingly or you will choose to set it and forget it and wait till you find the right butt for the saddle. ”

Where price is concerned there are a couple ways to attack it. You will either be willing to listen to the market and adjust the price accordingly or you will choose to set it and forget it and wait till you find the right butt for the saddle. There are cases that can be made for both approaches. First, statistically speaking, you should have had an offer within 12 showings (on average) all else being equal. If “countless” showings means in excess of 12 then you really need to start considering a reconsideration of your pricing strategy. If you are nearing or over 18 showings it is likely time for action. I have heard sellers say this countless times, “all the feedback indicates that the price is ok, nobody is objecting to our price so it must be something else. If the buyer is interested they will surely make an offer.” I can tell you, this is faulty (but VERY common) logic. No offers and no or few second showings means they are objecting to your price by purchasing something they perceive is a better value at a similar price. Believe me, if a buyer smells value they will pounce! The “real” feedback you need to listen to is the lack of offers…sometimes that silence provides truth.  If you decide to wait long enough one of two things will happen, the market will catch you (assuming the market is going up) or you will find the perfect butt for your seat! I have seen both methods be successful, one just typically takes a lot longer than the other and is ultimately more frustrating.

To move the process along at a faster pace, be willing to adjust your price until you get the desired result. The good news is you have had a lot of showings so you probably are not way off, probably a 3-5% adjustment will do the trick! Talk to your agent and get their input on a proper price adjustment. I would bet your desired outcome is closer than it feels! Hang in there and Best of luck. I hope this helps.

Dave Kimbrough
The Kimbrough Team

Have a question? Ask Dave!

Common closing expenses for sellers

Dave,

We are currently in the process of selling our home and it just went under contract—yay! We want to know what to expect financially from this point forward. What are common closing expenses for sellers?

 Thanks!

Cheryl, Palisade

---

Cheryl,

Oh my gosh, this is such a great question and one that I get ALL the time! As a seller you have the privilege of paying the sales commission you agreed to with your listing agent, assuming your home is listed with a Realtor. Costs associated with selling your home that are the sellers responsibility are varied, but you can almost always calculate an additional 1% if your sales price is UNDER $300,000 and .7% if your home is over $300,000. If you calculate it that way you will, almost always, come up with a slight over estimate of your closing costs. 

The most common cost that is overlooked is your property tax. What most people don’t fully realize, as I did not prior to becoming a real estate agent, is that our property taxes are paid in arrears. It’s probably something most folks just don’t think much about and it often times is a bit of a surprise. How it works is, the title company will pro-rate the current taxes from January 1 to the day of closing and you will have that amount debited on your settlement sheet. The two largest debits you will see (outside of real estate commissions and your mortgage payoff) will be the taxes and the title insurance policy. Title insurance simply indemnifies that the title to the property will be passed from you to the new owner in good standing and free of any liens. For a $250,000 home you can expect this expense to be in the $900-$1000 range, these costs are on a sliding scale based on purchase price.

The most discussed fee on the sellers settlement statement is often the charge for water & sewer. The bills for water and sewer, if left unpaid, can be held as a lien against the property and thus MUST be settled at the time of close to ensure the passing of a clean title (as discussed above). In order to ensure that the amount that is owed is covered, the title companies always hold out an amount significantly over (generally around $200) your typical water and sewer bill. This ensures there is enough to pay it off and they will refund the difference back to you shortly after close. This one always creates a fair amount of discussion about how you never have had a bill that high etc…, but believe me they will refund you the difference in short order. Always remember that your other services like gas, electric, telephone, television etc. are your responsibility and you should call 2 –48 hours prior to close and let them know you will be moving and the service will be transferring to a new owner on the date of close.

One last tip. Your mortgage statement always provides a payoff for you to reference, however the day it is printed you start accruing interest so your payoff is always higher than what is printed on your statement. I always tell our sellers to just add one extra payment to the amount on the settlement statement and that will provide a safe payoff amount.  In my experience when closing day comes people are happy they overestimated and get a little money back, rather than under estimate and have to go digging for that little extra! I hope this help and by following these guidelines you should have a safe estimate of your closing costs. Congratulations on getting your home under contract and best of luck on your new journey!

Dave Kimbrough
The Kimbrough Team