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          

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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

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Can we add to our home value by including furniture in the sale of our home?

Dave,

We are considering selling our home and downsizing. We would prefer to sell it fully furnished, as we have purchased furnishings specifically for this house. All our decor has been professionally done, hand selected and very nice. I am sure that it would add value to our home and then we could leave it in the home it was chosen for. What experience have you had with sales such as ours, fully furnished and what advice can you provide? Thank you.

Loretta, Grand Junction

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Loretta,

Sounds like you have a wonderful home and I would bet you have done it beautifully. To be honest, I have not been involved in many sales of fully furnished homes. Selling a home fully furnished can potentially be a good thing, but do not expect to get any real value from your furnishings. Most people would love to have your beautiful furnishings, but will likely be unwilling to pay any “real” sum of money for them, but this also depends on the price range of your home and frankly, the buyer who is purchasing your home.

Often times, when a buyer comes into a home that has been professionally staged and decorated, the furnishings can be distracting because it is so nice! Most buyers say, “This is beautiful, but our furniture and decor is not near this nice...this looks like it is out of a magazine.” They know once the furnishings are removed the home will likely not look nearly as good and they assume (probably correct) and that it will cost them a fortune to get it looking that good again. If your home fits this description then leaving the furniture could be a great move, as long they are not too personalized or will narrow your buyer pool significantly. If everything is done in a western motif, this will appeal to some, but rule out the vast majority.

Remember that if you leave the furniture, you need to be aware that it is considered personal property, which can easily be removed from the home, and the cost of the furniture will not be added into the value of your home. This means that if you are selling your home at market value and leaving what you believe to be $30,000 in decor, the added $30,000 will not be reflected in the appraisal, your appraisal will not be $30,000 more because you left the furniture. The appraisal is used to evaluate the real estate, not the personal property included in the sale. Any personal property included in the sale will have to be given a nominal value as to not impact the appraisal value.   

“A best practice, or one we typically use, is to have your furniture and decor itemized and priced so a prospective buyer can purchase them from you separate from the sale of the home. ”

A best practice, or one we typically use, is to have your furniture and decor itemized and priced so a prospective buyer can purchase them from you separate from the sale of the home. Keep in mind, if you make the list and make it available to the buyer prior to them writing an offer on your home, many of the items on the list are likely to show up in the offer as part of the deal and given no added value. We suggest letting buyers know that you are willing to sell some or all of the furniture and you will make the list available to them after you come to contract terms and you are past the inspection. This will help the negotiating of the contract and your inspection remain centered on the real estate and not the personal property.  

It is NOT a best practice to have family room furniture with a used street value of $1,500 getting in the way of a home sale of $250,000. Adding furniture and personal items to a contract for sale on property often leads down a bad road, where the furniture becomes a problem and all the energy is concentrated on who is going to get the couch and not the home! Best practice is to leave all personal items, including furniture, out of all negotiations until after the home is under contract and you are past the home inspection phase of the transaction. After the home is under contract and both parties have agreed upon the sale price of the home, you can open the door to furniture negotiations. I hope this advice helps make your decision easier and provides some clarity. Best of luck.

Dave Kimbrough
The Kimbrough Team

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7 Tips for Winning a Home That Has Multiple Offers

Dave,

Some family friends just bought a home here and after hearing the details of their experience, we’re a little intimidated to start the home buying process this summer (we’ve been planning and saving to purchase a home—and we’re almost ready!). Our friends said that the home they ended up buying was actually the fourth home they had written an offer on. The first three homes they wrote offers on had additional offers and obviously, their offer didn’t win the contract. Their agent said it’s just the nature of the market in their price range right now. We’re in the same price range ($225,000—$250,000) and don’t have much wiggle room to move up in price. Aside from increasing the amount we offer on a home, do you have any tips on how to win in multiple offer situations?

Please help!

Marissa, Grand Junction

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Marissa,

Wow! Your observations are absolutely correct! The segment of the market that you are searching in is moving at a very brisk pace and the competition can be fierce! Multiple offer situations are happening with more and more regularity, so as a buyer, you must be ready and willing to put your best foot forward right out of the gate. If you hesitate or make a mistake, you decrease your chances of success exponentially. Don’t be afraid to compete! It’s a bit like dating…If you find just the right one, be prepared to compete and win! Grab hold of a competitive mindset and remember most houses are lost over a fairly small sum of money or an overlooked detail that would have cost nothing! 

There ARE some simple things that you can do to help move your offer up in the pecking order when the offers are presented to the seller!

1. Be willing to offer more than asking price or include an escalation clause that will automatically increase your offer over and above the next highest offer up to a price ceiling! I have seen many an offer lost over $500 or $1000. If you really want the property and there are multiple offers, go 1-2% over asking price and watch your chances soar! If the home is $225k, offer $229k and my bet is you get it.
   

2. Offer more earnest money than what the seller is requesting. Earnest money is often times an overlooked negotiating tool that absolutely DOES mean something to a seller and can tip the scales if the offer prices are similar.
   

3. Be flexible with the closing and possession date. This will show the seller that you are willing to work with them and make the transition fit their needs.
   

4. Be willing to cover your own or at least part of your own closing costs. Over 70% of the offers I see contain seller paid closing costs. Eliminating these closing costs indicates to a seller that you are a stronger buyer. After 16 years and thousands of contracts negotiated, it is a fact that most sellers would prefer buyers pay their own closing costs.
   

5. Do not ask for personal property or things that the seller is not offering as inclusions with the property. If they have not included the nice new looking refrigerator, don’t ask for it. If you find their lawn furniture comfy don’t try to throw it in, go buy your own. I have yet to find a seller who looks upon request for personal property with a favorable eye.
   

6. Be willing to waive your inspection contingency! If you do this, it will be clear to the seller that you are making a serious offer and have serious intent to purchase the home. This is the last resort move, however, it is a doozy if you have confidence that the property is in good condition or you can handle whatever problems you uncover.
   

7. Use a local lender that has a good reputation! Accepting an offer where the lender is local will sure make the seller and their realtor feel better about the chances of seeing the closing table.

“These are several techniques to help you up your game in this increasingly more competitive real estate market. Notice that none of these are high dollar techniques or anything really fancy, but I promise they can make a difference.”

These are several techniques to help you up your game in this increasingly more competitive real estate market. Notice that none of these are high dollar techniques or anything really fancy, but I promise they can make a difference. If you combine 2, 3 or 4 of these techniques in the same offer you will probably have an unbeatable combination. Remember sometimes it takes a little courage, faith, and risk to get what you want so don’t let fear or hesitation hold you back from making things happen. When you craft your offer with your agent, look at it through the eyes of a seller, be willing to think outside of the box and create a win/win for both parties and I bet you have a new home in no time at all. I’ll bet the next time you submit an offer, it will be FUN!  Good luck.

Dave Kimbrough
The Kimbrough Team

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How much do neighboring properties affect your home value?

Dave,

We have been watching a couple of homes that have been on the market for a couple months and we would be happy with either, but we really do like one of them quite a bit better than the other. Neither are perfect, but the one we like the most has two homes on the street, one right next door, that looks like it has been completely neglected and has junk everywhere.  When we drove by a couple times last weekend it had two cars parked on the front lawn virtually all day Saturday. We are very interested in the home but have big concerns about the impact these two homes are having on the neighborhood. What do you recommend? Thanks.

Donna, Grand Junction

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Donna,

Great question and you have good reason to be hesitant about purchasing if the next door neighbor looks like a dump. There is no question that the surrounding properties have a direct impact on any home. If the neighbors do a poor job of taking care of their property, it brings all the other homes values down in the neighborhood. The questions I would have are, is it a relatively isolated incidence? Or is it a broader problem where there is a lack of a homeowners association or an HOA that lacks the authority or structure to enforce the covenants and keep the neighborhood looking its best?

I would recommend you have your Realtor pull a copy of the neighborhood covenants for you to look over and find out exactly what things are and are not allowed. I would certainly guess that parking of cars on the front lawn would not be in the provisions designed to bolster property values. Homeowners associations are designed to protect values and help enforce a consistency of product which leads to the solid maturity of a subdivision. If the neighbors appear to be in violation of the covenants then you could always contact the HOA and find out why the property is apparently in violation and what steps are they taking to get them into compliance? Don’t be afraid to investigate and ask hard questions, after all, you are considering making a significant investment in the neighborhood. I am making the assumption that there is an established HOA, if there is no HOA then all bets are off and what you see is what you get.   

“One of the first things I do when looking a home is to look at the neighbors. Good neighbors can help make you money and bad ones will no doubt cost you money. I would be very hesitant to invest my money in a home that has a poorly kept home next door. ”

One of the first things I do when looking a home is to look at the neighbors. Good neighbors can help make you money and bad ones will no doubt cost you money. I would be very hesitant to invest my money in a home that has a poorly kept home next door. Keep in mind that this could also change. Should the neighbor move out, then there is the significant likelihood that the home would be cleaned up and updated by a new owner. Find out how long they have been there etc. Do your due diligence and do your best to evaluate their long-term viability of them continuing to own the home.

To sum it up, make sure you do your homework and remember this is not just going to be your home, but it will also be an investment in your family’s future. Location is key, not just the physical location, but the location of eyesore properties nearby, so be careful of investing where you do not feel like the neighbors are equally invested in the integrity of the neighborhood. My bet is that if you are patient you will find a great home in a wonderful neighborhood and not have to be concerned with the surrounding properties. Hope this helps. 

Dave Kimbrough
The Kimbrough Team

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