Corporations employ investment bankers to help them acquire other companies.
Bankers are experts in valuing companies and negotiations. Real estate agents are no different.
A smart homeowner will take the time to interview and vet many agents before selecting one to represent him in a sale.
I evaluate real estate agents on seven criteria.
1) The agent puts the client first. I can tell by the questions an agent asks me if he is more interested in my needs or his commission.
An agent who takes the time to learn about my situation and coach me through the selling process without mentioning commission is more likely to win my business.
2) In the process of discussing my needs, I can tell if the person is knowledgeable.
I look for an agent who can go beyond the headline numbers and suggest ways we can benefit from the market situation.
For example, in today's buyers market, I would evaluate the agent on his ability to sell homes in a down market.
3) The agent must be an expert so that he can properly market and position my home.
This means the agent must know my property type, the amenities and, most importantly, be well versed in future developments in the area that will give a buyer confidence that the home will continue to appreciate in value.
4) I ask the agent about similar homes in the neighbourhood that are on sale.
I then ask how the agent plans to differentiate my home from those competing listings.
5) I evaluate the agent on his ability to price my home. I expect the agent to employ the latest in information and technology, and walk me through the Comparable Market Analysis.
6) We have a thorough discussion on how the agent plans to market and position my home.
What attributes will he emphasise in the listing and promotional material? Where will the agent promote my home?
In today's digital age, I expect my agent to market my home on multiple national listing portals, agent-only listing channels like SRX Circles, agent-only mobile applications like Agent Connect, and social networking.
7) When I am interviewing the agent, I evaluate his negotiation skills.
If he asks good questions about my needs and demonstrates strong knowledge of the market, pricing and the competition, I can be confident that the agent is a good negotiator.
As a homeowner, you might be tempted to save money by trying to sell your home without an agent. I strongly advise against this.
A professional agent lives the real estate market 24/7 and can access the other side of the negotiation via the buyer's agent.
Experienced homeowners know it is penny wise and pound foolish to negotiate on their own. Even as co-founder of SRX Property, I always employ a real estate agent.
My agents have more than paid for themselves.
Sam Baker is co-founder of SRX Property, an information exchange formed by leading real estate agencies in Singapore to disseminate market pricing information and facilitate property listings and transactions.
For more guidance on buying, selling or renting Singapore property, visit SRX.com.sg/ask-home-prof.
This article was first published on Nov 29, 2014.
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