In my last blog, I discussed the escalation clause and the appraisal clause, two terms buyers can use to try to get their offer accepted. What I wanted to talk about on this blog is coming from the other side and the role of the listing agent and what you should expect or look for in a listing agent.
If you are selling your home, you will look towards your agent for guidance on preparing your home for sale. Check out my blog, “Home Sale Preparation.” (realestateofhawaii.com/lowcostsellingtips/). Decluttering, Cleaning, repairs or improvements, the use of staging, all these activities you can turn to your agent for guidance. You’ll probably look to your realtor for help on the list price of your home and your agent will have tools in his utility belt to get you comfortable with your list price. Your Realtor will also be marketing your property and maximize the exposure your property gets to potential buyers and showing the home in its best light. Your realtor will present you offers and negotiate on your behalf throughout the escrow process until you close.
In this competitive market, buyers and buyers’ agents have been forced to step up their game in order to get their offers accepted in multiple offer situations. And when I say multiple, I mean MANY. In a recent transaction, I had over 25 offers come in! The listing agent needs to be able to weed through the noise, consider what their client’s priorities are and guide them to the best option for their situation. A big part of the agent’s job is risk management. We can’t take away all the risk, but we can identify where we think it lies and if there is a reward for that risk. Some clients are willing to take on a little more risk. For example, a large offer over asking price, with a zero down VA loan, where other clients don’t want to risk leaving their fate to a third-party appraiser and will opt for the cash offer that may not net as much into their pocket. However you look at it, neither of these options are a SURE THING and the right choice depends on the individual.
Besides price and financing there are all the other terms and contingencies the listing agent needs to take into consideration to look at each offer as a whole. The agent also needs to communicate all of this to you in a way you can understand it, analyze it, and make an informed decision.
I mentioned risk management, something not to overlook is the fact that part of your realtor’s responsibility is not only to sell your home for top dollar in the time frame you want, they are also trying to keep you out of litigation. Everyone is so litigious these days, your agent should be looking out for your best interest not only during the transaction but long after the transaction is done so that you are going through the transaction in a prudent manner. There will always be things that are unforeseen, but hopefully your Risk Management team is operating properly to reduce that danger. So, although one realtor is promising you top dollar and closing faster than any other realtor could promise, consider the total package being offered.
And the last comment I want to make is that you want to enjoy your realtor. It sounds corny but I truly believe that real estate is a journey and you need to enjoy that journey. There will be points of stress and pain points, but hopefully those obstacles can be conquered. Again, enjoy the journey as well as the destination.
In the words of the American Author, Jeremy Aldana, “It’s not so much the journey that’s important; as is the way that we treat those we encounter and those around us, along the way.” I’ll see you in a week!
