Robert Darrow, @properties

Time to get back to work after a forced Holiday due to Chicagoans’ attention on the elections and the funky economy.  But if the increasing number of phone calls and increased traffic on our websites is an indicator, business is picking up.

In anticipation of upcoming appointments, we’re inspired to provide some key questions you should ask when you’re interviewing agents for your listing:

1. Are you a full time Realtor?

This one seems like a no-brainer; doesn’t it?  But there are thousands of agents in Chicago who only work weekends.  Or have full time jobs during the day.  Or moonlight at night as bartenders or wait-staff.

You’re probably not paying a half-commission; are you?  So why should you only get half an agent?

2. How long have you been in business?

A track record of success is key indicator of future success.  In our market, any agent with the tenacity to make it ten years or longer has a solid client base, plenty of experience, and the savvy skills to get your job done.

3. What’s your production volume?

Remember the good-old days when top producers would list “Million Dollar Club” on their business cards?  A few old-timers still do!  Odds are, however, that in your neighborhood, two sales or a fraction above will push an agent’s production volume over $1-million.

Top producers in Chicago can easily crest $6-million in yearly volume.  This puts them roughly in the top 15% of Chicago Realtors.

Agents with annual sales in the $12-million range are in the top 10% or better.

As agents top $15-million in annual production, it’s likely then the agent is taking credit for the production volume of a team of agents and assistants.  There’s nothing wrong with that; it’s just that you should know what kind of agent you’re hiring.

Elite level Realtors producing over $25-million in sales often work as a company-within-a-company with a team of agents handling showings and a decent sized staff handling administration.  This brings up:

4. Do you work alone? Or with a team?

If you’re the kind of customer that would like to always be able to reach your agent directly, you might prefer an agent that works alone.  You’ll still have the resources of your agent’s company working on your behalf.  But you’ll probably have direct access to your agent via their personal email, their direct telephone number or cell phone.

If you think you’d benefit from a coordinated effort of a team lead by a local star, then the team approach might work for you.  There will be dedicated individuals who answer your calls, process paperwork on your behalf, and handle other tasks.  You’ll usually be screened by a coordinator, so you won’t get instant gratification.  Emails will be handled by someone you haven’t met.  Perhaps your agent will be able to get back to you later the same day, but most of the time, admin coordinators will be handling your transaction.

I don’t like the team approach because you never know who’s going to be doing the showings at your house.  Or working at your open house.  Usually someone with a lot less experience than the person you hired.

5. Big company?  Or small?

Is there a mom-and-pop shop that has been in business forever in your neighborhood?  Does that company dominate sales in a particular marketplace?  That kind of success is harder to find these days, but if there’s a dominant player in your area, you might consider giving them a shot.

Most sellers would benefit from the reach of a larger company in their marketplace.  Since you’re paying for it, why not hire the company with the better website, the bigger ad budget, signs all over town, and some brand recognition?

6. References?

Your agent should be able to produce some letters of reference or testimonials on the spot.  If you want to follow up with references, your agent should be able to give you names and numbers, but may wish to call the clients first before giving out their contact information.

7. Show me your marketing program?

Everything asked up to this point is to determine the level of competence of your agent, and whether they are compatible with your expectations.

The marketing program is where the rubber hits the road – so to speak.  The marketing program should include the production of marketing materials, advertising, an online presence, the use of the Multiple Listing Service, a schedule for open houses or broker tours, direct mail, and any other advertising avenues that are customary in your marketplace.

A thorough presentation of a comprehensive marketing campaign should convince you that news of your house for sale will reach buyers wherever and whenever they look for information about property.  If you get the feeling that something might be missing, it probably is.

8. How long will it take to sell my house?

This isn’t a question that necessarily implies that one agent is better than another.  You want to see detailed statistics showing the days on market of homes like yours in your neighborhood. 

If an honest estimation of market time is not accompanied by statistics from your local MLS, then it’s just a guess.

9. Show me the Market Analysis for pricing my home?

Your agent should have a detailed CMA – Comparative Market Analysis that shows what similar homes have sold for recently.  The report should be backed up with printouts from the MLS for each property used in the analysis.  It’s even possible to make fine adjustments in a CMA to account for features that your property may have that comparable homes don’t, and vice versa.  The more information you have, the greater confidence you can have in the recommendation.

10. What will all this cost?

Commissions are negotiable and vary widely – even in your marketplace.  Though I’m not quoting commissions here, you should expect your agent to be up-front about the commission charged, the split to be offered to co-operating agents, and any fees that are tacked on.

I’m not a fan of the additional transaction fees, but they seem to be a part of life in our marketplace.  They should NEVER be a surprise later in the transaction, however.

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