In real estate, to “vet” means to ask questions that pertain to the agent, agency, or brokerage you will be working with, like in most business senses. In real estate, buyers or sellers should always be vetting their potential representatives. Asking the right questions leads to stronger service and potential increased profit on your property. The questions a buyer or seller should focus on are past and recent real estate sales, the agencies connections, marketing strategies, and their knowledge of the current market.
Vetting Based On Past and Recent Real Estate Sales
Asking questions on past and recent sales will give a potential client an idea of the agent’s skill at selling properties. However, sales timing is not the only qualification you should prioritize, and there are potential influences to consider when reviewing recent transactions. While longer tenure agents may have more sales overall, they may not have had any recent sales. Less recent sales could also have multiple meanings, from an agent that spent time stepping back from sales to a worse situation of an agent not understanding the current market. Other signs of potential weakness include real estate agencies and agents who do not advertise, thereby reaching fewer potential buyers. Still, understanding of recent sales provides a good starting point for vetting your agent and agency.
Vetting The Actual Real Estate Agency
Every real estate agency has different tactics used to reach potential clients. Part of vetting requires finding the right agency who you feel comfortable working with. Generally, larger agencies are connected to a network of agents. For example, our agency Berkshire Hathaway HomeServices provides a global network of agents as well as investments in marketing for clients properties. While our agents are locally focused, access to a large company helps reach potential buyers and sellers and provides the best opportunity to increase the visibility of property listings.
What are the Active Marketing Strategies?
Generally, but not always, a larger company with a global name will generally have a larger network of agents for word of mouth advertising. As a seller, other priorities may arise, such as choosing an agency that provides professional photos to help capture potential clients. People are visual so having the strongest photos will catch eyes and interest. When you are a buyer, choosing the right agent can also help you hear about properties as they are becoming active, or pocket listings within the agency.
Knowledge Of The Current Market
Knowledge of the current market leads to a better outcome for both buyers and sellers, so this is an important area to consider when choosing the right agent. Depending on the market may provide a different outcome on expected profit. In a buyers’ market, there are many properties with fewer buyers, causing the price to generally be lower. A sellers’ market is the reverse, with more buyers and far fewer options of available properties, giving the sellers the opportunity to raise the price.
The topics above are great starting points to consider when your vetting and choosing the right real estate agent to help you buy or sell property. When you are vetting an agent as a buyer or a seller the answers you will look for differ, but a strong agent and agency will provide you with the answers and the trusting “feel” you are seeking.