An attorney and single dad in his 40s spent several years poring over his finances to determine if he could afford to sell the tiny bungalow he shares with his two teenage sons in Omaha. All three want a larger house with a yard where they could have their own bedrooms and take care of a rescue dog.
“It turns out the only thing stopping us is the sale of our current little place. But that’s a whole lot harder than I expected. We’ve had a few offers, but all came in way too low,” says the father, who debated whether to exit the market in frustration.
One factor that’s keeping the attorney from quitting is that he and his sons have found a nearly new planned community they love in the Omaha neighborhood of Elkhorn. Among the amenities in the new development are a large clubhouse, a gym, a pool and tennis courts.
“Best of all, the community has lots of trails where we could walk the Yorkshire terrier we plan to adopt,” the attorney says.
He’s not alone in wavering on whether to take his current property off the market due to disillusionment. There’s been a substantial recent increase in so-called delistings, the real estate industry’s term for quitting the market.
Jake Krimmel, a senior economist for Realtor.com, the home listing service, says the increase in delistings follows a surge in price reductions, as some sellers with unrealistic price expectations face a softer market with limited buyers. Now more owners would rather wait on the sidelines for the market to strengthen than persevere.
“Unlike past housing cycles where falling prices pressured underwater homeowners to sell, today’s homeowners benefit from record-high levels of home equity, so they have the flexibility to wait it out,” Krimmel says.
The attorney and his sons are anxious to move soon and not defer their dreams. So they’ll keep on trying to get a fair enough sale price for their bungalow rather than wait to sell. To improve their odds, they’re planning to recruit a new listing agent.
Here are a few pointers for sellers on agent selection:
-- Review the work of potential listing agents.
“You need someone you can trust to track your sale to the finish line; someone with the integrity to give you superior customer service,” says Michael J. Connerly, the author of “How to Win With Real Estate.”
As it happens, some listing agents who tout the high volume of their sales are less responsive to their clients than they should be, says Connerly, who sold property for 20 years and limited himself to no more than 10 listings at a time.
Although most agents are dedicated to their seller’s interests, he says some are playing a numbers game. They take lots of listings but don’t give each one the attention it deserves.
A listing agent’s failure to actively market a property can cause it to sit unsold for a lengthy period. Another common reason a home will languish is that it was overpriced at the outset, which leads to stigmatization and typically prolongs the sale.
Connerly says sellers who select a responsive listing agent are more likely to price correctly from the beginning, when the odds of the highest possible return are greatest.
-- Examine a candidate’s track record.
Perhaps the agent you’re planning to hire touts an impressive record of annual sales. Still, this agent might not be the ideal one for you, says Eric Tyson, a personal finance expert and co-author of “House Selling for Dummies.”
Tyson urges prospective sellers to obtain an “activity list” from any agent they’re considering. This should itemize all sales closed in the prior 12 months and should include the property location, as well as the list and sale prices.
“There’s no substitute for the raw data,” Tyson says.
Why is this roster so revealing? Because, as Tyson says, an activity list tells you if the agent is routinely selling homes of a similar type and market value as your property.
“Like professionals in any other field, people in real estate develop a specialty and skills to match,” Tyson says.
-- Look into a candidate’s vacation and travel plans.
Like everybody else, real estate agents enjoy getting away now and then. But it could be unwise to hire an agent who plans a break during the first two to four weeks after your place goes up for sale, when buyer excitement should be at its peak.
Some agents rely on backups when they’re away. But Tyson says this isn’t the ideal option for clients, especially if the agent will be gone for more than two to three days.
It’s unreasonable to expect agents to reveal their travel plans for a full year ahead. But Tyson says you should expect full disclosure about any lengthy absence that would occur within the initial weeks of your listing.
-- Avoid any agent who proves unresponsive.
From the moment your home goes on the market, you’ll need your listing agent to keep you in the loop on your sale.
Why is feedback vital to a successful sale? Because it permits you to make course corrections quickly, even after your property hits the market.
Connerly says one way to help identify a responsive agent is to ask the person’s references if they received regular feedback. Also, before signing a listing agreement, make sure it stipulates how often and under what circumstances your agent will call, email or text you with updates.
“Strong communication is an absolute key to top quality seller representation,” he says.
(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)