Top Questions to Ask a Listing Agent – Part II

Table of Contents

This guide is divided into two parts. In Part I, you’ll find general questions that apply to all agents. In Part II, we explore more advanced and situational questions (seller’s market, divorce sale).

Part II – Situational Questions

1. Buyer Backs out of Escrow2. Buyer Nickel and Diming during Escrow3. Multiple Offers4. Dual Agency5. Selling Rental Property6. Divorce / Estate Sale7. Similar Home Listed

Buyer Backs out of Escrow

How would you deal with a buyer who backs out during escrow?

• Generally speaking, a buyer can back out & get their deposit back if it is within the contingency period

• You can re-negotiate with the buyer or quickly go to a back-up offer

• A buyer could lose their deposit and you can sue them for breach of contract if they back out AFTER the contingencies have been removed

• These are all general statements, but it is always best to consult an attorney as every contract and situation is different

Buyer Nickel and Diming during Escrow

How would you deal with a buyer who is nickel and diming you during escrow?

• A good agent will have a point of view on this issue

• They might advise you to agree to reasonable requests for repairs

• Or advise you to threaten to back out of the deal altogether

• And take your back-up offer if the buyer is being too difficult

• Select an agent whose tactics and values are closely aligned to yours

Multiple Offers

Please describe how you would handle a multiple offer situation? How would you address each of the offers if they all came in at or around same price and terms?

• You have the choice on how you would want to handle multiple offers

• There are many ways to handle this, including:

1. Listing broker remains silent, telling none of the cooperating brokers that there are multiple offers and merely present all offers to you

2. Listing broker tells the buying brokers the situation, and they should be sure to submit their buyer’s highest possible price

Dual Agency

If you or one of your associates at your office brings in an offer, please let me know how you would address their offer to ensure that you are properly representing my interests?

• This is an example of dual agency, where a buyer and seller agent are represented under the same brokerage

• Dual agencies can create a conflict of interest

• This conflict of interest may arise because the brokerage could gain “double commission” even if their offer isn’t the best offer

• An agent needs to provide assurance that they will treat the buyer’s agent & offer in the same manner they would with an outside agent

• If you are uncomfortable with dual agency, you should tell the agent

Selling Rental Properties

I have a tenant living in the property. Should I ask them to move out first or would you show the property while the tenant is still living there? I want to minimize any rental income loss

• Having a tenant around makes it much more difficult to show the property

• There’s also a risk that the tenant may scare off potential buyers

• A really bad tenant may also use a pending offer to blackmail you

• It’s best to ask the tenant to move out, even if you have to buy them out

• This gives you the opportunity to perform minor improvements, like a fresh coat of paint, that will have a high yielding ROI

• Check out the Pros & Cons of listing with or without a tenant

Divorce / Estate Sale

My spouse doesn't trust me to select a listing agent of my choice. What do you suggest I do?

• To gain trust is to enroll your spouse in the selection process

• LessThan6Percent brings transparency to the home selling process

• We bring agents to compete for your business

• Your spouse will know exactly what they’re paying for

• You can review all the proposals together as they come in

• And jointly conduct interviews to give you peace of mind

Similar Home Listed

A similar home is listed on the next block, what pricing strategy would you recommend for my home?

• Identify comparable listings, including the similar home on the next block

• Create a range based on properties currently listed or sold in past 6 months

• Gain momentum by choosing a price near the bottom of the range

• This could stimulate interest among more than one buyer

• Be prepared to have an ongoing discussions with your real estate agent

• Don't be afraid to do your own research

• But remember to work with your agent and not against them

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