There's more to selling your home than picking a price and sticking a "for sale" sign in the yard. It usually involves market research, home improvements and contract negotiation that must be done before the keys are exchanged.
Due to low inventory and high demand, it's not uncommon for a Denver home to receive a multitude of offers on listing day. That's why hiring an experienced and trustworthy real estate agent is the first step to getting the best offer on your home, especially in a real estate market as tricky as the one in Denver.
With so much at stake, finding an agent with the right experience is key, and in order to do so, you need to ask the right questions. According to some of Denver's top real estate agents as identified by OpenHouse Realty, a real estate technology company (and a U.S. News partner), here are the questions you need to ask to determine whether your prospective agent is a champ or a chump.
Ask for Referrals. The first step in hiring a Denver real estate agent to sell your home is narrow your search to a few specific agents – which isn't always easy. "There are approximately 30,000 licensed real estate brokers in the state of Colorado," Adam Moore with Mile Hi Modern and LIV Sotheby's International says. "The real estate industry is competitive and finding a professional real estate broker can be difficult and stressful."
You might have personal references from a family member or neighbor, a name from a local ad or recommendations from an online search. Remember that the agent with whom you are most familiar may not necessarily be the best agent for you. No matter what, be sure to interview several people before making your final decision, and start interviewing agents as early as possible so you can take your time making a selection.
"Sellers should exhibit the same vigilance and discretion in selecting a real estate broker as they do when finding a hair stylist," Moore advises. "I recommend interviewing at least three brokers before making a decision."
Ask about experience. Although a listing agent has many responsibilities, the main objective is, of course, selling the house in a timely manner for a satisfactory price. Therefore, the first thing you should look at is an agent's production rates: How many homes have they actually sold and in what time frame? (If an agent doesn't know their production rate off the top of their head, that should be cause for concern.)
"Don't be shy about asking for their production," Moore says. "Top producing brokers sell a high volume of homes for a reason and their success is most likely attributable to work ethic, expertise and professionalism."
Production rates also indicate the general level of experience an agent has in the industry. For example, those with higher production rates are more likely to know more people in the industry and to have experience dealing with unique challenges like home inspection hiccups or odd contract clauses.
"Know that the top 20 percent of agents do 80 percent of the business," Deviree Vallejo with Kentwood City Properties explains. "There are people that have been in the business 20 years who do one deal a year. There are people who have been in business five years and have done 50 deals a year."
Ask about the neighborhood. Many real estate professionals agree that it's important that a listing agent has experience selling homes in your specific neighborhood. How many homes they have successfully sold in the area, and at what price points? What marketing strategies work in the neighborhood, and which don't? What do they think are the pros and cons of owning a home in the neighborhood?
"If you're listing a house, it's important to go with someone who knows the neighborhood really well," Vallejo affirms. "Sellers should find a neighborhood expert who has a lot of volume, an extensive vendor list and knows the comps."
Generally speaking, those who have a good understanding of what makes a neighborhood unique will be better able to sell prospective buyers on those qualities. After all, people are not just looking for a house with a roof, but rather a place to raise kids, have friends over and walk the dog. "When you can really sell a lifestyle and the amenities that go with that neighborhood, it really helps you to promote that house," says Conrad Steller of The Steller Group of Keller Williams Realty.
Ask about marketing. Marketing is a key component of selling a home and is the biggest difference that sets buyers and sellers apart. Even in Denver's competitive real estate scene, proper marketing tactics need to be employed in order to ensure you target the right buyers. Most real estate agents have an initial listing presentation that they give to all prospective clients that should outline a clear marketing plan.
"You want someone who's hungry to sell your house, not just put a sign in the ground," states Jeff Plous of ONE Realty. "It's important they have a streamlined process that is easy to explain. Ask for examples of flyers, photos and marketing tactics."
Most agents agree that quality photography and home staging are key, but how much these services cost can vary. Some agents include full marketing services in their commission rate, but sometimes these costs fall on the homeowner. Be sure to ask what exactly is included. Perhaps they offer a complimentary staging consultation, but moving furniture and adding props may cost extra. They may say that photography is included, but will they be taking pictures with their cell phone or using a professional service?
"Some agents are great buyer's agents, but when it comes to listing they just don't have the right marketing tools," Vallejo explains. "Any good Realtor will make their marketing costs clear up front. The last thing you want is surprise bills for marketing."
Ask about home improvements. In addition to staging, photography and advertising, it is sometimes helpful to invest in home improvements before listing, especially in a market as competitive as Denver's. Invite all your prospective real estate agents into your home and see if they suggest any improvements or updates that might increase the sale value immediately.
"A lot of agents don't do much to prep a home for sale," Steller says. "More experienced brokers really invest their marketing dollars in prepping the house for market, including any improvements that can be made to maximize the presentation to make it as desirable as it can be to the largest base of buyers."
Ask about their personal life. Selling a home is an emotional process, and part of an agent's duty is to help you and your family through it. They need to be qualified professionals, but you also need to like them as people. You will be spending a lot of time talking to your agent, so it's important that you have similar communication styles to better understand each other. You need to be able to trust them and rely on them – and vice versa.
"Sometimes you just don't have a personality that clicks, and sellers need to have that connection because this is their biggest asset you're dealing with," Steller explains. "Ultimately you have your gut feeling of who is going to best represent you."
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