What is the industrys average selling-price-to-asking-price ratio?
Every knowledgeable agent needs to have some idea of this ratio whether working with buyers or sellers. Compare this answer with your candidate’s answer to the question above. Is your prospective agent’s personal record better than the average? The average also has great value when setting the asking price, after you have an idea of the fair market value of your home. The correct answer is often between 95% and 99%. APPENDIX B describes how to determine the latest figure. By now your candidate is in awe. Are you an agent? How did you ever learn so much about real estate? DON T TELL. The fun is just starting. You are about to find out, firsthand, how good a negotiator you have. Ask what commission the agent charges. Remember that commission rates are not set in any manner by any body, or by anybody. They are set by negotiation between you and the broker, which strictly speaking, is the real estate firm. You may assume that the agent has some latitude to speak for the firm regarding comm
