6 Things to Do Before You Call a Real Estate Agent

Before contacting a real estate agent, you should have the necessary financial considerations covered and be ready to show your home within weeks. However, this process takes time, depending on the shape of your home if you are selling and your finances if you are buying.

For sellers, first impressions are vital in real estate, and you want to avoid a weak entrance into the market. Before calling a real estate agent, be sure to cover the following steps.

1. Get Pre-Approved for a Mortgage

Before you contract with a real estate agent, your first step as a buyer is to learn your mortgage financing options. Contact a mortgage lender to get pre-approved for a loan. The lender will review your financial situation and determine how much of a home you can afford to buy. Many factors affect the term and interest rate of your mortgage, which can determine the home you can afford.

Also, note that being pre-qualified for a mortgage is not the same as being pre-approved. While both processes involve analyzing your debts, income and assets, only a pre-approval involves an official mortgage application.

2. Study the Market

The mortgage for which you are pre-approved will dictate the price range of homes to research. However, if you are also selling, you will need to know the market for homes similar to yours in your area. Keep in mind that while you can research real estate ads online and in print, you will only learn the asking prices. A real estate agent will show you how long homes have been on the market, any price reductions, and the closing prices.

While it's important to research the market, don't fall in love with any properties just yet. There's a chance that the property might be sold by the time you're ready to buy, especially if you have to sell your home first. Subject-to-sale offers—or, as they say in the real estate industry, "yeah, but …" offers—have less chance of being accepted by a seller than an offer that has its finances in order.

3. De-Clutter

Most of us have seen enough episodes of "Trading Spaces" to know how to stage a home. However, did you know it's important to impress your real estate agent too? Preparing your home for an open house before a visit from an agent will help the agent to see the full potential of your home and allow them to better market the property.

• Pack away extra shoes and coats. Having these out in the open suggests a lack of closet or storage space.
• Remove any personal effects. People want to imagine themselves in your space, and pictures of your family reunion will make that challenging.
• Clear off your fridge. A clutter of alphabet magnets, postcards and receipts will ruin the perception of an organized and peaceful home.
• Move out excess furniture. The more open spaces, the larger your home feels, and more space allows people to imagine varied possibilities for your home.

4. Clean

When selling your home, a tidy home shows pride of ownership and suggests the place was cared for and maintained. For instance, the appearance of your entrance is just as important as any part of the interior. Ensure your mailbox, door, mat, and trim are all pristine. Light shades and fixtures are havens for dust and insects, and while you may not notice them in your day-to-day, investigative homebuyers may be put off by your shoddy housekeeping.

Spotless windows will let in more light and allow people to enjoy the view. Consider replacing the furnace filter to improve the airflow in your home and the quality of the air you breathe. Finally, the bathroom should be immaculate. Besides the obvious areas, like the toilet, tub and tiles, an ancient rule of bathroom etiquette becomes paramount: Keep the toilet seat down!

5. Repair, Replace, and Refinish

Many longtime homeowners become accustomed to retrofit repairs and dated or deteriorating features. For example, make sure to patch and paint the walls. Re-painting in neutral colors will help people imagine themselves in your space (think blank canvas), and an unblemished wall will reinforce your care for the home.

Also, evaluate your curb appeal. Is your lawn mowed and weed-free? The front of your home is the true first impression for most house hunters, so make sure your exterior is top-notch.

If you have an older home or are concerned about hidden surprises, you can have a pre-sale home inspection done so you can tackle repairs before buyers cancel bids. At the very least, you'll have an estimate of the cost of repairs so prospective buyers know what they are getting into upfront.

6. Scout Potential Agents

Don't just hire the first real estate agent that appears in your Google search. Take the time to shop around and find an agent suited to your needs. You can start by asking for referrals from people who have recently moved, and there are several online resources for ranking and reviewing realtors. You'll also want to look for an agent familiar with selling homes in your area, as they will be experts on pricing your home appropriately.

Also, an agent with lengthy experience in the real estate business will have a large network of contacts to help advertise your home and find you a new one. Remember, these agents will be taking as much as 6% of the closing price of your home, so make sure you are hiring someone prepared to work hard.

The Bottom Line

As with any significant sale or purchase, your first steps to selling or buying a home involve homework and preparation. It's up to you to make your home appealing before you hire an agent. Remember, even the most skilled and experienced real estate agents can only help you sell if they receive an offer, and demand will only be high for your home if you follow this list.