Valuer or negotiator
Selecting the right agent can be a challenge if you don’t know how to identify a good real estate agent from one that over-promises and under-delivers.
Many people will interview several estate agents and focus on two selection criteria: the price the agent feels the property is worth, and the agent’s selling fee. Unfortunately, using these criteria could lead to the wrong decision.
This is because a real estate agent is not a valuer. You see, each agent will have an opinion on the likely selling price of your property. But ultimately, a real estate agent’s job is to maximise the selling price for the seller. If all you want is a price on your home, call a valuer, not a real estate agent.
When you interview an agent, it’s more important to examine their proposed selling strategy – that is both the agent’s proposed marketing and the negotiation process. The best agent will have the best selling strategy not necessarily the highest price quote.
If an owner signs up with agent with the most optimistic price and commits to say $2,000 to advertising over 90 days hoping the agent is telling the truth around price – it often ends in tears! I’ve even heard of people signing with an agent using a selling strategy they don’t like – such as auction – just because they like the price the agent quoted.
The agent must have a thorough understanding of property prices in the current market. Any prices quoted must be backed with sales evidence. A proposed selling price without supporting sales evidence should be treated with caution. It’s easy for an agent to quote a high price, but it takes genuine knowledge and skill to defend the price with sales evidence to a buyer when the home comes to the market.
Finally, don’t tell an agent what you feel your home is worth. People are susceptible to believing what we want to hear. Keep focused instead on how the agent will negotiate the highest possible price from each buyer for you.
In terms of commission, fees and advertising costs, the cheapest agent is the one that leaves the most money in your pocket after the sale has occurred. An agent that cuts their commission to get the listing is likely to cut your price rather than building value for you.
When an agent is negotiating the sale of your home, do you want one that cuts price to get a deal done or one that builds value into the offering? It may feel good to get the agent’s fees down at the time of listing, but it won’t feel so good when a buyer is out-negotiating your incompetent agent.
The best agents maximise price in a strong market and protect price in a falling market.
For more information about getting the best price for your home call (06) 835-4321.
