The Agent who offers the cheapest deal is not always the best person for the job.
So you want the best deal?
Of course you do! Commission charged for selling houses is huge. We all know that.
But do you actually know what the commission charged is for and what goes into “up-selling” a property?
Not many people do.
So choosing an Agent because they are the cheapest is a very common mistake to make.
Remember, the Agent you choose could have the same overheads and access to the same marketing channels as most others.
For a lesser fee, while you save money, you might see your eventual selling price of your property decrease, or the time on market increase.
The discounted fee often will be because the Agent has to cut corners and perhaps not market to a wider audience or within the correct channels.
Perhaps an easier way to explain this, is to see your property as “a product in a store”.
Let’s say for instance there are 5 similar products all sitting on a shelf.
Yours might be pushed to the back while others are being promoted to the front and dressed differently to appeal to a higher paying market.
Why would you then skimp on promotion, if you can increase the sale price by promoting your product to the right market.
An extra $5 000 in a fee can often mean an extra $40 000 + in your selling price if you choose the right Salesperson for their “negotiating skills” rather than their fees.
It is a known fact within the industry that Agents that discount their fee drastically to win a listing will have to cut some of their service out, and will be less motivated to get the best possible price.
Your property will probably sit on the market for longer too. Or you could sell quickly and not realise that you have “under sold”. This happens so often.
Multiple offers make buyers compete for your property and you will get a higher price
One extra buyer could pay $10 000 more than the next buyer for your property so why wouldn’t you want multiple offers from many buyers.
Experienced Agents are worth every cent you pay them as they should be skilled negotiators and should provide excellent service right the way through the sales period and during the after sales period.
They will understand the power of technology and marketing and be able to provide you excellent insights to invest in the right marketing campaigns to maximise your profit.
Make sure you read their testimonials – it is really important to know what other people have said about them.
A good Agent will also be honest with you about the price expectations
You might not like what they have to say, but if you list with somebody who tells you want you want to hear, perhaps they might over-inflate the price, then you will be disappointed.
That agent will slowly negotiate you down in price as buyers walk away from the property and you will think it is your property that is at fault.
In the industry this type of salesperson is the worst and professional Agents often land up selling their expired listings.
They are known to “buy the listing” by offering an inflated price. They will then innocently offer explanations like – ” I liked your property so much that I thought it was worth more but we can now see that the buyers are not wanting to pay that much”.
Rather do your homework and look at the salesperson rather than their commission
You would be better off choosing the Agent on their skills, experience and previous testimonials than on somebody that buys the business by discounting heavily, or even somebody that is somebody you know who has promised you a big discount.
Selling through a personal friend or family member often fits in this category as they are too closely involved with you to offer objective observations and will not tell you how it really is for fear of hurting your feelings.
Your relationship will never be the same again if it goes wrong, so rather choose an impartial expert who is good at negotiating and who can back themselves with testimonials from sellers previous successful sales.