They’re entering the real estate market like a colony of termites in a post war colonial, budget agents. Promising capped commissions, no marketing fees or pledging no sale, no fees. On the face of it, this sounds really promising, especially if you have fallen on hard times and are forced to sell your property. While the initial outlay may be less than other agencies, isn’t the sale price at the end the figure we should all be focusing on? iThink Sales Specialist Adam Boettcher has some important tips you need to know before jumping on the budget agent bandwagon.
WHAT’S IN IT FOR THE VENDOR?
Initially, a real estate agent’s primary focus is winning the contract to sell your property. In comparison, selling your home can be relatively easy, if simple processes are followed. So when it comes to budget agencies they work on quantity of listings not quality of sale. The more business they get in the more money they make, but what does this mean for the vendor?
- Customer service – They are going to have to list and sell twice as many homes as other agents. Customer service will be strained with a great number of listings, not as much focus on you or your property.
- Will you reach the entire buying market – without paying for marketing your exposure will be budget as well – ie less impact on the internet, no or limited newspaper and social media advertising, amongst others.
- Highest price may not be achieved – they need to turn over properties quickly, are they adequately invested in your property to achieve maximum sales price
CHECK HOW AN AGENT STRUCTURES THEIR FEES:
- Some agents charge a higher commission – up to five per cent – which includes some advertising.
- You might be charged on a ‘no sale, no fee’ basis or, at the other extreme, be up for signage and advertising costs regardless of whether your property sells.
- Some agents have low flat fees. Make sure you’re satisfied you can achieve a good price through such agents, and that their focus isn’t just a cheap, quick sale.
- You may be able to pay a lower commission by sharing some marketing and promotion costs.
- Watch for sneaky fees – some agents charge you extra for having to conduct open homes
- Make sure all fees are outlined in the agency agreement from the start
- Remember Fees and commissions are negotiable
KEYS TO ACHIEVING PREMIUM PRICE WITH YOUR AGENT:
- Realistic estimate of your properties value at the start. A lot of agents will over estimate the value just to win your business
- Maximum exposure for your property from the start. Premium listing on internet sites, newspaper ads and social media
- With the best price usually achieved in the first 30 days, first impressions really do count
- Our simple sales formula comes down to price, presentation and people
- Do your research, visit some open homes, see how the agents perform
- Pick agents with proven track records
- Look at how budget agencies properties are presented compared to other agencies
- If money is an issue, see if the agent will work with a payment plan option
Adam Boettcher – Sales & Marketing Consultant
0417 208 898
Adam brings an extensive sales history to his role as a Sales and Marketing specialist at iThink Property. Adam specialises in Residential Sales and has been personally involved in hundreds of transactions over the last several years with the majority of these via successfully run Auction campaigns.