Why Cheap isn’t alway’s Cheerful when Selling your Home or in Property Management
Yes, the point of having a property whether you live in it or whether it is an investment is to make money, and whether your strategy is long term or short term, make no mistakes you need to have your figures worked out.
When it comes to your biggest asset, is it really is time to be skimping on costs and penny-pinching? Like every other industry when it comes to real estate you really do get what you pay for.
Let’s take the recent example of a so-called disrupter to the real estate sales industry, who have recently left the market with their tail between their legs. They came into the market offering low commissions and no marketing costs. Sounds great for your bank balance, but exactly what did you get for that? That’s right, very little. There was no ‘actual’ agent, area expert or key person to deal with, no exposure for your property and no open homes, which basically equates to no people through your property and of course a very limited chance of selling. If you wanted people to go through your property, you were charged extra fees for someone to conduct a viewing, this was amongst numerous other hidden fees.
Property management is currently experiencing its first wave of disrupters, which focuses on Landlord portals and communication is via a robot or artificial intelligence. That is all well and good in theory until it isn’t good. Like when a tenant defaults, abandons or damages the property, what happens then? By all accounts a property manager is outsourced to deal with a situation they know little about and deal with parties they have no relationship with. This would make dispute resolution difficult and debt collection after the fact an arduous, time consuming and ominous task wouldn’t you agree?
When choosing a selling agent or property management team you want to make sure you are hiring an agency that will look after all aspects of your property with exceptional professionalism and care. Chances are if you choose a budget agency lower fees will equal a lesser service.
In property management, in particular, lower fees mean lower wages and less training for the team, which equates to higher turnover or less experienced people dealing with your property and a higher staff to property ration as well which means less time spent on your investment. When an agency is understaffed and inexperienced it doesn’t take much for things to go wrong, and this ultimately could end up costing you a lot more money.
When it comes to sales, lower fees essentially means less service. Budget sales agencies work on a large number of listings, not quality, so generally, they end up with more listings than they can service, and for vendors, this usually results in a longer time on the market and less money for your property.
Property Management – Why You Should Boot the Budget Agency
Training – Your property manager is likely to be well trained and more experienced to deal with difficult situations as they arise. Debt collection and dispute resolution strategies are key questions to ask when interviewing for a property manager.
Less Staff Turnover – Your property manager is likely to be better paid and more likely to stay. Property management is notorious for staff turnover, especially if they are being underpaid for the enormous workload they are dealing with.
Good Systems and Procedures – Your agency is likely to have had more time to invest in better systems and procedures, especially ones that focus on customer service.
Better Staff to Property Ratio – which means property managers will be able to handle the number of properties they manage. Budget agencies have large portfolios with very little in the way of support.
No Hidden Costs – your fees and services will be outlined upfront and there is no need to add on sneaky fees to make up for cheaper fees elsewhere.
Selling – Why You Should Boot the Budget Agency
Quality service – A great agency works on the quality of listings, not quantity. Their goal is to sell your property not take on as many listings as they can and hope a few will sell.
Greater exposure – The more people your property is exposed to through marketing the greater opportunity you have to sell your home. This includes weekly open homes, inviting prospective buyers to view the property.
Premium Price – With fewer listings and more time for service, which includes a key service, negotiation, your property is likely to achieve a higher price.
Fewer Days on Market – With a premium focus on service your agent is working hard to get your property sold as quickly as possible.
Local Expert – Your agent will be a local area expert and will know the local market inside and out. This means they will know what price to list it at to achieve a genuine sale, not overprice it just to get the listing and hope for the best.
Remember there are so many tools these days to help you make an educated and informed decision on an agency to choose. Check real estate agency’s digital profiles including their website, Facebook and LinkedIn as well as reading google or industry-related reviews online. A budget agency’s fees might seem attractive, but if they can’t or don’t deliver on their service their clients will most certainly let them know.
iThink Property has a team of real estate agents in Ipswich and Toowoomba offering property sales and property management services. With a passion for people and property, iThink Property was conceived with the notion of building a team of good people to work in a real estate brand that did things differently. iThink Property focuses on transparency, communication, innovation and teamwork and has become a leading independent brand with unique points of difference. So whether you are thinking of buying, selling or renting, think iThink Property.