Why Choosing the Wrong Agent can Cost you Thousands of Dollars?

Choosing the wrong agent when selling your property can cost you far more than you think. Selecting an experienced, researched and well-spoken representative is invaluable.

We experienced a property boom during the COVID-19 pandemic. Amidst lockdown and restrictions, the housing prices were soaring and homes got sold in a matter of days.

During those days, you could argue that almost anyone could sell a house, and many owners really chose to do it themselves and probably had really great success.

But the Australian economy is changing as it is coming out of the Covid high, and facing rising inflation. Prices are stabilising, auction clearing rates are declining, and homes are taking longer to sell. It seems sensible that purchasers are becoming more cautious given the growing cost of living and rising borrowing rates. 

People are no longer throwing money in that direction therefore choosing the right agent is crucial for selling your home successfully.

There’s a huge difference between a good agent and an ordinary one.

An ordinary agent probably doesn’t care about the emotional attachment you’ve with your home, they don't try to understand the reason why you’re selling your home and they certainly don’t try their best to give you the best price for your property.

A good agent will give written or verbal feedback to suggest renovations or changes that would increase the chances of selling your home for a better price. They talk about various strategies to sell the home for the best price like no price marketing campaigns or auctions.

After clicking nice pictures of your property, they launch the property with a full campaign including the photos and try to make the sale as soon as they can. They try not to hammer down the price or disappear without any communication. 

A good agent gains satisfaction from selling the property above the price advertised. 

How to spot a good agent?

1. Don’t be distracted by frills and furbelows

Online viewing and online auctions, negotiations over zoom and electronic signatures over documents have become commonplace, it’s not an additional benefit.  To display your property, many agents also offer placements in glossy magazines and online publications. They post your property online and charge you top dollar if you’re willing to pay for it. 

But any agent can do this so don’t get distracted by these marketing gimmicks. While marketing is a must for your property, you should actually ask the agent for strategies on how they are going to get you the best price for your property. There’s a difference. 

A good and experienced agent knows what works best for your property while an ordinary agent will throw arrows in all directions thinking one of them might hit.

Look at their marketing efforts, and check if they have used good photos to promote previous properties. If the pictures are poorly lit and clicked from a mobile phone, you might as well find another agent. Read their marketing descriptions, does it inspire or motivate you to check out the homes they are selling or is it just a boring paragraph written for the sake of it?

Always ask the agents about the pricing plan they advise for your house and why.

2. You get what you pay for

There was an advertising campaign by Toyota to promote their after-sales service, the tagline for it was as follows: �"You wouldn’t use any old handyman, would you?”

The same is true for real estate agents, but there are many people who get swayed by price and decide to work with the least expensive one, believing that all agents are similar. This frequently occurs when markets tighten and prices fall. After all, you want to walk away from the sale with as much money as you can.

However, cutting costs now could mean getting a lower price when you sell. Ask your agent what you get for the money you put in. Put the focus on the service and specifically ask about the following things:

1. How frequently will they get in touch with you?

A weekly update is not necessary during a boom, but as the market changes, your agent should check in with you frequently to talk about the progress of the sale, whether in person, over Zoom, or by phone.

      2. What feedback will they share with you?

Your phone calls or meetings should include topics including the amount of internet interest the property is receiving, attendance at home openings, and customer feedback on the listing's price and presentation.

     3. What’s their strategy if the property doesn’t sell in a certain timeframe?

The default solution shouldn't be to reduce the price. They should be able to provide you feedback that suggests making changes to your marketing strategy or focusing on your presentation.

3. Don’t believe everything you read online

Often the rating websites that tell you about the best agent in your area only feature agents that pay to be on the website. Don’t completely trust these rating websites.

Instead, seek referrals from people who have bought and sold recently. Ask people who would they recommend. The person selling your home should be able to squeeze out every last dollar from the buyers and their agents. Pay close attention and see if they have such skills.

View the testimonies on the websites of the agencies, but don't take their word for it. In order to get a sense of how effective an agent is, request to talk with a few of their clients. Don't just talk to current clients as we've just come out of a boom; try to get in touch with those who employed the agent during a more difficult market.

You can also visit the websites of local real estate associations. If the agent is a member, you may search them up and find out how many sales they made in your neighbourhood last year. You'll get a sense of how active they are from it.

4. The effort they put in to win your business

When you meet the agent, pay close attention to how they treat you. Recently a top-rated agent showed up for an appraisal and informed the seller that he almost cancelled because of his busy schedule. He had also not done any research on the property and gave an estimated price below the property’s worth. 

With this attitude, he may not put any effort into selling your home because he was least bothered about winning your business. The seller didn’t choose him for obvious reasons.

Choose an agent that comes to the meeting with a well-researched price guide. This price guide must be supported by comparative sales analysis, presentation tips and marketing strategies for your property. He must be able to get a good price for your home and squeeze the buyer for top dollar. 

Conclusion

Selling your home is a big decision; take your time, do your research and choose an agent who gets the price equivalent to or more than your property’s worth.

Looking for a top real estate agent?

At Agent Select, we empower sellers and help you find a good real estate agent to sell your property anywhere in Australia. Call us on 1300 040 463 to find and compare top real estate agents in your area.