According to a Morgan poll, Real Estate Agents are the third least regarded of professionals by the Australian public, ahead of only Car-salesmen and advertisers. Only 12% viewed agents as trustworthy. This is because agents seem honest and diligent in the beginning when they are trying to get your business and then can’t meet the expectations they promise you.
Recently, a couple came to us after having high hopes of selling their house in Dover Heights with a prominent agent in their local area. They were married with children and ran their own business, and are well respected in the community.
This family had screened three agents from their local area and was impressed by all the options in front of them. All had seemed very personable and down to earth. In the end they went with the safest bet. They had often seen the agent they chose advertising properties for sale in the paper and even seen him at a few open inspections.
The agent promised the family they could get $2.8m+ for their property which was higher than the other 2, who valued it at $2.6m, and certainly higher than they’d expected to get. While they were skeptical at first, the agent outlined an advertising campaign for them and promised to pay half of it from their own pocket. The family would only have to pay back the other half once the promised valuation was met and he’d refund all the advertising money if he sold it for less than $2.8m. This kindness and confidence was the clincher to give him a go.
They thought he was a nice guy who was working hard for them so it was quite a shock when after 7 months of having their property on the market they had little genuine interest. In fact, the best offer they had was $450 000 under the promised valuation. The agent advised them to accept this as the market was “struggling at the moment”, and they were lucky to get that offer.
They came to us feeling confused and let down. After the thorough research we did, we estimated that the true value of the house was between $2.4m to $2.55m.
When valuing the property we did our research following a 7 Step process (Which takes three hours on average to complete) and got the facts about the true value of their property. The valuation wasn’t swayed by what the client wanted or an estimated figure that just “popped out of our heads”.
We were totally transparent in out dealings with them, and with the prospective buyers. Despite the house being exposed to the market for so long before we had the opportunity to market it, we were able to sell the house within 12 weeks for $2.44m.
This is not an uncommon story and if you need proof of that, visit our web page of video testimonials – http://ozwayrealty.com.au/what-others-say/
The lessons learned in this exchange for property sellers are to be wary of the motivations of people giving you advice. Agents vying for your business tell you what they think your house can sell for. The agents quite often quote you a high price to get the job then they tell the buyer a low price to get them interested and try to find a middle point to make the deal and get their commission. Any money they lose on “advertising incentives” is worth it to them because they need to get the job to get the commission. But even if they don’t sell it they usually get a few new clients from the advertising.
Sometimes they will say, “This is a very unique property and hard to value, better to let the market determine value”. The first question buyers want to know is “how much is this place”, to which the agents always have a figure and it’s almost always low in comparison to comparable sales.
Don’t fall for their charm, question their selling techniques. Ask them to qualify their valuations and alarm bells should be ringing if they are aloof or dismissive.
The agents want you to invest pretty heavily in the advertising. Most will recommend spending many thousands of dollars on newspaper listings. It is not the best way to sell but it is the most expensive. Agents will recommend this as a way to give you maximum exposure but it’s actually not necessary. The Newspaper listings are more for advertising the agent than the property. That’s why at Ozway Realty we pay for advertising in the newspaper (unless it is necessary for a particular property to be advertised here) because it is more for telling prospective sellers that we are active in the area.
According to the Residential Consumer Property Seeker Report, Nov 2012, 86% of people use online as their main tool to search for property to buy.
To make the right decision about who will represent you when selling you need to explore a variety of marketing approaches and this diligent research can easily help you sell your property for 5-10% more. This can seem like an insignificant percentage but on an $800,000 property this can mean missing out on $40,000 to $80,000 in your pocket.
The more expensive your property the more you stand to lose if you don’t have the right company representing your property sale.
On average, we have sold properties for 8.35% more than previous agents best offers and that is after the property has already been exposed to the market for some considerable time. Our selling techniques may be different to other agents but we are transparent and diligent. To discuss further, call us about The Ozway method of sale, (it’s not Auction or Typical Private Treaty) on – 1300 843 699. You can call 24 hours a day 7 days a week or click here to enquire online.