What Agents Do
What Real Estate agents do
The role of a real estate agent starts when you call the agent or a number of agents into your home and advise them that you are going to sell your home.
The agents will walk around the property, sound very enthuastic and may even say that they have an immediate buyer.
They will then give you a presentation pack & budget of what you need to spend to sell your home in terms of advertising. The agent will also include recent sold properties that he or she have sold.
Your Dream Price
During the agents time at your home they will then give you a ‘’dream price’’ for what they can sell your property for, they will give you this dream price that is well above market value knowing that this price is un achievable- this process is called winning the listing.
Once an agent obtains the exclusive rights to sell your property and advertising money their role changes from dream price giver to ‘’conditioning the seller’’
Tip #1 If you must use an agent sign a sole agency which means you can also market and sell your own home, if the agent sells your home you will have a commission.
Conditioning the seller
Conditioning the seller is a common theme for a massive real estate agent company in Australia and is highly unethical. The aim of conditioning is to ‘’educate’’ you that the market & buyers are telling the agent that the advertised price is not achievable and that they should look at lower priced offers and for a quick sale.
Conditioning of the seller works most of the times as the seller believes that their property is over priced, and under agents pressure they agree to sell their property.
Advertising expenses under an agent
During a listing presentation an agent will tell you that you need to spend the following to achieve a sale and high price.
- $4,000-15,000 in paper advertising
- Letter box drops around $500-900
- Brochures $500
- Professional Photography $800
- For sale sign $750
Minimum advertising expenses $7,650
You will be told that you need all the above to sell your home or find the buyer. Most of these marketing techniques simply help build the agents profile and are not the most effective or cost effective way to sell your home.
Tip #2 A for sale sign and a listing on our website will find the highest bidding buyers.
Push for auction
Auctions are for bargain hunters. An auction does not work unless it’s a true one of a kind property i.e. the last beach front block.
Auctions are very expensive and have a less than 40% clearance rate, meaning if your property does not sell at auction the market value is the last bid, most times well under market value.
After an auction the agent will tell you your property is not fresh and over exposed, and that there is no buyer. The agent will tell you this so they can walk away from your property with zero responsibility.
Tip #3- Auctions have a less than 40% clearance ratio and are very expensive
No agent can guarantee that they will sell your home. What is not ok is when you spend a massive amount of money advertising your property with the agent being the only person who can sell the property.