How to select the right estate agent?
Selecting the right real estate agent can mean the difference between 5 to 10% of your sales price. It can be the difference between staying on the market for 28 days versus 90 days.
So what do you need to look for in an agent?
Use track record to select the right agent
Look at your agent’s track record – are you comfortable that they’ve got strong negotiation skills and the perfect sales process? Do they have a history that proves they can get the job done for you?
The right agent is someone you are comfortable with.
It is always important to get along with and feel comfortable with your agent. After all, you will be spending a lot of time together! Someone who earns your confidence will create trust with you, and take the stress out of the sales process.
Negotiation, negotiation, negotiation
This is one of the biggest skills of an agent and the biggest thing you take advantage of when getting an agent to sell your property. Agents with sales experience frequently negotiate with buyers and learn how to identify behaviours, read people, and determine how to get the highest possible offer out of a party.
A skillful agent disguises their sales process with subtle qualifying questions that provide the information they need to later weaken a buyer’s negotiating position. For example, buyers who have been looking for a while and are frustrated having just lost out in the bidding of an auction will be highly motivated. A good agent would identify this and realise the potential to bring their offer up.
Select an agent who can run a marketing campaign, not just upload an advertisement.
One of the biggest frustrations you will come across are agents who put no effort into making your property stand out in the marketplace. The agent’s job is to market your property and negotiate a sale. It is not worthwhile to have one without the other.
Many agents only offer a rigid, repetitive sales campaign for every property. They don’t highlight the unique selling points of and lifestyle that comes with the premises. This is not marketing!
It is something we talk about in more detail in our article on how to sell your own property without an agent.
Make sure your commission is covered by a higher price.
These elements are all pieces of one elaborate jigsaw puzzle. When all the rough pieces come together, the result is one smooth masterpiece. When negotiation and marketing are executed correctly, you don’t really pay commission, because all this represents is a small percentage of a price you would not have achieved otherwise.
A good agent will urge you not to take $700,000 if they know there will be a buyer for $750,000. That will be worth a fee of 2-3%. Whereas an agent charging 1% commission who offers a poor service, marketing campaign and negotiation, has ripped you off more.
Whilst most people think a low commission equates to a good deal, this makes little sense if they could get the same price by simply uploading pictures online for even less with the modern ‘no agent’ businesses available.
When you do the math, saving on commission might be losing you more money than using an agent who is worth their fee.
Our article on how to sell your own property without an agent tries to educate people on this. The style of marketing campaign described here cannot be executed by a seller who is not an agent, with marketing, digital marketing, social media marketing and video marketing expertise.