Too many vendors focus on the commission rather than the sales ability, unique sales proposition and track record of a real estate agent, all of which needs to be put on the table for discussion with the potential seller.
Agent One sells a property for $1.55M at 1.5%. The sales commission would be $23,250.
Agent Two sells the same house for $1.7M at 1.9%. The sales commission would be $32,300.
Agent Two’s result equates to $9050 more in commission, but with an extra $150,000 to the vendor. The extra sales value equates to 16.5 times the commission difference between the cheaper option and the higher fee.
Which agent would you get to sell your home?
When selling your home, vendors should peel back the onion on each agent’s sales record before they decide to run with a particular agent – perception is not always reality.
- Investigate the agent’s ability to deliver an exceptional result. This can be done by comparing their results against other agents and like for like properties.
- Ask the agent for hard proof of their past sales as many agents who are transactionally focussed are now not openly reporting sales figures to the market in an open and transparent way such as via domain and realestate.com.au.
- Ask your agent to show you past agency agreements of sales and see how their sales resulted against their appraisal prices. What is their evaluation process in assessing a prospective buyer.
- Let them demonstrate the entire sales process to you and drill into each element of the sale. A good agent will gladly supply this information without hesitation.
- The other important task for a seller is to reference check the agent’s past vendors and to call at least 3-4 of them.
Be aware most agents are full of spin in selling you their services, all they want to do is secure the listing thus guaranteeing them a sales commission no matter what the result.
Remember, selecting an agent is like selecting an employee, a wrong hire could cost you tens of thousands of dollars.
Riverview Realty is a boutique agency focused on achieving the maximum price, with a client engagement that is above the industry standard. We call it the “Ultimate Experience” which forms part of our unique selling proposition.
Ph. 02 9420 0083, 59 Tambourine Bay Road, Riverview.
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