So, What’s Important to You?
- Likability of the Agent
- Communication & Feedback
- Negotiation Skills of the Agent or
- Internet Exposure
Most Sellers I know what to know just 2 things.... Price & Fees! They are looking for the CHEAPEST AGENT and are only interested in the % of fees charged and the marketing expenses to promoted their property. Unfortunately these sellers don't take into consideration all the other factors mentioned above which are equally important.
The higher the price, the fewer the buyers & the lower the price, the more buyers.
The type of market also needs to be taken into consideration before making the final decision. Get the price wrong and you could be either underselling your home or having it sit on the market while all your neighbours are selling.
The right agent will know how to get many buyers interested enough to inspect your home instead of just a few. And as we know, the more buyers interested the more chance of getting a higher price!
Below is an example of what happened while marketing the home pictured above.
Agent A's property came to the market 1 day after Agent B's property. It was a 4 bedroom, 3 bathroom, double garage home with internal access, larger, newer, architecturally designed but in a slightly poorer location on the same street as Agent B's property which in comparison was a 3 bedroom, 2 bathroom, double garage with no internal access on a corner block with no privacy.
Agent A's property was listed at offers over $580,000 and Agent B's property was listed at offers over $560,00. The purchaser of Agent A's property offered $590,000 and had it accepted day 2 of going to the market and told Agent B that he was happy with his purchase because he felt the home was worth at least $20,000 more than the second property. Agent B received an offer of $600,000 on the first day of going to the market but still held the first open home where another 11 offers were extracted. Agent B's property ended up selling for $625,000. $35,000 more! And the purchaser of Agent A's property felt it should sell for $20,000 less so that's a real difference of $55,000.
So what happened?
Well, quite simply here are the facts. Agent A charged less to market the property opting for standard ads on Realestate.com.au and Domain.com.au and no advertisement in the newspaper. Agent B opted for an advertising campaign including Elite and Highlight ads on Domain and Realestate.com plus a 1/4 page ad in the Newcastle Herald. Agent B's marketing strategy resulted in 46 groups of buyers inspecting the property and 12 offers within 5 days. Because the buyers recognised they had competition on the home they had to compete. Whereas, the buyer of Agent A's property did not have to compete.
The graph below shows that even though Agent B charged more for marketing in the end it was Agent A who cost their vendor the most!
In this example, Agent A cost their vendor $31,725.
The cheapest agent is the ONE that gets you the best dollars in your bank at the end of the day! Not the agent who charges the least % on fees and the least marketing expenses!