In today’s world of technology, there are many options for selling a home – some including the use of a real estate agent and some eliminating the agent entirely for example by using Purple Bricks. However few actually know exactly what goes into the process of selling a home, or what the benefits of having an agent is. We thought we might shed some light on this and take you through the entire process so you can decide whether an agent is right for you.
Why Use A Real Estate Agent
Renowned for their shiny new suits and unwavering gift of the gab, agents are often the subject of humorous scrutiny amongst the community. However there are many great agents out there who offer a lot of benefits with the top three being client knowledge, market knowledge and finely tuned negotiation skills.
Sydney buyers’ agent Tracey Chandler says that a good agent knows how to turn a negative into a positive. If a potential buyer complains: ‘I don’t like the way [the property] faces,’ the agent would say, ‘but if it was the other way around you’d be looking at a wall’,” she explains. “It’s up to the agent to bring them back into the picture, and they do this with absolutely no emotional attachment, which is what you want.”
The agent also acts an arbitrator that filters information between the buyer and seller, a major asset they often don’t get credit for according to Tony Williamson, Principle RE/MAX Australia.
Knowing The Market
As for market knowledge, an agents’ access to a database of interested buyers is crucial. With the property market being as competitive as it is currently, local agents will be able to target individuals who may have recently missed out on a similar property in your area. The element of client knowledge requires a bespoke approach from agents.
Choosing the right sales method
According to Domain, an Agents’ marketing plan runs the gamut from an off-market strategy, where promotion is minimal and agents proactively target their extensive personal database of buyers, to a fully loaded campaign of online real estate portals, print advertising, flyers, signboards and open homes, the latter deemed one of the most powerful ways to attract interest.
However, regardless of selected method, agents encourage vendors to invest in the presentation of their property. A small investment of a few thousand dollars could potentially at an extra $20k to sale price.
Photography is also a major component, with great photographs resulting in higher numbers of groups through at the first and subsequent open-for-inspections.
Method of sale can also be customised, with vendors often preferring to sell via private treaty rather than auction, and is particularly suitable for homes where there might be lower levels of buyer demand.
On the other hand, if the vendor wants a quick sale for market price and they live in a seller’s market, an auction is highly recommended.
Properties can often sell before the auction date if a buyer is keen enough.
The benefit of auctions is the process allows vendors to control the terms under which the property is offered and ensure the creation of an unconditional sale, with the added benefit of a deadline for the buyers to act – increasing the competition.
How Do I Pick One?
Word of mouth and referrals are common, and people do talk about property results both positive and negative. However it is also a good idea to do a bit of research and go to some other local auctions for similar properties in your area as well to see what is achieved, note the active bidders present, and meet the agents.