Why choosing the wrong agent can cost you thousands

But, across Australia, many markets are now coming down from their COVID high. Properties are taking longer to sell, auction clearance rates are dropping, and prices are stabilising. Add in rising interest rates and a skyrocketing cost of living, and it’s only natural that buyers are becoming more cautious. They’re not throwing money around anymore, so choosing the right agent is paramount.

In my early days as an agent, I met a home owner whose house had been on the market for a number of months, had seen several reductions in the asking price and still hadn’t sold.

I asked her why it hadn’t sold, and she said she couldn’t get the price she wanted.

I then asked her what sort of feedback, written and verbal, she’d had from the current agent about where buyers saw value. She said none, but they’d hammered her to drop the price. She hadn’t heard from the agent in three weeks.

The agent also hadn’t talked to her about other strategies to get her property sold, like no price marketing campaigns or auctions.

Her contract with the first agent had expired; she was tired of trying to sell and reluctant to give me a go, but I asked if she got the offer she was hoping for would she accept it? The answer was yes, and I listed her property.

I reviewed the previous marketing material and realised the agent had done an average job with photos and marketing. I launched the property with a full campaign, including new photos and sold it in the first week. The home owner sold above the price advertised, and I got great job satisfaction. There’s a big difference between a good agent and an ordinary one.

How can you spot a good agent?

Don’t be distracted by the bells and whistles

Online auctions, video walk-throughs, negotiations by Zoom and signing documents electronically have become the norm. Many also have glossy magazines or e-magazines to showcase properties. They can also place your property on the internet, and if you pay for it, you can have top billing.

But, just about any agent can do this, so don’t get distracted by shiny things. And while you should ask how they’re going to market your property, you should also be asking what they’re going to do to get you the best price. There’s a difference.

Look at the quality of their marketing, look at the photos they’ve used for other properties. If they’re poorly lit pics from an iPhone, find another agent. Read their marketing blurbs, does it inspire or motivate you to look at the home they’re selling, or is it just two boring paragraphs?

Then ask them what sort of price strategy they recommend for your home and why.

You get what you pay for

There’s a great set of Toyota adverts that promote their service offering with the tagline: “You wouldn’t use any old handyman, would you?” The same goes for real estate agents, but that’s where many people get caught up in price by thinking, “agents are all the same, I’ll go with the cheapest”. This is common when markets tighten and prices fall. After all, you want as much money as possible from the sale in your pocket.

But skimping on fees can result in a lower price when you sell. So ask the agent what you get for your money. The thing to focus on is service, and be specific:

• How often will they contact you? During a boom, there’s no need for a weekly report, but now the market is changing, your agent should be prepared to catch up with you regularly, either in person, via Zoom or on the phone, to talk about the progress of the sale.
• What feedback will they give you? Your calls or meetings should address things like the interest the property is getting online, how many people came to the home opens and feedback on price and presentation.
• Do they have a strategy if the property doesn’t sell in a certain time frame? Dropping the price shouldn’t be the automatic answer. Feedback may suggest you need to do some work on presentation or market it differently.

Don’t believe everything you read

Ignore those ratings websites, the ones that tell you who the best agent in your area is. In many cases, they only feature agents that pay to be on the website.

Instead, talk to people you know who have bought and sold and ask who they recommend. Pay particular attention if they were buyers and said the agents squeezed every last dollar out of them, that’s the person you want selling your home.

Look at agents’ websites and the testimonials, but don’t take their word for it. If you think you’ve found an agent, ask if you can speak to some of their clients for feedback. As we’ve just come out of a boom, don’t just speak to recent clients; try and speak to people who used that agent during a more difficult market.

You can also check out local real estate institute websites. If the agent is a member, look them up and it will tell you how many sales they’ve had in the past year in your area. It’ll give you an idea of how active they are.

What effort do they put in to win your business?

Pay attention to how the agent treats you when you meet them. I know of a top-rated agent who turned up to an appraisal and told the seller he nearly cancelled because he was too busy. If he can’t be bothered getting your business, what effort is he going to put into selling your house?

He also hadn’t done his research on the property and gave a price well below its worth. Needless to say, the seller didn’t go with him. They chose the agent who came to the meeting with a well-researched price guide supported by comparable sales, presentation tips and marketing strategies. He got them a good price and squeezed the buyer for top dollar.

Selling your home is a big decision; take your time, do your research and get the price you deserve.

Ryan Thompson is a performance coach and auctioneer.