There’s much more to real estate horror than haunted houses and scary tenants. The most chilling horrors happen everyday, when vendors make risky and scary decisions about selling their homes, costing stress, money and time.
One of the most costly mistakes a vendor can make is not taking the time to find the right real estate agent to sell their property. Whatever you do, don’t fall into these blood curdling and value-draining traps when choosing your next real estate agent…
Selecting an agent based on low commission
Hiring a real estate agent with low commission appeals to many vendors wanting to save on agent fees. However, when price becomes a vendor’s main priority, horror can really creep in. An agent with low commission doesn’t necessarily signal a bargain; when vendors neglect to ask the right questions outside of fees and charges, they could end up with the entirely wrong agent for a property sale.
Maybe an agent doesn’t have the right marketing plan or experience in your property type, in which case a property can sit on the market for extra weeks or even months at a time.
Do you really know an agent’s sales history?
When real estate agents provide vendors with references for previous property sales, it’s only natural that they supply their most satisfied clients for feedback. Even if these references are taken with a pinch of salt, vendors are still at a disadvantage because they are entering into a professional relationship without the full picture of an agent’s sales history.
To avoid the horror of a misleading sales track record, before signing a contract with a real estate agent, ask for the following information:
- Contacts details for an agent’s clients from at least the ten most recent sales.
- Recent details of an agent’s successful and unsuccessful sales.
- The types of property the agent has successfully sold in the past.
Falling for a persuading sales presentation
When meeting face-to-face with a real estate agent it’s easy for the agent to win a client over with a charming sales presentation. Even though vendors may have the home-ground advantage, meeting an agent without prior knowledge of what an agent has to offer, or without an idea of your local property market, can lead to vendors signing contracts under pressure.
Understanding some basic information about the fees and services of other real estate agents, and sales prices of properties in the area, before meeting with a real estate agent can help vendors hire an agent based on rational and clear decision making. It can also help vendors negotiate a better deal for commission.
Hiring a friend or family member as an agent
It’s an old adage that holds true today – don’t mix business with your personal life. Not only will it be uncomfortable if things go wrong, but while a friend may put in a decent effort to sell your property, they might not even have the right experience to sell your house. Do they know your local neighbourhood? Are they likely to have buyer contacts for your specific property type?
Using a friend, or even a friend of a friend, can lead to awkward business relationships. If you choose to hire a friend who is a real estate agent, make sure you analyse their career in the same way you would any other agent, and choose them because you have compared them against other agents, and after all, they are the best option for the job.
Not researching the property market
Many vendors have an over-inflated idea of their property value, believing it is worth more than market value. This can make vendors particularly susceptible if real estate agents over-value a property during an appraisal. While you might want to believe your house is worth more, a good agent will present you with sales history of your property and others in the area, and a realistic house price projection.
Compare agents and spare yourself a real estate horror
How do you avoid picking the wrong real estate agent and costing yourself financial and emotional stress in the selling process? Compare real estate agents fees, expertise, agencies, marketing, appraisals and much more before selling.
Did you know you can compare local real estate agents with LocalAgentFinder? It’s a unique and free online service that puts control back into the hands of homeowners, allowing them to view and compare a range of real estate agent information, including fees. Selling your home smarter just became easier.