Goulburn Real Estate Blog

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March 29, 2019

Hiring the wrong agent

The most common and most dangerous way to hire an agent is based on an estimated sale price and the agent’s fee. This rarely works out well. Owners basing their decision on these two factors alone are more likely to fall victim to an inflated price estimate. The agent gives little thought to achieving the best price or avoiding a poor digital footprint, and instead works, over a period of time, to educate the seller into reducing their price.

Hiring an agent based on their marketing and negotiation skills will always prove a sound investment. Good negotiation can mean a difference of tens of thousands of dollars. With the wrong agent, any fee is too expensive.

Example:

An agent received an offer and dropped it at the owner’s front door with a note informing them to sign within half an hour and return it. This was on an $800 000 property! No effort, no skill and no sale.

Was this agent worth their fee? No way.

Example:

An offer of $395 000 was received on a property listed at $419 000. As is common, the buyer – who was more than willing to pay $410 000 – thought they would try a lower offer to see what happened. The seller accepted the offer on the recommendation of their agent. When asked why they didn’t pay more, the buyer simply responded, ‘Nobody asked us to’.

The seller lost $15 000 because the agent couldn’t be bothered going back and asking one simple question, ‘Will you pay any more?’

Was this agent worth their fee? No way.

Hiring the wrong agent could mean substantial financial loss at your disadvantage.

When interviewing agents, ask questions to confirm they do indeed possess demonstrable negotiation skills. The right agent can provide hard evidence of effective strategies to obtain the highest/best price for your property. Some agents will ‘talk the game’ as they will not be able to show you written evidence of a successful negotiation.

A great negotiator working for you can mean the difference of thousands of dollars.

 

Are you interested in reading Real Estate Dangers by Andrew Trim?  Contact us to receive your free copy. Email: mail@goulburnre.com.au or call 02 4822 8711