In any real estate market, the question is often asked, “What exactly do agents do to earn their commission?”
On a typical sale, the agency receives around 3% of the value of the home. Of course a large percentage of that goes to the principal to cover running costs etc. (which really add up!).
Agents say that the current market is requiring them to be more creative, to be careful and extract the best value from vendor paid advertising and also spend more time and effort to make a sale.
But how do you go about making the right choice when putting your home on the market? Especially when you want it sold and not still languishing on realestate.com.au 3or 4 months down the track.
Here are a few tips that might help:
Does your agent have a team of handymen, decluttering specialists, cleaners, gardeners, removalists they work with and recommend? If you’re not happy with the agent’s performance can you cancel the agreement? Do they offer guarantees on performance? What are the agent’s qualifications? How long well do they know the area? Can they show you a track record and offer testimonials? Can you call their testimonials yourself? Spend some time researching to see the style of advertising your agent is known for. Do they have professional images? Is their copy creative or is it bland? How many visits have they had per listing on the net? (This may help you figure out the length of time they’ve had the listing.) Are they asking for advertising money? This is a good thing. Professional images, copy writing, internet advertising, signage, brochures, and a floor plan – those things add up. It’s unlikely you’ll be using a savvy agent if they’re telling you all those things are ‘on the house’. Do you trust the agent and feel comfortable with them? This may seem like a strange question but you are trusting them with your most valuable asset so you need to trust them implicitly. Is the agent prepared to work with you or are they telling you what will happen and guiding you through the sale?