Busting the Real Estate Myths #2

Myth # 2

The best way to choose an agent is to go for the cheapest commission or fixed commission agent.

OK … Now those words scare the hell out of us!

Choosing an agent based purely on how cheap or low their fees are and because they include the advertising is a really risky situation to place both yourself and your property in.

There’s a huge difference between getting something cheap and getting value for money.

mythvsfact

Our advice to you is choose your agent based on their track record and because you feel you can work well TOGETHER.  Remember, the agent you choose will be representing you and your property in the marketplace.

An agent who is prepared to cut their fee PRIOR to listing / or TO GET your listing shows they are weak negotiators – if they are so quick to drop/lower their fee, how quick will they DROP YOUR property’s price, or convince YOU to, when a buyer makes an offer?

Also, an agent who offers to cover the cost of your advertising then has a PERSONAL VESTED interest in selling your home in the fastest time possible as THEY have to pay your marketing bill.  If your home doesn’t sell, they are still out of pocket for YOUR marketing expenses.  They don’t pay for your advertising out of the kindness of their heart, they do it to GAIN your business.

A top performing agent will charge between 2.5 – 4.5% plus GST.  And they will ask you to pay for the advertising of your property.  Which is logical, afterall, they are using all their knowledge and resources to market your property.  You’re required to fund the advertising to bring the buyers to YOUR door.  (Just like you would pay for the advertising on eBay or anywhere else if you placed a classified to sell something yourself).

Approximate costs range from about .5 – 1% of the value of the property depending on location and the type of property.  The agent will have several marketing packages for YOU to choose from.

We know that many of you think all agents are the same but we’re NOT, honest!.  If all agents provided the same level of service and marketing, then why aren’t we all charging the same fee?

Cheap or fixed commission may seem like you’re saving money but realistically you can lose more than you save in the end.  This has been proved many times over.

A full service / full fee agent will get you the best price in the market as the more they can achieve for your property, the more they are paid.  Yes, this is true, however, it’s not as much as the general public believe/think.

For example:  A top performing agent receives an offer of $350,000 on a home at 2.5% commission which means they will receive $9625.00 inc GST.  However, they get that offer up to $375,000, they then receive $10,312.50 inc GST which is a difference of only $687.50 for achieving their clients another $25,000.00!  Very small dollars for achieving major money for their clients when you think about it.

Again, top performing agents are worth it because they know how to market and negotiate.

A large majority of full service / full fee agents also have to split their commissions with the agencies that they work with, usually 50 – 60%, so they don’t receive all that commission you pay.  They then have to pay out their own expenses!

Top performing agents achieve more for their clients because they want to, they work hard for their money, they are constantly learning / training, they have the best and most up to date systems in place, and they are always available for their clients and their clients buyers.  They are the quiet achievers of the industry.

We love this way of life, we do it for our clients and the beautiful people we meet everyday.  These people who turn into friends and future sellers, the sellers who turn into buyers and future sellers … We have made so many beautiful lifelong friends over the years that this isn’t a job to us, it’s a lifestyle.  Which is why we provide so much honesty to you.

Take it or leave it.

All I ask is that you think twice about choosing an agent who tries to entice you with a cheaper commission and free advertising – Many are cheap for a reason!

About us, Agents Darryn & Kerrylea …

We have been married for over 17 years and we have mastered the fine art of working together.  Between us, we have over 25 years of sales, marketing, negotiation and property management experience to guide you no matter what your real estate inquiry may be.

We know we are different to other real estate agents, we like to think that we not only have the knowledge and experience, but we also have the life skills to understand our clients/vendors’ needs at a time when they need us the most …

We don’t just sell property, we market your property to reach the largest range of buyers, so you are assured of receiving the highest market price possible, in the shortest amount of time.  We are working for you the vendor!

We look forward to meeting you soon, if we don’t know you already … and for you to become one of our VIP CFL’s – ‘Clients for Life’ …

Agents Darryn & Kerrylea (D&K) & Zeeva …