Written on the 28th of April 2009 by Hot Property Specialists Buyers Agency
Buyers are Sellers Too! Selling your home can be a nightmare of frustration and disappointment. It can cost you thousands of dollars, either in selling too cheaply or in needless expenses. It need not be this way!
Selling your home should be a pleasant and rewarding experience. You should receive the highest possible price at the lowest possible cost.
1) The more agents you employ the lower your price becomes
Do not list your home with several agents. You may think this will increase your chance of finding a buyer. But, in our opinion, it decreases your chance of getting the highest price and makes you appear desperate to sell. Buyers will shop around and contact all the listing agents to see what the lowest price is they can pay for the home is – and each agent will give them a different price. Chances are, the agent that quotes the lowest price will get the sale. Because of this too – agents are less likely to work hard for you as they don't ‘own’ the listing and can put in the hard work for you with no promise of a result. Choose one agent that you like and trust and work with them.
2) No For Sale Sign can Mean No Sale
The buyers who are most likely to pay the highest price for your property will specifically want your location. These buyers are likely to drive around the area after hours keeping an eye on the market so a sign acts like a 24 hour sales person. Potential buyers may knock on your front door and ask for an inspection but we recommend you tell them to contact the agent. You may be risking your personal safety and security of your home by letting them in. They are also best to deal with an agent as they are trained, experienced negotiators.
3) Closed agents lose buyers
Before choosing the agent to market your property – ask some questions:
“What happens to your listings when you go on holidays?”
“Do you have someone that can take care of inquiries or inspections if you are busy?”
“Do you answer your phone on weekends?”
We’ve seen the importance of asking these questions just recently! We made inquiries on a property in the first week back of the New Year. This property ticked all of the boxes for one of our clients so we were pretty keen to get through it. We phoned the agent – went to message bank so I left a message. No return phone call. Called again a couple of hours later – went to message bank again. Still no return call. Phoned again the next day – this time it was answered by the agents mother only to be told she was on holidays but would see if she was free to take my call. I finally spoke to the agent on the 3rd attempt but she wasn’t interested in discussing the property, little own organising for us inspect it and I would have to contact her again next week when she was ‘officially’ back at work. Nice way to lose a buyer in a hurry! (To finish the story – we ended up buying the property next door directly off the owner.)
4) Be wary choosing a high quoting agent
When you invite agents to give you an appraisal price of your property, be wary of the agents that quote you a high price for your property. In the industry, this is known as ‘buying a listing’. We recommend you don't choose an agent just based on their appraisal price alone as you may be bitterly disappointed. We recommend you choose an agent who you can trust and that you feel you can work with.
5) Don't make the mistake of selecting a cheap agent
Be careful of choosing an agent based purely on their fees. “If agents give their own money away, what do you think they will do with your money?” Better to pay an extra one percent for a selling fee than to receive ten percent less on your selling price. Good negotiators rarely give big discounts on their fees. If they get you the best price, they are worth a fair fee.
To give you an example of this, I bought another property myself last year. The agent the sellers choose to sell their property was from one of the discount fee agencies. I put in an initial offer that was $30,000 less than the asking price, the counter offer came back and after a bit of ‘rocking and rolling’ we signed a contract that was $5,500 more than our initial offer. The point is – I would have paid another $15,000 to $20,000 for the property! Great for us as this money stays in our pocket – not the sellers...
6) Don't make the mistake of not trusting the agent!
If you don't trust the agent, don't hire the agent! A major ingredient in any relationship, business or personal, is trust. Before you choose your agent, ask many questions, check their references, test their negotiating skills, and ask yourself the BIG question: ‘Do I feel comfortable with this person handling the sale of my house?’ If your answer is ‘no’, don't hire the agent. Once you decide on the agent, give the agent your trust and confidence. Do not interfere – allow the agent to make decisions and get on with the job of finding the right buyer for your home. By all means, give them your feedback and tell them how you are feeling and your concerns but this is their job and what they have been trained to do. They receive feedback from the market every day about the market value of property and what's happening in the market. ‘You don't tell your dentist how to fix your teeth, do you?‘
7) Don't reveal your reason for selling
No one, other than the agent you trust, should know your reason for selling. IF your reason is revealed it can severely hurt your chance of obtaining the highest price. This is especially true if you need to sell by a certain date. If buyers know the reason you are selling it can weaken your negotiating position and will more than likely reflect in a lower sale price and less money in your pocket.
8) Never let an agent market your property with a price range
All you are going to do by marketing your property with a price range is to invite offers at the lowest price listed. When you don't ‘play ball’ with the buyers, even though their offer is within the range, you could run the risk of disappointing them and they may go elsewhere.
9) Don't over capitalise on your property
Many home improvements do not improve your price. Be careful what you spend on major improvements to your home. What suits you may not suit every buyer. A good example is a swimming pool. It may cost you $25,000. It is worth nothing to buyers who do not want it. The main purpose of home improvements is to improve your enjoyment, not to improve your price. You rarely get back more than half the cost of your improvements when you sell. Do not spend large sums on home improvements immediately prior to selling your home.
10) Make your home Sparkle! Dull homes get dull prices
Do not confuse improvements with presentation. Make your home sparkle and your price will shine. Pay attention to little things which create a big impression – the front garden and the first appearance of your home. Stand back and look at what buyers will see when they first arrive. Cleanliness is vital. Recently we inspected a property on behalf of a client – there were porn DVDs every where. Nothing against them but buyers definitely don't need to see them! Box them up and store them away.
11) Don't demand inspections
The best agents will qualify the buyers before bringing them to your home, therefore saving you from wasting your time cleaning and the stress of getting the presentation just right. Activity is not the same as productivity! You do not need hundreds of people – you only need a few genuine qualified buyers and it only takes one person to fall in love with it and buy. If your home is not selling, there are usually only two reasons: the agent is incompetent or the asking price is far too high.
12) Don't make the mistake of holding out too long
Too high a price can create too low a price. Asking Price and Selling Price are often two very different prices. If your home does not sell within three to five weeks, we recommend you lower the asking price. If not, and it sits on the market too long, your home could aquire the ‘lemon’ tag. Buyers will wonder what is wrong with it and will more than likely give it a wide birth. We have a saying ‘The first price is usually the best price.’
Copyright 2009 - Hot Property Specialists Buyers Agency Pty Ltd. All rights reserved.
Selling your home should be a pleasant and rewarding experience. You should receive the highest possible price at the lowest possible cost.
If you don't trust the agent, don't hire the agent! A major ingredient in any relationship, business or personal, is trust. Before you choose your agent, ask many questions, check their references, test their negotiating skills, and ask yourself the BIG question: ‘Do I feel comfortable with this person handling the sale of my house?’ If your answer is ‘no’, don't hire the agent. Once you decide on the agent, give the agent your trust and confidence. Do not interfere – allow the agent to make decisions and get on with the job of finding the right buyer for your home. By all means, give them your feedback and tell them how you are feeling and your concerns but this is their job and what they have been trained to do. They receive feedback from the market every day about the market value of property and what's happening in the market. ‘You don't tell your dentist how to fix your teeth, do you?‘
Do not confuse improvements with presentation. Make your home sparkle and your price will shine. Pay attention to little things which create a big impression – the front garden and the first appearance of your home. Stand back and look at what buyers will see when they first arrive. Cleanliness is vital. Recently we inspected a property on behalf of a client – there were porn DVDs every where. Nothing against them but buyers definitely don't need to see them! Box them up and store them away.
