How much is my Property Worth?
This article is, perhaps, a slightly jaundice view
of real estate industry and some tips on how to get the most out of
it. The article prescribes managing your real estate agent (realtor)
as opposed to adopting a passive role. It also suggest you do your
own research rather than relying on what the agents chooses to tell
you. We hope this article is helpful and regret if any offence is
taken. Either way, please get
in touch with us and let us know your views and experiences.
The nature of Word of Web is to listen.
Highest Possible Price
What is the highest or best possible price I can
get for my home? Just how much is your property worth? Easy. It is
what the market will bear. What the highest bidder will bid. The best
price you can secure during a negotiation with an interested and able
purchaser. Sounds straight forward and, of course, as any decent agent
will tell you, you just need to secure the services of a professional
estate agent (them of course) and you will get the highest possible
price – or will you?
The Hook
Before you even say a word the real estate agent
knows what you want. Lots of money, as quickly as possible please
with minimum of hassle, fuss and stress. So when you meet don’t
get too excited if that’s what they tell you.
The Cynic
Any good restate agent will quickly assess your level of cynicism
and adjust their approach accordingly. They may talk up your chances,
stress their size/locality/personal service, emphasize past successes
and experience and might even offer to reduce their fees. A few phases
to watch out for during this process:
1. 'I already have two or three potential buyers
on my books' - If you think about it, everybody is a potential buyer.
2. ‘Your property is unique/special and we shouldn’t have
too much of a problem selling it’ – Most properties are
unique in some way.
3. ‘I guarantee you we will sell your property’ Yes but
at what price? Will you discount or waiver your commission if you
don’t get what you say its worth?
The Contract
Read it carefully, query everything you don’t
understand and, preferably, get their response in writing. Never agree
to a long period of exclusivity with out good cause or you risk paying
out commission twice or not selling until well after the contract
has expired.
Who does what?
This varies from country to country and state to
state even but generally, and make no mistake about this, if you want
the best possible price you will have to do most of the work when
it comes to selling your home. There are usually DIY jobs to do, maybe
some uncluttering, transporting furniture into storage and rearranging
what’s left, renting plants, extra gardening duties not to mention
preparing your home for inspection, over, and over, and over again.
What does the agent do?
If you are unlucky, surprisingly little if they can
get away with it. Get the agent to tell you up front what they intend
to do to sell your property. e.g. attend inspections and, if there
is any doubt, make sure they list their duties in writing. Ensure
they will ring every potential buyer they hear from after an inspection
or enquiry. You don't care who you sell to it is the money you are
after. Don't let the agents prejudices, laziness or inefficiencies
rob you of a potential buyer. Ask for reports of who they have spoke
to and what the feedback was. Make sure they try more than once if
they can't reach someone first time. Don't be afraid to ask, quiz
and generally check up on them. There is no harm attending your own
inspection. Make sure the agent earns their commission.
Marketing
At some stage, probably not straight away unless
you push the issue, the advertising ‘budget’ will be discussed.
The Estate Agent will talk column inches, hits on their website and
glossy photos and exposure.
‘To get the best possible price you have to
let everybody know what great property you have’ Mr or Ms Agent
(by this stage the two or three potential buyers
have purchased else where, died or otherwise evaporated).
Marketing for whom?
For whom? is one question you should ask. If they
can get you six column inches in that must-be-in magazine at a sensational
discount ask how many inches is for their office and/or them personally
and how many for you. You never know, the estate agent might have
a special, special sensational discount.
Where to Advertise?
More fundamentally, you decide where you want to
advertise and don’t be pushed around on this one. Do you own
research as best you can and ask for the facts to back up why you
should pay thousands of dollars for a glossy photo in magazine you
never read.
There must be some estate agents who are honest
and hard working.
Yes there are of course many estate agents who are
honest and hard working but they may not earn as much in commission
as some of their more scruple less colleagues. We list a couple on
our website [www.wordofweb.com.au – Word of Web is Word of Mouth
recommendations on the web] which, at the time of writing, may only
be of use to Sydney readers. If you know of one please let me know
- wow@wordofweb.com.au
About Word of Web
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If you would like to email us a review - wow@wordofweb.com.au.
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or just want to see more feedback before we list the Trades people
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