3 Agents Have Been - Now which one do I Choose?
Choosing the right real estate agent to sell your house can be an overwhelming prospect. Deciding to sell is a big step in itself, and selecting the right person to take on the challenge with you can be tough. Most consumers will meet with a few different agents before making a decision about which person to entrust the job to, but after the agents have done their ‘pitch’ and headed home, who do you choose?
They All seemed to make sense
Each contender was probably equally friendly and professional, albeit overly extroverted and a little pushy as sales people tend to be, but no matter how ‘nice’, ultimately you know that they’re trying to sell you something - themselves! - which can make it difficult to trust your gut.
Do you pick the down-to-earth agent with the realistic price and fair, reasoned approach? Should you pick the one with the lowest commission fees, or instead choose the agent who promised to get you your asking price? Maybe you should take a leap of faith with the guy who promised to sell for more, even though he could be too good to be true.
Head or Heart
Whether the agent is pitching their years of experience, promising to get you exactly the price you’re asking for, or ‘buying the listing’ by offering more than they expect to get in the long-run, sometimes you have to ask yourself “can I trust my instincts?” especially when it comes to hiring a master salesperson.
It helps to arm yourself with as much information as possible, and there’s plenty of it out there once you know what you’re looking for, but even if you know everything you need to know about the market, it’s ultimately the agent’s experience and attitude that will play the biggest role in determining the outcome of your sale.
Most Salespeople are hard-working
There are many dedicated, hard-working, ethical and compassionate people working in the industry, that’s for sure, but there is also no doubt that real estate agents have a reputation for insincerity. In an industry motivated largely by commissions it’s easy to understand why. One particularly surprising thing about the commission structure of the industry is that although it feels like something that will work in your favour, in actual fact, that isn't always the case.
According to Steven Levitt and Stephen Lubner, authors of Freakonomics (www.freakonomics.com) it is actually more profitable for an estate agent to sell your house sooner, for less money, than to hold out for a higher price.
It’s counter intuitive, but the math holds out; if your agent gets a 3% commission on your $300,000 home they will walk away with a $9000 cheque in their hand.
But 3% of $310,000 is only an additional $300, so if the higher offer takes an additional 14 days to come through, that’s only an extra $21.50 each day for the agent. While holding out would work out to be an almost $10,000 benefit to the seller, the agent is actually better off selling the house for the lower bid rather than investing any more of their time.
Maybe an Independent 3rd Party
That’s just one of the reasons why savvy consumers are seeking out an objective third party who can help them make a clear headed decision about their choices. Getting an independent property appraisal from a property coach who will make no money from the transaction is the best way to guarantee yourself an honest opinion about the state of your property and what to expect over the course of the sale.
A property coach isn’t an agent, and doesn’t sell property or arrange financing, but with years of experience in all types of property transactions they know the best in the business who do, and can offer you invaluable, unbiased, independent advice about every aspect of the selling process.
Taking the time to talk to a property coach could save you a small fortune, not to mention help you make the best decision when it comes to choosing an agent.