If an agent could charge more, would they? So the question is, why are they not?

If they are willing to negotiate on their own family’s pay packet (food on the table you might say) to secure your listing, what are they prepared to do to secure a sale, and how quickly will they fold on your price as your representative.

You want your agent to be the best NEGOTIATOR possible, so cheapest isn’t always more money in your pocket at the end of the day. Find an agent that adds VALUE and only pay them full commission if they are worth it.

If an agent could charge more, would they? So the question is, why are they not?

If they are willing to negotiate on their own family’s pay packet (food on the table you might say) to secure your listing, what are they prepared to do to secure a sale, and how quickly will they fold on your price as your representative.

You want your agent to be the best NEGOTIATOR possible, so cheapest isn’t always more money in your pocket at the end of the day. Find an agent that adds VALUE and only pay them full commission if they are worth it.

“They Give It To The Agent Who Will Pay For The Advertising Of Their Property Up Front, OR Even Worse, The Agent Who Will ‘Loan’ Them The Money And Recover It At Settlement.”

This is really two mistakes for the price of one, so you’re getting bang for your ‘free Consumer Guide’ buck here.

The PAMD Act Real Estate Agency Code of Conduct (which is the law under which an agent must conduct themselves) states in the following Sections –

Some legal experts agree that the agency that takes the risk in investing money up front, and hence taking the financial risk of the sale, gives them a vested interest in that property selling that may be in contradiction of Section 17 quoted above.

Also, does common sense not come into play here, that a well advertised property will sell for more than one on page 10 of a little read website 3 weeks into a marketing campaign.

Many agency statistics show that well marketed and skillfully negotiated property sales have a significantly higher price when compared to list price and they sell in a quicker timeframe, thus complying again with Section 9 above.

This is a common mistake….because many owners think that –

✗ the agents will be working extra hard if they are in competition with each other, so they are the ones getting the commission

✗ they will be 3 times as exposed to three times as many buyers thus increasing the chance of a sale

✗ they aren’t committed so they can cancel at any time they like

Well the last one is true, but the first two points NEED discussion. An open listing is last on any agents priorities and many of the most skillful agents won’t even take on an open listing as they have too many exclusives that they are committed to anyway.

And an open listing is everyone’s listing but no one’s responsibility. And of course the questions must be asked,

‘Who will market the property?’

and

‘What message does this send to the buyers?’

And do you think the buyers, when they see the listing with three agents, do you think when they speak to the agents and ask all three the same question,

‘How much do you think the owners will accept?’

Do you think they will negotiate through the strongest agent or the weakest? They will go with the agent who gives them the cheapest and weakest answer, and that’s hardly the way to get the highest price possible.

The fact is it sits on the books of the agencies, does not get advertised well or at all, and the owner of the property suffers. The old saying is appropriate here,

‘One man, one job; two men, half a job,’ and I would add to that,

‘One skilled man or woman, the job done quickly, easily, and without fuss !’ Maybe see if your agent will guarantee to cancel the agreement if their performance falls short of your expectation? Which any agent referred to by AgentChoice.org will agree to, in writing, without question.

Some owners want to ‘sell a secret’ and not let anyone know except the one perfect buyer that the property is for sale. In most cases, this weakens the sellers negotiating position.

Neighbours and other ‘lookers’ have family, friends and work colleagues they chat with and they can pass the word that you are for sale. Also there is nothing like a busy open home to make buyers confident they are looking at a good property. Other interest gives them confidence. Any empty open home alerts them to the possibility of making a lower offer than they intended.

Then when the agent negotiates on the seller’s behalf, they can do so with credibility. As opposed to the secret sale, where the buyer knows they are in the strong negotiating position because there’s no one else who knows about the property.

An agent does not sell a property… PERIOD !! In most cases, they are simply standing there when the buyers ‘SELL THEMSELVES.’ The role of a successful agent is to market the property in a superior fashion in a way that gets properties sold (and not just advertises the agency for the most exposure for themselves), and then to negotiate on your behalf to get the highest price possible.

So if your agent does not have strategies in place for how to do those two things, then the owner might as well sell it themselves and save on the commission.

Make your agent EARN their commission, not hand over thousands of dollars for them to be a mere conduit between you and a buyer. You could get a Courier company to do that.

Well this is a correct statement in up to 80-90% of cases. Because of the ease of getting into real estate sales, the bar is set quite low in many cases. So find an agency that can demonstrate why they are worth every cent of what they ask for and more.

Make sure

– the agent/agency already has buyers they are working with

– the agent/agency has a marketing plan to get the most fresh and current buyers.

– the agent and agency are brilliant marketers and Negotiators, and can demonstrate to you how they do both of these things well.

– the agents open homes are a cut above their competition making your home’s presentation stand out from the mediocrity.

(see the ‘Your Secret Shop Activity’ in this Guide)

The agent that meets these criteria will outperform many owners selling themselves because

– many owners don’t have buyers or a good plan to get them

– owners in QLD don’t have access to realestate.com.au and other property websites

– buyers sometimes feel uncomfortable dealing with an owner directly

– if buyers do deal with you, the likelihood is they will be looking for at least a discount the size of the commission that you are saving

– if the buyer says they want to think about it, they’ve thought about it and just don’t want to hurt your feelings

– many owners can’t overcome objections where a skilled salesperson, in some cases, may be able to

– many owners may be unsure how to use ‘Multiple Offers’ in order to get the absolute highest price possible

– most owners don’t have the time to be available all week, as they have jobs where their time is better spent, than doing a job they aren’t trained in, like selling real estate.

I trust this section has been of some assistance. I understand that it’s hard to pick an agent with so many people telling you so many things, and various advocates of ethics, plus stories of crooks on ‘A Current Affair’ that it’s hard to know who or what to believe.

I trust this Consumer Guide has given you some insights into the types of criteria you should apply to the agents applying for the position of looking after the marketing and negotiation of one of your most valuable assets.

There are plenty of good agents out there, but there are more average ones, and probably a few below average ones too.