‘Cheap’ real estate tactic that could cost you big time

When it comes to choosing the best real estate agent to sell your home, experts warn there is one red flag that you should look out for in order to avoid disappointment.

Selling your home – it’s possibly one of the biggest financial decisions you will ever make. Which is why choosing the right selling agent is crucial. But how do you know who to go with and who to avoid?

AGENT FEES

While many people are tempted to go with the agent that promises the highest selling price or lowest fee, Ray White head of performance and recognition Bianca Denham said these two things are actually red flags.

“When agents drop their commission rate, it usually shows a lack of confidence in their ability to get a great result,” Denham said. “If an agent is willing to drop their commission rate, how are you going to have confidence in that agent defending the seller’s price?”

Check reviews left by sellers and buyers.

Instead, she said, it’s better to look at the client testimonials of an agent to see how happy previous vendors have been with their service.

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STRATEGY

For a good idea on the way agents conduct themselves, why not attend a few open inspections, said McGrath’s national general manager of sales Troy Malcolm.

“Get a sense of the atmosphere they create,” he said. “Do they have all the collateral? Do they have the right amount of team members there? Is there music playing, a candle burning? Are the toilet seats down?”

It’s also important to check what their sales process is, he said, adding that good agents will follow a proven strategy that is consistent and repeatable.

A good agent should be able to explain what their strategy is to get a good result.

“What is their approach to get a great result?” he said. “If the agent can’t articulate that, then as a client, I would be slightly concerned.”

REIA deputy president Hannah Gill from the Property Collective said it’s also important to ask prospective agents how they will negotiate on your behalf.

“Ask them how they communicate with the buyer to get the best result for you,” she said. “Ask them what tactics or skills they use through that negotiation process.”

It’s not just the agent themselves you should assess, said Malcolm. It’s also important to look at their team support system, including whether they have an operations specialist, strong relationships with buyer associates and a good auctioneer.

Ray White head of performance and recognition, Bianca Denham.

TRACK RECORD

When it comes to checking agent stats, Malcolm recommends using a major platform such as realestate.com.au to look at client testimonials from both buyers and sellers as well as the number of sales the agent has made and the geographic concentration of those sales.

“You could have 100 sales that are spread all over the Eastern suburbs of Sydney, for example,” he said. “Or, you could have 50 sales that are all in Clovelly.”

He said an agent who has sold similar properties to yours in your suburb will probably have a database of buyers who have missed out on previous properties and who may be interested in your home when it hits the market.

McGrath’s national general manager of sales Troy Malcolm. Picture: NCA NewsWire / David Swift

In the current market, where many regions have plateaued, it’s especially important to check what the agent’s method is when times are tough, while making sure they have recent sales you can examine, he added.

“I wouldn’t be looking at anyone who hasn’t made a sale in the last four months,” he said.

RED FLAGS TO BE WARY OF

There are certain things to look out for that could help you distinguish between the good agents and the ones to avoid, said McGrath’s national general manager of sales Troy Malcolm. Here are some red flags to look out for.

1. Online reviews – what have previous clients said about the agent? Have buyers bragged about getting a low price because of the actions of the agents?

Attending open homes gives you a good idea of the way an agent presents themselves.

2. How they conduct themselves – if the agent turns up late to a listings appointment, in an unclear car and appears disorganised, how can you trust them to present your property in the best possible way to buyers?

3. Strategy – if they can’t articulate their selling strategy how can you trust they know what they are doing?

4. Poorly run open homes – you could lose buyers if the agent doesn’t take all the necessary steps to create a good atmosphere at an open home

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Originally published as ‘Cheap’ real estate tactic that could cost you big time