Don't be taken in by price - Market plan is more relevant

PROPERTY owners looking to sell their home have been warned not to fall into the trap of choosing a real estate agent based on price.

PROPERTY owners looking to sell their home have been warned not to fall into the trap of choosing a real estate agent based on price.

International real estate trainer David Knox, in Queensland to speak to 3000 agents at the Australian Real Estate Conference on the Gold Coast, said sellers needed to know that their home would sell for market value.

"Every seller wants to get a better price. Every buyer wants to get a better deal,'' he said.

"The number one mistake that vendors make in every country on the planet is that they select an agent based upon what asking price the agent offers.

"And the problem is, agents who need listings can very often be induced to say that high price just to get the listing.

"The vendor wants to believe it because they think their home is worth more anyway.''

Mr Knox said that if a property was listed with too high an asking price, it would later require successive price reductions to secure a sale.

"Ultimately it's going to sell for market value, or maybe even less because it's been on the market (for so long),'' he said.

"So the greatest challenge for a real estate agent is to tell you the truth - but still get your business.''

Having worked in real estate for 40 years and trained industry professionals across several continents, Mr Knox cautioned property sellers to be objective.

There is no exact price,'' he said.

"My advice to a vendor would be if you are going to interview more than one agent, don't let any of them give you a price.

"Don't ask for an appraisal.

"Instead ask them to come out and describe their marketing plan and their process and see if they listen and see how they interact with you.

"Look for market knowledge. Do they really know the market and do they know the process of selling real estate?

"The agent better be able to describe their entire process from the management of the marketing all the way through the final payment.''

While he said liking the real estate agent you choose is important, Mr Knox also rated competency and trust as key attributes.

"There are a lot of people who are likable but are not competent,'' he said. ``And some of the most competent people in any profession aren't always likable.

"It's nice to get somebody who's competent and who you have a rapport, but don't be fooled by just likability. I think the one characteristic they should have is trust.''

Owners are also advised to make sure they are committed to selling before their property is listed.

"I think you have to go back and ask yourself, have I definitely decided to move?'' Mr Knox said. ``Do you want to sell; do you want to stay?

"If you are in touch with your motivations for moving then it's a lot easier to let go.

"The owner has to realise it goes from a home to a house . . . it is just a commodity.''