Professional service is key to maximising return
Ever heard the saying 'you get what you pay for'? It could never be more true than its application to real estate. Many property sellers often make the mistake of selecting the 'cheapest' agent, thinking it will save them money. When in actual fact it costs far more in the end.
Just selling your property is one thing, but if you want to maximise your asset and get the best result in the market, then you need to do something different. You need the quality on your side.
This is what I’ve learnt in over 25 years of real estate: the better the marketing and selling strategies, the more buyer interest you get. The stronger the buyer interest, the more the buyers compete. When the buyers compete they make their best offers and you sell for the most the market will pay. The economics are simple. A 'cheaper' agent simply does not have the capacity, infrastructure, and budget to compete with an agent with a marketing team, specialists in different property sectors, and community entrenched relationships.
Net in the pocket
Surely what counts at the end of the day isn’t what agent fees you pay - it’s what you net 'in your pocket' after fees. So the agent that is the 'cheapest' and sells low will net you less than the agent who charges more but has the marketing and selling strategies to sell for much more, thus netting you the maximum.
Don’t get me wrong, I’m not saying that the agent with the highest fee will get you the best result. As with everything in life, context applies. You still need to determine what you are getting for the fee. What is the marketing plan? How will buyers be attracted to the product? What strategies will be employed to get the buyers to compete against each other?
As I’ve always advised - research and understanding is paramount. You need convincing proof that your agent has the answers. I’d suggest you need them in writing. In fact, why not ask that the agent undertakings in terms of marketing, service and strategies are in writing and part of the sole mandate. That way you get what you’re promised.
Remember, if you pay peanuts you get monkeys. If you pay a professional to do a professional job you get what you pay for - a great result that maximises your net return. You deserve nothing less. This is an investment after all.
About Steve Caradoc-Davies
Steve Caradoc-Davies is Harcourts Platinum Principal. He has 25 years of real estate experience. Featuring in the Top 20 agents in the Group in South Africa for eight consecutive years, Caradoc-Davies now coaches and manages his team and has received international training. In July 2009 he was awarded the Property Association Young Lion Award - in recognition of his outstanding contribution to the property industry and acknowledgement as a future industry leader.
