Agent self-belief is key to successful home sales
Category Blog
In a line-up of real estate agents in the current difficult homes market, consider choosing the agent who markets creatively, but holds on to his commission tightly.
That’s the agent who, in selling your home, believes in himself as well as believing in your home and your price. If he is not discounting his commission he is more likely to not discount your price.
It is a best-practice attitude that inevitably leads to a best-price result.
Granted, there are agents out there who are insecure in current market conditions. They will chop their commission – sometimes to the bone – when confronted with a tough and stubborn buyer. It is logical that they will be prepared to take a lower offer – to the detriment of the seller.
As a seller, you would do well to seek out an agent who has the drive and perseverance to bat for himself too. This attitude will serve him well in achieving a higher price for the seller.
Shifting sands
In current market conditions, agent commissions are like shifting sands. They have dropped from a range of 5,5 to 6.0 per cent and are now between 5 and 5,5 per cent. This is an uncomfortable level at which estate agents are absorbing some pain – given that, once paid, commission is normally split a number of ways.
For instance, some agents have at least one or two people working with them as assistants and partners. Furthermore, the real estate company within which they operate will take 40 to 50 per cent. That doesn’t leave much on the table for the agents – in spite of the effort they have put into securing the sale.
And, in this market, houses are taking twice as long to sell – if they sell at all. This makes it really tough for the agent.
It is little wonder that many agents have a jaundiced and resentful notion that they are being squeezed tighter and tighter in a market clouded by uncertainty and hamstrung by shrinking sales volumes. Some agents are reportedly even cutting commission to as low as 4% rather than lose the sale. Even certain successiful real estate agents are cutting commission to chase unit turnover not necessarily at best price.
A template-driven market
Desperate agents may well have no option but to accept these circumstances. But they are likely to encourage lower offers too.
Whichever way you look at it, these are conditions (at low commission rates) in which it is difficult for agents to deliver customised, bespoke home marketing programmes, which are normally the most effective route to take.
Instead, the residential property market is seemingly becoming more and more template-driven – with outcomes delivered in conveyor belt fashion, compromising on price, as marketing expenditure is limited.
What has happened to thinking out of the box? Going the extra mile? Applying creativity?
Author: Ronald Ennik
