Real Estate Agents Secrets - What Most Agents Won't Tell A Seller
Here are 10 things many residential real estate agents would rather you not know.
That their commission charged almost certainly won’t include marketing costs, and these can be between 2k and 5k. If it isn’t included you should be able to add an item to your agency agreement specifying that advertising costs paid upfront, will be taken out of the final commission when the property is sold. You will still be up for the costs though If you don’t sell with that agent. House sellers should also realise that agents don’t pay for domain.com.au and realestate.com.au on a per listing basis but on an agency basis.
That their commission rate is probably negotiable. This is useful to know if your property is in a higher price range where half a percent will be a huge difference to your final cost.
That it’s extremely easy to become an agent – in some states the training and certification can be done in a day or so and a license in QLD is around $500, so it’s crucial to ask about the agent’s experience and question whether they really have superior selling power and real estate leader.
That many houses very much sell themselves – There are no special tools that agents have that “make” someone purchase a property. The bottom line - If a buyer likes a house they can afford – they’ll buy it – which an agent has extremely little influence if at all.
That they don’t have any local market knowledge which you can’t gain yourself. Currently, sellers can buy the same detailed property and suburb reports from RP Data that agent can but a little time spent online will provide the best market appraisal. Domain and realestate.com.au have free data readily available about suburbs and is easily found. No need to pay agents thousands for this.
Your home is probably worth less than what they’re suggesting to you in their appraisal. They realize a seller is more likely to sign with them if they tell them their home is worth more. Agents also know that they can gradually beat a seller down on price after they sign an exclusive agreement with them.
That they are absolutely not needed for paperwork. In fact, a solicitor can handle all of the legal paperwork – not them. A contract of sale can be purchased from most solicitors and range from $500 - $1000. No need to use an agent for this.
That exclusive agreement, in fact, means they are entitled to a commission if they’ve introduced someone to the property, even if that someone ends up buying through yourself, or another agent long after the exclusive period has expired.
That you can get listed on the major websites and sell a property yourself. In fact, there’s even a special type of agency agreement that allows you to try and sell the property at the same time as the agent. If you sell it without their involvement, they are not entitled to a commission.
That they will usually only spend a few hours, if that, on a property sale regardless how long the property sits on the books and that the commission is a great hourly rate equivalent for very little effort.