Let’s be honest, most people struggle to trust a real estate agent. Figures, facts, costs and percentages can also be extremely confusing for people who are not familiar with the industry and how the market is performing. We’ve compiled a list of pointers and simple questions to ask that can help you find the right real estate agent to meet your needs.
Selling Your Property
A golden rule to choosing a real estate agency to sell your property is to go by reputation. Ask neighbours, friends or family who they have dealt with in the past and whether their expectations were met by the agencies they chose. Contact the agents with the best reputation first, however keep in mind that these agents may not gel with what you’re looking for.
Once you’ve made an appointment and met with a sales consultant, ensure you ask these 5 simple questions:
1. Have you been working in the area for long?
Agencies will push ‘Area Specialists’ like there’s no tomorrow! But what you really need to know is whether or not the sales consultant is familiar enough with the area to spruik your property to potential buyers as being close to particular schools, cafes, shopping etc.2. How many potential buyers are you in contact with at the moment?
Not only does this give you an indication of whether the agent has buyers who may be interested in your property, it also gives you an indication of how successful they are. It is very important that an agent has a good data base of potential buyers on the hunt for a home or investment property, and how your agent keeps in touch with buyers will determine how he can negotiate to get you the best price.3. How do you advertise and can I have an example of one of your marketing campaigns?
You must see an example of marketing. If a flyer, window card, drop card or online ad doesn’t appeal or stand out to you, how will you property appeal or stand out to potential buyers? A majority of buyers research for their new home online, so you must ensure the online ad campaigns will be extensive.4. How often will I get feedback from you?
It is extremely important that the agent you choose has a system in place to be in regular contact with you. You need to know that your agent will keep you informed at every step of the process to allow you to make the final decision on taking an offer. For example, if there has not been a lot of interest in the property, you need to be well informed to set a reserve price for auction day.5. If I am unhappy with your performance, can I cancel our agreement?
You need to be very clear on this point. Most agents will want to sell your home on an exclusive agreement, meaning there is a period of time where you can only sell your home through them. You need to be very clear of the time period and the agent’s procedure if you are unhappy with the timeframe or performance of your sales consultant.Leasing Your Property
You’ve worked hard to purchase an investment property so it is essential you choose a real estate agent with a focus on property management. Most agencies see property management as second fiddle to their sales department and it’s those agencies you need to avoid. A good property manager with an office who cares about this element of real estate can ensure your investment’s value will remain strong.
1. How many properties do you manage personally?
Property management requires an organised personality, however if a property manager is taking care of over 180 properties you’re likely to become just a number, no matter how or2. How are you going to ensure you find the best tenant for my property?
Online advertising is the key when it comes to rental properties so ensure your agent has an extensive list of websites they advertise on. Also be sure that the agent can explain their tenancy selection process and how much research they conduct on the tenant’s background.3. Are you up to date with current legislation?
A simple yes is not the answer you’re looking for here. Legislation in regards to rental properties is constantly changing and being updated. If the agent can describe their training schedules and methods for keeping their knowledge in-depth and up to date, you’re onto something.4. How are you going to assist my investment to grow in value?
Ensure they will carry out periodic inspections every six months with a full report to you as to any maintenance items. It is also important to ensure your property manager will make recommendations to you as to whether the property needs a fresh coat of paint or carpets to gain a maximum market rent.5. If I am unhappy with your performance, can I cancel our agreement?
All too often we hear of landlords locked into contracts after being offered 3 months free management or other incentives to sign up for 12 months. The age old saying ‘you get what you pay for’ is very true when it comes to property management. Saving a few dollars at the beginning might mean you cannot employ another agent if the service is poor. Your real estate agent should be confident enough with their level of service not to attempt to lock you into a long term contract.FINAL TIP: Go with your gut! Your instincts on first impressions are usually the best guide.
<moderator: delete advertising>
Here's some more tips for choosing a selling agent based on experience……..
1) If they want to charge you anything other than the negotiated commission for you to let them sell your house – don't use them.
2) If they want you to pay for advertising – as well as charge the commission…..don't use them.
3) Do not trust the actual staff member or listing agent if when you question the contract conditions they say ' dont worry about that' ot 'that only applies if……'
4) ABSOLUTELY ensure that if they have not sold your property during the exclusive sale period (say 3 mths) that you do not pay a zot if you list elswhere, or decide not to renew the sale agreement.
5) Read all the above again, and then focus on point 6
6) If they are a First National Franchise take extreme care if you have no other options, especially with the ambiguous wording of their 'exclusive sale authority (gag)' – do your due diligence thorougly in this case – any show your solicitor the contract befire signing if you see no other option than to use these guys.All the best.
v8ghia
Some good tips but I don’t fully agree with point Number 1 or 2.
Usually companies that charge other costings apart from commission will have a lower commission price, so can provide a cheaper service overall. They also usually have better advertising, whether that be larger adds in the local paper or priority listings on realestate.com.auThe other thing to consider is this….. If the agency is paying for your advertising every week do you think they are going to bring you the best price or the first price? Will they continue to push for more dollars if the weekend is nearing and they have to fork out more money for the local paper advertising or will they just try to wrap the deal up?
Another good questions is to ask is for the Agencies average days on market, also get them to provide some previous results and compare the selling price to the first list price, this should see if they are over quoting to buy listings or not.
Thanks
v8ghia,
On points 1 and 2 I disagree. From experience both working in the industry and selling my own home, you get what you pay for.
Agents that cover advertising work on quantity sales, not quality. This means that they rush to sell your property and are generally not looking to achieve the best price and unconditional contracts because they need to sell asap to recover their costs.
A really good marketing plan could mean the difference of thousands of dollars in the sale price as it can create competition between buyers. A recent auction campaign at my office produced included $9,500 of vendor paid advertising including a video tour and top of the line brochures. Auctions in this property's suburb had low clearance rates so we opted for a large campaign. The property sold at auction for $1.48M – $100K more than the property was valued at… remember all that was spent to achieve this was $9,500 – a good result.
Low commissions are also a huge mistake because an agent will work harder for higher commissions. Remember you're not the only client they have! A better way of ensuring your agent is working hard for you is to offer a bonus for achieving a price higher than expected. For example:
Commission (incl GST): 1.32%
Agreed Sale Price: $400,000
Commission: $5,280
Bonus: For every $10,000 above the agreed sale price the agent shall receive $500 in addition to commission percentage.This encourages an agent with a low commission structure to work harder to achieve a higher sale price for you.
I think it really depend on the agents, some real estate agent charge huge fee but doing just little work and told the vendor that "you get what you pay for".
however, a real responsible and integrity agent just like Kristin say may really work hard for you if the fee incentive are correct.
I guess end of the day there is no right or wrong answer. it all comes down to trust, integrity, and understanding about the market.
I have to agree… you get what you pay for, when leasing a property people too often go for the PM that is offering 0.5 to 1% less commission… at the end of the day 1% commission on $1000 is $10… a small amount extra to pay per month for peace of mind.
I believe the best agent is the one with the best communication, they constantly let you know how things are going, contact you when things need fixing and pass on their finding in inspections, as well as passing on tenants requests or concerns. I hate nothing more than a PM who decides that MY property shouldn't have something that the tenant requests.
The worst time for me is when I buy a new property and have to find a PM, as if you get the wrong one you can be in for troubles, fortunately I currently have great PMs working for me.
The only PM I ever had that I never doubted, was one that I rented through when I was younger, and I hated them then as they were really strict… over the top even. I still don't really like them as they left a bad taste from my dealings with them when renting, however, due to the fact that they are managing my PPOR and most expensive property, at least I have peace of mind they are not going to let anything go wrong, and are not going to let a tenant walk all over them.
At then end of the day, a good agent/PM is worth their weight in gold, as without them you could end up with a tenant from hell and a pile of bricks you use to call your IP.
i agree you get what you pay for especially in this area
Re property management, I like to know how many properties in the rent roll and how many staff manage them.
I agree that 180 is too many, but that’s if it’s per person. And if the rent roll is located in a “socio-economically challenged area, then 120 is plenty.
cheers
thecrestthecrest | Tony Neale - Statewide Motel Brokers
http://www.statewidemotelbrokers.com.au
Email Me | Phone Meselling motels in NSW
Some good tips but I don't fully agree with point Number 1 or 2.
Usually companies that charge other costings apart from commission will have a lower commission price, so can provide a cheaper service overall. They also usually have better advertising, whether that be larger adds in the local paper or priority listings on realestate.com.auAs far as selling properties goes, I like to use a company which has a high profile in the particular area then I do the research on who in the company has a great track record on selling. I look at his/her Past sales, listing price vs sale price and
Time it took to sell each property.WI
There is no need to get confuse to choose a real estate agent. You just have to know about the past experience of a particular agent and then you can easily analyze that which agent will be beneficial for you.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
