Three Ways to Start Your Real Estate Sale Journey
Selling a property is not something most people do every day, so where do you begin? Three starting points to consider are:
- Selling yourself
- Asking friends or neighbours to refer a real estate agent
- Using online research to find and appoint an agent
Selling yourself
Depending on who you are talking to, self-selling property is either genius or madness. The genius is in not paying for the services of a real estate agent. While the madness is doing something which you (probably) do infrequently as well as committing to the time required (1) to find out what to do and (2) actually do the selling. Is the value you get from not paying an agent worth it?
If you have the time and appetite for self-selling, perhaps you do come out on top, especially if the cost of an agent is excessive. Unsurprisingly, the proportion of sales that are “For sale by owner” (FSBO) are much higher in Canada and the United States, where agent commissions are very high, compared to Australia, New Zealand and the United Kingdom, where commissions are much lower. FSBO makes sense where you come out ahead financially, having accounted for time and risk and the sale price of the house. But bear this in mind. FSBO may save on agents’ fees, but will buyers expect a discount because it is an FSBO sale? Will you be an effective salesperson?
Using referrals to find an agent
For those of us who would rather outsource to an expert, we’ll often start by asking around for a referral. This is where branding becomes important for real estate agents. Consider this example. My friend sold a property several suburbs away from me with Franchise Agents. She had a good experience and recommends her agent. I might not use my friend’s particular agent, but I will certainly look at using the Franchise Agents in my neighbourhood. I will ask my friend how much she paid the agent and expect a similar quote from my own local Franchise Agents. If the quote is similar and the agent’s appraisal of my property seems right, why would I spend more time hunting around for another option and not just sign with that agent then and there?
Consumer advocacy group CHOICE suggests taking the following steps in their Guide to selling your property:
- Do your own research
- Get out in the field
- Interview agents
Why? “Many people engage the first agent they visit, and some are then stuck…for a set period, even if they’re not happy with it,” says CHOICE. Relying on one agent’s appraisal might lead to disappointment. CHOICE refers to this as “avoiding the quote trap”. This is where an agent’s appraisal is too optimistic in an attempt to secure your business. A range of appraisals will allow you to get a better picture of the market price for your property.
What is a fair price for a real estate agent service? CHOICE observes that “[i]t’s important to remember that all commissions and fees are negotiable. This might not always be obvious from the agent.” Obtaining a number of quotes will allow you to make an informed decision about what the market is paying for real estate services.
Find and appoint an agent online
Vendorable allows you to find and appoint an agent online. It’s convenient and efficient. Getting out in the field, doing your own research and interviewing agents can be a lot of hard work!
When you put your opportunity out to tender on Vendorable, the agents bid competitvely for your work. You are in control and you get their services at a fair price. Agents provide appraisals, and market intelligence — in real time. You then make an informed decision with less effort. If you would like to find out more, please follow this link to sign up to our mailing list and we’ll send you a PDF with our top 10 things to consider before appointing a real estate agent on Vendorable.
