1) The agent quoted the highest price
This is the main reason many vendors base their decision on when choosing an agent. However, this is also the biggest mistake vendors make. Real Estate data suggests that most homes sold within a 2-6 week period are more likely to achieve a higher price than those that remain on the market for a longer period of time. Homes that are priced correctly will sell in the 2-6 week period and unfortunately those that are overpriced will languish on the market hence affecting their eventual selling price.
2) The agent quoted the lowest commission
If 2 or more agents had quoted a vendor a similar sale price for their home, the vendor would, in most cases, select the agent that quoted the lowest commission rather than the agent with the better negotiating skills. A skilled negotiator can add an extra 2-5% of your overall selling price to your home. Based on the average Melbourne property value of approx $500,000, this could be as much as $25,000.
3) They like the agency brand
The “stronger agency brand gets you more for your home” is one of the longest held MYTHS of real estate. Sure their corporate colours and in-house magazines will appear slick but do you really believe a buyer is going to pay more for your property just because of the agency brand? Absolutely NOT! If a property is marketed correctly, a buyer will find that property irrespective of the brand that you have advertised with. What is important, however, is the individual agent that is representing your property. His/her negotiating skills will be the difference in achieving a higher price. And we know which agents in all areas are the best negotiators.
4) The agent they are dealing with is a nice person irrespective of their experience
This is a delicate situation. What is more important? Liking an agent as a friend, who has poor negotiating skills or perhaps not liking an agent, personally as much, that has a proven track record in negotiating the best prices? The best agent should always be your priority.
5) The agent gave them a good deal on the house they bought so they felt obliged to give them their house to sell
This happens so often in real estate. But the irony is who does the agent work for? The vendor is the one that pays their commission. So if the agent is happy to give you a good deal when you bought, what is stopping them giving the buyer of your property a “good deal”? Surely you would want an agent who only has your best interests when it comes to negotiating the best possible price. This is where we help. We ensure that no other buyers that are interested in your property are blindsided and that they also have an opportunity to put forward an offer. Increasing the number of offers will also increase your potential sale price.
Why not avoid these pitfalls and many more! Contact Matt Jackson Vendor Advocates for a NO Obligation Free Consultation. Remember it won’t cost you any extra to use our service but it may cost you $1000’s if you don’t.