The Hidden Cost Of A Cheap Sales Agent
Choosing an agent when selling your home is a big decision –
this is why many people research a few different real estate agencies before
they make their choice. Costs can add up quickly when selling your home, which
is why some people consider hiring a discount agent to help cut costs. In
theory this might sound like a great idea, but the team at Page & Pearce
Real Estate have explained why this could end up costing you a lot more money
in the long term.
What is a discount agent?
You’ve probably heard agencies boasting of their capped
commission or offering the lowest fees in their area. Sounds like a great deal
for sellers, doesn’t it? As the old adage goes, if it sounds too good to be
true, it usually is.
What are the downfalls of a discount agent?
Discount agent’s work on a model of stock turnover, which to
them equals a steady cash flow. In essence they turn your property into a
commodity, focusing on turnover of stock, rather than achieving a high quality
result. The discount agent is more concerned with getting the property sold, to
survive, regardless of the price.
This will often lead to a lower price. After all, why would
the agent try to get the highest price for your property when they could get a
mediocre price and get the deal done? You might save some money on the agent’s
fee, but end up with less money in your pocket after the sale. Don’t forget,
the final figure you receive is more important than a lower commission.
Furthermore, many agents offer low fees but will have high
marketing fees or upfront advertising costs. These additional extras can
quickly make low commission fees redundant.
At the end of the day, you pay for the service you get. If
they are quick to give away their own money, what will they do with your money
during negotiations with a potential buyer?
Picking your agent based on a discounted fee is rarely a fail-safe
option. When selling your home, you want the best possible negotiator – and by
definition they don’t work in discount agencies. Do your research and pick an
agency that meets all your needs, rather than choosing the cheapest. A Google
search can quickly determine what their service is like. Checking the company’s
Facebook page is also beneficial. If you know anyone who has previously dealt
with the agency, ask them for their honest opinion. A cheaper agency may seem
like an attractive option, but if client’s experiences don’t stack up it’s best
to steer clear.
For a free market analysis call one of the Team at Page
& Pearce on 47272400 and find out more about our Risk Free Selling
Guarantee – “No Sale No charge Guarantee”