Sellers often misunderstand what agents charge. The assumption is all agents are equal. They select the discount agent. They believe they are smart. If one charges less and the other is higher, they go cheap. They think they saved money in the pocket. This is wrong. The discount broker costs you the most in the end. The reason? They achieve a lower price. The gap in the final figure is often far bigger than the small saving.
Use logic. If an agent cannot negotiate their own full fee, will they fight for your money? They won't. They give in straight away. When a buyer offers low, they advise: "You should sell." They want the quick sale. They don't fight. A pro fights for every dollar. We are professionals.
I watch vendors in gawler real estate miss out on huge sums to save $4,000 in fees. It is sad. It is a one-time event. The goal is the peak. Commission is a cost of sale. By achieving a higher price, even with a higher rate, you win. Look at the bottom line. Look at the net, not the fee.
Price vs. Performance In Real Estate
There is a difference between price and result. McDonalds and fine dining differ greatly. Salespeople are the same. Some just open doors. They upload photos and wait for the phone to ring. That is easy. That is not service.
A skilled agent builds value. We work the database. We style the home. We use psychology. Key point: we negotiate. If someone says "$600,000 is my limit", the amateur accepts. The skilled agent knows they have more. The gap pays the fee 4 times over. That is performance.
Budget brokers churn and burn. They need to sell 10 houses to survive. They are too busy to maximize your price. They treat you like a number. I limit my listings. To give attention for you. I charge correctly to serve you best. Don't be a number.
How Negotiation Skills Impact Your Pocket
It isn't shouting. It is influence. Knowing silence and staying calm. Reading people. Using leverage. A good negotiator can make a buyer increase their offer against themselves. We use competition to drive the price up.
It takes practice to perfect. It is worth money. You are hiring an agent for this skill. Not to put a sign up. You hire us to handle the money conversation. If your agent is weak, they will cost you. They will suggest you drop your price rather than negotiating. Simpler to beat you down than to get more. Discounters reduce. Good agents build.
Interview question: "Tell me a story of a recent negotiation." Listen to the answer. Should they say "It was easy," be careful. Look for "The offer was $500k, I worked them to $530k." That is who you want. I fight for you. I guarantee it.
Understanding Advertising Costs
Cheap agents often offer "advertising included." Attractive? Wrong. Nothing is free. When it is included, they cut corners. Basic listing. You get iPhone photos. Basic board. The reason? it is coming out of their pocket. They save money.
For the best result, you need exposure. Premiere listing on RealEstate.com.au. Video. 3D tours. Facebook boost. It is an investment. But it finds more buyers. Volume creates price. Bidding wars = profit. If you save $1,000 on marketing and fail to reach someone, you might lose $10,000 in price. Not smart.
I advise investing in marketing. We do it right. We spend what is needed to find the buyer. It is your asset. Showcase it. Don't hide it in the dark to save a grand. It creates the result.
Beware Of Over-Quoting Agents
Another trick of bad agents is over-quoting. They promise it is worth millions when market value is less. Why? to get you to sign. You hire them believing the lie. Then, no offers. They blame buyers. They crunch you down to the real value. It sells low after months of stress.
You picked the cheat. The one who told the truth who said $600k lost the job. Don't reward lies. If it sounds too good way more than others, check the data. Where is the evidence?. No data, they are buying the listing. I tell the truth. Data leads me. I might be conservative, but I deliver. I often exceed it with hard work, not false hope.
Watch out. Real estate is full of sharks. Find the ethical agent. Pick the agent the hard truth, not fairytales. That is the guide who succeeds for the best price.
Questions You Must Ask Before Signing
When interviewing, checklist this:
1. What is your tactic?.
2. Prove your results.
3. How do you auction?.
4. Explain your continue reading page cost.
5. What is the plan?.
Their answers will tell you everything. If they stumble, don't hire them. If they are confident, hire them. If they drop their fee as soon as you ask, reject them. If they fold, they will cost you.
Grill me. Challenge me. I am prepared. I know my value. Pick me. Not because I am cheap, but because I am the best. And the best costs nothing with the final price.