As of late, there has been a lot of talk about how much agents are paid when they sell a property. With the introduction of upfront fee cheap agents, it has got people thinking about how much they can save by not going with a more experienced and expensive agent. But people are being blinded with their focus on how much it will cost to sell versus how much can I achieve when I sell.
There’s a big difference in agents and their worth. The top agents are known to service their clients so well and achieve record breaking prices, which in turn covers the cost of advertising, agent fees and leaves a whole lot more for the owner to enjoy. I haven’t seen one of the best agents in Australia move to these cheap outfits, mainly because they have no shortage of work.
On the other hand, there’s the agent who may struggle a little finding listings and securing them for a good fee. So, they did the smart thing and joined a cheap company. What these companies do is mass marketing that aims at using peoples’ greed against them. They entice the small population of people who believe we’re all the same and the cheapest option is the best and generate leads which they pass onto the agents. All the agent has to do is list the property and they make their small commission.
There’s only one problem, once you have paid your upfront fee, your agent has already made their commission and is looking for the next commission. This means, while they are out there focusing on listing as many homes as they can so they can make even a mediocre pay, they haven’t got the time to service your listing and it’s buyers. There only focus is listing properties because that pays them immediately. The other catch is for them to make the minimum of what an average real estate agent makes, they will have to list something between fifty to one hundred listings and that’s not even going to get you close to some of the middle tier agents. So, while they’re focused on listing more properties and creating a decent wage for themselves, where does this leave you?
When you’re selling, you only have one job. You must hire the agent that will get you the best price achievable. Don’t be blinded by silly marketing ploys, just interview as many agents as you need to find the right one.
The following advice is of a general nature and intended as an opinion and broad guide. For all legal, financial or real estate advice you should obtain independent professional advice to do with the specific nature of your circumstances before making any legal, financial or real estate decisions.