Why Should I Hire A Real Estate Agent?
With so many how-to articles instantly available online, home sellers often ask me “Why should we hire a real estate agent?” To some, it just doesn’t seem worth it. So, I’m sure you have caught yourself thinking “why can’t I just sell my property myself? All I need to do is whack it on www.Domain.com.au and www.RealEstate.com.au” and might even go on saying “surely it’s not rocket science?” But is it really as simple as that?
While some sellers do OK, many struggle with selling their property themselves. So if you’ve ever caught yourself wondering the same thing and you’re yet to be convinced that real estate agents are worth their commission, please read on, because this could save you a lot of heartache and missed opportunities to get the best price for your home
The Pit Falls Of Selling Your House Yourself.
Firstly, the advertising can be a major problem.
“All I need to do is whack it on Domain and Real Estate.com.au”. Well you’re in for a shock!
31.4% of buyers don’t go past the second search page on property websites (almost the same stats for Google searches) but did you know your property listing starts on page 3? “Why does my property start at page3?” I hear you asking? It is the old up-sell approach that newspaper companies have used since 18 dic-a-ty 6.
Have you ever put a personal ad in the newspaper? Do you remember them trying to up-sell you by bolding or creating borders around your ad?
Well, newspaper companies have bought them out and are up to the old trick-a-rooney again, where there are additional charges to make your ad stand out. Therefore, just to guarantee your property appears on the first page you have to pay extra.
Domain.com is the second largest real estate website in Australia. They will charge $550 for only 28 days and that is without pictures. Not to mention what RealEstate.com.au charge you and up-sell you to be on the first page.
You can try local newspapers. Although it is cheaper, the fact is, that fewer people are reading local newspapers these days.
Another option is to use social media to let your friends, family, workmates and neighbours etc know your property is on the market. You can then wait and see if any of your family and friends are looking to buy property in your location.
You can also try and print a few thousand flyers promoting your property with your personal details on it and put them in your entire area’s mailboxes.
A good agent will be doing all of this for you and will already have a social media following.
The Time Trap
With the economy the way it is, it is more than likely that both of the parents in a household are employed. However, if you are lucky enough to not be working, are you realistically going to be able to take on all the stress? Are you going to be able to spend your time diligently on the property in-between the kids and having a life? Do you have a life now? You get my drift?
Let’s not forget, what if you are trying to sell quickly because you have already put a deposit on your new home?
Do you have the confidence that you can sell your biggest asset quickly and get the highest possible price without compromise?
Agents Know The Legislation
Assuming that you choose to sell your property without the aid of an agent, you will need to do a lot of research before taking on this task.
The main thing you have to know is that a Contract of Sale needs to be prepared in advance before a property can be promoted for sale.
You will need to have thorough understanding of Property, Stock and Business Agents Regulation 2003 (NSW).
The reason for this is that you can actually be sued for simple small mistakes.
E.g. You cannot, at any time, use or disclose any confidential information obtained while selling.
This can include other peoples’ offers, so in turn, you cannot play other buyers offers off each other.
You must be familiar with and thoroughly comprehend the Act and the regulations under the Act and the other significant laws, such as tenancy laws, fair trading, the Trade Practices Act, anti-discrimination laws, The Privacy Act and disclose laws.
Ignorance is not a defense in the eyes of the law.
Real Estate Sales Experience
I’d be cautious with doing your own negotiations. I know if I was a buyer dealing with a private seller, I would expect at least 10% off the market value right off the bat.
Somebody who’s gone outside the framework of things will look like a huge target for someone trying to score a cheap deal because of amateur marketing and negation. This is what buyer agents do all day long (it’s what they get paid for).
Buyers want a safe, sound buying experience, not Joe Blow talking up his home defending why his home is the best in the world while you wander through alone. Buyers like to feel secure. That’s why they are buying a home in the first place.
You may get away with this method in a seller’s market, where buyers are crawling over themselves to outbid each other. However, in a buyer’s market, you can’t afford to frighten away the people trying to work within the framework.
Think about this. If online and print media advertising costs around $8000 (for six months waiting for a good buyer) + $2000 to $3000 for preparation of contracts of sale, conveyancing and settlement + whatever the cost you put on your own time, the real estate agent’s commission is starting to look pretty good. Also don’t forget, if you don’t sell your property, real estate agents don’t cost you a thing. They are free!
Stay tuned for my second installment where I tackle;
The art of property sales writing and how it’s proven to generate more buyer enquiry?
If you need more information please call us with any questions you may have.
About Jhai Mitchell
Jhai is an award winning Internet Marketing Real Estate Agent for Elders Toongabbie and Kings Langley. After running his own internet marketing business he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to market themselves online. Jhai is now fixed on one goal. To teach real estate agents that they can market online so much better than they currently are.
Since then he has been consistently quoted in the Sydney Morning Herald and Real Estate Business online. He is a regular guest blogger on TheHomePage.com.au, sharing his expertise of marketing aspects for the Real Estate Industry. His biggest passions are his wife, martial arts, dogs and most of all property.