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.

REA property listing not on 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;

What Real Estate Agents really do for their money?

The art of prop­erty sales writ­ing and how it’s proven to gen­er­ate more buyer enquiry?

How real estate agents leg­ally bend the rules when it comes to photography!

 

If you need more inform­a­tion please call us with any ques­tions you may have.

 

About 

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.

seven hills real estate agent NSW
Cnr Federal Road Prospect Highway Seven Hills NSW 2147 Australia