Selling? How to choose the right real estate agent
When it comes to trusted professions, real estate agents rank in the bottom tier. So if you need to sell what is most peopleâs biggest asset, the home, how can you know who to trust?
In a Roy Morgan Image Survey of Professions last year, real estate agents ranked 28 of 30, above only advertising people and car dealers.
However, consumers must put some level of trust in the expertise and accountability of person who will sell their home or investment.
Hockingstuart CEO Nigel OâNeil said a recent company survey showed vendors usually pick a brand first and then select an agent.
Hereâs how to make sure your agent is the one for you.
Credentials
RealestateVIEW.com.au general manager Petra Sprekos says the first thing you need to do is check the agent has credentials. All agents must pass the property exam and get a licence. Also make sure they are a member of the state based Real Estate Institute.
âThe quality of the agent is directly linked to education and training. Part of being a member of an association means they are tied into professional development,â Ms Sprekos says.
Research
Research into agents and brands is key. See how agencies and agents compare by reading testimonials, speaking to locals and considering agents selling the properties most closely resembling yours.
Youâll also be able to obtain contact numbers of vendors who have previously dealt with the agent through the agentâs office.
âYou can ask very direct questions to those previous vendors about any concerns you may have,â Mr OâNeil says.
Observe
Narrow the search down to two or three agents, and then get out there and observe the agents in action.
Mr OâNeil recommends going early to an inspection, seeing if the agent arrives in time to prepare, if they collect potential buyers details, how they interact and if they are relaxed and open at the end of inspection, rather than rushing buyers out.
Communication is highly important, Mr OâNeil says there is an âartâ to making potential buyers feel comfortable. However, itâs not just the talking thatâs necessary.
âI suppose agents can be very good at talking, but the ability to listen to what a vendor wants is extremely important,â he says.
Reputation and local knowledge
When it comes to real estate sales, local knowledge is key, say the experts.
So ask around, a good agent will be involved in the local community so try the barista at the local café, schools or community groups to see what kind of reputation your potential agent has.
As a bonus a well-connected local agent will have an established database of buyers.
âMost of the local community would have exposure to those agents through work or social, so absolutely worthwhile talking to them,â Mr OâNeil says.
Commission and selling price
There are two essential questions you must ask an agent when making your selection, says Ms Sprekos.
The first, what is your commission, and the second, what do you think the house can sell for.
âGoing with the cheapest agent isnât the right strategy, as with the commission comes the service; ask how many times will they open the property for inspection, what their sales and marketing strategy is and the agentâs overall professionalism and experience,â she says.
She also recommends asking the selling price, and asking for data to back up the price including comparable sales and analysis of market trends.
âIf properties are priced properly, they will sell. If they arenât then they will need to be price adjusted.â
Be warned!
Mr OâNeil says to be wary if the agent is too quick to cut their commission price.
âIâd be concerned in researching agents if an agent is quick ot lower their fees. The ability of an agent to quickly decrease their fees with a vendor may indicate the ability to decrease, or not go hard on getting buyers to pay a price they might be prepared to pay.
âRemember, a 10 per cent decrease in fees is a lot less than a 10 per cent decrease in property price.â
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