How Home-Buyers Succeed With Offers
10.04.2024
View Article
The real estate industry’s greatest fear is that home
sellers will work out how easy it is to find a buyer for your property without
using a real estate agent.
How do you find a buyer without a real estate agent?
Just do what the agent does. Put an ad on the internet, an
ad in the paper, a signboard on the property and list it with a fair price
guide. these marketing strategies will have buyers beating a path to your door.
It really is simple.
Real estate agents have two primary roles when employed by a
home seller.
The first is to find interested buyers. Different agents use
different strategies to achieve this objective. They will focus on a
combination of newspaper ads, underquoting, internet ads, just listed cards,
signboards, databases, brochures etc.
The second objective of the agent is to negotiate the
highest possible price with the best terms for the home seller. Some agents can
achieve this objective, some can’t. However, some home sellers could also
achieve this outcome and some can’t. For the home sellers that could
competently negotiate for themselves, the real value a real estate agent can
offer is one of saving time and effort.
Undersell Properties
Most agents spend excessive amounts of money finding buyers
and then use selling strategies, such as auction, that undersell properties.
The excessive amounts of money being spent by agents looking for buyers is the
home seller’s money, not the agents. So, if the home seller is paying upfront
for advertising and carrying the risk to find a buyer, what is the home seller
really paying for?
Answer; the agent’s negotiation skills or
lack of it in some cases…
If you feel comfortable that the agent does not possess a
high level of negotiation skill to sell your home, do it yourself. To pay an
agent $10,000 nonrefundable in the hope of finding a buyer in this day and age
of the internet is absurd. Furthermore, when the agent does find you a buyer
they want to charge a commission on top.
Cut through questions
In most cases, there are two magnificent cut through
questions that home sellers have not asked themselves before “investing” $10,000
toward an advertising campaign.
Firstly, who pays for the advertising if the
best offer is below the price the agent quoted and/or below the vendor’s
reserve price.
Secondly, can the same outcome be achieved using
a cheaper and much more effective marketing medium?
Given the true auction
clearance rate has hovered around 40% in recent times, 6/10
home sellers have learned the above through a regrettable experience.
By Peter O’Malley Author of ‘Inside Real Estate’
Stephen Smith Real Estate |
Privacy
Disclaimer
Powered by ReNet - Software designed by Real Estate Agents, for Real Estate Agents