selecting agent and selling in Perth

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Paul j F

We are very close on selecting a REA to sell our house in S.E. Perth. We approached 5 in total. We requested a clear marketing plan and appraisal. He gave us some recent examples that included vendor's expectation, marketing strategy, how he managed to negotiate to get above vendor's expectation. Included was suburb profile, other comparitive sales etc.. Al in all very comprehensive and exactly what we were after.

He is not the cheapest but is all inclusive. I know our timeframe and our expected price.

Before I go ahead and sign the agent up I would welcome any advice.
 
Yes.. Was originally our PPOR but investment for last 5 years. I have a sub. to pricefinder which hepled. Kept our eye on market for past 18 months since we originally considered selling + comparitive sales reports from other agents. My partner believes its worth more than me. IMHO I think I am being realistic on market .. might be wrong and would be stoked if we got what she thinks its worth.

either way pretty happy we decided to hold on to for the 18 months since we originally considered selling.
 
Whilst I am biased being an agent myself, it is my belief that you should not necessarily choose the cheapest agent. A good agent will not reduce their commissions and will return a much better result on your sale. From what you have said they had the strongest presentation of all of the other agencies, and it is fair to say that this would carry over to the sales process and the representation of your home.
 
RyanMcHarg said:
A good agent will not reduce their commissions and will return a much better result on your sale. .
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A lot of real estate agents use this line - it must be in the training manual on how to deal with owners requesting a better rate. I understand that any agent does not want to discount their commission but this is certainly not a way to determine whether the agent is any good.

I know several very good agents who do reduce their commission to win business.

I agree that a good agent will most likely get you a better result.
 
I work as an agent in a completely different field (medical tourism) - why should I reduce my commission? We all have to feed ourselves and usually families and the rest. Would anyone on a PAYE salary reduce their pay one month to prove they do a good job? Ridiculous.
 
Of course you don't have to reduce your commission. You are entitled to charge what you like just like any other business. Ultimately consumers will make a choice on what they determine which product/service they feel comfortable buying given the price and quality.

My point was, willingness to reduce commission does not make a good or bad agent. The saying 'good agents don't discount their commissions' is just marketing speak.

Some agents will discount their commission to win a listing. That is their choice and has no bearing on their ability to successfully sell your property.
 
MRO said:
Some agents will discount their commission to win a listing. That is their choice and has no bearing on their ability to successfully sell your property.
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It's much easier to go in with a higher expectation/appraisal (backed up, of course ;) ) than to win the job by discounting the commission. Then you condition the vendors after they've signed up.
 
Scott No Mates said:
It's much easier to go in with a higher expectation/appraisal (backed up, of course ;) ) than to win the job by discounting the commission. Then you condition the vendors after they've signed up.
Click to expand...

Haha - so true.

My father in law is an REA so please don't think I am REA bashing. There are lots of very good agents and it is hard to choose between them. Using appraisal value or willingness to discount commission as part of your selection process probably isn't the best way to do this.
 
Gut feeling and recommendations from people who know about property. By this I mean other investors who are aware of the value of their property and were happy with how the REA helped them to achieve this in a reasonable time frame.
 
You could use the widely accepted dtraeger method, which is to invite the agents over for appraisals based off how hot they look in their web profile.
 
Joel said:
What would you suggest is the best way to select an REA?
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Prior to getting the agents to come and present their proposal of how they would sell your property, I suggest you 'Mystery Shop' them by enquiring as a buyer on their other properties. You can learn a lot about an agent by pretending to be a buyer. This will often give you a different impression of an agent than the image they present when they are trying to list your property.

Some things to think about:
- Do they respond to emails and answer their phone?
- How long do they take to get back to you?
- How many listings do they have?
- How many sales have they made recently?
- Do they prefer auction/private sale?
- Are they selling properties similar to yours?
- What price expectation do they provide? Is it realistic?
- Are they knowledgeable about the property and the area?
- What questions do they ask you at inspections?
- Do you feel like they are representing the property well?

After choosing an agent, the other thing I would want from them (in writing) is that you shouldn't have to pay their commission if they can't achieve a sale within the range they quote. Some (most) agents won't like this, but if they know the area well and are giving you a realistic range, then they shouldn't really have a problem with it.

Good luck
 
I get someone to go to one of their open inspections (undercover). If the agent spills the beans on matters they shouldn't it gives you a good insight how they will market your property. . E.g. "it is a marriage breakup they are desperate" or
" it is listed at $500k but I know they will take less".

On the other hand, if you are trying to buy rather than sell these are great agents as they are unscrupulous.
 
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