7 minutes reading time (1403 words)

Everything We Need To Know.

General

Thursday, 12 October 2023

58 Hits

How to choose an estate agency - on the face of it, a complex question that many homeowners may well ask themselves when the time comes to sell their home.

There's plenty of advice from estate agencies on that very topic, all of which misses the ONE key ingredient.

The received wisdom is that homeowners need to ask questions. And here's the problem with that line of thought - they don't know what questions to ask, other than what's my home worth and how much is the fee for selling it?

So those agencies set out the questions they would like to be asked. For which, like magicians, they have all the answers!

Here's a flavour from one of the sites. I'm not arguing against the need for questions, simply the consequence they bring and whether other questions might produce the perfect result.

"Are you an agent who actually owns your own business?"

Well, in my home town there are three or four agents that do own the business, alongside the usual larger high-street corporate suspects.

I'd tend to agree that the latter could be excluded from the short-list on the premise that often the valuer coming to appraise your home will be under pressure to hit monthly targets and limited discretion on what they are permitted to offer. It's not an ideal scenario on which to start a conversation. As the estate agency sector fragments ever more rapidly, the days of simply "bigger is better" are long gone.

"Do you have systems in place for a successful result?"

"Yes, we do", would be the short answer from most agencies and then a brief conversation on the benefits of lead generation, qualification of buyers, efficient sales progression, communication and marketing. Leaving the naïve vendor none the wiser. If the homeowner asks the question, they have to be knowledgeable enough to understand the response and to have follow-up questions. Not to simply accept at face-value the line they are being fed.

"Do you develop a unique strategic marketing plan?"

The availability of services such as 3D virtual tours, drone footage, home staging and video walk-through is now so common-place that only the incompetent agency would admit to taking "professional photography" , uploading a listing to Rightmove and calling their database of "qualified buyers".

Some agencies will suggest setting a low asking price to attract greater interest and competing bids - others will suggest a high asking price simply to appeal to human greed and lower the asking price in stages. The truth is that the vendor doesn't know the intricacies of the market and most agencies don't know how the market will respond.

The best laid plans of mice and men.

"Do you offer creative descriptions for your listings?"

Now one might imagine that the agency, suggesting this question be asked of them, would have inspiring property descriptions on a website of their listings.

A cursory glance brought up these timeless, prescriptively written, gems -

"The property comprises...", "much sought-after", "this spacious property boasts...", "an abundance of character & charm", "the property enjoys four double bedrooms..." and finally, "sitting in a large level gardens." (sic)

Who speaks like that, these days? Only estate agents!

It might seem a trifle pedantic but an estate agency that "offers creative descriptions for your listings" might at least ensure the said description is grammatically correct.

"sitting in a large level garden" is still dreadfully dull but at least grammatically correct.

Words have such power but these fail.

"Do you market your listings to an international network?"

Well, of course, that excludes the small, independent agency that has built a business serving their local community, building relationships that matter and knowing who the right buyer is. Most people move within a defined area and it is a false belief, fostered by the portals, that "the greater the reach, the more interest and the higher achievable offers".

It makes sense to attract International buyers to commercial hotspots such as London, Birmingham and Manchester but chances are that if you live in Exeter, Bournemouth, or Norwich, your buyer won't be coming from abroad.

"Do you hold open-houses frequently to extend your pool of buyers to market to and to proactively contact?"

Open-houses are a great way for any estate agency to promote their business - at your expense!

Aside from the security risk of inviting multiple strangers into your home, open-house marketing generates leads for the agency's benefit. These buyers might be vaguely interested in your home but they might also have a home to sell and this is the perfect opportunity for the agency to pitch its services. I know it's said to be a very successful way of marketing homes in Australia, USA and other countries but here in the UK, you can usually count on two hands the number of people that attend a typical open-house sale. Very often, the agency will invite "buyers" from their database who are not qualified to buy, or have little intention at the moment. Just to make it seem they are proactively marketing your home. As an aside, the lettings market is currently booming and not the same as the sales.

Other agencies suggest you ask these questions:

Do you charge a withdrawl fee?

How will you provide feedback?

What % of asking price do you achieve?

Who will conduct viewings?

When are your fees due?

What types of contract do you offer?

Am I tied in for a particular period of time?

Is now a good time to sell?

How quickly do you sell properties like this?

I suggest you don't ask those questions!

Why?

Again, because you won't be given the full story.

"How quickly do you sell properties" might seem a sensible question.

"We get an offer usually in four weeks and progress the sale to completion in another 12 weeks" might seem like a fair response.

Aside from proof of that statement, most vendors will not know to ask the other question - "what % of asking price was achieved?"

Even then, if the seller was persuaded to list at an attractively low asking price, the agency had little trouble achieving 105% of the asking price.

Better to ask how the negotiation process went. What was their first offer? How many times did the buyer increase the offer?

It's a minefield for any homeowner when you start asking questions that don't have a simple answer,

Which is why I suggest the opening question to any estate agent/realtor that you don't know should always be:

"Tell me about yourself."

You're looking for insights into their character.

Can they be trusted?

Because if they can't, any skills, qualifications and brand names are worthless.

Tell me about yourself.

Estate agents have been brain-washed into believing "It's not about you, it's about the client."

Which is why there is little transparency and therefore little trust.

We subconsciously make snap character judgements when we meet someone for the first time.

How much better would it be if they were transparent instead of hiding behind a "mask" of corporate brand, or self-proclaimed "property expert."

This is Who I am. This is What I believe. This is What matters to me. This is Why I do what I do. If there is affinity, great, let's re-schedule a date when I can come and discuss the marketing of your home and all that it entails.

If there's not, thank you for taking the time to consider our services and best wishes with the agent that is the right fit.

Let's not waste the agent's precious time pitching and our time listening to them, stating and proving their worth.

"Would you like to know what your home is worth?"

NO - I'd first like to know WHO you are.

Estate agents have been "trained" to ask questions - to dig deep and uncover.

Here's the thing - we are usually only open and entirely honest with those we trust.

The rest, estate agency in particular, we remain defensive.

Until they tell us Everything We Need To Know.

Thanks, as always, for reading this far.

Here's how to reach me if the need arises:

www.andsothestorybegan.co.uk

www.persuasivewords.co.uk