Home or away? Away is best.
An earlier post from our previous site. Targeted at homeowners looking to instruct an estate agency.
But still applicable now (except this time Home is best) for high-street agencies that want to be different.
I mentioned in a reply to www.christopherwatkin.co.uk on LinkedIn, my opinion that high-street estate agents don't make full use of their huge asset. That the traditional practice of chasing vendors (with home visits) rather than having vendors chase you was detrimental to an agency image.
This was the essence of what I previously had to say to vendors:
" After wisely deciding that online and hybrid estate agencies are way too risky, many vendors usually opt for a respected high-street estate agency when the time comes to sell their home.
One that has been established a good number of years.
One call later and this respected , and to be perfectly honest sometimes needy, agency is scheduling a listing presentation.
Not only that, but this presentation will include the ubiquitous 'Free Valuation.'
The scheduled day arrives and the agency valuer, who seems very pleasant, spends some time 'breaking the ice, asking a few questions about why you're moving etc. before having a tour of your home.
What often comes next, however, is not what you need to hear.
It might be what you expect to hear. Even what you hope to hear.
But, be assured, it's not what you need to hear.
The valuation.
Every estate agent has an opinion. And, quite often, it's just that.
Their professional opinion.
Their forecast as to what any potential buyer might offer. Based on comparable sales already achieved for similar properties.. Based on prevailing market conditions. Based on several factors that can inflate or deflate the valuation that you might have been expecting.
Problem is, it's way too early.
Way too early to be discussing the valuation.
Next up, quite possibly, is either the reasons for choosing their agency, or more likely, the fee for their services.
This agenda - Valuation, Fee, Why Choose Us - can be re-ordered according to the individual agency's preference.
Home or away?
Away is better, but in the space of an hour, that's the agency putting all its cards on the table.
And guess what?
You don't even know yet whether you can work together. And yet, most agencies hope that the vendor is clever enough to make the decision (in their favour) in this short timeframe.
That, in my opinion, is one of the reasons many vendors choose the 'wrong' agency, first time.
The process is too damn quick.
It's always been that way, but it doesn't have to be.
In fact, it would be far better if the estate agency didn't come knocking at all.
Why?
Well, because the valuation is the least of a vendor's worries. Whether the valuation is pitched too high, or too low isn't the issue.
Getting the very best agency is the issue.
And a forty five minute to one hour presentation, in your home, isn't the ideal way to learn what beliefs, values and convictions you and the agency share.
Vendors shouldn't buy the brand, or the logo. They should buy into a set of values.
The valuation is a distraction to both sides.
A higher valuation can tempt greedy vendors to instruct an agency that isn't up to the job, Same with fee.
A higher fee might get the vendors crossing off an agency. A decision they later come to regret.
The solution?
Don't invite the agency to your home. Ask to visit their offices.
Ask questions, get a feel for the staff. Is it a team culture? Who takes the calls? Who conducts the viewings?
Who negotiates the offers? Does the agency out-source from agreed offer to completion, or do they progress the deal in-house?
If it takes more than one visit to the agency's office, so be it.
"Those that care don't mind. And those that mind, don't care." - Dr. Zeuss
Here's the kicker, though.
Whether they realise it or not, your visiting the agency at their office rather than meeting at your home is preferable for both parties.
You are taking the emphasis off the valuation and allowing the agency time to tell you they are most deserving of your instruction.
It's then that the weaker agencies, those that rely on low fees and over-inflated valuation, fall down.
Take that out of the equation, at the start, and perceptions really do change.
Once you've decided which agency is the best fit - one that you can work with, confident that they will be making every effort on your behalf - then start the ball rolling with their fee. Something that is really more than you'd like to pay, but less than the agency would like to charge.
It's about compromise and every agency needs to feel motivated.
There's a whole lot more we could say on fees. But for now, remember that an agency charging 1% but only achieving £300,000 is worse for you than one charging 1,25% but achieving £305,000.
The higher commission agency leaves you over £4,000 better off.
Done and dusted with the fee, you now have a great agency to work with and a fee that is fair to both parties.
Invite them round!
Now is the time to value the property.
The agency is relaxed because they have the instruction.
There is no need for them to inflate the valuation to win the instruction. There is no need for them to exaggerate to impress.
Their sole purpose now for being in your home is the valuation.
Perhaps with suggestions on how you might better present it to buyers.
They will have comparable evidence, of course, to support the valuation.
It's scary, I know, but having gone through all the effort to find the best agency fit, it makes sense to trust their judgement on valuation. No need to attempt to get the agency to "try for more." That will come.
Valuation and fee now agreed and you have the best agency fit. It makes sense to think it over for a day.
And when you're sure that this is right for you, arrange another visit to the agency offices to discuss the contract.
If you've chosen well, this shouldn't be a problem.
The frantic rush to make every home sale a commodity transaction has had such a damaging effect on the sector as a whole.
If you can't be bothered putting in the effort and don't mind how low you set the bar, by all means choose any agency.
But at the end of it, don't be surprised when "we told you so" has a certain relevance.
I feel strongly that the concept of insisting homeowners come to the agency office would differentiate from the online call-centre agencies and some hybrids. Hard to invite potential vendors to your Purple Tricks high-street office if there isn't one. It would also better diffuse the valuation problem.
High-street agencies can undoubtedly remain and actually better prosper. They are to be admired for committing serious capital to the business when the easy option is to set up online or as a hub. To subtract rather than to add.
It just requires some bold thinking to make them, not better, but different.
Thanks for reading, as always.
Chris.
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