Beware of these agent tactics when selling your home

When selling your home, you need to choose your agent carefully. In this week’s blog, we’re debunking a few common misconceptions about buying and selling property that you need to be aware of. And if you hear any of these claims coming from a real estate agent then tread carefully. Here are some claims you may hear from an agent that should set off a warning bell. 

“We have all the buyers”

While this may have been true prior to real estate portals, buyers now find properties online, not through agents - a record 12.1 million Australians visited realestate.com.au in August alone.  

And, of course, buyers don’t choose a property because they like the agent, they choose it because the house is right for them. So an agency cannot seriously claim to ‘have all the buyers.’ If they did, why would your marketing costs include advertising across the major real estate portals? Furthermore, franchises generally do not have linked databases and each agent is out for themselves, so a big agency does not mean access to more buyers.

“We can get you this (sky-high) price”

Some agents will promise you a price that the market cannot deliver in order to get your listing. Once you’ve committed to selling your home with them, you’ll hear that they misjudged and you will need to drop your expectations to be in line with the market (because they want to secure a sale and get paid.) This is why it’s important to get out, go to open homes and chat to agents, and always ask the agent to substantiate their price guide with local comparative sales.

Other things to be aware of:

Agents suggesting an off-market sale to a developer. 
What can happen here is that the agent sells to a developer for a bargain price off-market, and the developer returns the favour by giving the agent the listing once the new property is built. 

Great for the developer, great for the agent who gets double commission - but not so good for the seller. 

There’s really no reason to sell to a developer off-market - always test the open market. 

Being contacted by an agent when you have an exclusive agreement. 
Exclusive Agency Agreements mean that the agent you have engaged is in a contractual arrangement with you. In New South Wales, a real estate agent is generally prohibited from directly contacting a client who is under an exclusive agency agreement with another agent. This is to protect the contractual relationship between the client and their current agent. 

Engaging with the client could be considered a breach of the exclusive agreement and may lead to legal repercussions. Good agents will always respect these agreements and communicate through proper channels, or seek permission from the client’s current agent if necessary. 

Real estate agents must be licensed 
Only a licensed real estate agent can sell your home, not an associate or an assistant with a certificate of registration. You need a licence to sign agency agreements and contracts of sale.

Listings versus actual sales
Ask your agent about their days on market and their percentage of sales versus listings. An agent may appear successful with lots of listings, but if these don’t lead to sales (because they have taken on too many properties to dedicate the time and energy needed to each sale) you may end up with a rushed, unsuccessful property campaign. 

Multiple signboards 
Just because an agent litters the suburb with signs on every corner, it does not make them successful. Again, ask them about actual listings and properties sold. Some agents are known to put their signboards on every corner to create the illusion of success.

Cheap commissions 
If an agent is cutting their prices just to get your business, beware. They will want to get a fast, easy sale so they can pocket their commission and move on. If they are losing money on your sale they will want to get on to their next listing quickly and spend less time working on your campaign.

Are you thinking of selling?  

We are a boutique estate agency and we take great pride guiding our clients through the process of selling their home for the best possible price and moving on to the next chapter of their lives. We’re always happy to chat about market trends, your individual situation, and how we might help you. 

Reach out to Karen Page at Page&Co today.