Choosing the right real estate agent to represent you in selling your property is a critical decision that can significantly impact the outcome. A key role of a vendor advocate is to guide you through an interview process with top agents and agencies, often including those within the same franchise group, to find the best fit for your needs. This process can reveal both the strengths and weaknesses of potential agents, and it’s essential to know what to look for.
The Importance of the Listing
For a real estate agent, securing a listing is the lifeblood of their business. It’s during this phase that you’ll experience the full spectrum of the agent’s professionalism—or lack thereof. True professionals will stand out by their appearance, communication, and approach. They avoid getting entangled in petty politics or negative tactics that can sometimes emerge in competitive markets.
Not all is what it appears… the magic is in the questions and data!
When interviewing agents correctly the differences can become quite astounding. Often your preconception of an Agency may be challenged or changed when you have the data and information in front of you.
The Interview Process
Maximizing your outcome as a vendor means finding the best representative, which requires a thorough interview process. I advocate for in-depth interviews lasting up to two hours, where you can dig into the agent’s team dynamics, open house processes, marketing strategies, and most importantly, their negotiation skills. Role-playing critical negotiation scenarios can reveal whether the agent is truly prepared to close the sale at the best possible price.
Assessing Preparedness
A common pitfall is the agent’s lack of preparedness for the listing presentation. Top agents should provide a well-researched and relevant kit of comparable sales and market data tailored to your property. Unfortunately, it’s not uncommon to encounter generic, rushed presentations with poorly researched comparable. The best agents will discuss these comparable properties in-depth, explaining the circumstances of each sale and how it relates to your property. Lack of preparation is also a lack of respect, Why would you award someone your property for several millions of dollars in this circumstance. The same lack of attention will flow through to handling purchasing prospects…. it is the 1% things.
Marketing and Presentation
A crucial role of the agent is to market and present your property in the best possible light, ensuring compliance with all regulations. This involves not just high-quality photos and descriptions but also a strategic approach to reaching the right buyers at the right time. The agent’s ability to balance marketing expenditures with effective promotion is key, particularly when vendors are hesitant to invest heavily in marketing.
The marketing spend should justify the increase in foot traffic to your open homes, not just click-through rates on online listings. It’s essential to ask your agent, “What are the average number of people at your open homes, and how many active buyers are at your auctions? Were your price guides achieved?” These metrics are crucial for evaluating the effectiveness of the marketing campaign.
Property styling also plays a significant role in marketing. The property should be styled in a way that matches its character and enhances spatial awareness for potential buyers. Suitably trying to capture the interest of multiple buyer types without being too focussed to one type of audience. The costs for improvements, styling, and marketing should aim for a return on investment (ROI) of $3 for every $1 spent. While this expense may sometimes be lower, it can make your property stand out in a crowded market and help secure a sale while others remain unsold.
The Soft Launch Strategy
In today’s market, where borrowing capacity is reduced, and buyer motivation may be low, many agents advocate for a “soft launch.” This involves minimal upfront costs, with the property being quietly marketed to select buyers before an official campaign. While this can seduce a buyer with the sense of exclusivity, it’s also a strategy to secure the listing for the agent. However, a well-prepared, formal launch remains essential, with the first 14 days being critical for pricing, interest, and competition. This said a soft launch can produce results.
Auction vs. Private Treaty
Many agents prefer the auction model as it creates a set deadline, driving buyer competition and providing the vendor with a clear timeline. However, a skilled negotiator may advocate for a private treaty sale, especially in a slower market or when the property has unique characteristics. This approach can sometimes yield better results, though it requires a strong, experienced agent to navigate the nuances of negotiation and substantiate a higher price point. These campaigns should not be capped with price guides but use market feedback and competition to set the benchmarks and uplift.
Nominating the Selling Price
Beware of agents trying “buy” the listing, and your own confirmation bias to wanting the highest price possible. Can the agent your talking to deliver on this and what anecdotal evidence can they provide to show they can, or what does your research tell you? I have appointed an agent recently who had the lowest go to market price when all his competitors indicated he would be highest and “buy the listing” nothing was further from the truth. A lower price is just the starting point and can always be worked up, unlike an excessive price. It is also in the framing and context of how the price will be offered to the market. A good agent can be masterful at this. In a recent circumstance it isn’t plausible to believe an agent who you bought from at a great discount would also be the agent to achieve the highest price. Nominating the selling price for the agency agreement and the marketing strategy to be used with it should be explained with a calculated and measured approach. No property is the same.
The Question of Commissions
This is a great area to understand the negotiation and belief system of the prospective agent. A seemingly great agent offering to transact on a well below average commission indicates 1. They are not confident in the service and sales ability, 2. They are perhaps desperate to get the work and also likely to try to close out a transaction too soon in my experience. An agent who holds a commission or works to a performance commission when they achieve the vendors benchmarks are confident and already showing a a negotiation mindset. When going for the elite agent do not penny pinch in remuneration when you are achieving your goals. Entice and reward them for exceptional results. The difference can be huge.
Understanding Referrals – Inter agency and External Parties
Many agents will tell yo how they work with everyone who has a buyer. In reality this is usually very fictitious. I always question how the agency remunerates the lister, the seller, and the introducer within their organisation. This will show if they are truly collaborative or not. Many franchises will expound how they work together and interoperate but this is also often a fallacy with many of the same franchises involved in cut throat competition for business and commission retention.
I Have Exclusive Buyers Waiting
Having been involved in agency and seen several databases their are many common names that appear on each. The reality is that no agent really controls a buyer. If a buyer wants a property they will do whatever they can to acquire it typically. A good marketing and sales campaign will attract and flush out any of these buyers and attract them to your property. Their is no exclusive on the buyers like many agents seem to think… and this is their fear. The key for the agent is to have the listing and source prospective buyers.
Professionalism and Respect
Finally, it’s important to note how agents handle rejection. The best agents will respect your decision and seek feedback on how they can improve, rather than attempting to belittle your choice. This professionalism is a strong indicator of how they will handle potential buyers and the sale of your property.
In conclusion, choosing the right real estate agent is about more than just who has the best pitch. It’s about finding a professional who is prepared, strategic, and respectful, and who can represent your property with the utmost integrity and effectiveness.
For expert assistance in navigating the property market, reach out to [email protected]. Don’t waste energy and resources – bring certainty and experience to your game
