Three Reasons Mistakes Happen

Most real estate mistakes happen for three reasons:

Not having enough knowledge, not thinking clearly and, the worst of all - not having agents who care enough to help you avoid the mistakes.

1. Knowledge

It is hard to avoid mistakes if you lack knowledge. Real estate agents have a huge advantage - they are the experts. The agents will tell you "this is the way it is done" and if it sounds plausible - as it often does - you will go ahead and do it.

Many homesellers, after they have lost thousands of dollars, often say they had a feeling something was not right. They lack knowledge, but not instinct. If you meet an agent and have a feeling that something is wrong, you are probably right. You could be on the verge of making a big mistake, so find out why you don't feel right. Often, all you have to do is ask a few simple questions. Check things out a little better. A bit more time, before you make a decision, can save you a lot of pain later.

2. Thinking

"I just didn't think about it," is what people often say when disaster strikes. Thinking prevents disasters and protects us from harm. The key to clear and accurate thinking is simple questions. When you add a little bit of knowledge to a few simple questions, you will enjoy the reaction of some agents.

Shirley from Glen Waverley in Victoria said, "It was wonderful to be so informed. It gave me heaps more confidence. It was fascinating to watch cocky attitudes of agents (generated in part, I suspect, because they were dealing with a woman) mutate through wariness, to respect and in one case, downright crankiness! Knowledge, as the old saying goes, is certainly power!"

Your knowledge, plus your ability to think clearly, will save you thousands of dollars.

3. Caring

It is not the homesellers who have the problem with caring, it is the agents. Thousands of homesellers give their homes to agents who only care about one thing - their commission. They do not care about their clients and they do not care about getting the best price.

The best decision you can make when selling your home is to choose the best agent. And the best agent is the one who really cares about you.

The Most Wanted Person

When you are thinking about selling, you are the most wanted person in real estate. Every agent wants to be the chosen agent who 'lists' your home. Homes for sale are called 'listings' - and, to any agent, many listings mean many sales.

   The Quote Trap

If you choose an agent purely on quoted price, you could make a huge mistake. Thousands of sellers have learned, from bitter experience, that the price the agents quote and the price they get are different prices.

But it is very hard to ignore some agents. When an agent, who is supposed to be a professional, says your home is worth a huge amount, it is very tempting. However, most sellers forget one vital fact: the agents are biased. If they quote you a price and their competitor quotes a higher price, they risk losing your business.

And if they lose, they don't get paid.

Agents who tell the truth often lose business to agents who tell lies. This puts the honest agents in a terrible situation. If they tell the truth, they risk rejection. This is why they avoid the price and say: "It's hard to judge exactly. It depends on the market. Let's not put a price on it. Let's auction and see what happens."

Agents are terrified of homesellers who say, "Tell me what my home is worth", and that is why they will do all they can to avoid what is known as "The Price Issue".

The Price Issue

Agents often say they do not know how much a home is worth. But, no matter what they say, they do know. They just do not want to tell sellers and risk losing the business.

If you demand a quick quote on your home's selling price, many agents will either avoid the price or inflate the price. This is not like getting a painting quote. Remember, the agent is not the buyer of your home, he or she is the person who finds and negotiates with the buyer. You are looking for the best agent to sell your home.

It is similar to a job interview. The job description is: an agent you like who will get you the highest price possible and who will be honest with you.

The best question to ask an agent is: "What will you do to get the best price for my home?"

Allow the agent time to answer this question. If you demand instant answers to "How much is my home worth?" and "How much is your commission?", instead of "What will you do?", you will probably be told lies. Or, even worse, you will miss the best agent.

How to Know the
True Value of your Home

There is one excellent way to know what your home is truly worth: Before you call an agent, call a valuer.

A valuer is not biased about your home because a valuer has no financial interest in the value. You are naturally biased because you want the best price. The agents are biased because they want to be selected as your agent. And the buyers are biased because they want to buy for the best price. Valuers are the only people who are not biased - they get paid no matter how much your home is worth.

Valuers are highly qualified, their's is a specialised field. But most important of all - from an accuracy point - a valuer can be legally liable for a mistake. Valuers are careful.

You too should be careful. You should have an independent valuer - not one who works in a local real estate office - inspect your home before you call an agent.

A valuation is a great investment for a home worth hundreds of thousands of dollars. It gives you powerful knowledge. It enables you to make plans based on facts not opinions of people who have a financial interest in the sale of your home. Every home should be valued before being sold.

Once you have a valuation - and you are aware of all the mistakes you must avoid - you are ready to select your agent.

How to Interview Agents

Always interview at least two agents. (The only exception is if one agent is highly recommended by people whose opinion you respect).

If you do not like either agent, call a third. Keep going until you find the best agent. If you have to interview a dozen agents, do so. Do not underestimate the importance of choosing the best agent. And do not do what many sellers do - select the agent you dislike the least. Good agents exist. When you know what to look for, you will find one.

When you meet agents, look at their personal presentation. Do they appeal to you? Do they seem like nice people? Listen to your instincts. Show each agent around your home. Watch their level of interest by seeing if they ask questions or make notes.

After agents have seen your home, make them feel comfortable and then ask the question: "What will you do to get the best price for my home?"

Some agents will say, "How much do you want? or What figure did you have in mind?" Do not answer these questions. Not yet. You are conducting a job interview. Simply say, "Before we talk about a specific price, I would like you to tell me what your agency can do to get the best price for us."

Do not be intimidated or allow yourself to be pressured into doing anything that doesn't feel right. It is your home and you are in charge. You have two ways of dealing with agents. For agents you like, ask what they will do for you. For agents you don't like, just say, "I have another agent coming soon. So thank you for coming around. I will call you if I need you." And then move towards the front door. They will leave.

When you lack knowledge, agents can easily confuse or mislead you. But when you have a valuation and you have read this book, you can not be so easily confused or misled.

When the agent begins his or her presentation, you will soon know if you have the right agent. If the presentation is about auctions or open inspections or if you are asked to pay money in advance for advertising, show them this book and say, "Have you read this?" Watch their reaction.

If their answers do not satisfy you, you have not found the best agent.

But when you find an agent who cares about you and demonstrates this - in proof, not words - and you feel comfortable, you are ready to make the most important decision in selling your home - choosing your agent.