What sellers and buyers seldom know.
by Neil Jenman
Reading Time: 3.5 mins apx
If home sellers and buyers were better informed about real estate, they’d get a much better result when they sell or buy real estate. There are so many ‘secrets’ in the real estate world – information that’s deliberately hidden from consumers or information they fail to discover because most consumers fail to do much research.
Here, then, are twelve real estate secrets most consumers don’t know. They should help you to get a better result when you need to sell or buy.
SECRET 1. IT’S EASIER THAN YOU THINK.
If most sellers knew what most agents do, they’d discover the number one real estate secret. You can sell your own home and get a much better result than a typical agent. Plus, you’ll save thousands of dollars in commission. So, if you can’t find a great agent that can do two things: Charge you nothing until your home is sold and justify their commission, sell without an agent. It’s easier than you think. Try it, you’ve got nothing to lose.
SECRET 2. THE AGENT WANTS A SALE AT ANY PRICE.
If an agent sells your home for a high price or a low price, the agent always gets a high commission. You must understand that you and the agent have different agendas. When you are selling you want to sell at the best price. But most agents want you to sell at any price.
SECRET 3 – MOST HOMES ARE UNDER-SOLD
Agents often boast about how good they are at negotiating. That’s a lie. Almost all agents have never even read a book on negotiation. Most agents are messengers, not negotiators. They deliver offers from buyers to sellers and then return with counter-offers. This is why most homes (about 90%) are under-sold. The number one skill you need when hiring an agent to sell your home is the ability to negotiate. There are seven questions you can ask an agent that will reveal their ability to negotiate. To download these questions, please click here.
SECRET 4 – MOST ADVERTISING IS A CON JOB.
The purpose of advertising is not to promote your home, it’s to promote your agent. If advertising was the way to find buyers, why would you need an agent? You can advertise and find buyers for yourself. Australia is about the only country in the world where sellers are expected to pay advertising costs. Everywhere else, such costs are included in the commission and there are no charges until a home is sold. This is how it should be in Australia. This is what you can insist upon. Never pay any agent any money before your home is sold.
SECRET 5 – YOU ARE LOCKED-IN WORSE THAN THE WORST RELATIONSHIP.
Have you ever been involved in a bad relationship? Either a bad job or a bad partner? What do you do? You walk-out. But that’s not possible if you sign-up with most agents. Once you sign-up, you are locked-up. No matter how the agent treats you, you can’t walk-out. Therefore it’s important that you DON’T SIGN ANYTHING until you have checked through the agreement the agent asks you to sign and you have deleted all the nasty clauses.
SECRET 6 – COMMISSION IS ALWAYS NEGOTIABLE.
Agents who say they “never reduce their commission” are liars or fools. Commission is always negotiable, and all agents have at some time – often many times – reduced commission. They should know that “something is better than nothing”.
SECRET 7 – AGREE ON COMMISSION AT POINT OF SALE NOT LISTING.
Don’t negotiate an agent’s commission when you list your home. Make it clear that, if they get you a great price, you will pay a great commission. But, sure as eggs, in most cases, agents will soon want you to lower your price. It’s then that you can demand they lower the commission. Beware of agents who are quick to cut commission to persuade you to list with them. If they give their own money away, what do you think they will do with your money? Wait to see the result before you agree on the commission. No matter what you agree when you list, you can always insist that the agent reduce their commission – especially if they want you to reduce your price.
SECRET 8 – LOCAL AGENTS OFTEN GET LOWER PRICES.
Local agents are often “price prejudiced” about their immediate area. Many times an agent from outside your area will get you a better price. There is one agent in Melbourne who’s often getting record prices in suburbs far from his office. As the saying goes, “Foreign agents often get better prices.”
SECRET 9 – AUCTIONS GET LOWER PRICES.
Any agent who tells you that auction is the best way to sell for the best price is either dishonest or incompetent. Sure, auctions often sell for higher prices than sellers expect and yes, homes at auction often sell above agents’ low [false] quotes. But, at auction, it’s near-impossible for homes to sell for their highest price. Most homes sold by auction are massively under-sold.
SECRET 10 – MOST BUYERS WILL PAY MORE THAN THEY OFFER.
Australia’s best real estate trainer, Michael Kies, teaches agents: “When you are having trouble getting sellers and buyers to agree on a price, focus on the buyers.” If buyers love a home, they will usually pay more than they offer. And if an agent tells you that they “guarantee that this buyer will not pay more”, ask if you can speak with the buyer. The agent will likely agree. You should then ask the agent: “If I can persuade the buyer to pay more, will you forfeit your commission?” The agent will likely decline your offer. Why? Because they know – or should know – that most buyers will pay more for a home they love.
SECRET 11 – SELLERS WHO HOLD OUT, WIN OUT.
The best time to be selling a home is when you don’t need to sell. This means you can ‘hold out’ until you get the price you want. This is especially true if your home is beautiful and in a tightly-held area. If buyers want to buy the best home, they often pay more. And remember this when selling: If you don’t sell, you still own your beautiful home.
SECRET 12 – JENMAN SUPPORT CAN PROTECT YOU AND SAVE YOU.
Before you call an agent about selling your home, call Jenman Support. We are constantly being told by sellers that we are the “best hidden secret in real estate”. If you want a better price, if you want better conditions and if you want lower costs when selling your home, be sure you contact us – before you contact an agent. It costs nothing extra to have our support. Just email email@example.com or call 1800 1800 18.