How home sellers need to ‘SEE’ agents.
by Neil Jenman
READING TIME: APX 2.5 minutes
Today’s most common real estate scam is the ‘ad scam’. Most agents mislead sellers into believing that sellers “need to pay marketing costs”.
Real estate advertising is rarely done to promote your home, it’s done to promote the agent. Indeed, in many cases, advertising causes you to get a lower price (call us on 1800 1800 18 and we’ll explain more).
For now, though, we repeat our GOLDEN RULE of Selling Real Estate:
“NEVER PAY ANY MONEY TO ANY AGENT FOR ANY REASON UNTIL YOUR HOME IS SOLD AND YOU ARE HAPPY WITH THE PRICE AND THE SERVICE.”
Here’s how you need to look at real estate agents. As a shop. Just like a normal shop such as a clothing store where you buy jeans or a butcher where you buy steak.
So, with that “shop mentality” in mind, here’s why you call a real estate agent if you are selling your home: Because you want to “BUY A BUYER”.
And here’s how your conversation with an agent should go:
YOU: “Hi, I want to sell my home. I have had it professionally valued so I know what it’s worth. Would you have a buyer for it?”
AGENT: “You’ll need to pay marketing expenses so we can find a buyer for you.”
YOU: “Did you just open your business yesterday?”
AGENT: “Oh no, we have been in business for years.”
YOU: “So, don’t you keep records of buyers looking for houses?”
AGENT (now starting to feel nervous because you are not an ‘easy mark’): “Well, yes, we do keep records of buyers, but advertising helps too.”
YOU: “Do you have examples of how your marketing campaigns attract buyers?”
AGENT (unable to resist bragging): “Oh, sure we do. Our last campaign in Jones Street had more than 350 buyers through the home.”
YOU: “And how many of those 350 buyers bought that home?”
AGENT (long pause): “Er, well, one, of course.”
YOU: “So what did you do with the other 349 buyers who did not buy that home?”
AGENT: “We have their details.”
YOU: “And that was just one house. You must have other houses where lots of other buyers didn’t buy them, right?”
AGENT: “Yes, that’s right.”
YOU: “Well why don’t I tell you about my home and you can check through the buyers on your books and see if any of them may buy my home?”
AGENT: “Well, yes, I can do that.”
YOU: “Good, well, if you find a buyer that wants to buy my home, I will effectively buy that buyer from you by paying you commission. If you do not have any suitable buyers, I will contact other agents and ask them the same question. Now, would you like to inspect my home to let me know if you may have a buyer for it?”
So, come on: A real estate agency is like a shop. Only in this shop, instead of asking for jeans or meat, you ask for a buyer.
Imagine going to a butcher and having a conversation similar to what most agents put you through. It would go like this:
YOU: “Hello, I am having a barbeque at my home in two weeks and I’d like to place an order for 200 Rump steaks.”
BUTCHER: “Good. Please give me some money so I can advertise to find some cows.”
Well, no more ridiculous than what most agents now do. The butcher has meat on the shelves. The clothing store finds you the right jeans. If not, you go to a different butcher or a different clothes store. The same should apply with agents.
You must learn to SEE agents like any shop. If you are selling a home, you are interested in buying a buyer. That’s it. You are not interested in buying advertising so agents can promote themselves at your expense.
Agents know all this to be true. They are experienced at fleecing sellers for needless advertising money and they usually have the benefit and luxury of sellers who don’t have a lot of experience selling real estate. As the old saying goes, “When a person with experience meets a person with money, the person with the experience is going to get the money – and the person with the money is going to get the experience.”
Let’s hope this article gives you the knowledge to save you from wasting thousands of dollars in advertising money. And, by not advertising, getting you a higher price, that’s the advantage few agents disclose or even comprehend in this mad era of selfishness and self-promotion.
If you have any concerns or you’d like our experience on your side at NO COST to you, please contact Jenman Support BEFORE you sign anything.
PLEASE NOTE: Our focus is upon helping consumers. Abuse from agents on our web site or Facebook page will be deleted or ignored or well publicised – it depends on our mood.
But one thing will never vary: We will never stop doing what we love most – helping polite and honest consumers to get the best deal possible in real estate. And, of course, if any agents are serious about taking care of consumers, we’d love to help you too. Thank you.