REAL ESTATE POLICY

Their way or your way. Your choice.

by Neil Jenman

Reading Time: Apx 3.5 mins

A critical factor when selling your home is ‘policy’.

The way you choose the policy will directly affect your selling price. Plus, other prices, such as commission, marketing, staging, copywriting – and the whole gamut of mostly large and needless costs which sting most home sellers.

As a seller, the only large price you should be seeking is the selling price of your home. All the other costs should be as economical as possible. And with minimal risk.

BEAT THE BLUFF

Real estate agents are good at bluffing homeowners. This is because most homeowners have no experience. Some owners only sell once in their lives. Most live in their homes for at least 10 years before moving.

This means that homeowners fall for the standard real estate pitch. A pitch, to be sure, that is all bluff.

If you want to do well when selling your home, understand that agents are bluffing when they tell you “this is how it’s done”. Most are also doing something that starts with B (lying).

And here’s the great irony: Sellers often feel that something is not right. Deep down inside, their bluff detectors are telling them: You do not have to do what the agent suggests.

But then comes the biggest bluff. That great and powerful influencer – ‘Social Proof’. Everyone does it this way – so it must be right.

No.

Just because everyone (who lacks experience) seems to be doing something, it doesn’t mean you should do it. As it’s often said: “Just because a path is worn doesn’t make it the right path.”

The word that catches many sellers is the word ‘policy’. Agents (and many businesses) use the word ‘policy’ as if it’s a brick wall. No way around it.

When most people hear, “It’s our company policy,” they surrender. They are like putty in the paws of salespeople –ready to be pushed in whatever direction the agent chooses to push them.

Company policy is the ultimate bluff.

But there’s another policy – one that will protect you.

It’s your policy.

PERSONAL POLICY.

Surely, if companies have a policy, then you, as the customer, are entitled to a policy.

When you are selling your home, you need to set out the conditions under which you will hire an agent. Your personal family policy. Not negotiable.

And here’s something most sellers don’t realise. There are plenty of agents – in many areas at least a hundred, all eager to list your home.

But there is only one of you.

So, understand this point: There are two real estate policies – the agents’ policy or your policy.

Which one will you follow?

YOUR SIMPLE POLICY.

Your personal policy doesn’t have to be complicated. Keep it simple.

Try these four points as your minimum.

Point 1. PAY UPON SALE

You will not pay any money for any reason until your home is sold and you are happy. No excuses. No exceptions. This is your personal policy.

Point 2. NO LOCKED-IN CONTRACT

The agent must agree that, should you be unhappy with their service, you can dismiss them with no penalty or obligation. This is your personal policy.

Point 3. FAMILY OR FRIENDS

You insist on the right to sell your home to a friend or family member should they be interested in your home. You refuse to pay commission to an agent who does nothing. This is such an obviously fair point that only arrogant (and stupid) agents will fail to agree. This is your personal policy.

Point 4. NASTY CLAUSES REMOVED

Most standard ‘Selling Agency Agreements’ contain a slew of nasty clauses. Lawyers design the agents’ contracts to protect agents – not you.

And don’t fall for the pitch that the contract is “approved by the real estate institute”. That’s like burglars being approved by the mafia.

Insist on taking your time to read whatever the agent wants you to sign – and then delete all the nasty clauses.

This is your personal policy.

Having laid out your policy, you can then make three polite points to each agent.

Polite Point 1. OUR POLICY.

Instead of an agent saying to you, “Sorry, it’s against company policy,” you say to the agent: “Sorry, it’s against our family policy.”

Polite Point 2. OTHER AGENTS.

If an agent is not interested in abiding by your policy, find another agent. Don’t be bluffed. Hold firm.

Polite Point 3. YOU WILL SELL.

Agents salivate at the words “motivated seller”. To get their commission all they must do is agree to your personal policy. Simple.

It’s your home. You hire the agent. The agent is your employee. And employees must follow the boss’s instructions.

You can end with that old cliché if you wish: Your way or the highway.

Do it. And get a better deal from a better agent.

And, of course, a better result.

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FOOTNOTE: If you are selling your home, be sure to contact us. We have found many agents in many areas who are happy to put the interests of the sellers ahead of the interests of the agents. As it should be.

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