So you’re looking for an agent to sell or let your property. There is no one-size-fits-all in life, and that is why there are so many options for you to choose from.
We’ve seen the rise and demise of the cheap sell-it-yourself models, the often hated expensive (but great marketing) agents, and the sell fast, sell cheap model. The saying you can have it good, cheap or fast; pick two, comes to mind.
With so many options and so-called experts, we want you to feel empowered to make the right decision when choosing your agent. This short article will leave you with some tips, tricks, and answers to questions you might not think of when searching for an estate agent.
Choosing an estate agent to represent you and your property can be stressful, time-consuming and expensive if you get it wrong. Therefore, when selecting an agent, do so with the clarity of the final outcome you want.
Sellers often ask, “how do I sell my property in the quickest (fast) time for the highest price (good)?”.
The question, in reality, is, “How can I get as many interested buyers to find and compete for my property so I can get a fair (or better than) market price?” Not so glamorous, I know.
A quick exercise when considering selling is to ask yourself; which of the two, good, fast or cheap, is more important to you now. If you are selling to trade up (buy something bigger or better), achieving a higher price may be worth waiting for. If you have found your dream property and need to sell quickly to get the equity, you will likely be happier with a slightly lower price if the sale is faster and you can move on.
So now you’ve thought about why you’re selling, and your ready to find an agent.
I’ve always been the agent that gets more business through recommendations than through online marketing or organic searches on Google or social media. An introduction comes with the social proof that someone you trust has used and had a good experience with the agent. But don’t stop there – you should still have a list of questions [we’ve prepared some examples below] ready to go and not let them assume they have your business because they sold aunt Margaret’s place two years ago.
Do: – Use Rightmove or Zoopla to search for properties for sale in your given area. You will soon see which agents have good market share and sell more houses, flats, luxury or not-so-luxury properties. Go to Google and search for local agents, look at their reviews and be mindful that the reviews can be bought. For example, an agent with five 5-star reviews may not be as good as an agent with 25+ reviews but a 4.5-star rating. Read into the reviews and see if they are actually credible. Do the commentators have one-off reviews? Do they use the same tone or language? A red flag in my experience.
Don’t: Assume that an agency with the most significant stock levels is the best one to sell your property. Make sure they are able to deal with the number of properties they have without letting standards slip.
You can learn a lot from the agency by the way they respond to an email or speak on the phone. This is the first contact, so you’d hope they make a good first impression; after all, this is who your potential buyers will speak to about your property.
Do: Make a note of who you are talking to and who would be the point of contact for an appraisal moving forward. Keep the conversation short and say you will get back to them once you are ready.
Don’t: Rush to having an in-person meeting until you have spoken to another 2/3 agents. Get a feel for who you might want to invite around first.
This is your chance to be prepared with the questions for the agent. Below is a list of questions we feel might be helpful.
• How long has your agency been in business?
• What is your experience as an agent (time, areas worked, types of sales, highest, lowest price)
• Which redress scheme are they part of, and are they part of RICS, NAEA or ARLA (or another governing body)?
• Have you sold anything similar to my property?
• Where do they list properties? FYI – Rightmove and Zoopla are a standard for most agents.
• What is your agency’s process before/during a marketing campaign? Do they have an advertising or marketing plan?
• Do they have an indication of a possible sale price?
• What are your fees and are they negotiable?
• Can I get an outline of your general business terms?
• Tell me about a property you didn’t sell and what went wrong?
• Are there any additional costs for EPC’s, marketing etc?
• Do you work evenings and weekends?
• How often would you be in contact, and who would be my primary contact?
• How can I track sales progress?
• What would happen if they didn’t get an offer in their given timeline?
• Why should you use them?
Once the meeting is over, give them time to follow up in writing and say you will be in touch if you have further questions. By this stage you should have a good feeling for the agent and if you trust them to represent you and the property sale.
Do: Trust your gut. The relationship you have with your agent is vital to the final outcome. You need to feel you can have a difficult conversation with the agent without the relationship becoming sour.
Don’t: Feel pressured into making decisions quickly. Remember, you are in control of this sale and the agent is there to assist you.
Every agency has a different property appraisal style. However, the content should include a Comparative Market Analysis, similar sold listings, and similar on-market listings and conclude with their estimated marketing and sale price.
As with the agent’s first impression, the appraisal is the agent’s opportunity to stand out and for you to ask any further questions or discuss fees.
Do: Ask more questions if you’re uncertain.
Don’t: Forget to check the comparables and estimated price suggested by the agent. Over-quoting is a common way to win your instruction, so be mindful, if it seems too good to be true, it is.
Marketing is more than just listing six photos and a floor plan on Rightmove or Zoopla and waiting for the enquiries to come in. We see this happen so often and wonder what value is being added to the process.
When done well, the marketing should create a buzz about the property and a sense of urgency for potential buyers to make an offer.
A good property marketing campaign will be structured before the property is advertised. This plan should obviously include the price and terms of sale, but there must be a contingency to ‘pivot’ should the campaign not achieve the required results. These results may be harder to achieve post-mortum. Therefore, the agency should agree on the best plan at the beginning. Some common pivots are listed below.
Do: ensure you have a plan in place to make changes without feeling pressured to do so.
Don’t: Only do price reductions. If your property isn’t priced realistically then it won’t sell in any market; if it is then there is an issue with the exposure.
Most agents will charge 2% for sole agency and up to 3% for multi-agency listings. Agents with cheap fees typically cut corners elsewhere, so be aware of what you are getting for your money. If the agent advertises on fewer portals, that means fewer eyes on your property and less chance of getting a higher price.
Most properties take 3-6 months between instruction and completion, so consider this when trying to negotiate fees. For example, a 2% fee on a £500,000 property is £10,000 plus VAT to the agency, which, if the property is sold in five months, is £2,000 PCM to the company before costs of staff, office, marketing etc.
Therefore there tends to be less wriggle room at the lower end and more with a higher asking price.
Do: Check fees are in line with market rates. You get what you pay for.
Don’t: Feel you are winning by getting a reduced fee. If the agent is willing to discount their fee, they are probably willing to push you to take a lower offer.
Note that I say represent “you and your property”, your chosen agent should be working with you to sell your property.
Richie Tramontana – FOUNDER & Director at Red
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