What do real estate agents actually do?

What do real estate agents actually do to sell your home?
JOANNE GAMBALE – APR 20, 2018

If you see a dapper new suit on a hot Australian Saturday, chances are it’s a real estate agent paying his dues between open-for-inspections. Few can talk the talk like real estate agents can, and while that quality is sometimes dismissed by the general public, it can be the difference between an acceptable price and a champagne price at the end of a selling campaign.

Real estate trends have shifted since the rise of digital marketing and online agencies. Buyers follow properties rather than agents and good market knowledge is a Domain app away.

Why use a real estate agent

The magic formula is the sum of client knowledge, market knowledge and finely tuned negotiation skills, says Sydney buyers’ agent Tracey Chandler.

“They know how to turn a negative into a positive. If a potential buyer complains: ‘I don’t like the way [the property] faces,’ the agent would say, ‘but if it was the other way around you’d be looking at a wall’,” she explains. “It’s up to the agent to bring them back into the picture, and they do this with absolutely no emotional attachment, which is what you want.”

Tony Williamson (Real Estate Principal), says the agent is an arbitrator that filters information between the buyer and seller.

“This is a major asset they don’t get credit for. We are an open communication channel, which maintains respect and a healthy relationship among all parties.”

Market knowledge is important

As for market knowledge, Richard Simpson, president of the Real Estate Institute of Victoria, says: “Local agents have access to a database of interested buyers, who may have missed out on a similar property in your neighbourhood.”

He says agents who are REIV members have access to quarterly median house prices, auction results and legislative updates, and that sellers using a member agent automatically receive professional indemnity insurance.

The element of client knowledge requires a bespoke approach from agents, and this concept has inspired agents to introduce an interactive resource on its website whereby would-be vendors input their postcode to find the most common marketing mix for their area, before they’ve even spoken to an agent.

Williamson explains that factors that determine the price of your home can be within your control but are often not.

“For instance,” he says, “Sydney is a seller’s market but in Cairns it’s a buyer’s market and sellers need to do everything possible to attract their buyer.”

Real Estate Institute of NSW president Leanne Pilkington adds: “The agent has to start by asking what the vendor is trying to achieve and why. Where are they moving to? What’s the time frame? They need to understand all this so they can give the best advice.”

Choosing the right sales method

Agents’ marketing plans run the gamut from an off-market strategy, where promotion is minimal and agents proactively target their extensive personal database of buyers, to a fully loaded campaign of online real estate portals, print advertising, flyers, signboards and open homes, the latter deemed one of the most powerful ways to attract interest.

Whichever method the vendor chooses, agents highly recommend they invest in the presentation of their property.

“It makes a big difference,” says Williamson. “Even if you spend $3000 on a stylist, the $20,000 extra it will add to your price makes it worth it.”

Great photography should follow, and the number of groups through at the first open-for-inspection will usually confirm its success.

Sales methods are also customisable. Many vendors choose to sell via a private treaty on the open market.

“This is suitable for homes in areas where there might be lower levels of buyer demand,” explains Simpson. “[In Victoria] there’s a three-day cooling off period and prospective purchasers can stipulate that the contract is subject to a number of conditions, such as a building inspection or finance approval.”

If the vendor wants a quick sale for market price and they live in a seller’s market, an auction is highly recommended.

Where there is strong interest in a property, Chandler says buyers can get carried away during the auction process.

“They get nervous on the day and don’t know when to stop when it comes to the price,” she said.

Properties can often sell before the auction date if a buyer is keen enough.

“Auctions allow vendors to dictate the terms under which the property is offered and ensure the creation of an unconditional sale,” says Simpson, “with the added benefit of a deadline for the buyers to act – increasing the competition.”

When it comes to choosing an agent, word-of-mouth is a good starting point.

“People do talk about real estate at barbecues so if you get a good or bad result, those in your area will know about it,” says Williamson, who adds that while he is part of a global real estate community, agents maintain strong ties within their respective local communities, with their ear to the ground for planned developments and infrastructure as well as comparable sales and active house-hunters.

“You’ve got to strive for the best possible,” says Williamson, “and demonstrate your commission’s worth it.”

Source: Domain.com.au