Selling Your Home? The Truth About Up Front Marketing Fees
Have you received valuations on your property as you prepare to sell, and noticed some agents charging an upfront marketing fee? This article aims to shed light on the reasons behind this practice and the potential benefits it can bring. It's not just about finding the cheapest agent, but about understanding the value they can provide.
The structure of estate agency has largely remained unchanged for decades - you advertise your property for sale, and when it sells, the agent will charge a percentage of the sale price as a fee. There are, of course, some pitfalls to this concept, particularly when we consider that some properties don't sell for one reason or another.
In contrast, the marketing involved in selling a property has changed dramatically. There have been various technological advances offering numerous new options for presenting a home for sale. As a result, some agents are beginning to modify their business practices, including the way they charge for their services.
Launching a property onto the market for sale can cost an estate agent hundreds of pounds. As with any business, there are expenses to consider, but with fees only becoming due when a property is sold, estate agents could see huge expenses go unpaid if that property doesn't sell.
A large portion of the marketing costs, including preparing photographs and video footage of your property, creating floor plans and descriptions, and erecting a for-sale board, are all front-loaded. As a result, some agents may charge an upfront fee to list your home for sale as a contribution to the expenses associated with the process.
When faced with your selection of estate agents, it can be challenging to compare the services they will provide. It often comes down to the valuation and the fee percentage that will be charged at completion. And, if all estate agents are essentially offering the same thing, lots of homeowners will opt for the lowest fee percentage. But this might irreparably harm your property-selling experience. So, should you pay an upfront fee, or should you just find a cheaper alternative?
Your home is likely to be the most valuable asset you will ever own, so this is not the time to be scrimping. A poor agent is less likely to be able to secure you a buyer at a high price and even less likely to hold your sale together through to completion, meaning that not only could you be losing money in the value of your home due to low offers, but you could also be losing money in the unnecessary expenses that are involved in a failed sale, not to mention the heartbreak if you lose the property you want to buy in the process.
You might be wondering how a low-priced agent can secure high offers or facilitate a sale. It's pretty simple, really. To make a profit - something that all businesses aim to do - they will have to sell more homes than an agent charging a higher fee. This means that their staff will be dealing with more properties. This higher workload means there is less time in the day to provide high service levels, seizing every opportunity with every potential buyer and investing effectively in the marketing of each property. Ultimately, all things will cost money, and a cheaper fee agent simply won't have the revenue to invest in those things.
But what about the agents that charge a fee upfront?
Well, they're in a position to offer you the very best marketing for your property because you are paying for it or at least making a contribution to it. This means that your property marketing will not suffer because of the agents' cash flow situation or profit margins. This seemingly simple point can ensure that you and your property receive the absolute best marketing and selling experience possible.
Property marketing can go beyond just taking nice photographs. What about property styling, twilight images, or professionally copywritten brochures? Or virtual tours, presenter-led video walk-throughs where the agent presents your home, speaking directly to the camera? Perhaps the agent can offer printed brochures to truly showcase your home. It is possible to showcase your home in a way that would feature on Grand Designs or a glossy interiors magazine.
With the right agent, anything is possible, but this comes at a price. And if you want the best, is it really so bad to make a contribution to the cost so that you can ensure your home looks its absolute best?
If you're thinking of moving home soon, get in touch with our team for information on how we can market your home to ensure the highest possible price with minimal stress. Don't shy away from any agent that charges an upfront marketing contribution fee - you are working together to sell your home, not against each other.