What is really involved in the job of an estate agent, and are they worth the fee?
There are many elements of marketing a home and finding a buyer. Estate agents put in a lot of time and effort trying to sell a property or hold a deal together that often goes unnoticed. As the seller, it's possible that you only know the half of it.
Selling a property is a complex process, and there are many elements to juggle to achieve the all-important completion of a sale.
There are many elements of marketing a home and finding a buyer. Estate agents put in a lot of time and effort trying to sell a property or hold a deal together that often goes unnoticed. As the seller, it's possible that you only know the half of it. So many moving parts to manage and different people involved. As well as the subsequent negotiations and managing the legal sale process to ensure you move to your new home without any hiccups.
When you have your valuation appointments, you're faced with the various fee structures from the agents that you initially speak to, and on the face of it, they can seem quite pricey. But perhaps this is because the agents haven't clarified precisely what's involved in selling a property. This is most likely because they don't want to overwhelm you with the monumental task of moving house. But if agents aren't transparent about what it takes to sell a property, then you haven't been told all the information about what their fee actually covers.
Fundamentally, you agree to pay a percentage of the sale price of your property to the agent for 'selling' the property, but what else is needed to sell your home?
Firstly, you're paying the agent a fee for potentially up to a year's work, sometimes longer. Selling a property involves the marrying up of many moving parts. As the seller, you will see the viewings and the feedback. You will have the update calls, and when the offers come in, you will be in the thick of the negotiations until you reach a figure you're willing to accept. But what is the reality of getting you to this point?
It's time to lift the curtain on what happens in an estate agency office!
From dealing with the many enquiries via email and telephone to cross-selling and discussing your property with customers that called to enquire about other properties. Maximising leads and seizing opportunities. Arranging and subsequently accompanying viewing appointments and contacting those viewers for feedback before reporting back to you. Encouraging offers and negotiating those to achieve a high price so you can begin the legal process and instruct solicitors. And this is just the halfway point!
And, if the worst should happen and the sale falls through, which over 30% of agreed sales do on average, the agent will handle all of this, and begin marketing all over again, trying to find a new buyer and negotiate a new offer to get you a new sale. Back to square one, and they still haven't invoiced for a penny. They've earned no money from your property sale yet, but have put in hours and hours of work.
Estate agents are only paid on success, so although the initial fee quote might feel pricey, the cost only becomes payable if you receive the desired outcome. It's risk-free.
Perhaps the main point that can make all the difference to you and the monetary amount you can get for your property is the skill.
Customer service and client management cross many industries, from retail to hospitality. Still, negotiation is a skill that is often not picked up in other sectors, and it's the one that can make all the difference. Imagine if your agent could negotiate your sale for you to a price you're delighted with, and then they can negotiate a little extra. You'd be over the moon, right? Now imagine that they managed to negotiate enough to cover the cost of their own fees! In essence, they've paid themselves, costing you nothing.
An estate agent's job involves many roles that people often don't realise. Many different skill sets are applied, and lots more time and work than people may think to earn those completion fees. Of course, there are ways to market your home without paying for an estate agent, taking on the role of accompanied viewings and offer negotiation yourself, but how much experience and skill do you have in negotiation? And how good are you at lead generation, cross-selling, client management and customer service?
If you're considering selling your property, don't worry too much about the initial fee quotes. As the saying goes, 'good doesn't come cheap and cheap isn't good'. Instead, look at the agent's success rate when selling homes like yours.
Get in touch today to find out how we sell hundreds of properties in our area and help our clients move.