Sellers often misunderstand agent fees. People believe agents do the same job. They pick the cheapest one. They think they are saving money. If Agent A charges 1.5% and Agent B charges 2.2%, they choose the discounter. The math says a few thousand. This is dangerous math. The cheapest agent loses you money eventually. How? They achieve a lower price. The difference in your sale price dwarfs than the small saving.
Use logic. If an agent cannot negotiate their own money, how can they defend your house price? They don't. They fold instantly. When the heat is on, the cheap agent says: "It is a good offer." They need the turnover. They don't care about your extra $10k. Brad Smith negotiates hard. Because we value our skill.
I watch vendors in gawler real estate miss out on huge sums to save $4,000 in fees. It is sad. It is a one-time event. The goal is the peak. Commission is a cost of sale. By achieving a higher price, even with a higher rate, you win. Look at the bottom line. Look at the net, not the fee.
Price vs. Performance In Real Estate
Know the gap between cost and value. McDonalds and fine dining are not the same. Local agents are no different. Some are order takers. They list online and wait. Anyone can do that. Why pay for that?.
A professional builds value. We work the database. We style the home. We use psychology. Key point: we deal. When a buyer says "$600,000 is my limit", the cheap agent believes them. The pro knows how to get them to $620,000. That increase is pure profit. That is skill.
Budget brokers rely on volume. They must sell many to survive. They rush to maximize your price. They treat you like a number. I limit my listings. To give attention for you. My commission enables me to serve you best. Don't be a number.
How Negotiation Skills Impact Your Pocket
Negotiation is not arguing. It is psychology. Knowing silence and when to listen. Understanding signals. Building pressure. An expert gets more money without them knowing. We use the market to elevate value.
It takes practice to perfect. It is worth money. You employ me for this reason. Not to put a sign up. You hire us to handle the money conversation. If your agent is weak, they will cost you. They will suggest you drop your price rather than negotiating. Simpler to beat you down than to get more. Discounters reduce. Pros increase offers.
Interview question: "Give me an example of a recent negotiation." Watch them. Should they say "It sold quick," run away. You want to hear "I created a bidding war." Hire that one. I love the deal. That is my promise.
Marketing Budgets: Who Pays For What?
You might hear "no marketing costs." Sounds good? Be careful. There is no free lunch. If marketing is "free", they spend the minimum. Bottom tier. Bad pictures. You get no signboard. Because they are paying. They want to spend less.
For the best result, you need exposure. Premiere listing on RealEstate.com.au. Video. Floorplans. Facebook boost. It is an investment. But it finds more buyers. Volume creates price. Competition = higher price. Being cheap on ads and lose a bidder, you might lose $10,000 in price. Poor return.
I recommend you pay for ads. Because then we control it. We do it properly to get the result. Your investment. Give it the best chance. Don't scrimp for a small saving. It drives the sale.
The False Promise Of A High Price
A common scam of desperation is over-quoting. They promise your home is worth $700k when reality is lower. They do this to win the job. You sign with them out of greed. Then, it sits there. They make excuses. They reduce it to $600k. You get market value eventually.
But you hired the liar. The good agent who was accurate was rejected. Don't punish honesty. If the price seems high a crazy number, ask for proof. Show me the sales. Without proof, they are faking. I value correctly. I base it on facts. My price might be less, I achieve it. We beat it via strategy, not by lying at the start.
Protect yourself. There are tricks. Look for integrity. Select the person reality, not what you want to hear. That is the partner who will actually sell your home for the max.
The Interview Checklist For Sellers
In the appraisal, quiz them:
1. Explain negotiation.
2. Prove your results.
3. How do you handle multiple offers?.
4. Why is your continue reading guide fee higher/lower?.
5. What is your marketing strategy?.
Their answers will tell you everything. If they stumble, don't hire them. If they are confident, hire them. If they drop their fee as soon as you ask, don't hire them. If they give away their money, they will give away yours.
I welcome these questions. Challenge me. I have the answers. I deliver. Let's work together. I am not the cheapest, I am the value choice. Quality is always free in the end.