Let the agent price
the home: Do NOT tell the
agent what you think the home is worth. There is a training seminar
that teaches agents to price the house at whatever the seller want
and lower the price every 10 days. This is not honest. If you can
not trust your agent at the beginning of the process how can you
trust them to advise you on an offer?
In smaller of low turnover communities where prices may be
suppressed, an agent may look to other communities in the area with
similar homes for price comparison.
Do not sell a model:
Some agents want your home
to show like a model. The reason for this is the lack of confidence
by the agent in there marketing ability. A home MUST be presentable
and should be in a well maintained condition. However there is no
need to spend $10,000 in improvements without a realized gain.
Offer allowances!! This not only mitigates the objection but it
gives the buyer an opportunity to select colors and materials
suitable to them or allows them the ability to use the allowance as
a closing credit thus saving you the money.
If they want a new house then they
should buy a new house. The reality is new homes cost much more
2/10 warranty offers a mitigating
factor to objections based on age and/or condition.
Do not buy a pig in
a poke: When an agent
fails to leave you information, such as listing, marketing plan etc…
this is usually a sign of that they do not want you to read the
documents too closely. Without you having everything the agent has,
you are at their mercy. The agent should ALWAYS provide you and
encourage you to review all documents that you are about to sign
with sufficient time for review and questions.
Sample marketing materials should be
left with you and a commitment on behalf of the agent to provide the
same for your home. Look for quality!! Commit the agent to a time
frame of materials and events. Write into the listing that the
attached (and attach it) marketing plan will be performed to. If
they do not want to do it, then you have the wrong agent.
Watch out for hidden fees,
administration fees and transaction fees. These fees are usually a
way to get you to pay for regulatory tasks on behalf of the broker.
They are also a sign the broker/agent is financially strapped or
encumbered by overhead (to many employees). Pick lean and mean!!
This will give you the best chance to reduce your costs.
Benefits of franchise:
Franchises offers reduced management structures and therefore offers
you a chance to reduce your cost. The lack of various layers of
management reduces overhead significantly. Franchises also offer
the widest range of brand name marketing and exposure to your
Also offer you the ability to reduce your commission. An agent who
employs automated processing and
marketing plan does more
work in less labor hours thus reducing the cost of sales. In a
typical office an agent will fill out a case sheet for the listing
and turn it in for processing. An administrator will then data
entry the information while the agent enters it into the MLS. The result of this is a duplication of effort by the agent and the
administrator which in
turn increases cost.
Where as an agent who automates
processing simply uploads the information and the data entry part is
eliminated. The actual time to upload the required information is a
small fraction of the time it would take the agent to fill out the
case sheet thus saving a lot of time, money and labor. This offers
you the best opportunity to negotiate your fees and commissions.
The agent’s ability to automate routine tasks saves you money!! The
ultimate question you need to ask yourself is; why should I pay for
REMEMBER, YOU ARE THE CLIENT!!
THE AGENT MUST EARN YOUR TRUST AND DEMONSTRATE THEIR ABILITY!!