We mean exactly that. We will take your property into the market without asking or expecting you to pay for the significant advertising and marketing costs irrespective of the outcome.
We do this because we know that the standard practice in the real estate industry is to take no responsibility whatsoever.
We believe you should not pay a real estate agent any money in relation to the sale of your property unless they actually sell your property at a price you are happy with. Why would you accept anything less? Where else in your life would you pay someone thousands and thousands of dollars for something they do not deliver to you as promised.
Incredibly this is what is happening every time someone appoints a real estate agent who asks them to sign a "standard real estate industry" sales agency agreement. This document is designed to involve the payment of advertising and marketing fees upfront and provides the legal authority to demand payment of such monies at a later date after the authority expires irrespective of whether a sale has occurred or not. When you sign one of these documents it doesn't matter what you have been told verbally by your agent, it all comes down to what is written in the agency agreement you sign.
The real estate industry has been rated very poorly by the general public for ethics and honesty for decades. At present the 2015 Roy Morgan poll shows the real estate industry has an 9% approval rating for ethics and honesty. Only 9%!
The real estate industry does nothing to protect home sellers from incompetent and/or dishonest real estate agents that according to the Roy Morgan poll are in very high numbers. You do not need to speak with many people in your social circle to find someone who has a story to tell about a dodgy, dishonest or incompetent real estate agent.
Across Australia, real estate agencies and their sales representatives avoid responsibility for all things that may occur as a result of you engaging them as your real estate agent. This is absurd!
It makes perfectly good business sense for real estate agencies to do so particularly when it is one of the most overpaid and under-qualified industries in Australia. Your real estate agent may have been selling mobile phones last week or door knocking for a power provider and this week they claim to be a real estate agent you can trust.
There is no minimum standard of "selling price expectation" (that voids the payment of any monies to a real estate agent and their agency) written into any real estate industry sales agency documentation that we are aware of. Why is this so?
While it is true that no real estate agent can "guarantee" one hundred percent that every property they market for sale will sell at a price that their client wants, a good and honest real estate agent who is capable at their job should be in a position where they can personally guarantee in writing that they have not misrepresented (over priced) the anticipated selling price of the property. In circumstances where they fail to sell at or above their "quoted" price there should be no reason why they should not accept the responsibility for the monetary expenses incurred in those circumstances. After all, aren't they the professional real estate agent who claimed they could get you this price using their recommended method of sale?
More so, the real estate agent who intentionally or negligently (through lack of honesty, ethics, skill, experience and/or market price knowledge) over-quotes the potential market price of a property to "win the listing" will also fall into this reasoning as to why they will not give a written "guarantee" of no sale no charge.
The unfortunate reality of the real estate industry in general is that it has become the standard acceptable policy to not carry such responsibility for ones claims and actions, yet at the same time the industry ensures the agents who behave in this way are indemnified via the industries "standard" sales agency agreement documentation. This is the document you sign at the very beginning of your relationship with your real estate when nothing has happened yet to cause you problems.
To find out more about our No Sale No Charge policy please call us.
P.S. Don't forget to look at the Home Sellers Guarantee document. This document fixes all the problems described above and has been in circulation since about the year 2000. Unfortunately it is not a document the real estate industry wants to acknowledge and as such most people do not know it even exists.
The answer is NO. And ... we do not ask you for payment of these activities at any other time.
We absorb all the "true" costs of all advertising and marketing activities undertaken on your behalf to market your property to the buying public.
What this means is that all the activities you would expect to be done to attract buyers to your property are carried at our expense and not yours.
We expect no payment from you for the following:
Professional For Sale Sign
Professional photographs of your property
Professional floor plan of your property
Marketing on realestate.com.au and domain.com.au
Direct marketing to the local area within which your property is located
Direct marketing of your property to our database of registered buyers
In addition we do not charge you:
Form 1 preparation fees
Why do we do this?
Most real estate agents are not prepared to back their abilities with their own money. Surprisingly, they can make big claims about what your property can sell for if they are appointed as your selling agent and at the same time they provide no written guarantee in their paperwork supporting their claims and at the same time they expect your to financially underwrite those claims by having you pay for all the expenses from beginning to end ... irrespective of whether you sell at a price you were promised or not or even if you fail to sell at all.
The Home Sellers Protection Guarantee is the only document in existence in Australia that will keep you safe from a real estate agent who fails to live up to their promises and claims about their abilities to achieve the result for your home that motivated
you to select them in the first place.
The real estate industry does not discuss or "champion" this guarantee document to prospective home selling clients. Why is this so?
This document was not created by the real estate industry to protect home sellers from dishonest, incompetent or negligent agents. It was written by consumer protection advocates to protect home sellers.
The guarantee document is designed to over-ride a real estate agents sales agency agreement documentation ... but only if you get them to sign it first!
Do not rely upon the real estate agents paperwork protecting your financial interests. It simply doesn't!
One of the biggest issues home owners have with real estate agents is the apparent lack of sincerity and ability to back the claims they made about their selling prowess when you first engaged with them to appraise and discuss the sale of your home.
You do not need to speak with many people at all to find someone who has had a bad experience with a real estate agent. For many the issue is trust and the feeling that the agent was now working for the buyer instead of for them. Another is the belief that they had been misled about the true selling price potential for their home and that it was more about getting a quick sale and as much advertising and marketing expenses from them as possible.
The Home Sellers Protection Guarantee document stops the fallout landing back on you financially when such circumstances occur. What this means is that you need to insist that the real estate agent you appoint to manage the marketing and hopefully the sale of your property must sign the Home Sellers Protection Guarantee. With the Roy Morgan public opinion poll suggesting that only 9% of people believe real estate agents are honest and ethical in their dealings with clients your odds of not having a problem arise seems very slim. Conversely this also suggests that 91 out of every 100 home sellers has the potential to encounter a problem.
Who does it harm if the real estate agent signs your home sellers protection guarantee ... you or them?
The simple answer is NO. It is not necessary to hold an open inspection.
“It is amazing - a person needs to produce more identification to hire a dvd movie nowadays than they do (if at all) to wander through a family home!”
When else in your daily life would you ever consider leaving your front door wide open and allow complete strangers to wander through your home? And if you did consider this a reasonable thing to do ... would you then go and advertise it to the world that you are walking away from your home for anything up to an hour? Of course not!
And why wouldn't you do this ... because you know who might likely turn up at such an invitation. It would be madness. Anyone and we mean anyone might come through and there goes your feeling of privacy and sense of security.
When a real estate agent holds an open inspections the same level of risk still applies. This is exactly the high level of risk that is being taken every weekend across Australia by unsuspecting home owners who have been comforted by the illusion that all is safe and well in real estate world when it comes to people inspecting their home ... because you need people to come and inspect your home to buy don't you?
Naturally as a home owner you want buyers to inspect your home ... but do you also want your nosey neighbour, the local house breaker or thief with light fingers to come into your house as well?
There are no safeguards in place to ensure that only genuine honest people are inspecting your home to seriously consider buying it. There is no filter in place when you are advertising to the world that an open inspection is going to take place ... anybody can come along.
Open Inspections allow real estate agents to operate at the lowest standard of skill and physical application to facilitate the creation of a buyer for your property. Unfortunately this is now the "standard normal practice" and because people have been forced to buy through open inspections they now also believe when the time comes to sell their home that this is the only way to do it ... the way the real estate agents want you to do it ... the laziest and the most riskiest way.
The "invitation" to attend an open inspection means that anyone can march up to your front door and wander through your home. They walk through your lounge room, they go into your bedrooms and they open your cupboards and they look through your personal possessions. Total strangers ... intruding into the privacy of your personal world. This is crazy.
Just because your home is for sale, it doesn't mean you have to place your safety and that of your family and possessions at risk. You have a right to know who enters it. A real estate agent standing at the front door asking people who enter for their names and phone numbers does not mean the agent is actually getting their real name and a real phone number. They are just going through the motions so that when an event does happen they can show they did what was required but ask yourself, the last time you inspected a home at an open inspection did you have to produce your drivers licence or passport or anything else to show who you really are OR did they just write down what you said.
When selling your property the only people who should inspect your home are people who are likely to buy it. You want buyers, not burglars, thieves and nosey parkers. And the only way to know if a person is a buyer or a burglar is to identify them before they enter your home. It is very hard to do this with a sign on the street saying "Open For Inspection".
Please do not underestimate how serious this is. Neighbourhood Watch advise, "When your home is open for inspection, your valuables, are also open for inspection." Ask at your local Police Station or ask your insurance company (before you do anything relevant to selling your home). They know the dangers, that is why your home is usually not insured when open for inspection because they have the statistics which show it would be foolish to insure such an event.
In South Australia, the "standard sales agency agreement" documents the majority of home sellers sign makes it quite clear that there is high risk in conducting open inspections. It states that the liability for any loss or damage at an open inspection falls upon the home seller. Why would real estate agents need to specifically put this into the sales agency agreement you sign if the real risks associated with holding an open inspection were not a problem for them.
As part of being an agency who has the Approval of Neil Jenman, we have attended a Real Estate Negotiation course. We will continue to attend this course on an annual basis to ensure our standards are appropriate for the high level of ability that is
absolutely necessary when seeking out the highest price for a home seller. We are entrusted with hundreds of thousands of dollars of value in a property and as such should know how to protect it.
In addition to the Real Estate Negotiation course we continually read, study and apply negotiation techniques in our day to day activities. There are 42 principles of negotiation that have been identified as applicable to real estate.
Surprisingly, many real estate agents use marketing techniques and methods of sale which are at complete odds with negotiation.
Neil Jenman is the author of the books, Real Estate Mistakes (2000) and Don't Sign Anything! (2002). He has just finished his fourth book, Success Takes Character.
Occupation: (for living): Business consultancy and public speaking.
Occupation: (for love): Investigative writing and consumer advocacy. Neil Jenman was born in England to Australian parents. He grew up in the 1960s in Wales, England, Ireland, the Caribbean and, finally, Australia where he attended Rockhampton Grammar School. He worked on outback cattle stations and cut sugar cane in North Queensland before taking a job as an office boy in a real estate office in the coastal town of Yeppoon in 1973.
His career took him to Sydney, where he opened a real estate office in the suburb of Auburn in 1984. The office was such a resounding success that, in 1989, Neil began sharing his ideas with other agents. In 1993, Neil sold his real estate business to concentrate full-time on writing and presenting sales and management courses within the real estate industry. His methods – which focused on ethics and client-care – became known as The Jenman System. By 2000, several thousand real estate people had attended Neil's courses and more than 300 managers and 1200 salespeople subscribed to The Jenman Group's training services. But Neil's public comments, especially about the typical industry treatment of both clients and staff, created enormous controversy. Although even his fiercest industry critics acknowledged the quality of his training courses, the more he spoke about consumer protection, the less popular he became with agents. During the property boom, Neil increased his warnings for consumers. He toured the country presenting his three-hour consumer lecture, The Inside Secrets of Real Estate. More than 65,000 people, from Darwin to Hobart, came to see him speak. He also fought several public battles with property spruikers on behalf of investors who had been ripped off.
Today Neil Jenman is a well-known national commentator on property issues. Neil Jenman sold his real estate training business in 2005. Neil now focuses on investigative writing, consumer advocacy and the accreditation of agents through the Jenman Approved concept.