Generic real estate agencies expect you to pay the advertising and marketing fees to introduce your property to the buying public through marketing channels like realestate.com.au and domain.com.au in addition to photographs, floor plans, for sale signs and brochures. This can add up to many thousands of dollars!
If the property fails to sell (or your are pressured to accept a lower sale price than was quoted by your agent - a price that was given to win your business over other agents), you are still obligated to pay for all the costs for this activity. We have heard of owners paying in excess of $8,000 for a failed attempt and their real estate agent simply walked away without any responsibility for what had happened.
You should only pay a Real Estate Agent as a result of them achieving a sale price for your property at or above the price that should be guaranteed in writing. If your agent fails to achieve this price as a minimum they should indemnify you from all advertising and marketing expenses they convinced you to pay in the pursuit of a price they promised you they could get.
Real Estate Agents should only be paid on obtaining a satisfactory result (at or above their claimed selling price) and not before!
We pride ourselves on carrying the financial responsibility from start to finish for all internet marketing (realestate.com.au, domain.com.au), sign board, professional photography and floor plan costs as a minimum standard of client care. You only pay us once when we actually sell your home at a price at or above what we guaranteed you we could get.
Open inspections are filled with nosey neighbours, people looking for free food, the local thief, the odd buyer or two and pretty much “every man and his dog” (and we have seen dogs inside some agents open inspections).
Many real estate agents require you to consistently clean your home each weekend in anticipation of having these people trample through your home or conversely for nobody to show up.
We recommend you consider a better more secure alternative. Inspection by appointment. People who are genuinely looking to buy a home in your area are very keen to contact the agents selling the properties they are interested in buying to arrange a time to inspect (as soon as possible)! Most contact the agent with a higher sense of urgency to inspect as soon as possible (why)… because they are genuine buyers.
When else would you walk out of your home and leave the door wide open … when you are at work … on holiday … you wouldn’t would you! But for some reason it seems to make sense when you want people to buy your house …
The same risks still apply. Insurance companies know the risks … and so do the real estate agents who insist on showing your property by Open Inspection.
Check your insurance policy for claims made for theft and property damage as a result of an open inspection having occurred and then check the real estate agents selling authority where it discusses Vendor Indemnifies the agent from all loss, theft, damage … it doesn’t add up.
Wilson Real Estate provides you the better alternative that doesn’t put your property or your family at risk.
Many real estate agents do not know how to achieve the best market price. All you have to do is follow a property from the first asking price right through to the final sale result. Sometimes the difference in asking price to actual selling price can be staggering (and not in a good way). Many agents who recommend and promote auctions show this quite clearly … auctions do not allow negotiation to occur. It is even more apparent when you realize that they have a term for the owners lowest acceptable price … the reserve … but they do not have a term for the buyers highest price! It gets even worse when the advertised price is deliberately set well below the reserve price to get lots of potential buyers thinking it is cheaper than it really is.
Why is this? … auctioneers focus on getting bidders to the reserve price (where a sale can be made without further involvement / intervention by the owner) irrespective of whether the winning buyer can and would have paid more money. Agents who auction property have no real focus on getting the best buyer on the day to pay their highest price they were prepared to pay … they don’t need to. The sale will happens once you reach the reserve price (from a much lower starting price) and appears to be a success to everyone in attendance.
Auctions have a big fail point … the final buyer only has to better the second best buyer by as little as $500 dollars to secure the property, if they had $20,000 more to bid it wouldn’t matter.
The agent gets the same sale result, the buyer saves the extra $20,000 they were prepared to pay and the owner is none the wiser to the fact they have lost the money that could have been obtained by a better technique of sale applied by a better qualified real estate agent.
Look for the truth in real estate agents claims and insist on being provided with solid evidence of (many) recent sales success stories.
Do not risk placing your biggest financial asset into the hands of an inexperienced, incompetent or dishonest agent (the ones that promise you a very high selling price and also require you to pay for all the advertising and marketing charges irrespective of the actual outcome).
Select an agent who treats you as Number One by insisting that they guarantee the sale price they claim they can get you (make sure it is in writing and that failure to achieve this result also forfeits their claim against you for the advertising and marketing charges incurred).
This is the only protection you can create for yourself in the event that they cannot do what they promised you they could. If they fail, you will lose thousands of dollars (the advertising and marketing charges) and potentially tens of thousands of dollars (in a lower selling price) if you are forced to sell due to the debt you have committed to pay the agent.