"Your Professional Advantage"

CPREA

Geoff Baldwin Thu 07 August 2014

Discounted fees harm sellers as much as agents

Often property sellers have a focus on finding the agent who will charge the lowest selling fee and who does not charge for marketing however the records show that this is more often than not a false saving according to CPREA Chairman, Geoff Baldwin.

“An recent CPREA study of 200 WA properties sold where the fee was below 2% of the sale price and where marketing was minimised demonstrated clearly that those properties had a longer average time on the market, often not selling at all, had a larger discount rate between the asking price and the eventual selling price and had less viewings by potential buyers”, Mr Baldwin said.

“Almost without exception, the most experienced qualified and educated agents also have the highest listing to sale ratio, a much lesser discount ratio and a much higher rate of inspections resulting in more competition and ultimately a higher price and a better overall result for sellers.

“It is no coincident that the better agents also consistently earn a higher commissions per sale.

“Savvy sellers understand that, although they may pay a higher selling commission to a better performing agent or agency, that extra cost is outweighed by a higher level of skills, service, negotiation and shorter time on market and a better price.

“Sellers should be aware that agents often sell each other’s properties which is fine as long as they are always working to do the best job for each seller however, if a low fee is on offer common sense depicts that listing will be less likely to attract the attention be shown.

“Just as we wouldn’t look for a discount doctor if we had a life threatening sickness or we wouldn’t seek out a discount lawyer to represent us in an intricate court case we should always seek out and be prepared to invest in the absolute best quality agent to negotiate on our most valuable possession.

“Prudent sellers seek out and invest in an agent that has all the record, skills and resources to maximise their price, they ensure that the marketing is such that it will attract a high number of buyers and they understand that although it may cost a little more for a quality agent they significantly enhance their chances of achieving the highest possible price in a the shortest time”, he said.

ENDS

 

Quick Links and Information

Join Online as a CPREA - Now Open!

Find a CPREA

Find a CPREA Member

Copyright (C) 2014 by CPREA. All rights reserved.