Selling your home for the first time should be an exciting journey. Making the wrong choices upfront can be fatal in the long run, below are a few points to consider before taking your prized possession to the market.
- Research the agencies in your area. The most active and reputable agencies have been around a long time for a reason. Using an established professional agency will lighten the load and help make the process seem simple. Brand matters!
- Ensure to select between 2-3 top agents within these agencies. An agent's CV is his/hers record and it is in your interest to know they are established and experienced. Don't be shy to ask for this.
- As much as you want to get an estimated value on your property, it is important, before you select anyone, to interview them and allow them to interview you. An open honest relationship from the onset is critical to the success of your sale. Being comfortable and confidant in your agent and agency will reduce the stress of the process.
- Whilst your house is your castle and you want to sell for the best possible price, heed caution at an agent that overpromises on price and marketing. Leaving your property on the market for too long can be damaging. Listen to the source of the information from the agent. Any agent worth their salt, will be able to justify their value by comparison and fact. It may not be what you want to hear, but at least it's the truth.
- A common platform used to gain insight into a properties value is the CMA report. This is a comparative market analysis report that considers previous sales in your immediate area that are similar in size. This however cannot take into account finishes and cannot substitute experience when looking at location, layout, setting and market conditions.
- Whilst the CMA is a useful tool to begin with, the agent remains the most important factor in helping you decide on a realistic price to take your prized possession to the market. Generally, a good agent will discuss the various factors influencing price at the time of your sale, which should include the macro and micro elements influencing activity, the layout and setting of your property, the current demand in the area and how to best position the property to achieve the best possible price.
- Be careful of being caught up in the hype of a good sales pitch, listen to the information on hand, consider the actual worth of the agent and the marketing. It is a common myth that the more the merrier. When selling your home, you would want to be in control of the process with a specialist and a strong team. The risks associated with losing control of who sees your property and through which agent are well documented, effective cause is real and double commission claims are a real risk. Letting a single agency manage your sale is in your best interest.
- The next obvious question would be "If I have more than one agent selling my property, I stand a bigger chance of selling it." This is not entirely true. Sole mandated properties tend to sell quicker on average at a higher % of sales to asking price for a reason. An invested specialist with a strong brand will pull buyers from the same pool that all other agents pull from, as well as their own investor base and leverage from their brand or footprint. A strong brand has a stronger reach and would have access to much more than just what's online.
- The next step is deciding whether or not you want to commit to a Sole mandate, joint mandate or open mandate. The variations of the mandate will determine the amount of investment you will get from the agency and agent. It makes no sense for an agent to aggressively invest time and money into your property on an open mandate.
- An open mandate also creates an internal competing pool amongst agents to present an offer.... not necessarily the best offer, just an offer. Agents are legally required to present any and all offers received, to the seller. This therefore negates the opportunity to ensure the agent is invested in negotiating, marketing and working hard on securing the best possible price as they have no guarantee of their return. The costs associated with marketing a property, managing existing investor bases, print and press media coverage, brand awareness and online portal exposure is heavily under estimated. Neither of these platforms should be ignored, whilst any one of them may be the one to secure your sale, all have a part to play in the marketing of your property.
- A joint mandate allows for two or three agents to work on your property at the same time and whilst this may limit the risk, it remains a risk and therefore not the ideal situation to be in. Two primary concerns when working with more than one agent at a time is the "effective cause" of a sale. The risks associated with this are widely documented. If agent A introduced a potential buyer to your property but agent B presented an offer from the same buyer.... who gets paid? Unfortunately, the legal ramifications of getting this wrong are substantial and could cost you commission twice plus legal fees. Notwithstanding the other above-mentioned risks that remain.
- A sole Mandate will hold the agent and agency accountable for their marketing and emphasis they place into marketing your home. It will also give you the peace of mind that your best interests are being looked after. Should you choose to go this route, it does not mean that regular meetings and feedback are not required. A good agent will provide regular feedback with regards to what the market is saying. Buyers will buy by comparison; constructive feedback can be useful in reaffirming your sales price or perhaps reconsidering your positioning against your competitor properties.
Whichever mandate you decide upon, make sure the agent and agency are the right ones, this is the first building block to you achieving the desired result when selling. A little work upfront will ensure a smooth and pleasant journey when selling. Good Luck!