With over 64,000 real estate agents in Australia,
it’s pretty hard to find out which is the best one. So today, we’re going to go through
with Adam, our special guest, on questions to ask your real estate agent
when you’re selling your house. Cool, mate. So let’s go through Question #1,
how long have you been in the business? Why is that a relevant question to ask
a real estate agent when you’re selling your place? Good question, Jayden.
You don’t want an agent that’s just started in the business. Look, they haven’t had the time,
the experience to know how to answer questions from buyers
and how to negotiate an outcome properly. And also I guess, they don’t have that
local area knowledge but why would that be important to actually know
what’s around the suburb and other places? It’s really important to know what are the good streets,
what are the bad streets. From one area to another,
you could have an extra 10 meters of elevation, you could have city views and that can be
a big difference in determining price. So if you don’t know where the schools are,
what the bus routes are, as an agent how are you going to be able to negotiate
for your owner to get them the best outcome. All right. Number 2,
another good question to ask is how many clients I have but why does that
matter for me if I’m selling a house? Look, client databases are very important.
One, as an agent, if I can, I’ll try and sell a property off market
before it even gets there. You might get a couple of offers beforehand
and it can save you time, it can save you money in advertising. Number 2, you want the agent to have been around for a while
and built up that database and know their buyers. If they know their buyers, they can match
a buyer more quickly, saving you time and effort. So the third question to ask might be, “Will I be working
with you as the agent or your team? So why is that important? Look, there’s pros and cons for buyers.
When you’re working with the agent by themselves, you’re pretty much guaranteed that one-on-one contact
that they’ll be looking after the sale but on the same- on the other hand, sorry,
when you have a team, when you have a couple of PAs or sales admin, they can focus on looking after those administration,
you know, contacting the buyers, whereas as the agent, you can focus on negotiating
and selling the home and that’s what we’re here to do. Yeah, because I’m kind of thinking of
a million dollar listing where you get thrown, it’s here and there and you hope you can get
that guy but you might get the team, so I guess going to look at the pros and the cons,
you got some with the biggest database and that’s obviously important, like we covered earlier
but you might not get the same service. So Question #4, what area do you work in primarily.
So there are agents that will do across the whole city, that will do from one site to the other,
why is that a bad thing? Look, if you can focus down into your core area
and really know your product, know what you’re selling, you’re going to get a better result.
It’s just hands down. You can snap answers,
you’re going to be able to deal with buyers, whereas if you’re spreading yourself thin,
you’re going into an area on the other side of town. Let’s be honest, you don’t know everything.
You might have a fantastic process but you’re not going to have
the same knowledge as a local agent. And I think I like your point, you know, from earlier, different suburbs have different pockets in that suburb,
so if you don’t intricately sort of know that area, if the agent doesn’t know that, then you might not
get as much money for your property and the same on the buyer side.
If you’ve got an agent that’s a bit of a generalist, you might be able to get a bargain because they might
not know the goldmine that they’re sitting on. So Number 5, another good question to ask is
what sets you apart from other agents. So break that down for us.
Well, if you want to find out, obviously, if the agents actually had a really good track record
and how that records worked for them. So a great tool to jump onto is RateMyAgent.com.au, get on there, have a look and see
if they’ve actually got any recommendations. I think another good thing and it’s like with all industries,
use independent review sites like Google… And yeah, those places, where you can find out and you actually
see the types of people have been reviewing that agent because if you’ve got an agent that’s got a lot of reviews
from all the people, they might be more specialized in that space, compared to investors, all the different things,
so that can actually then help you get a better price to your place. All right, so Number 6 is find out
what fees the agent is going to charge. Now, these are pretty standard, right?
With the fee? No? You would think so. We have agencies nowadays that charge
range of fees anywhere from 1.8%, even over 3%. So why do you want to find out,
what you’re actually getting for your money from the agent because sometimes they do have
a bit of a limited service. And then what other fees like marketing?
Is that all- How do you find out what they spend on that? Well look, when you talk to your agent, hopefully they’ll actually put an independent strategy in place
to work out what’s best for your property. So they’ll come to you with
a set of advertising costs and explain each one and hopefully, there’s a reason behind it,
not just this is what we do, this is what you pay. But so there are agents out there that’s like
pebble bricks and sell my house, you know the ones way that you can kind of do in the cheap.
So is that good? Like saving money? Look, I understand that there’s people out there
that want to save money and if you want to go that way, I kind of understand
but at the same time, you got to think about grand prize. You might save $5000 in fees but if you end up negotiating
a price that’s $10,000, $20,000 less, you just lost $15,000. I’d rather go with an experienced agent that knows the area,
than risk someone that’s not quite a specialist. Or with a little bit in the negotiation ability too
and if you’re selling your own house, it’s something that you’re really just
emotionally involved in and you know, it might get harder to get a good price as
if you’ve got someone that’s independent and separate that’ll actually get you that extra money
and you might pay a bit extra in fees but you’ll end up with
$50,000 extra in your pocket. All right, so our next question is
how do we communicate? So I actually didn’t even think of until you prompted me to it
but it’s important now that I think about it. You’ve got a number of agents that, you know, if you have an open house on a Saturday,
you’re probably sitting there after the open, the agents left. They’ve gone and do the rest of the Saturday.
If they don’t call you, you don’t know what’s going on. And you’re just sitting there and thinking about it
and knowing the sold places I had, it’s not really comfortable. Yeah, so when you’re talking to your agent initially, set what will be the standard or ask him
what their standard for communication. It’s a really good way to find out how they’re actually going to
deal with you and how hard they’re going to work. If they’re going to call you after the open
or at least on the Saturday afternoon, you know that they’re following up buyers
and you know that you’re not going to be sitting there until Monday morning,
Tuesday, waiting for them to give you a call. Well, I think it also shows an agent got
a bit of experience and kind of gets the process. If you’ve got someone that’s new and they might say,
“Oh, we might call you afterwards,” or and they don’t have really a set system in there, it’d probably bring a couple of alarm bells for me
but if they know, like Adams said, if they’re going to call you after the open home,
they’re calling you Monday morning after further advise, you know they’ve got a system
and a bit of a process and you have a bit more confidence
that they’re going to sell you the place for the right price. And lastly, I guess you got to ask the agent
what questions have you got for me. Why is that important?
Look, that’s really important because the agent needs to know your situation. At the end of the day, they’re like a doctor,
they need to prescribe a set outcome to actually
get you what you want to make you better. So if they don’t know that you need
to move in four weeks’ time and they haven’t asked that question, they don’t-
they’re not trying to actually do the best thing for you. You might need to get a certain price to move
into a retirement home or you need to upgrade but if they don’t know that finer intricacies,
then how can actually get you the result that you need. So yeah, I guess that’s a matter of them really
understand your situation because like you said, potentially you might have bought another place,
you might have sell quickly or you might have a loan and you need
a certain amount to be able to pay that out. If it’s not enough, you can’t sell
and there’s no points on your place. So it’s really about that agent really
well communicating with you and making everything clear. But that’s it is today guys,
if you got any comments, let us know. If you want to get in touch with Adam,
how do they find you? Look, you can give me a call or send me an email.
Details are down in the bottom. I hope to hear from you any questions.
Feel free to ask the guys and I’ll pass them on. All right.
Thanks, guys for catching on.