I am going to explain the guaranteed way to achieve the best price for your home. Many estate agents will not want to tell you these proven tips for selling your home.
Historically, if a customer is looking to sell a property, they invite either the agent that sold the home to them (assuming they were impressed with them the first time) or they might break that chain if the new home they’re buying is with another agent. If they’ve had flyers through their door, week after week from an agent alluding them to the fact “they have a buyer looking in your street or building”; or if they go for a high-end brand because they think they will get them the best price.
All of the above may get you the best price – but may not - how can they be sure and can you take that risk?
Quite recently, online agencies have tried to come into the market with the customer paying an upfront fee. The upfront fee in itself is an interesting one, as sellers pay less but for an upfront fee with no guarantee of success, whereas the traditional agency method of paying a slightly larger fee only if a sale is completed would seem to be more practical. Whilst the seller thinks they are saving money by paying an upfront fee, it can be a wasted investment if a sale is not forthcoming, with the seller then returning to the traditional, proven model.
My home selling tips will go against the grain of the industry, but I want to share this with you. Estate agents should be here to offer trusted property advice that delivers on the price achieved. It’s essential to be proactive when the sale is agreed to foresee and pre-empt and issues to relieve the stress involved in a property transaction, all within a timescale that suits the seller.
Let’s first look at the metrics before we get on to the solution, so we can all understand how this has worked historically.
A seller takes on an agent with a sole agency based on either the highest valuation and/or the cheapest commission rate, or with the agent they have the most confidence/synergy with. That agent gets some offers and the seller takes the best offer. But how do they know if that offer of £20,000 above asking price (in a rising market), or an asking price or £10,000 - £20,000 less (in more challenging markets like we’ve had during the Brexit uncertainty years) is the best price – they don’t.
The resolution to this is rather simple though and one the majority of agents won’t want to promote, but it is the only way you can be sure to achieve the best possible price. You see, a sole agency agreement to the agent gives them a guarantee of that commission, so they promote this route above all others. However, there’s a better route for the seller. That’s if they want to know for sure there wasn’t a better price from another buyer out there.
The simple answer is a sole joint agency. This is typically agreeable at a rate less than the vast sums quoted on a traditional multiple agency basis and makes absolute sense for the seller as they have two separate agencies working hard to get the commission. Most agents will agree to a % split between them where the agent who introduces the buyer who completes the deal will get a more substantial fee. The agent who has still worked hard to get you the best price gets a smaller % fee to cover their marketing costs and time spent on marketing the property. But more importantly, it’s the seller that wins, as they will know they covered more bases to get the best price in the market by going for this method.
Sellers will pay perhaps half a percentage point more than on a sole agency agreement (£4800 inc VAT based on an extra 0.5% commission and a selling price of £800,000). Still, a seller is almost guaranteed they will gain the benefits of two professional firms going to market to try and win the best price for their property. Only then will they know for sure they got the best price. Surely with the prices these days that extra fee is a small drop in the ocean compared to the fear you could have achieved much more.
If you would like to know more about house selling tips or discuss any of the above in more detail, I am available on 020 7631 8702, or you can book a zoom call by clicking on this link https://calendly.com/jonhudson--trusted-property-advice/15min
I have written another article about tips of getting the best agents to look after your property sale based on my near 30 years in the business. You can be aware of the pitfalls to look out for and the service you should source if you’re thinking of selling a property. You prefer your agent to not only get the best price for you but also get the deal through with the least amount of stress and anxiety selling a property can cause, which you can read by clicking here…..