SO this week i wanted to cover valuations and estate agents.
The price and the agent are TWO separate things.
Something I wanted to cover, because I keep finding myself winning instructions but hearing the same thing.
Firstly, the way the UK describe the appointment whereby an agent comes around and gets interviewed by the home owners is wrong. Valuation? Surely this boils down to opinion. So it insinuates you are asking the agent for their opinion on the value of your home… BUT, you already know that, right?
But instead, we use this term ‘valuation’ and encourage agents to come around, which only feeds this overvaluing and undercutting nature.
What do I mean by this? … well. Any homeowner would love to hear their house is worth 10, 15 or even 20 thousand more than they thought? so some agents are going round saying this to get the owner excited.
THEN, they quote the cheapest fee they possible can, undercutting the competition. So now the seller faces a dilemma. Go with the agent that they liked. Or go with this person because they are charging less AND going to get us 15 thousand more? No brainier, right?
Its silly. Honestly, it’s a bad move.
If that agent cannot justify his/her fee OR know their worth and convince of you that, how are they going to convince potential purchasers on the value of your home?
But, my point with this is, I think the general public need to separate these two aspects of the appointment, I feel too often people are looking at the valuation first THEN deciding which agent to go with – which often ends up with a great agent not being considered because they told you the truth rather than what you want to hear. I think, this needs to turn on its head, so they are considered in the following order.
- The agent
- The plan
- The price.
Once they separate this, it makes the decision easier. The valuation is simply the agent’s opinion on what he/she feels your home is worth based on what ever research they have completed. That’s it.
The agent should be the agent you feel you can work the best with and one you feel you can trust.
Then the agent should have a plan A, plan B AND plan C. to ensure they are the agent who will have the best outcome overall…
THEN, and only THEN, should you then look at the marketing price.
Notice what I did there, ‘marketing price’ not the price your wanting, or the price your expecting. But that’s a whole different post!
Anyway. By doing it this way, your ensuring that the agent who your instructing is the right agent, with the right plan to get you the BEST price.
Fee. That shouldn’t come into it, its irrelevant. Sure, an agent may do it for 50% cheaper, but that’s only ‘if’ you manage to sell with them, if you don’t then it could’ve been a tenner… it’ll make no difference. So, the fee should be irrelevant. Because the right agent, will earn every penny. And some.
if you need any property advice, please do not hesitate to contact me on 07964343342.
until next week.