Why low cost agents aren't all they seem to be...
By Administration Team
A few people have been transfixed by ‘Purple Bricks’ with their extensive, humour-filled TV ads and large marketing presence since they entered the Australian real estate market in 2016. Home sellers are getting excited as soon as they hear ‘low fixed-fees’ when it comes to real estate companies selling their property – but do you really know what you’re signing up for?
While the differences between low cost agents and commission based agents may seem clear, we’ve highlighted some of the reasons why working with a traditional agent is the recommended option for sellers.
1.Agents work harder for best sale price
2.Are you paying for their extensive TV ads?
3.Local specialists with local knowledge
4.Priorities are in the right place
1.WORKING HARDER FOR THE BEST SALE PRICE
FIXED-FEES VS COMMISSION BASED FEES
Fixed fees can be very appealing for home sellers who want to save as much money as possible. This is because they agree to a fixed amount they are going to pay their agent to sell their home irrespective of the price achieved. However, one thing many home sellers are unaware of when they list their property with a low cost, fixed-fee agent that you must pay the full fixed-fee upfront even if your property DOESN’T sell. This could potentially mean home sellers lose around $5,000 without having their property sold.
Would you pay someone a full fee to have no results? Seems silly, right?
As a commission-based fee structured company, Peake’s results are incentivised by sales commission, so you don’t pay us if your home doesn’t sell! We work harder to ensure you get a result you are happy with.
Some people think ‘commission’ is a ‘dirty’ word, but it in fact motivates agents to work harder for the seller and ensure the best outcome possible for sellers. Low cost agents don’t care what happens to your property once it’s listed, as they have already made their money.
2.ARE YOU PAYING FOR THEIR EXPENSIVE TV ADS?
How do low cost agents manage to pay for such expensive and frequent TV and radio advertising campaigns? This in itself is a concern! It may seem that low cost agents have upfront costs to promote selling your home, but in reality, sellers are paying these companies to add to their huge media advertising budgets! When a company is more concerned about promoting themselves than the properties they are selling that should be a big red flag for home sellers.
3.LOCAL SPECIALISTS WITH LOCAL KNOWLEDGE
Going through a local agent means they already have a wealth of knowledge about the area you are selling in and can promote the area better to potential buyers. Local agents have pre-existing databases with lists of people who already own or are looking to buy in the area you are selling in – offering a targeted approach to marketing. Agents can conduct open homes and auctions with honest, real knowledge of the suburb and points of interest such as recommending local cafes, schools and new infrastructure planned for the area. By going through a local agent, you are supporting someone whose family also live local and a real estate agency that prides itself on operating in the area its team come from.
Low cost, upfront fee structured agents charge so little that they need to focus on listing new clients, not selling your property. Because the low cost agents make very little from listing fees they’re likely to be more worried about getting as many properties as they can listed on the market rather than looking after their current client’s property sales. With an agent’s priorities not on the client, the process of selling your home is not supported, helpful or optimised. We understand selling your home is a big deal and we’ll support you through this process with compassion, care and the understanding that such a large decision for you and your family is not an easy one. We take the time to explain things and help you and your family through the process of selling your home.
It is important that you investigate your real estate agent/agency before you sign any dotted line, as you want to make sure your agent is going to do right by you and get the best result possible when selling your home.
At Peake Real Estate we strive to achieve top results for our clients and are open and transparent throughout the entire process. Our agents are highly experienced in the Casey-Cardina Region and are experts in the real estate industry. If you’re thinking about selling your home, make sure you get in touch with our fantastic team for a complimentary property valuation.