Why do some agents charge more than others?
One of the most commonly asked questions I get asked when on an appraisal is, “Why do you charge more than X, after all, you all do the same thing, you put it on a website or two, build details and put it in the paper”?
Right? It’s a reasonable enough question, but no it’s wrong.
We do not all do the same and at Chilterns we certainly don’t just advertise the property on various websites and wait for the phone calls to come in. It’s like going into a Bentley dealership and asking why you can’t buy a Bentley for the same price as a Mercedes E class, because they both do the same thing i.e. get you from A to B!
The cheapest agent is the one who achieves you the best possible price, not the one who charges the cheapest fee!
Forget fees for a minute and concentrate on the result. Which agent is likely to put more money in your pocket? How will you know? What questions should you ask?Let me help you with five top questions to ask your potential estate agents:
What’s your list to sell ratio? i.e. What percentage of the stock that you bring do the market sells and completes?
What percentage of your stock do you reduce? Price reduced stock is normally the result of an overzealous initial valuation, probably because the agent used this as a ploy to “win” your business. Some agents reduce over 25% of their stock.
What percentage of the initial asking price do you achieve upon completion? An agent that charges you 1% plus VAT achieving just 95% of initial asking price is no comparison to an agent achieving 99.8% of asking price, who charges 2% plus VAT!
How many of your sales complete? Selling a home is one small part of the process, completing the transaction requires a considerable amount of effort.
What’s your average time on market? Agents with an extraordinary “average time on market” figure have probably over valued the property initially or under delivered in terms of service.So, you see, not all agents are the same. That’s why they don’t all charge the same!