HOW TO SELL YOUR HOUSE FAST FOR OVER THE ASKING PRICE 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT

Transcription

1 HOW TO SELL YOUR HOUSE FAST FOR OVER THE ASKING PRICE 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT

2 16 CRUCIAL QUESTIONS TO ASK WHEN SELECTING AN ESTATE AGENT Estate agents on the whole, tend not to have the best reputation. All too often, property owners make the important decision of which estate agent to instruct, after having simply spent a couple of hours inviting them round to give their opinions, and then basing their decision on what they hear during that time. In my experience, property owners ask very few questions and if they do, they are usually the wrong ones. This is probably why 50-60% of property owners end up needing to change estate agents before eventually selling their property. Unfortunately, many owners are also advised to reduce their original asking price by up to 20%, in order to sell. No-one wants to buy the house that no-one else wanted to buy unless it s cheap enough! My aim is to ensure that you as a property seller do not fall into the trap of choosing the wrong estate agent in the first instance, therefore avoiding having to change estate agents, reduce your home s price and costing yourself thousands of pounds and months of wasted time. To begin with, I think much more research and time should be invested when considering which estate agents to contact (you can find my tips and suggestions on this in my ebook: Which Estate Agents Should You Call In ). Once you ve made your shortlist, you can then begin to ask each one a number of very important questions. Many sellers restrict themselves to the usual: How much is my property worth? and How much will you charge me? My suggestions however, will give you a more detailed and in-depth insight into their respective services and approach much more useful information which will help you to make the right decision from the outset. 02 / PERRY / 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT

3 ON AVERAGE, WHAT PERCENTAGE OF THE ASKING PRICE DO YOU ACHIEVE? Why: Unfortunately, many estate agents will purposely over-value a property, in order to win the client (you can read more about my thoughts on this tactic here). If they are able to demonstrate impressive statistics regarding final sale prices compared to original asking prices, then they will want to shout about it. However, if they are unable to give you this figure, then I d advise you to be concerned. I ll guarantee that all agents you interview WON T know the answer to this question, but you will, see my super tip below. On average, properties in the UK sell 5% lower than the asking price. 1 SUPER TIP: BEFORE ASKING THIS QUESTION, FIND OUT THE ANSWER YOURSELF BY VISITING GETAGENT. CO.UK, SCROLLING TO THE BOTTOM OF THE PAGE, CLICKING UK ESTATE AGENTS AND SEARCHING FOR THE AGENTS YOU WILL BE INTERVIEWING. WHAT S YOUR AVERAGE TIME TO AGREE A SALE? 2 Why: If an estate agent replies with a vague answer, typically: normally quite quickly ; then again, alarm bells should be ringing. The average time for a property to remain on the market in the UK is 66 days. Any figure considerably longer than this should see you striking that agent off your list, any quicker, they COULD be a good option. If they say 4-6 weeks yet their contract length is considerably longer, the alarm bells should start ringing (see question 3 below) 03 / PERRY / 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT

4 ARE YOU PREPARED TO AGREE TO A 0 WEEK ROLLING SOLE AGENCY AGREEMENT WITH 24 HRS NOTICE? 3 This is a big one. Typically, estate agents will make you sign a 12, 14 sometimes 21 week contract. TERRIBLE. It s basically a licence to be dishonest and lazy. When you sign it, it s like a new employee making an employer to sign to say they have a guaranteed job for 21 weeks whether they arrive on time and do a good job or not. As I said in question one above Unfortunately, many estate agents will purposely over-value a property, in order to win the client... because they can and then tie you in, reduce your price and get a fee costing you wasted time and money. An agent who know they can deliver and give a good service and so don t need long contracts, are a SAFE bet. WHAT PERCENTAGE OF SALES YOU AGREE EXCHANGE/COMPLETE FIRST TIME? 4 Why: This is probably one of the most important questions that you need to ask potential estate agents. They should want to demonstrate that they carefully consider how to agree each good quality sale and aren t tempted to simply close the deal as quickly as possible. On average, national statistics show that a massive 36% of agreed sales fall through before completion. Therefore, you need to think carefully about the potential cost to you in terms of time, money and stress if your sale falls through in two months time. 04 / PERRY / 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT

5 HOW MANY COMPETING OFFERS DO YOU ACHIEVE PER SALE 5 This is pretty crucial. A quality agent will understand that it is their job to get you, the client, the best possible outcome. That doesn t mean sell your property for the full asking price to the first buyer who views it. Competing offers achieve 2 things: 1. The best possible price 2. Give you the opportunity to choose the buyer who is best placed to help you achieve the outcome you desire. So if you want a quick sale, the buyer offering the asking price but who has a 4 link chain behind may not be the best option vs the chain free buyer offering 5k under the asking price options, that a property marketing campaign needs to create for you. DO YOU OFFER FREE PHOTOGRAPHY, SHOT BY AN ACTUAL PROFESSIONAL PHOTOGRAPHER? 6 Why: With virtually all buyers turning to the internet to search for property, it is now more important than ever that your estate agent presents your property in the best way possible so that it stands out from the crowd. Estate agents agree that most enquiries are generated from online marketing, but very few agents actually invest in high quality photography which presents their clients properties in the best light possible. 05 / PERRY / 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT

6 DO YOU TAKE ADVANTAGE OF THE PREMIUM PROMOTION PRODUCTS AVAILABLE FROM RIGHTMOVE.CO.UK AND ZOOPLA? 7 Why: Few homeowners are aware that all estate agents have access to a heightened level of property promotion on the major property portals such as rightmove.co.uk and Zoopla - promotion which makes an individual property more visible to potential buyers. Unfortunately, in my experience, few agents invest in the premium promotion products available on these portals. Why? Because it costs them more money and so narrows their profit margin. WHAT IS YOUR AVERAGE RIGHTMOVE.CO.UK CLICK THROUGH RATE? 8 Why: The click through rate is the conversation rate between how many times your property appears in a property search and out of those searches, how many people click through to see the full details, pictures and floor plan. If the estate agent is investing in professional photography and premium promotion on the major property portals, then the click through rate will be impressive. Tip: In my agency, we have a 6% rightmove click through rate and if we notice drop on a certain property, changed get made to bring it back up. 06 / PERRY / 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT

7 IF MY PROPERTY ISN T UNDER OFFER WITHIN THE FIRST 4 WEEKS, WHAT WILL YOU DO? 9 Why: This is a super crucial question. Most estate agents will ask you to sign a contract which allows them to act as sole agent for your property, for at least three months (see question 3 above). Statistics from rightmove.co.uk however, indicate that 70% of interest in a property comes in the first 2 weeks of marketing. It s imperative therefore, that your estate agent has a longer term sales plan and will actively keep your property fresh, rather than allowing it to stagnate. DO YOU ACCOMPANY ALL VIEWINGS? 10 Why: Many property owners are happy to or even prefer to carry out viewings themselves. This is never advisable for the following reasons: Firstly, you are paying your estate agent for their service. Buyers will be attracted to your property (if you follow my guidelines) so you shouldn t even be expected to carry out a viewing. The estate agent is the trained sales expert and should know precisely how to pitch a property to a viewer. Buyers will be honest with the estate agent who is an independent third party, but may feel obliged to be polite to you as the homeowner. They may say all the right things to you, so as to not be rude to you about your house - but then inform the agent that they didn t like it. If you were expecting an offer to be made, this can be very deflating. Continued 07 / PERRY / 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT

8 DO YOU ACCOMPANY ALL VIEWINGS? Continued 10 Your estate agent will know what the viewer liked about the property in order to make that first enquiry, so will focus on that when showing them around. Property owners tend to say too much. I have witnessed owners literally talking their way out of an offer. A first viewing is an experience which usually appeals to the buyer s emotions, with logic playing a more significant role in subsequent viewings. Often, the only question a buyer will ask themselves during a first viewing is: Can I see myself living here? The last thing they want or need is the property owner regaling them with every detail about the house - right down to the dustbin collection day. Your estate agent will be the person who negotiates with the buyer on price, if they choose to put in an offer and the viewing acts as that crucial first stage in the negotiation. Your estate agent, as a trained professional, will automatically pick up on specific things mentioned during the viewing which they should then use when negotiating. For example, during the viewing, the buyers may have declared: This is the biggest garden we have seen at this price. However, they might then offer 10,000 under the property s asking price. Immediately, your estate agent can agree to forward the offer but remind them that the property has a very large garden, compared to other properties valued at the same price. A good estate agent will want to give exceptional service. This naturally means that they will want to see all viewers personally. 08 / PERRY / 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT

9 ARE YOU OPEN/DO YOU ACCOMPANY VIEWINGS OUTSIDE OF NORMAL BUSINESS HOURS AND ON SUNDAYS? 11 Why: Put quite simply, the busiest time for estate agents is when other people aren t at work, which naturally means evenings and weekends. If your agent isn t able to accommodate late or weekend viewings, then buyers are likely to instead choose an agent who can, meaning your house attracts less viewings and will probably sell at a reduced price. WILL YOU ACTUALLY BE MY AGENT THROUGHOUT THE PROCES AND DO YOU LIVE LOCALLY? 12 Why: Many larger estate agencies have complex structures, with someone purely responsible for carrying out valuations or launching properties onto the market. Others may be responsible for selling them, whilst someone else progresses the sale through to completion. The issue here is that you may well have based your choice of estate agent on the personality of the person who came to visit you initially, a person who now knows all about you, your house and the reasons why you want to move all important information for an estate agent. Instead, you could find yourself having to liaise with the office junior, who is given the task of carrying out the viewings and negotiating the sale. Perhaps you may not like or trust this person as much. It s also equally important that your estate agent is a local person so they know the area well and have in-depth knowledge of local schools, restaurants and transport links. It s vital that they can confidently answer viewers questions relating to the locality. 09 / PERRY / 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT

10 DOES YOUR AGENCY ANSWER TELEPHONE CALLS 24/7, 365 DAYS PER YEAR? 13 Why: Let s assume your estate agent s office closes at 6.30pm. What then happens if someone calls to enquire about your property at 6.33pm? Usually, the estate agency will have an answering machine. PROBLEM: 69% of callers hang up rather than leave a voic . Let s face it, in today s technologically-advanced age, we ve become impatient and expect information instantly. It s therefore unlikely that a potential buyer will leave a voic and you run the risk of them not calling back at all, or maybe enquiring about a competing property in the meantime. Your property, among the thousands of other properties on the market, may not get a second thought. The solution is simple. Just make sure you choose an agent who answer telephone calls 24/7, 365 days per year, so an opportunity is never missed. Another Reason Why: 7 out of 10 callers hang up after 3 rings! WILL YOU ALSO ACT AS MY BUYING AGENT, TO HELP WITH MY NEXT PURCHASE? 14 Why: Your estate agent is the property expert, the professional, and has a whole host of insider tools and knowledge which they used effectively, in order to successfully negotiate an excellent purchase price for your house. In my opinion however, that s only half of their job completed. The other half comes in helping you to get the keys to your next house. This includes supporting you with negotiations. By placing your estate agent between you and the person selling the property you want to buy, I can assure you there will be benefits, not least the potential of which can be significant cost savings. Continued 10 / PERRY / 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT

11 WILL YOU ALSO ACT AS MY BUYING AGENT, TO HELP WITH MY NEXT PURCHASE? Continued 14 This task involves the agent drawing upon all their knowledge and skills to help you negotiate the best possible price and terms for your next house - those same skills they used to secure the best price for the property which you sold. For more information and my own personal tips on using an estate agent to search for your next home, click here. ARE YOU ON ANY 3RD PARTY REVIEW WEBSITES, SUCH AS RATERAGENT OR CHECKAPROFESSIONAL.COM? 15 Why: An agent who openly joins a 3rd party review website is an agent who is assured about their service and ability. If they are willing to showcase their reputation in the public domain where anyone can leave either a positive or negative review, this shows they are confident and transparent about what they offer. Tip: Search for the agency on social media, especially twitter. Social media is now a part of our everyday life. We use it to both rant and praise, so be sure to research an estate agent s online presence on these sites. My advice is that if the agent isn t on Facebook or Twitter, it s maybe a sign that they haven t caught up with the modern world and should be avoided at all costs. 11 / PERRY / 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT

12 HOW YOU INTEND ON PROMOTING MY PROPERTY ON SOCIAL MEDIA? FACEBOOK, TWITTER AND INSTAGRAM? Why: Let s face it, social media is HUGE. Your property needs to be promoted using it. SIMPLE. 16 SUPER TIP: THIS IS A DIFFICULT ONE BUT I STRONGLY AGREE YOU TRY AND STICK TO IT. DO NOT ASK THE ESTATE AGENT HOW MUCH YOUR PROPERTY IS WORTH OR HOW MUCH THEY WILL CHARGE. Firstly, the value of your home isn t determined by the estate agent s opinion. It is determined by the buyers, so you should choose an agent who you think is going to maximise the value of the property and discuss the marketing price with you, based on everything I ve mentioned so far. Secondly, the fee is (or should be) irrelevant. As long as you choose the estate agent who you trust and feel will do the most to help you achieve your end goal, the fee actually becomes less important. REMEMBER: The cheapest agent is the one who achieved the highest price for your property, not the one who charges the lowest fee Many clients have told me: Even though I trusted agent 1 more and could see their marketing was of a higher quality, I went with agent 2 because they charged less and I thought it may save me money. Ultimately, these same clients were forced to change agents and reduce their price costing them additional time and money. An estate agent who operates in the way in which I ve recommended is worth their weight in gold. They are most likely to achieve the highest price possible for your property, and sell in the quickest time. Unfortunately, this all costs the agent more money, which is the reason why so many don t bother. Agencies offering the lowest fees can t afford to provide this kind of service or property promotion, so are likely to cost you time and money. In my experience, the cheap estate agent will usually simply advertise your property online with no real quality. They may miss enquiries and then expect you to accept an offer as soon as they receive one, simply because they need to make a profit quickly. 11 / PERRY / 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT

13 CHOOSE YOUR ESTATE AGENT VERY WISELY. Everything mentioned in this guide is how my estate agency operates so I know that this approach works. We achieve an average of 102% of the asking price within 19 days of marketing a property, regardless of market conditions. I have simply adapted my business to the changing world. AND FINALLY... Did you know: On average, 60% of property owners end up having to change estate agents before eventually selling their property with the average property selling for 21% below the original asking price. I have helped hundreds of home owners successfully navigate the challenges of selling. With over 13 years experience in the industry, I am now using that experience to help you avoid the common pitfalls via eguides, my website forum, Podcasts and Webinars. It s all FREE! Happy interviewing tweet me to let me know how you get on. fb.com/theimpartialagent soundcloud.com/perry-power youtube.com/user/propertyadvice uk.linkedin.com/in/perrypower perry@perrypower.co.uk 13 / PERRY / 16 CRUCIAL QUESTIONS TO ENSURE YOU CHOOSE THE BEST ESTATE AGENT