There is a saying we use, “a good agent and a cheap agent, are not the same agent”
Cheap fees can be very attractive but like with most things in life – you get what you pay for. Take EasyJet for example. They are the cheap option in the aviation industry. They serve a purpose, a cheap product for a cheap price. I once flew with Easyjet to Italy to watch rugby. After a rowdy two-and-a-half-hour flight home, jammed into a tiny seat and staring at the back of the luminous orange seat in front of me, I swore never to fly Easyjet again. Pay cheap – get cheap. The customer experience left a lot to be desired.
It’s the same in the estate agency world. Cheap fees can be very attractive; however, often the quality of service suffers as a consequence of the low prices.
To sell your home, you need to attract buyers. The key to this is quality marketing. Your photographs, Video, description and brochure need to be the very best. Your home needs to stand out and the best way to do this is to make sure you have the best marketing available to help attract buyers to your home.
Low costs estate agents usually have poor marketing. Often photographing the property themselves and putting limited time and effort into the property description, an amateur floorplan and a few mediocre bullet points. This of course is to keep their costs down. Quality marketing comes with a price tag and low costs agents are reluctant to absorb this cost. This is why full-service agents that put care and attention into their marketing to attract the right buyer are usually more expensive and understandable so. The quality of their service and marketing is of a much higher standard.
Going with the cheapest agent can end up costing you a huge amount of money in the long run when your home struggles to sell. Paying a higher fee for quality service and marketing will result in attracting more buyers to your home. Ultimately increasing the chances of selling your home in a shorter timeframe.
There is a direct correlation in the price a home sells for and the time it takes. Homes that sell quickly or within the first few weeks of going on the market will achieve a higher price. Homes that take longer to sell, months or even years will achieve a lower price. This is why your property marketing is so important. A cheap agent with cheap marketing will not attract as many buyers to your home and your home could take longer to sell. Eventually, when your home sells (if at all), you will get the lowest price possible.
Take care with cheap fees. There are often hidden charges. Again, just like Ryanair, cheap agents are known for advertising cheap fees but customers have to pay extra for fundamental services. The price you see upfront is not always the price you end up paying. If you are drawn to a lower-priced agent, check exactly what you get for your money.
Who is conducting the viewings? is it Pamela who only works Saturdays?, have you the homeowner been asked to show buyers? Surely you want a manager or business owner conducting your viewings? that is how it should be, and how it is at Daniel James Residential.
Here are some quick maths on fees and incentives.
Take a 0.75% estate agent, they have priced your home at £300,000.
If they sell your home at £300,000 or £250,000 their office commission changes by £750+Vat, can you really see the incentive to achieve £50,000 more on your asking price?…. .
A cheap agent without much work can more than likely achieve 97% of your guide price. We are trained to achieve that extra 2-3%, which can make a huge difference, sometimes thousands.
Enthusiasm and motivation go a long way when selling a home. The agent you see in front of you is the agent that your buyers will see. Your agent should be passionate about selling your home. This passion will rub off on potential buyers. Nobody wants to deal with an estate agent that just doesn’t want to be there. Choose the agent whose passion shines through and that you trust to sell your home. It’s not all about the fees. It’s about what agent is going to do the best for you and your home and has the experience and expertise to back it up.
So, when it comes to contemplating whether you should instruct the agent with the cheapest fees, we would urge you to think carefully about the impact this could have on your sale and your dream of moving home. Choose your agent wisely. Cheap fees are attractive but your home is not a cheap commodity so why make it appear as if it is?
Also, do not take our word for it, read 10 Google reviews and get a feel for who you want to represent your home sale.
