3 Reasons the Real Estate Agent Matters

We are not fans of the 'old school' real estate agency model, which we think is inefficient, inherently conflicted, and expensive. But, we are huge fans of using a real estate agent to sell your home. The right agent, using the right process. 

Of course, 200 Square is a licensed real estate agent (REAA 2008) and we are members of the Real Estate Institute of New Zealand (MREINZ). We are licensed because the services and support we provide must be under NZ law. We are members of the Institute because it adds value to us and we want to change the industry operating model for the better as part of it.

Here's why using the right agent with the right process matters when selling your home:

• Objectivity – the agent provides emotional detachment
  
• Expertise – the agent provides important skills and expertise
  
• Outsourcing – you don't have to do it yourself
  

Objectivity:

Selling your property is the most significant financial decision a person makes. But selling your house, the place you live, bring up kids, call your sanctury, is also a very emotional experience. It is your home. The good agent provides a buffer of emotional detachment that helps you to consider things objectively in order to allow you to make the best decisions. The agent should not always agree with you – telling you cold hard facts, even when you don't want to hear them is the trait of a great agent. You don't need a friend, you need a dispassionate expert giving you the best advice available.

You need objectivity in determing pricing – identifying what your home is worth. What you paid, what the house owes you, what you need to move on is of no concern to the buyer. The agent should give you input on what the market is prepared to pay for your house.

A little talked about benefit of the agent is obtaining feedback. What did the buyer think? What was attractive, what was not? How does the property compare to others in the area? Buyers are polite when they meet the owner, they will compliment, they will be reserved with issues. The agent has the ability as an independent person, removed from the owner, to gather real feedback.

This one also sits in the skills arena as well – negotiation. The enemy of success in negotiation is emotion, we talked about a somewhat humorous (but true) example of that in an earlier blog – pregnant negotiating.  Let your skilled agent manage the negotiations for you. 

There is one time we want emotion, however. Open Homes and viewings. For all the reasons that a seller needs objectivity we want the buyer emotional. It's not three bedrooms and a bathroom with a deck out back – it's the story of family barbecues, friends and good times that sell a home. The more a buyer pictures themselves living in the home the more likely they are to buy at an attractive price. We want to negotiate with the buyer that has emotionally moved in before making their offer. The traditional agent will tell you buyers do not like to meet homeowners. Nonsense. The general response when we talk to buyers is “great, I get to talk to the person that actually knows about the property.” The buyers doesn't want to negotiate or give feedback to the owner, but they want to understand what it is like to live in the home – not what a salesperson thinks its like. And don't forget for the traditional agent the purpose of open homes is to gain new listings, not just sell your house.

Expertise:

On average homes are sold every 5-7 years. It is not something you do regularly. It is a major event. It makes sense to bring in expertise to assist you in that. A great agent adds expertise in a number of areas.

They are (or should be) skilled in marketing and advertising. How to position your property for the right buyers. This includes writing a great description, making sure the photos are awesome, and recommending the right sales method for you and the home (not themselves).

Great agents are great negotiators.  Much of what an agent traditionally does is just haggling over price, with the traditional process driving speed rather than price.  But a skilled negotiator will help you in getting the best result from a buyer.

Selling your home is major financial transaction and it needs to be documented correctly to protect you. Sale and purchase agreements are important documents, with significant implications and consequences if it is not done correctly. Expertise in contract law from an agent and/or lawyer in fundamental.

A good agent brings sales skills to the table. This includes qualifying buyers, gaining real feedback, developing buyer interest and closing. These are important skills you may not have yourself.

Understanding the market – what your friend thinks, what you are told about the market at the pub is irrelevant. Self interested generalisations and gossip are not useful and may be harmful. What has actually sold, at what price, in what timeframe matters. You need the real facts interpreted correctly.

Outsourcing:

You are busy. You have a life. Selling your home can be time consuming. It interupts and gets in the way. Managing buyers, responding to phone calls and email inquiries, getting buyer feedback, organising advertising and so on. There are a lot of logistics. The agent can organise and manage that process for you.

The key about outsourcing however, is to ensure you outsource tasks but not responsibility. It is your home, your investment, your money. Make sure you don't hand that all over and remain in control. Be aware of the potential for conflict of interest. If you handed over management of your broom closet to the broom salesman you'd be buying a lot of brushes.

A great agent brings emotional detachment and objectivity to your analysis and decision making process. They contibute skills and expertise you don't have yourself and they save you time because you don't have to do everything yourself. A better result all round for the homeowner.

You should sell your home using a real estate agent. The right agent, using the right process.

Give us a call and we can chat about that.