In this two-minute read, we look at why low agent fees don’t equal top selling price.
Unless your name is Elon Musk, selling your home will probably be the biggest transaction you make in your lifetime. So, who will you entrust to get you the best deal?
Option 1: You go for the agent with the lowest fee, because after all, Agents are all the same arent they? This agent is a doppelgänger for Del Boy, but you love the idea of saving yourself a few hundred quid in fees.
Option 2: You go for an agent who makes properties look and sound A-M-A-Z-I-N-G. The fee is a little higher, but they have a reputation for achieving sales that are at or above asking price.
Do the maths
Option 1: Asking price of 200k, £1000 Agent fee, typically achieves 94% of asking price. Money in your pocket (excluding legal fees etc) : £187,000
Option 2: Asking price of 200k, £2000 Agent fee, typically achieves 97% of asking price. Money in your pocket (excluding legal fees etc) : £192,000
The agent in Option 2 offers the best value because even though their fee is double that of a low-fee agent, they will put the most money in your pocket - an extra £5000
When an agent cuts their fee, they’re cutting back on the time and money they invest in marketing a property.
They might sell your home, but they won’t get the best possible price for it.
Here are five ways to tell if an agent will offer you good value.
Top agents use quality photography to capture properties at their best. They take time to get the best shot of each room, moving items around (with your permission) to make the room look its best. Grainy, shadowy photos taken on a smartphone are a turn-off for buyers.
- Property descriptions
Look at how agents market properties online. Do the descriptions create an aspirational picture? Or are you reading a list of measurements, plug sockets, and radiators?
- Bringing a property to market
If an agent brags that they can have your property on the market by tomorrow, run for the hills because they’re cutting corners. The best agents have a tried-and-tested launch strategy that takes more than 24 hours to implement – but adds thousands of pounds to a sale.
- Long tie-ins
An agent who is confident that they can sell your home doesn’t need to lock you into a lengthy tie-in (some agents push for 20 weeks’ exclusivity). Beware the agent that promises they have a buyer lined up and can sell your property immediately and all you need to do is sign a long contract.
- Social media
Even if you’re not on Instagram or Facebook, many buyers are, so go with an agent with a strong social media presence. Look for engaging posts that cover more than properties for sale. Community content, mortgage updates, and video sneak peeks are big winners.
We all love a bargain (that’s why Poundland exists), but with a low-fee agent, the person who lands the great deal is the buyer, not the seller.
If you’re thinking of putting your home on the market, get in touch with us here at Alison George. We’ll exhaust every possible avenue to secure the best price for your home.