|Agents Skills in Demand
In the past few years we have become used to impressive rates of growth in property value. It was also virtually a foregone conclusion that whichever agent you chose to sell your property, a buyer would be found within a few days. So vendors became less discerning over their choice of agent and were understandably tempted to appoint the agent who charged the lowest commission percentage.
However, in this market, this approach usually turns out to be a considerable false economy, as the difference between a good agent and a mediocre one can be highly significant.
First, if the difference between the cheapest and the most expensive agent is typically up to about half a percent of the asking price, then this represents a difference of ?2,000 in fees on an average ?400,000 sale. However, the ability of a good agent to negotiate the best terms is worth far more than this amount, as nationally, offers of 5% below the asking prices are typically being received.
The cheap agents rely on turnover of stock, rather than the actual amount of fee charged. They are currently feeling the pinch more than the higher quality agents and are therefore more interested in arranging the sale at any price, rather than negotiating the best terms for their client.
However, the better agents have a reputation to protect, and they are passionate in their quest to secure the asking price wherever possible. So in our above example, the additional ?2,000 in fees actually protected a potential net loss of ?20,000!
It?s your equity. So when choosing the right agent to sell your home, what is more important to you ? low fees, or the most money in your pocket, and the security of a well-managed sale?
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