The X-Factor Sellers Need to Consider When Choosing their Sales Agent
Want to pick the right agent?
The one who will max-out your sale price?
Here’s what you need to be asking to determine whether this agent is capable of delivering, or whether they’re simply all show and no go.
A property I purchased for a client at a hotly contested Auction in 2019. The sellers chose agents who were known for selling high-end luxury waterfront homes on the Gold Coast.
There’s an X factor when it comes to some agents and this is often the difference between a seller getting a good result versus a great one.
A friend of mine is selling her investment property and despite having a managing agent already in place looking after the rental side, she didn’t automatically appoint their sales team.
And the question here, is Why?
Maybe you’ve faced the exact same dilemma.
Who do you choose to sell perhaps one of your largest financial assets?
Selecting an agent isn’t like choosing a pair of shoes to wear with that cocktail dress on Saturday night. Let’s be honest. There’s a lot more at stake!
As a sales agent myself in a previous life, it always intrigued (and frustrated) me as to how sellers would decide who to represent them in a property sale.
If I wasn’t chosen, I would wrack my brain as to why they went elsewhere and if I was appointed, my mind would start to analyse all the reasons that led them to selecting me so that I could refine my process to ensure a better likelihood of being “picked” again.
So when the time came for my friend to make this very decision, I was curious to her process.
A shortlist of 3.
What was going through her mind and what led her to shortlisting the three agents that were on the front line for selection?
To break it down, here’s why she chose these three and here’s what I added to help her make that all important final decision.
Firstly, she did some online research.
She checked the property portals and had a look at which agents were selling which types of properties in the area where her property was located.
She had a fair idea of what her home was worth and so she specifically took note of the agents who sold the most properties that were similar to hers.
Secondly, she made a decision merely on the look of the agent.
Did they look professional? Approachable? Competent? All of this was judged on the agent’s online profile.
Next, she remembered a particular agent whom she had past dealings with when she was a Buyer. He too sold properties in her area and so he made the shortlist because she had prior positive experiences with him.
In her words, he was “better the devil she knew”.
Interesting, I thought!
It looked like this.
The line up.
AGENT 1 - a lead agent with a proactive assistant and team underneath him who did high sales volumes in the area.
AGENT 2 - a professionally presented female agent with a good track record of sales in the suburb.
AGENT 3 - the agent who my friend had previous dealings with, who also sold property in the target area.
“So, we’ve narrowed it down to three”, I exclaimed.
Still confused about who would be the best pick, she decided to interview each of them (much to my delight) and was particularly interested in what they believed her home was worth.
If they didn’t align on price, she was sceptical about taking things further.
“If they don’t believe in my property, I don’t really want them selling it”, were her exact words.
For me, this was telling, because as an agent, the concept of Buying the Listing instantly sprung to mind.
The agent who lies gets the business.
Buying the Listing is a known real estate agent term for when an agent tells the owner what they want to hear.
They fish for a price that the owner is expecting to sell at and then simply agree with them, with a known plan to “get the seller down” after a few weeks of the campaign going live.
It’s a tactic known amongst agents that is highly controversial because essentially the agent is lying to win the business.
If they don’t truly believe the property is worth what the owner is suggesting, why lie about it?
I’ll tell you why.
To secure the business and then hope (or more strategically, convince) the owner to come to their senses and lower the price midway through the campaign. The property is then sold for what the agent always knew it to be worth and the owner is a little disappointed but nonetheless a result has been achieved.
The sad part about this is, the agent who told the seller the truth in the beginning misses out.
So you can see where this is headed!
He or she who tells the owner what they want to hear, wins.
Now, sometimes this tactic can backfire, but not always.
Getting back to the agent selection process; it makes sense why my friend shortlisted the agents in the way she did. It’s practical and makes sense, but here’s the part she, and most other sellers, miss.
Who is the best negotiator?
Now it was my turn to step into the conversation and add an experienced agent’s perspective to the selection criteria.
She had narrowed it down to her top three but here’s what I explained she really needed to be considering.
Who of this group can demonstrate they’re a top negotiator?
Now, you might not instantly know the answer to this question, but you can quickly find out if you ask the right questions at the meet and greet interview.
Asking the right questions.
Here’s a goodie. — “Are you negotiable on your commission?”
Now, most sellers will ask this question, but for the wrong reasons.
They want a discounted fee but the trouble is, who is really copping the discount?! Your selling agent — or YOU!
What you need to be looking out for in the answer to this question, is whether the agent instantly drops their fee.
If you can get a discount simply be asking the question, well, how is this agent going to go negotiating your sale price if a buyer like myself (who is skilled in negotiation) starts haggling on price.
Another question you could ask is this.
“If a buyer makes an offer that you believe I should take, how will you squeeze a little more juice out of the buyer?”
In other words, if I receive a good offer, what tactics will you employ to ensure it is the most the buyer is prepared to pay so we don’t leave any money on the table.
A skilled agent will explain their process around the conversation needed to ensure the maximum is paid by the buyer.
If they stutter or struggle to step you through what this exchange would look like, I would be hesitant to believe they are a highly skilled negotiator, and they might not be the person to be best representing you if you want to max out your sale proceeds.
Finally, ask them about actual previous sales, and how they were handled.
Get them to show you examples of properties where they negotiated with a buyer to achieve the very best outcome for their seller.
You’re looking for case studies of similar properties to yours where this person can demonstrate in real time how they handled a particular sale and what the outcome was for their client.
The last point I will make is this.
WHO is actually going to be doing the negotiating?
If the agent has an assistant or works within a team, it is wise to ask them how much involvement they have with the process.
Will they be attending the open house inspections and talking to buyers, or will it be their assistant?
Will they be doing all the negotiating or are they just interested in signing you up and then handing the business sideways to their team of associates who are less experienced.
You need to get clarity from the agent you choose that THEY will be the one on the front line for your sale.
You hire them, you should get them.
So rather than focus on simply who looks good in your area, dig a little deeper.
It may earn you thousands.
Explore Wendy’s Seller’s Advocacy Service.
(This is where I help you select the best agent.)
Hey there! I’m Wendy Russell.
I’m an independent buyer’s advocate, investor and self-made businesswoman with a knack for spotting a great property.
