Hi all
I finally got three r/e reps who I believe are leaders in their field for the area I live and are locals. Two are principals and one is an employee.
The first principal knew of what value we were looking for (my wife told him – first mistake I believe). His presentation was excellent and gave us a marketing strategy to sell – large front yard sign with photos, internet and paper adverts. He will open the house regularly himself (not his staff). He was prepared to give this for a $350 advert sharing cost plus his commission of 3% of sale price(incl GST). He gave us very little suggestions to improve the house look apart from the normal (ie clean front yard and remove excess junk).
The second principal appeared to be thorough in listing all the features of the house in detail. I saw him that evening after he had done the inspection and had time to work out the valuation. His valuation was lower than the first principal (my wife didn’t give him any details this time). The marketing strategy was much the same as the first but with less advert on the front yard sign (to make more prospects ring him). The commission was negotiated down to 2.6% from 3% ($1500 savings)
The third agent also had the opportunity to inspect the house prior to coming back that evening to give her report. Her marketing stategy was slightly different, she does fewer home opens and more private one on one showings. Her valuation was over 10% less than the second principal and commission was 3% plus GST. The bad point of her was that she started talking to us the negative aspects of the house. We thought what is she going to say to prospective buyers?
In summary, commission could have been negotiated harder if we knew or had more confidence. I don’t like selling, I am a buy & hold investor. We didn’t go for the first agent as he knew what we wanted and did not knock our valuation, we believe he could do that later after th4 weeks have gone by. We don’t want four weeks!
It is obvious we didn’t go for the lady even though she would be the biggest r/e rep seller of the suburb and her boss’s business in Perth (it is not small).
The second principal should he had the confidence to sell at the price he stated and was flexible in a number of issues. We just felt comfortable in doing business with him.
Be wary of agents wanting to have a key on site for all other agents to come in. We felt there was no control here even if it is secured like Fort Knox.
Hope this information is useful for others. I will keep you informed of the sale process.
Bruce
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