ARTICLES
The benefits of using a reputable Estate Agency (7 April 2006)
Many magazines are being published claiming to sell a person’s property directly. These organisations are misleading prospective buyers into thinking that they are buying directly from an owner without paying any agency fees in the process.
The fact is that an owner is paying a three per cent (3%) commission to the publishers of these magazines and committing him/herself to a two-year contract, and therefore a buyer is still paying a commission in the purchase price without getting any services or assistance in the process.
For a mere 0.5 per cent more a property owner can sign a sole agency agreement with a reputable agency and benefit from the additional marketing and professional assistance throughout the whole process.
A few of the important benefits of using an estate agency to assist you in the sale or purchase of a property are therefore highlighted.
“Why should I use the services of an estate agent when I can sell my property directly to prospective buyers or buy my home directly from owners?” many frequently ask.
It is true that property owners can place an advert in the papers or put a ‘For Sale’ sign to attract prospective buyers. Property buyers can also browse daily through the classified adverts or drive around building sites looking for their dream home – but is this really effective?
Selling or buying your home is probably one of the most important steps in your life. It is worth examining all your options and ensuring that you do not make the wrong decision, which you would regret in the long run.
Property owners and buyers in most developed European countries, in the US, and Canada, would not even think of selling or buying their home without going to a reputable estate agent. These people have realised how much more advantageous it is to deal with professional people who will ensure a fair and safe deal for all concerned.
Some property owners in Malta think that selling a property means simply advertising it and showing prospective buyers round the house. There is much more to it than that. These are some of the questions that should come to mind when you decide to put your property up for sale.
• What is the best way to attract buyers?
• How do I know how much to ask?
• Is my home ready for sale? Should I invest in any major improvements?
• How quickly can I sell?
• How should I go about showing the house?
• How do I know if the buyers are serious, or even if they can afford my house?
• How can I be sure that I am getting the best deal?
• How do I negotiate on the sale?
A process that forms an important part of any property transaction is negotiating a successful sale that is satisfactory to both seller and buyer. This is a very delicate stage where most sales could fall through to the great disappointment of both seller and buyer.
That is why a professional property negotiator should handle it. An experienced sales negotiator whose only job is to negotiate and sell property and who has had professional training stands a better chance in successfully closing a sale.
During negotiations, the third party, i.e. the agent, plays an important role, as he can see both parties’ point of view and can better evaluate the whole process. Direct negotiations between buyers and sellers tend to involve conflict of personalities.
In direct negotiations, objections by either party may not come out for fear of hurting one of the party’s feelings. A professional negotiator will be able to assess objections and possibly overcome them, leading to a successful conclusion. The art of negotiation is too vast to go into here, but this is where most real estate professionals excel.
Operating a large-scale real estate operation is indeed an extremely expensive business to run and the risks are high. However, we believe that it is only through this way that clients mostly benefit, as this will provide them with the widest choice of properties available and the best service possible.
Most people are under the mistaken impression that all commission received by the company is profit. Almost 50 per cent of commission received by the company goes to very hardworking individuals who are constantly investing energy in showing clients properties and looking for property for their clients. These are sales consultants, their managers, and supporting staff. They earn a substantial amount of money and they deserve every penny of it. Real estate agents are constantly on the look out for such individuals.
A substantial amount of the remaining 50 per cent goes towards marketing, advertising, telephone calls, and communications, including an efficient IT system throughout the offices, salaries, and vehicle expenses.
All in all, these amount to a substantial figure every month and if the estate agent fails to reach his targets during that month it could mean a loss for the company. This explains why a number of estate agents crop up every now and then but do not survive for long, as the stakes are very high.
By far, the majority of buyers and sellers who have opted to use the services of a professional real estate agent have not regretted doing so. In fact, most of these people have used these services more than once and have even recommended these same services to friends and relatives.
I still meet clients today who, I am proud to say, still remember using a company’s services when they bought their property 20 years ago. This is simply because the estate agent was an important person, if not the determining factor, in the decision made at the time.
Courtesy of the Federation of Estate Agents
Source – The Sunday Times dated 19th March 2006
