Low cost and fixed fee estate agents still employing false arguments
Category Advice
The ongoing campaign waged by low cost and fixed priced estate agencies against traditional agencies, always hots up when the property market is in difficulties and struggling. However, says Rowan Alexander, Director of Alexander Swart Property, the arguments that these 'peripheral' agencies put forward, have over the years been answered time and again - and the answers remain as valid today as previously.
"It is not difficult to see why agencies with low costs look so attractive to a home seller," says Alexander. "They claim to be able to increase the seller's takings by very substantial amounts. What they do not tell, is that surveys carried out by reputable traditional agents have regularly shown the sales prices achieved by these 'faceless' organizations are almost always lower than those of the established operators. Many of them are working only on-line and in some cases rely on the home owner to deal with potential buyers, are almost always lower than those of the established operators.
"The simple unavoidable truth is that property selling is a sensitive, complex operation where the skipper at the helm needs to be highly competent. It has shown again and again that the experience, tact and negotiating skills of a good agent brings about a fair price. Organizations operating from a base which may be many kilometres from the area in which the house is sited and which rely almost exclusively on internet exposure to achieve their results, can never be as successful as the resident agent working in his or her chosen area and dealing face to face with sellers and buyers.
"Frequently the online agency will be ignorant of what really makes an area particularly appealing to buyers or what special characteristics give a home its intrinsic value. The result will be poor and possibly insufficient advertising - the eventual sales price will in all probability be lower than it should be."
Asked if traditional agencies possibly have a tendency to inflate the price so as to please the client (and to increase their earnings), Alexander said that his company and many other reputable agencies believe very firmly in setting a true market value for the home at the outset. Agencies that overprice, soon get a bad reputation and are regarded as dishonest. Those that give a realistic valuation and stick to it, regularly sell at or close to the asking price, even in difficult times.
"It has to be realised that today's buyers are shrewd. With the help of the latest online data they research the house market thoroughly before making any contacts and therefore have a fairly good idea of what prices should be. Such potential buyers feel insulted if an agency 'tries it on'." The motivation that a good agent will feel, particularly if he or she has a sole mandate, will encourage him/her to spend time and advertising revenue generously, to achieve a successful sale. Knowing that the mandate will expire in a specified number of weeks spurs the agent on to huge efforts - and it is these that bring about sales.
"At Alexander Swart we can show that the better, fairer prices achieved by the traditional agencies, will almost always more than compensate for the higher commission charged. This is something that the general public have long recognized. It is only because very few traditional agencies have not been successful, that the fixed price agencies have been able to find a niche in the market ."I plead very sincerely with those tempted in the current difficult conditions to opt for a bargain basement service, to realize that history has proven such services are seldom as successful as their management claim, and have a track record of being satisfied with prices that reputable agents would regard as too low."
Author: Independent Author
