How to Deal with Real Estate AgentsHow to deal with Real Estate Agents is important to maintaining your sanity...why? Understand that the decision to sell your house in Australia, unfortunately makes you a 'target' for agents, because you represent a 'potential' customer, and therefore potential commission. By knowing what approaches agents could use, you can reduce stress, frustration and confusion for yourself.
Remember, it's all about the 'Real Estate Listing' for Real Estate Agents. Getting you to sign that piece of paper called an 'Appointment to Act' is an agents' no.1 priority in life. It's importance to them means they may use many different tactics to get your listing. Sometimes their tactics can be downright 'dirty'. And as the saying goes...'Forewarned is fore-armed'. Now...just to be fair - not all agents use dirty tactics. Nonetheless, if you are a private seller, you are even more of a target, whether agents in your area are professional or not. It's part of an agent's education and training to target private home sellers. Regardless of how you advertise they will find out, and they will ring you and ask for your listing. Accept that as a given! Home sellers are seemingly 'easy targets', because the assumption is that home sellers are not as well educated about the real estate market and therefore gullible to agents' ploys. And let's face it - many home sellers are not as well educated when it comes to selling their home (you won't be of course, since you are reading this information), and unaware of what agents are doing to try and win their real estate listing.
Here's some for starters (if you have experienced others, your feedback is welcome)... 1. "We have a buyer/s for your home" - this is the most common approach used Another tactic commonly employed over a period of time is: Ringing you when you first put your home on the market. They will then monitor your progress from week-to-week, month-to-month. They may intermittently contact you to ask how things are going and will begin to plant seeds of doubt in your mind. Any sales in your area they have made, they will quickly make you aware of, further trying to undermine your confidence. This tactic is used cleverly, and when you are at your most vulnerable. The objective of real estate agents is to persuade you that private sale does not work, or if using an agent, the one you are currently using is incompetent, and that the only way you will get a sale is to use them exclusively. 1. Understand how different real estate listings work.
1. Understand how different real estate listings work. Different types of listings are: a) Sole Agency To find out more about the different types of real estate listings, click here and go to 'methods of sale'... The most relevant distinction you should be aware of in this instance as a private home seller is to understand the difference between a 'Sole Agency' agreement and an 'exclusive agency' agreement. You should then understand the impact these agreements have on your ability to sell your home as a private home seller. Did you know that as a private home seller, you can sell your home privately, as well as through an agent if you use a Sole Agency agreement?. By signing a 'Sole Agency' agreement, in the event 'you' sell your home, rather than the agent, he/she is not entitled to any commission and you suffer no loss or penalty. An exclusive agency agreement, is the only type of agreement whereby, even if you sell your home yourself and the real estate agent has had no hand in the sale, you are lawfully obligated to pay the agent full commission on the sale (Auctions are also subject to 'Exclusive Agency' provisions). Many private home sellers have been caught unawares by unscrupulous agents who will tell lies or stretch the truth in order to to gain a real estate listing from them. The private seller has been caught unwares because he/she may not fully understand the procedures a real estate agent must follow. It can also happen that a certain amount of 'greed' on the part of the private seller, also allows unscrupulous practices. People are human afterall. Legislation which relates to the 'Appointment to Act' form (referred to PAMD Form 22a in Qld), states certain requirements for real estate agents under the 'PAMD Act' and 'Code of Conduct'. Some of them are as follows: 1. Sections 133 of the PAMD Act deals with the necessity for real estate agents to have a 'signed' written authority to appoint them to perform activities in order to sell your property. This is a function of an 'Appointment to Act' form (PAMD 22a). 2. Section 135 of the PAMD Act deals with the agent's obligation to explain the differences between sole and exclusive agency, term of appointment, etc. 3. Section 115 deals with the 'Form of Appointment', and in particular the necessity of the approved form to include a statement that the client should seek legal independent advice, before signing it. For specific reference to these sections plus other sections of the PAMD Act pertaining to Real Estate, you can visit the 'Office of Fair Trading' website and click on 'Property and Motor Dealers Act', otherwise, visit the website of your state/territory body and consequent leglislation. Think about an instance where you were in a conversation or negotiation and you were tongue-tied and confused, and didn't know what to say. More often than not, it's usually because you weren't well enough prepared and not knowledgeable enough to come up with a suitable reply...yes? Well, it's no different when talking to real estate agent. If you understand the market, have done your research, and know the facts, you will be more able to detect if an agent is trying to mislead you. You will also have the ability to ask intelligent questions and gain information about the knowledge and character of the real estate agent you are dealing with.
4. Don't stray from your plan/plans if it is well researched and thought out. What is the use of formulating a plan if you have no intention of trying to follow it? If you have done your homework and have a good, solid plan (or plans) which is realistic, accurate and flexible, why change it? Remember...a plan helps eliminate some of the emotion from the process, which helps avoid any unnecessary distractions. This is so you arrive at the best destination which you have already worked out, is the best for you. 5. Be firm, yet polite, and learn how to say 'NO'. Some people find it hard to say NO. When dealing with real estate agents you have to grow a bit of a thick skin. Try not take things personally. If an agent wants a real estate listing, and you know it's not part of your plan and won't serve your best interests, then just tell them, "No, thank you, we're not interested, and please don't call me - I'll call you if I need to". You can do this firmly and politely. It's also a good idea to keep your written plan in front of you and review it. Remind yourself of your original objectives and re-focus on your goals. As a private home seller, having a plan doesn't mean that all situations will be perfect. You will make mistakes - it's human nature. Accept this and have an attitude of willingness to revise the way you are doing things and try something different. Don't just throw your hands up in resignation and negate all the work you have done and the skills and abilities you do have.
Have a laugh at yourself. Put things in perspective - think about the homeless in third world countries, and put your problems into perspective. It's not the end of the world! Return from How to Deal with Real Estate Agents to Home Page
|
