Did you beat their fees down? Did they fear the loss of your home on their figures so they agreed to take it at a really really really low fee? I’m going to tell you why negotiating a fee is a mistake, but at the end, I’m going to show you how to get more value that will end up getting your house sold faster while paying no EXTRA!!!
What did you agree? Is it a percentage perhaps down to 0.85% or maybe you agreed to a low fixed fee of £849 or even £999 plus VAT. If your agent agreed to a low fee just to list your house you may have chosen the wrong agent. Here’s why…
Why you should NEVER negotiate on fee?
1 – If the agent you chose, agreed to try and sell your home for less than the three houses on the next street he has on his books, why would he try and sell yours? After all, he has three other houses on the very next street, all very similar to yours AND he gets paid more if he sells them, than if he sells yours. I’d say that this logic of negotiating a lower fee doesn’t quite match up.
2 – If he agrees to a lower fee, why? What is in it for him? Did he quote how any properties he has on his books when he came to see you? Is his motivation a vanity motivation? Is it just about how many homes he has listed? If so, do you want to list your home or sell it?
3 – Part of the fee is for the hard work an agent puts in to selling your home. So if there was a lower fee agreed would they put more effort in or less? If your boss reduced your wage by 20% would you work harder? I’m sure you wouldn’t, but add 20% on and you’d work harder than you ever had to ensure you got paid that extra amount.
4 – If you pay less for something, what is missing? Take a tube of toothpaste. We are sticklers for Aquafresh in our home, it comes in a 100ml tube and is usually about £1.50 per tube. One day while shopping in different supermarket I saw it on the shelf for just £1.25. I thought I’d got a great deal, until my daughter noticed it was 25ml smaller. So really I’d just bought less toothpaste for less money. So it stands to reason that IF your agent charges you less, you’re actually getting less to help get it sold.
For instance: Here’s a very small list of things you expect when you put your home on the market and what might happen if you insist on a lower fee.
|VMOVE||DIY / Cut Price Agent|
|Floorplan purposely designed to match your home||No floorplan|
|12-18 page bespoke brochure sent out to clients to tempt them to view||No brochure for buyers to take away to remember the home|
|Trained Accompanied viewings – Fully versed in all best parts of your home AND with answers to questions for your buyers||A Saturday viewer/retiree that hasn’t seen the house before – OR you may even have to take them round yourself as they are too busy|
|Out of hours trained accompanied viewings||None – Do it yourself|
|A compelling write up to feed your buyers’ imaginations||None – a paragraph on the area and a mention of how ‘spacious and bright it is’|
|Buyers situations checked before they view||Anyone can view – No VETTING|
|Trained negotiators to get you the best possible price||Just a third party to pass messages between buyer and seller|
|Beautiful pictures of your home by a professional photographer over three hours||Iphone or compact camera done in 20 minutes|
|Home Staging appointments||None|
|Social media marketing||None|
|Details sent out to priority clients to get you the best possible buyers over your threshold||None – they don’t keep their client lists current so most are no longer looking.|
|Dedicated representative to help get your sale through to completion on your terms||None – they let the solicitors handle it. (Be careful 33% of agreed sales fall through, you need someone on your side chasing all parties up)|
|Consumer Protection compliant to protect you in the future||You end up missing an important piece of information that could land you in court after the house is sold.|
|Fully vetted buyers at point of offer to ensure they really can buy||None – which can lead to a fallen through sale.|
|Stay in touch policy that helps keep you up to date with what we are doing to really get that sale||None – if your home doesn’t sell quickly you won’t know why OR what your agent is doing|
|Constantly monitoring your sale to keep it on track and get your more viewers that lead to more buyers.||None|
So far it’s not looking good. So what can you do?
The SECRET to getting more marketing without a higher fee!
This is a mind-set shift but one that is a win for you and a win for your agent, giving them loads of motivation AND will help you sell faster.
When you are at that crucial moment and you’ve had your two agents round and the third one has impressed you so far. Don’t ask him to match the previous agents’ fee. You didn’t like their process anyway, so why pay less to get the same. Ask this one question:
What can you add onto that package to make me buy it right now? What you are asking is that YOU WILL ACCEPT his fee IF he adds some extra marketing onto it. This is the clever bit. The agent has got his ideal fee. He already has it as you’ve agreed, so what he will do now is add more marketing onto that to get you to buy now:
He may add any of the following for you FREE of charge.
Free Energy performance certificate
Social Media marketing
More local exposure
Free Home staging visit from a local home stager
Bespoke for sale board
Designed for you brochure
Heavy weight printing of your brochure for a more luxury feel
Updates more often to help get the sale
Local glossy magazine exposure
Feature in their monthly email shot
Feature for one month in the window
Creative/gorilla marketing techniques
And there’s many more…
Here’s the best bit. You get MORE exposure as the marketing will be better, meaning, more online views that lead to more viewings that lead to more/higher offers. And the AGENT will be desperate to sell it for you, and will be highly motivated because the three he did yesterday on the next road beat him down as much as they could.
Have you had free additional marketing on sign up? I’d love to hear what to you would love to have added onto your marketing package.
If you know someone who’s thinking of selling, why not share this on Facebook and tag them. They’ll love that you thought about them.
Until next time