DO NOT instruct an estate agent until you have this one number.
I’m assuming as you’re here this has grabbed your attention.
I was recently watching a video of an interview with a great mind within the property industry and a great point was raised during this interview which I feel needs to be discussed as I truly believe this matter.
There is no hidden secret that most homeowners call round 3 agents to value their home. Often the first 3 agents who they think of / know of.
They usually instruct the marketing agent based on whoever gives the best sales pitch on the sofa and who they like the most.
This isn’t necessarily a bad thing. However. There are some mistakes.
Did you know, 60% of all properties listed on Rightmove, will end up changing agents before they sell? .. yes 60%!!! Meaning 60% of people admit they may have made a mistake and decide to change it.
But why? Why 60%? Because that is a huge figure.
Well its simple. The pitch. That agent sat on your sofa has
a well-practiced, well-tuned and incredibly thought out strategy with one thing
in mind. To win you business. Fact.
I could go on for hours about how to make sure this doesn’t happen to you. However, that’s for another day… back to the point I was making.
Don’t get me wrong, I’m not saying they put on an “act” but ultimately, they are in competition for your business. By winning your business, that is what pays their wage, its what puts food on their family’s tables and clothes on their back.
But who has the biggest risk here? Is it you as the homeowner? The agent? The agency owner? Joe bloggs down the road? Who has the most to risk?
Well naturally first, is the owner. Selling your home for half a million pounds, IF that sale does not go through, you could lose £1000’s. so the seller has always got the biggest risk and the most to lose by instructing a bad agent.
But who is 2nd?
The agent? Or the agency owner?
Well most agents are typically on commission. (especially those sitting in your lounge). Typically, between 5-10% of the income from your sale, should you sell. So, to play safe lets say 10%.
So, you’re looking at instructing an agent for a £5000 fee. That agent sat on your sofa potentially is going to earn £500 if you sell your property.
So, if you don’t sell, or the sale falls apart, he/she has lost £500 commission.
A lot of money, right?
It means that new TV will have to wait, that weekend away will need to wait or that they will have to work a bit harder that month to make it up.
What is overlooked is the owner of that estate agency faces losing £4500.
That’s 9x what the agent sat in your lounge is set to lose.
£4,500 is a huge amount of money, especially with overheads, rents, rates, wages, Rightmove etc. etc.
So, in order, you are set to lose the most. The agency owner second, then the agent sat on your sofa third.
So why, when you instruct the agent do you not have a direct line to the owner of that business?
Surely if you’re not happy, you want to speak to the person who is set to lose the most next.
That person is clearly going to do everything physically possible to try and ensure your properties sells, or that that sale makes it through to completion. AND has more to lose than the agent sat on your sofa.
So next time, you go to instruct an agent. ONLY instruct them if you get a mobile number to the owner of that business.
You may never need it. But I promise you, if you do. You will be glad you have that contact as it could potential save you £1000’s if not £10,000’s.
So. The one number you need, Is the owner of the agent.