18 July 2011
43% of homesellers will change estate agents
Avoid the stress of changing agents with tips on how to improve the relationship with your agent and saleability of your property
Moving house is often named as one of the most stressful things a person can do in their life, a fractious relationship with your estate agent can compound this. Property specialists, Move with Us, has found that 43% of sellers change estate agents at least once before selling their property.
Robin King, director at Move with Us, says: “Recent figures have highlighted that, on average, it takes approximately 78 days to achieve a sale. Often sellers can become frustrated with their estate agents leading them to put the property on the market under a different agency. This adds to the stress involved with moving. Move with Us, operates a network of 1,100 estate agents nationwide and we have used our experience to pass on our top tips to sellers.”
Motivate your agent
Estate agents are motivated by the fees they will be paid upon sale of the property. Generally fees are negotiated based on fixed percentage of the sale price or a standard fee regardless of what the property sold for.
In contrast, Move with Us is recommending sellers use an innovative ‘fee ladder scheme’ to incentivise estate agents to get the highest possible price for their clients, based on the valuation amount. The scheme also helps sellers obtain an accurate value of a property so their properties do not stay on the market too long and lose inherent value.
Under the stepped commission structure, a homeowner could expect to earn substantially more for their property. In a scenario where a property was expected to achieve £200,000 and the offer received was £195,000, an agent would be incentivised to negotiate the offer up. If the agent negotiated £202,000, the seller could achieve an extra £7,000 for their property at an additional £895.50 in agency fees.
Robin King, said: “Sellers often believe, thanks to overpriced valuations, that they will get more for their property, but they can make their agent work harder by paying according to performance through a tiered fee structure which is solely based on performance. The fee ladder system rewards estate agents for adding value. In doing so, it is a win-win situation for sellers.”
Be realistic
Move with Us estimates that over half the properties on the UK property market are struggling to sell because of inflated prices and unrealistic expectations. According to a recent Which? report, agents were inflating prices by 9% on average, with one-third of the agents surveyed marketing the property at a higher asking price than they thought it was worth.
Robin King explains, “We recommend seeking three independent property valuations to mitigatethe risk of over pricing.Our experience in selling property has shown that using the best agents in the area on a multi-agency basis to value the property accurately, from the start, means that the property is sold in realistic timeframes and sellers’ expectations are upheld.”
Incentivise your buyer
In the current property market, Move with Us advises that sellers should consider incentivising potential buyers. This may be in the form of paying for the stamp duty, a gifted deposit or even including the white goods in the sale.
Robin King says: “The sales process for selling a house is no different to any other commodity and offering additional items to the core product will position your property more attractively to buyers. An incentive may be just what they need to decide between your property and someone else’s down the road.”
Statistics
43% of customers switch agents: Castles Estate Agent
Current Rightmove days to sell – 78
(taken from the Rightmove House Price Index)
Home.co.ukcurrently have 834,332 unsold properties in their database. As of 24 February 2011, 463,645 of the unsold properties were first indexed on or before 24 February 2011.
This means that 56% of the properties in their data have exceeded the national average days to sell. See comments on other release.
About Move with Us:
We are one of the UK’s leading property experts, as we deliver simple and effective services to help customers buy a home. Our trusted and professional services are second to none.
Based in Cambridgeshire, we currently have over 280 members of our team, who all share the same core values and goals. Through our commitment to continuous innovation, exceptional service and outstanding value we do property, properly.
We work with independent, accredited estate agents across the country, providing property instructions and a host of moving services to help them earn revenues and provide their customers with a smooth, efficient move.
Each element is incorporated into an integrated approach, focused on bringing together the right people, properties and professionals to deliver what we believe is an unrivalled service.