Peter Spann Reveals what Real Estate Agents Don’t Want You to Know

Peter Spann says, “Real Estate Agents really don’t want a property investor to outsmart them, especially when it comes to information on real estate websites and real estate listings but to really join the investors club you’re going to need quality investment property advice and blast through their so called “secrets”.”

There may very well have been a time when a Real Estate Agent was critical to the property investor but with so many options open to you today that time may be coming to an end.

Like all professions rapidly being disrupted by the internet there are a few exceptional agents that will always stay on top as they adapt to the ever changing world, and they may well be the exceptions to these rules, but the clock is ticking when it comes to buying property especially.

Secret 1 – Real Estate Agents don’t hold some secret knowledge to get the best possible price for properties

Top dollar for your property comes from a combination of many interwoven things – it’s appeal to the market (which can be very subjective), timing, market cycles, gentrification of your suburb or rezoning or even a new restaurant, shop, school or other attraction opening in the area, even the weather.  There is no doubt a good agent can add value to any transaction but you, as buyer and / or seller should make sure you educate yourself and actively participate in the process.

Secret 2 – Real Estate Agents virtually never know where to invest in property

Fact is agents are usually restricted by their franchise to one singular local area.  And while they may build up excellent knowledge in those areas and indeed come to know them better than you ever will, what if the hot real estate suburb is not the one they cover?

The only way to decide where to invest is to do your own research.  And that data is now readily available on the internet as well for a small fee through sites such as Australian Property Monitors or RP Data.

 

RE A 112283-aus-bus-pix-real-estate-agent

Secret 3 – That only Real Estate Agents can Advertise on Sites Like realestate.com.au or Domain.com.au

This is partly true.  Neither site allows private sellers to list on their site but a new player in the industry breaks that barrier if you want to sell yourself and save thousands of dollars in agents’ commissions.

Started in 2005 by Andrew Blachut an industry veteran Propertynow.com.au allows private sellers the power of advertising on the far reaching marketing sites like realestate.com.au or Domain.com.au which have so far been shut off to the everyday property investor or seller.

“The veil of secrecy has been lifted; it’s not hard to sell a house, it’s ridiculously easy,” the owner and director of PropertyNow, Andrew Blachut, says. “Agents try and wrap it up in mystery as much as possible.”

Property Now emulates real estate websites and, depending on which package you take can give you a virtual real estate agent experience.

Secret 4 – You can Participate at any Level You Like in Selling Your Property

Most agents treat you like a leper when it comes time for open for inspections hustling you out of the way to let them do their thing, but really what do they do?   Most agents just collect names, and answer the most basic of questions with the real selling happening later. So why can’t you be there for that?

And there’s nothing to say you can’t supplement whatever they are doing with your own efforts.   I used to write my own copy for advertisements and it was almost always better than the hack stuff the agent would put together.  And before the days of real estate websites making it easy to find properties I would stand out in front of similar properties for sale and hand out brochures to get people to go to my open as well.

There is a famous case of a Melbourne man actively marketing his own home via Social Media.  Kurt Opray set up his own website and created a rich portal into what it was like to live in his home supplementing the efforts of his traditional agency  and getting a $135,000 up lift on his reserve price.

Anybody wanting to maximise the sale price of their property and get creative real estate marketing tips must read his page Hottest Property

He makes the clever observation “Traditionally, sellers and buyers are discouraged from personal contact in order to prevent any interactions that could jeopardize the deal. But social media provides a certain amount of distance between people, allowing you to use a more personal touch in highlighting the features of a property.”

If you want to run a social media campaign for your property sale ask One Less Hat to do one for you.

 

RE A finding-a-real-estate-agent

Secret 5 – There’s Probably a Massive Difference Between what You think Your Property is Worth and What your Real Estate Agent thinks it’s worth

Sorry to say but your house probably isn’t worth what you think it is.   In fact it could be worth a lot more, but in most cases probably less.

When an agent is trying to snag your listing they have to walk a tight rope – give you a price as high as they legally can (in most states they are now legally required to give you a reasonable estimate of the property’s real value), and as low as they think they can get away with (so there’s not too much pressure on them come selling time).

Fact is $10,000 doesn’t mean much to them (an extra 200 bucks is all) but it, obviously means a LOT to you.

Once they have overstated the price they think you can get and have snagged the listing the “conditioning” starts almost immediately trying to get you to rethink your price downwards and set a very achievable reserve or selling price.

The market will pay what it will pay but you need an agent who really believes in you, your property and its worth and its absolutely worth your time to hold out signing until you’ve found “the one”.

Secret 6 – It takes less than a week to get a Real Estate Sales Certificate

In some states it can be as little as two days to get a certificate to sell Real Estate.  And like all sales professions it can attract its share of dodgy fly by nighters.

Most of the top calibre agents have been around a long time.  They have history, they know the local buyers and sellers and they have probably gone through two or three sales with many of their fans, their name is probably on the letterhead and they will be able to inundate you with testimonials from happy clients.  That’s the minimum I would expect from my agent but I also have to like them and believe that they like my property and will do the best by me.

Secret 7 – Commissions ARE negotiable

Agents hate you knowing this.  There is no prescribed commission – they can charge you what they like.  In some states there is a maximum or recommended rates but there’s still a lot of flexibility in that.

Be ready for their patter though – they will have been asked for a discount a million times and if they are going to be any good at selling your home they should be good enough to deflect your meagre attempts at negotiation!

But almost every agent I know has from 0.5% to 1% wiggle room built in to their original price just in case they find a property they really want to list and a vendor who is insistent – be that person!

Now, more than ever it’s up to you to know, understand and break through the Real Estate Agents secret code.

Agents got to know the name Peter Spann where I was buying and selling and they respected my knowledge, experience and buying power.

Find somebody you like, trust and has extensive experience in your property investment and profit.

 

Read my articles on:

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Written by Peter Spann

Peter Spann – Film Maker | Director | Business Coach | Writer | Public Speaking Coach | Presenter | Investor.

Click Here  to learn about my business services.

 

Profit From the New Property Boom

Find out about Peter Spann’s exciting new On-Line Property Investing Course Property Pay Day:

http://www.propertypayday.com.au/property-pay-day-2/

original-logos-2014-Jan-6759-713028

Interested in Sydney Property?

Read my Property Investment Sydney – Where to Buy Blog here:

http://www.propertypayday.com.au/peter-spanns-property-investment-sydney-where-to-buy/

Interested in Melbourne Property?

Read my Property Investment Melbourne – Where to Buy Blog here:

http://www.propertypayday.com.au/peter-spanns-property-investment-melbourne-where-to-buy/

Interested in Brisbane Property?

Read my Property Investment Brisbane – Where to Buy Blog here:

http://www.propertypayday.com.au/peter-spanns-property-investment-brisbane-where-to-buy/

 

 

© Copyright 2014 Peter Spann All Rights Reserved

0 replies

Leave a Reply

Want to join the discussion?
Feel free to contribute!

Leave a Reply

Your email address will not be published. Required fields are marked *