Many Cooks Spoil
March 16, 2007 – 11:11 am | by JohanNew Here? You’re Invited To Simon’s Town News Updates Subscribe here.
When you sell your Simon’s Town property do “too many cooks spoil the broth?”
When you want to sell your home you have one objective and that’s to sell your home for the highest price and most of the time you want to do it in the shortest possible time. To meet your objectives you decide you want maximum exposure for your home. Therefore the obvious route taken by many home owners is to list their homes with many real estate agents.
This is where you are confronted with the saying that, “too many cooks spoil the broth.” Let’s have a look at some of the issues you may face when you get many cooks on board.
At the time when you sell your Simon’s Town property there’s a limited pool of buyers and you are interested in them. They will buy your property, they will decide how much to pay for your home and when they will buy your home.
Another issue is the excitement-value of a property. And here you have two parties who must stay exited; the buyers and the real estate agents. But due to many reasons we will discuss this excitement evaporate with in three to four weeks. My point is that you need to enter the property market with the right asking price and the best marketing plan to exploit this window of opportunity.
Deciding on the best price-to-sell your home is where most home owners drop the catch. The problem is that they are not in the market and ill informed. They have no way of knowing. On the other hand buyers know what’s out there. They walk from one home to another and compare. The other issue you are faced with is the many realty cooks who want sell your home.
By giving your home to many agents you have created unintentional competition between the estate agents. You may think, “This is what I wanted”. But in actual fact you have given them a license to value your home higher than what a good asking price should be for your home. And you have given then a license to sell your home as quickly as possible by one method only, and that’s to give you ridiculous offers.
Because they want to win your favour they may tell you that your asking price is acceptable while they know it will never sell for that. Remember agents have less invested than you. And when you realize that the home doesn’t sell you have missed the window of opportunity - the first three to four weeks.
I mentioned that when you appoint many agents they will give you ridiculous offers. This is because greed becomes their primary driving force. When they need to finalise the deal before another agent you may get offers that are unreasonable.
Solution: You need to decide with a top agent on a marketing plan where you and the agent exploit the competition between the buyers and not between the agents.
By know you may be desperate and you get more agents who stake their claim with for sale boards in front of your home. This creates a discount or distress situation. The agents are not exited anymore and the buyers realised that you have made a mistake. You then have to reduce your asking price. You may now end up asking less than what you should have sold your home for if you where well informed initially and if you were presented with a solid marketing plan.
A huge risk exists that you can become liable to pay double commission when you allow many estate agents to sell your home. “… the agent who actually concludes the sale is not always deemed to be the effective cause of the transaction. In a case where the property has been introduced to a potential buyer by one agent and then sold to the same buyer by another agent, the first agent might well be seen by the courts as the effective cause and thus entitled to sales commission, even if commission has already been paid to the second agent,” property24.com
The question you need to ask is, “who is in control?” Because when you have appointed many estate agents it becomes difficult to control. You will for example see that your home is advertised for different prices and they use different photos. This sends out mixed signals to your potential buyer.
Did you know that 65% of all realty deals fail because estate agents do not qualify buyers? You don’t have to be a statistic when you are informed.
Did you know that you can get between 7% and 23% more for your home when you sell it using a sole mandate? (Stats by Sotheby’s International Realty)
My advice to you is stay in control; qualify your estate agent and appoint the agent using a mutually protective sole mandate with a satisfaction guarantee and a 17 point marketing plan..
Wishing you well
Johan Horak
www.SimonsTownRealty.Info Your property wise advisor
P.S. “I would rather turn you down today than let you down later”
Cell: (027)082 870 2004
Cell: (027) 082 955 6464
Fax: (027) 086 512 0274
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Tags: Before You Sell, Real Estate Agent
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August 23, 2007 at 10:26 am
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