Houses Sell Themselves....

About a month ago, a client chose another agency over us; a decision he readily admitted was purely based on fees. The other agent was 0.25% cheaper than us, which effectively meant a ‘saving’ of around £600. He readily accepted that we offered a number of useful additional services, had more staff, were open longer and had a much greater marketing presence than the agent he’d signed up with. He didn’t believe that these things would have an impact on his chances of selling. After all, ‘Houses really sell themselves, don’t they!’  I assured him if that were the case I wouldn’t invest the amount I did! He remained equally unconvinced when I explained that the volume of potential buyers and the way they were dealt with had a direct impact on his results.

So why am I telling you about him? This week he was about to reduce his asking price, not by £600 but by £10,000; a decision based on the advice of this agent. Hardly any viewings on his home and no interest had to mean that the market was struggling and the house was priced too high, or did it?

I asked how many viewings they’d arranged in a month?
4; 1 had failed to show, 1 was unsuitable and 2 that he’d heard no more about.
 
I asked how many of the viewings had been accompanied by the agent?
None.
 
I asked if the agent had called him after viewings with the feedback?
No.
 
I asked if he thought his agent was proactively trying to sell this home?
He hadn’t thought about it but on reflection, certainly not!
 
I asked if he would pay £600 to be able to answer yes to all those questions and not reduce his price? Of course he would!
 
 
In a week we’ve had more viewings than the previous agent had in a month. All of those were accompanied and he’s had feedback from all of them. We have two further viewings booked already and one couple are reviewing. That doesn’t mean we’ll definitely sell it nor that the price won’t have to come down, but it means he now has a closer feel for what’s happening and is receiving a service that represents value.
 
The best footballers aren’t on the lowest wages. The best tradespeople aren’t ever the cheapest option. I would attach their cost to the value of the result, not just the cost alone. Property is no different. And contrary to popular belief; it doesn’t sell itself. Maybe the top 10% of homes could, but usually tose owners want sale prices that require some sales skills to achieve.
 
Properties require mass marketing to build a large quality bank of potential buyers, enough competent staff to manage those numbers, subtle sales skills, a personal service, viewings to be set up in the correct fashion with the right kind of people and much more. Very few agents will provide all of this and realistically those that cut the cost, will have to have cut corners.