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SELLER FIRED/NOT HIRED BY THE ESTATE AGENT FOR NOT TAKING PRICING ADVICE – Featured Blog

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Today’s posts from our featured Port Elizabeth Blogger:

SELLER FIRED/NOT HIRED BY THE ESTATE AGENT FOR NOT TAKING PRICING ADVICE:

The amount of social media dedicated to the debate around agents refusing to work with sellers who do not wish to follow their advice with regard to selling price just keeps going. As a professional property broker, it is very simple indeed.

As a professional your job is to sell the property, that is it!

One of the key benefits of retaining the services of a professional estate agent is, after all, to sell the property for the optimal price in the shortest possible time. The market knowledge of the estate agent, market research, knowledge of national, provincial, city and suburb trends; all assist in allowing the professional estate agent in forming a marketing strategy to accomplish the key objective.

As buyers buy by comparison the above information is integrated into a competing properties matrix to further refine the marketing strategy and specifically the listing price.

The days are long gone where one can list high and gently drift the price down until we hit the price buyers are prepared to buy for. Why is this? The internet has transformed the rate about which people find out about new listings. Listing too high means that when the wave of buyers find out about the property, pricing too high means the property is simply out of sync with the value expectations and gets passed over.

In the market today we find homes being snapped up in days and other just sitting on the market, with the only change being the occasion change of sign, as the homeowners’ grasp at the hope that another agency will do better.

It must be stated that although the seller may determine the listing price, the selling price will never exceed what a willing and able buyer is prepared to pay.

Buyers do not consider things like:

·         What the Seller bought the property for;
·         What the Seller spent on the property;
·         What the Seller needs to pay off the bond;
·         What the Seller needs the money for;
·         What one could do there and as such price as if it was there; and
·         What the Seller feels the property is worth.

Buyers buy by comparison and see what there is, so if it’s too expensive for what it offers, they will move on.

So the question which has plagued agents from time in memoriam: “What do you do when a client refuses to take your professional advice on the price of their home?”

If you are a professional the answer is easy, be frank with the client, even if it means you do not get the listing. A client who will not take advice is a problem waiting to happen. WWhen the house does not sell they will blame you and their insistence on the higher price will be forgotten or rationalised away. There are agents who routinely take overvalued listings and pay the price for this with excessive time on the market, poor sales record and frustrated sellers and angry buyers.

As a professional, I take pride in getting great prices in relatively short periods of time. I simply respectfully do not accept mandates which are overpriced because I am not prepared to expose the seller to the fallout which ensues and also because I have an exceptionally good record of results and client satisfaction. The key to maintaining these is simply sticking to your proverbial guns and not listing what will not sell.

I a seller disagrees with my professional estimation of the property’s value, the seller is more than welcome to list it with another agent, because there will always be agents who will take a listing for the sake of having a listing.

There is, therefore, no need for the seller to become agitated over agents who will not sell their property when the agent sees it as overvalued. A mandate is a contract, which is based on an agreement. If there is no agreement there is not contract. This approach is also consistent with the approach in most professions where a client’s position is at odds with the professionals’ advice. 
A professional agent should not take on an overpriced listing at the insistence of the seller, unless there is a process by which the price may be quickly adjusted, to avoid both parties suffering loss.

Clinton Begley (PPRE MPRE CEA B.PROC (NMMU)) is the co-founder, Principal/Director at BOLD REALTY, in Port Elizabeth, South Africa. In addition, to his passion for people and real estate, he is also an experienced trainer, coach, and mentor. He holds a B.Proc degree through the Nelson Mandela Metropolitan University and is a non-practising Attorney, Notary, and Conveyancer (with over a decade of experience). His legal and real estate experience is augmented by studies towards an MBA degree through the Nelson Mandela Metropolitan University Business School, which he is scheduled to complete soon. This article reflects the personal opinion of the author only, it is NOT intended as legal advice nor may any reliance be placed upon it. The article is purely for information purposes and you are advised to consult an expert before making any decision.
Source: The Port Elizabeth Property Blog.

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