Negotiation is a pivotal element in selling a property. It's not just a simple haggle you might encounter in a market, but a complex process that can significantly impact the success of your home sale. The nuances in this process underscore the need for professional guidance.
But before you get to this stage, you first need to go through the valuation process, having three, or sometimes more, valuers visit your property to give you their opinion of the market value of your home. During these meetings, the agents will also present their services and provide quotes for their fees.
It can seem expensive at this early stage in the game. To simply sell your home, the agents will quote their fees as a percentage that will be calculated based on the price that you ultimately accept for your property. At this stage, the actual cost you will be charged for the sale is unknown, but one thing is sure: it is likely to run into the thousands.
Some homeowners think they should haggle with the agents on their fees, asking for discounts or reductions, and sometimes, it can work. However, it's important to consider the potential consequences of this approach. At the valuation stage, the agents are competing with each other, and there may be some keen to gain your instruction that they might drop their fee to win. But is this really the place to haggle?
It's often said that if the agent is not good at negotiating with you over fees, they won't be good at negotiating your offers when that time comes. But this actually couldn't be further from the truth. An agent's negotiation skills have nothing to do with their profit margin or business running expenses.
Consider the difference between price and value. Your home is likely your highest-value asset. If you had a portfolio of stocks and shares, would you entrust them to a cheap hedge fund manager? Your home deserves the best agent, not the cheapest one.
The same applies to your estate agent. Yes, it can be disorienting not knowing how much the fees will ultimately be because you do not yet know the selling price of the property. Still, a quarter of a percentage reduction may not make much difference to you in the long run when it comes to the actual price.
When selling a property, estate agents and homeowners will work together for months - do you really want the relationship to start off on a negotiation? By asking an agent to reduce their fees for you, you show that you do not value their service or expertise. A good agent will be worth their weight in gold when it comes to handling the sale of your home. They can provide valuable advice on preparing your home for sale, use their network to find potential buyers, and negotiate the best price on your behalf. You want them to be in your corner, acting on your behalf to ensure that your sale goes as smoothly as possible.
As previously said, good often isn't cheap, and when the sale completes, and you get the keys to your new home, will that quarter of a per cent discount really matter? Probably not. But, if you go for the cheapest agent, you could end up with a) less money for your property because they are not investing in quality marketing methods and techniques, b) longer time spent on the market because the agent has to sell such a high volume of properties to make profits that they simply won't be able to commit to working as closely on selling your property and finally c) potentially more struggles and roadblocks during your selling journey because the agents can not dedicate as much time to your sale as you might like.
When arranging your property valuations, don't just compare agents based on fees. Consider their expertise, experience, and marketing strategies. The difference in fees might be a few hundred pounds, but a good agent could help you sell your home for tens of thousands more, providing a significant return on your investment.
If you have any questions about what a 'good' agent is and how to make sure you use one to sell your home, give us a call!
