« Back to News Archive

The theory of relativity.

Friday 26th Jul 2019

The theory of relativity.

Things are flying in here at the moment with our very own Wonder Woman, Bindi, closing 3 sales this week in my absence….hmmm, makes me wonder about taking more holidays!
It's back to business and I am proud to announce that we are launching some superb new homes to market, but from what I can see it's going to be slim pickings for buyers (and agents) for the next few months.
This prolonged period of low stock has created some interesting side effects in the marketplace, namely a rise in agents over-quoting in a desperate attempt to win business and an increase in off-market transactions. This week I wanted to focus on the former trend and some strategies that you can deploy to stop this from happening to you.
As an agent, one of the most frustrating things you can experience is pitching to win a nice client and then losing to a competitor that you know lied to win the business. Without naming names, some of the most well-known agents are serial ‘over-quoters’ when it comes to appraisals…you know the drill, lofty promises and then a well-practised (in many cases trained) conditioning process to get the owners' expectations down, clip the ticket, and get a commission.
So how do you avoid this from happening to you?
One of the best ways to sort out a bunch of agents vying for your listing is to ask each to propose a sliding scale of commission relative to the sale price. This is a very good way to find out what the agent really thinks the property is worth. Recently some elderly clients told me of a local agent that promised them $4.5Million, eventually pressured them to sell for $3.7Million, and he then insisted that they pay the full fee….in my view that’s a disgrace.
If this happens to you, before accepting an offer, know that you hold the cards and you should insist that the agent charges less or pays for some of the marketing expenses. I am sure that some of our competitors won't like me saying this but I don’t really care. The industry has to wake up and be accountable.
Sorry folks…rant over…it's actually great to be back.

Until next week,

David Murphy