Typical real estate agent techniques

YES! You can sell your own home!
NO! You don't need an agent!

• Don't pay out most of a year's net salary to someone who does nothing you can't do
• Don't pay tens of thousands of dollars for a couple of hours simple work

We'll help you do a better job than an agent and put the huge commission back in your pocket!

Why agents say you don't know how to sell your home

Their income depends on convincing you they offer a unique and complex service - one you are unable to perform. There's no logic to this.

Selling your home without an agent is much simpler and easier than they would have you believe. You’ll end up with more money in your pocket by not paying commissions.

You'll also sell your home faster by being able to lower the price (if necessary) from the money you've saved on commissions.

What agents promise you

They will tell you only they are qualified to secure an exceptional price for your home. They'll appeal to your ego by overestimating what they believe your house is worth.

They know you wouldn't appoint an agent who is not enthusiastic about getting them the best price. In the industry, this is called “buying the listing”.

The reality

An agent stands to make tens of thousands of dollars from 'helping' you sell your home.

They begin by pressuring you into signing their Sole Agency Agreement. This legally binds you to them, allowing them to profit from the sale of your home - even if you have a dispute and you or someone else conclude the sale!

Next, the conditioning

This is entirely about getting you to accept a lower price, through a technique that is nothing short of manipulation.

They'll often overestimate what they believe your home is worthwhile considerably under-quoting the expected price to the prospective buyer.

Although overestimating was recently outlawed in most states of Australia agents skirt around the law by using vague terminology such as: “In the current market your house is PROBABLY worth between $XXXXXX and $YYYYYY. It depends what the market is prepared to pay."

By focusing you on the higher price they raise your expectations enough to agree to sign a Sole Agency Agreement.

Once you have signed an agency agreement, they will immediately talk you down in expected price ... conditioning you to expect less simply to meet 'market conditions' in the hope your home will sell quickly.

They work on the buyer too

They will often underquote prospective buyers by not offering them a price at all, saying, for example, "We’re not really sure what it will go for, what do you think it’s worth?"

They then tell you this price as if it indicated the true market value of your home.

The prospective buyer will obviously name the lowest price they think you'll accept - and often less - in the hope of getting a bargain. Wouldn't you?  

It's just a way for the agent to talk you into lowering your asking price, so they can get a quicker sale.

The advertising: for your benefit or theirs?

About one-third to a half of the expensive advertising you pay for advertises the agency, with your home as secondary - or lumped in with many others.

Much the same goes for the costly signs and flyers you'll be assured you need.

In real life people are much more likely to come from someone looking for a home in your area - and seeing your signboard.

The Truth:
"real estate agent" is just another name for "salesperson"

Always remember: the person they are selling to is YOU!

Their commission is virtually guaranteed once you sign a Sole Agency Agreement! All they need do after that is put up the signs, run a few ads, attend your home for about an hour a week and write down the names of visitors and the occasional serious buyer.

Most houses sell themselves

There is almost always a buyer out there. And you can count on them doing their homework: they're out to get the best possible deal - just as you would.

It's in the agent's interest to talk you down to the buyer’s price - to speed up the sale and pocket their commission!

The reality is that your home will only ever be worth what the market will pay, regardless of what your agent says.

The truth about open house inspections

After over quoting what they claim to be the 'realistic market price' the agent will continue to try and wear you down with their conditioning process.

The open-house technique is a key weapon in their armoury. The first impression it creates will be one of great interest in your home...as you welcome hordes of neighbours, door knockers, curiosity seekers, would-be thieves and, if you are lucky, an occasional buyer.

The agent carefully notes down everybody’s name and telephone number then uses these 'prospects (sic)' to condition you down on price: “Well, we've had a lot of people through ... but not a lot of interest; obviously your price is too high for the market.”

Discouraged, you become more and more conditioned into accepting a lower price.

Do agents really help sell your home?

Seldom. Although manipulative in trying to condition your price expectations, very few will really try to sell your home by highlighting its many special features is too much like hard work.

You'll find they usually can't answer the most basic questions about the home - like whether the hot water service is gas or electric. Or when the home was last sold. Or describe the area's facilities.

The inevitable response is: “I will have to get back to you.” Which means "I don’t have the foggiest." They are only glorified order takers at best - obviously knowing far less about your property than you.

What is your home really worth?

ForSaleByOwner.com.au has direct access to many expert consultants in the real estate industry - specially selected by us for their integrity and ability to provide accurate, impartial information.

For instance, Australian Property Monitors is Australia's leading source of comprehensive property price reports on sales achieved by comparable properties in your area.

When prospective buyers ask how you arrived at your asking price, you can supply accurate and convincing facts and figures about what your home is really worth.

An Australian Property Monitors report will enable you to be completely confident in your price expectations so you can negotiate the right deal.

21.3.07

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