Is your goal to ‘sell my house in Australia’? It almost feels like real estate agents are too good to be true. Their main selling point is convenience, but this comes with a catch. More often than not, you only bear the full brunt of this burden when the sale closes and the commission-based agent comes around for the cut.
Professionals rarely share trade secrets with clients, of course–especially if these affect their earnings in a bad way. It’s the same ruse as restaurants serving you leftovers, or when you’re unaware while buying old-stock groceries. Most people don’t know any better until an insider lets them in on trade secrets.
Commission-based real estate agents play tricks. Here are 6 trade secrets traditional agents surely won’t tell you, even if you approach them asking nicely, ‘help me sell my house’.
Secret #1: You’ll earn more if you sell a house privately
We’re talking earnings of thousands of dollars here. In. Your. Pocket.
See, it all boils down to the agent’s commission. It’s a percentage of the sale, on top of miscellaneous fees. The 5% commission is no measly sum if you’re talking about five-figure price points.
You’ll find testimonial evidence online. For Sale by Owner properties really earn in favour of the seller. With all things considered, wouldn’t you rather keep all that money to yourself when you reach the goal of ‘sell my house’?
Secret #2: Buyer and seller real estate agents connive to close the sale
That uneasy feeling when a home buyer knows too much about you? You should trust your gut. When a prospect is aware of your design preferences and living habits, it feels like your laundry is set out to dry. It’s not an exaggeration, considering potential buyers are also represented by real estate agents.
How can it get worse? Your agent and the buyer’s agent may be cutting deals behind your back, just to ensure the sale pulls through. It’s all fair game if this is true. And you’ll hear hints of these dropped every now and then.
If at any time during negotiations an agent says, “the buyer’s agent really loves the property, by the way,” put your guard up. There’s probably a deal being negotiated behind the curtains so if you’re hoping and wishing ‘sell my house’, you’re better off working without an old school agent.
Secret #3: Comparison real estate prices aren’t updated
Agents base the asking price point of homes on the average prices in the surrounding area. This is standard procedure, and it makes sense. Your house has to compete with unsold properties in the vicinity with a decent price point. Agents won’t tell you these benchmark prices may be out of date, though.
Comparison prices are guidelines, at best. Truth be told, comparison prices in real estate (of sold properties) are misleading because the best market indicators are current, pending sales.
Do note that most agents, even those locally based, are unable to access this data. We’ll just leave this bit of information as is for you to mull over.
Secret #4: Your agent has more to gain with an open house event
You open your home for sale for viewing, pleading with your agent, “Please, sell my house fast!”. People then filter in and out. You manage to snag a few leads, even one that just might convert. You’re a happy camper. The end? No, wait. There’s a catch. This is working to your agent’s favour more so than yours.
To an agent, everyone who shows up at an open house is a potential buyer—for all the agents’ listed properties, not just yours! If another home, let’s say, will land the agent a bigger commission than the sale of your house, the agent has a huge incentive to offer the potential buyer a coffee date. Both your agent and the home buyer can then easily proceed to discuss the other home.
Secret #5: You might be dealing with a double agent
This is as nasty as it gets. In some places, dual agencies are legal practice. This means one agent represents both sides of the deal. Your agent can represent a buyer in need, and keep commissions coming from both ends.
Some buyers consider this a good compromise. They expect the agent to downplay the commission. The truth is, you never really know when you’re being ripped off. The lucky agent gets to double deal, with minimal opposition from either side. This reason alone makes for sale by owner real estate deals the best route to take.
Secret #6: An agent may cut corners just to sell a house fast
A worst case scenario would have your agent recommending shady inspectors to check the property. This is to ensure major flaws are overlooked, and the inspection clears nonetheless.
If your commission-based agent schedules the inspection while you’re away, watch out. The thought of an inspection might initially seem appealing if you’re thinking “sell my house fast”. But you can expect a lawsuit from the buyer if the ugly truth eventually rears its equally horrendous head.
And, trust us, you wouldn’t want to spend your earnings (minus the agent’s commission) sorting out a lawsuit.
Selling a house privately is more appealing after you consider the risks of hiring traditional commission-based agents. You’re ensured no shady deals when you sell a house privately. You also get to keep the entire pot of money.
Are you still currently being represented by an old school real estate agent? Consider these tips and then show your agent out the door!
Selling a hosue privately is easy! We put together the most useful tips to help you sell a house in the For Sale by Owner market:
- This list of the top 6 Melbourne suburbs will make you want to move!
- 5 amazing ways we will get your property listing noticed by buyers online
- 6 things you can do if your No Agent property doesn’t get sold
- 5 marketing techniques you must learn if you want to sell a house fast in Australia
- 5 tips to prep your home on a budget and impress those home buyers