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SELLERS - CHOOSING AN AGENT WITH OR WITHOUT
MBA
WITHOUT MBA
Most sellers would call in Two or Three
agent representatives to give them an
assessment, they would interview them and
try to negotiate the lowest possible
selling fees.
This system is
seriously flawed in that Sellers have been
educated over the ages to believe that
somehow the agent can magically tell them
what they will get for their property. Only
the market can do this!
And everyone you
speak to would agree that Agents have too
much power. They normally control both sides
of a sales transaction at the same time. In
our current REIV system Both the Seller and
the Buyer are placed at the mercy of the
experienced agent.
WITHOUT
MBA
Each invited agent will normally give the
seller a figure or guestimation based on
comparative sales. Agents will try to say
what they believe the Seller wants to hear.
Agents taking into account the fact that IF
they say a figure that is too High they will
be seen to be trying to buy the listing, Too
low and the agent could be out the door!
The agents often
inflated assessment is no guarantee of
market value.
Without an MBA
professional to act as go-between the
sellers are on their own, relying on their
limited selling experiences, placing them at
the mercy of the experienced agent/s that
will have total control of both sides of the
selling process once a seller signs their
listing authority.
Ask yourself
this question, “Would you try to fight a
High Court Barrister in court on your own?”
How then can a seller hope to match wits
with a seasoned Real Estate Agent?” Even if
you happen to choose the best agent, what
stops them from crossing over and siding
with the buyer?
The interview
dialogue could normally go something like
this:
SELLER (S)
QUESTION TO AGENT:
“ you know we have had two other agents in
to value our home, and all of them including
you say, we have a great property and that
they have plenty of buyers that would buy
our place tomorrow!”
“You all have
the internet, the local papers, a network of
agents and a data base of buyers that will
assure a great sale….
…..And you all
say that the Market and Buyers with the
check book will ultimately determine it’s
value!
SO NOW TELL us,
Why should we choose you over the other
agents?”
Without MBA
there are only two points of difference for
Sellers to judge in this scenario.
Commission and Advertising Fees! Sellers
over many decades have simply tolerated and
unwittingly circum to this crazy system,
that puts their most important asset into
the hands of one man or woman, simply
because the agent offered to work for a
lower fee. Wrong!!.
AGENT (A) ANS:
“What would it
take Mr Seller to give us your business? We
normally charge 3%, but if you go with our
company we can do 2.2% and $1000 for
advertising! And we will throw in a $100
storage voucher if you go with us!!”
The more agents
a seller talks to, the more pressure they
come under and the more confused they can
become.
The three agents
in turn will normally try to undercut each
other depending on how badly they want the
property. Even try to negotiate a lower fee
if you work without an advocate. Naturally
agents do not want someone holding them
accountable. Sellers must ask themselves
why? If the agent wants the best for his
client, why would MBA be a threat?. Could it
be greed?
Remember that 2%
of nothing is the same as 3% of nothing!
Meaning if they do not get your price, there
is no commission to pay with or without an
advocate.
Many sellers
make the mistake of believing that the
agents will get the top figure of the
estimate given when working out the total
fees payable. Then a worst case scenario,
thinking, well if we get the low end of the
range we still have negotiated a low % so
we’re ok! This was OK when the market was
hot, but not in our current economy.
MBA facilitator
program ensures sellers get the most
possible dollars in their hand! Guaranteed!
One Agent could be at 2% com with $1500
advertising, the other at 2.2% plus $800 and
the last 3% no sale no charge!
SELLERs will
normally gravitate to those agents quoting
the mid range figure’s for their property,
their commission rate and advertising fees.
Believing that the Higher one is trying to
buy them and the Lower one just has no idea!
Then working
with the Middle estimate or average, the
seller will often negotiate a winner based
on a personal preference felt toward one of
the three agents, perhaps towards the one
that a neighbour or friend recently dealt
with. OR they simply like his or her smile
better than the other two agents. This is no
guarantee of a great agent!
THEN Sellers
will asked their chosen agent the question
that every agent longs for:
“If you Jeff can
get our price of $xxx and you are willing to
match the other agents 2% commission and $xxxx
for advertising we will be happy to give you
the business?”
What would
the agent say? Sign
here…..Mr Seller!
MBA was
established to give Sellers a safer way to
interact with Real Estate Agents.
Truly “MBA is a better way!”
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