A great salesperson is someone who can convince you to buy something you don’t actually want.
Back in the 1980’s the greatest of all door-to-door salesperson was the Kirby vacuum cleaner salesperson. These American trained salespeople would walk the streets looking for an opportunity to demonstrate these ‘vacuums of the future’. As a child, I was once witness to such a pitch. I vividly remember this sales master stripping back our neighbour’s bed sheets, and eradicating (unseen) dirt, skin, bed bugs and the like. With no seconds to spare he then proceeded to pour a kilogram of salt onto the floor and set about challenging our neighbours to clean up the mess using their own vacuum. I think you can probably guess the ending. Stock-standard vacuum cleaner 0, Kirby 1. After what felt like half a day, and perhaps to rid themselves of said salesperson, our neighbours were the proud owners of a shiny new $3000 state of the art Kirby vacuum cleaner.
Unlike the Kirby salesperson, when you engage a real estate agent, it’s because you want your home sold, not because they are there to sell you something you don’t want. So, what is the best way to go about selecting your agent?
Personality over Performance
Most people like to do business with people they like. Often this is someone just like them. Familiarity brings a level of comfort and an element of trust. The real estate industry is full of personalities with the ability to morph into your new best friend. The issue with ‘personalities’ is that they may be likeable, but when push comes to shove are they skilled in the areas that matter when it comes to getting a great result?
When you’re interviewing your next agent, here are a few tips to sort the smiles from the skills.
Buying the Business
An old school real estate tactic to secure a house to sell is to ‘buy the business’. This means providing a likely sales range more than the current market to entice and excite the seller into signing up. We are all susceptible to shiny things and clever dialogue which can manipulate our decision making. But falling for an unrelated potential sales price could be the exact reason you don’t end up selling.
As a qualified property valuer, it is with great disappointment that I have come to the realisation no one can predict the sale price of a home. Even if, like me, you have a qualification which took six years to attain!
A good agent will know the best possible price comes from generating competition through a well-run process. So rather than focusing on the promise of a price, seek to understand the agents’ process by asking your agent
- ‘Explain to me how you will set about generating competition for my home?’
- ‘What will you say to buyers who asks how much my house is worth?’ (An agent’s opinion on price should never get in the way of a buyer offering on your home)
- ‘Out of your past ten sales, how many offers/bidders did you have on each?’
- ‘If we don’t get a result in the first stage what is your Plan B’
A well-defined plan, coupled with an agent experienced enough to engage buyers and guide them to a competitive end point without getting in the way, will always generate the best price for your home. At the end of the day, the only person who can decide the end sale price is you.
You only get one chance to make a first impression
A thoughtful agent will have considered who is the likely buyer for your property and will be able to provide great tips to maximise the appeal of your home to this target market.
For example, we are about to bring a townhouse in Khandallah to the market. It’s a great low maintenance home with minimal outdoor area, likely to appeal to professionals. We have advised the family, who started as a couple themselves, to store all the children’s toys and instead create a work from home space which is highly sought after post pandemic.
Creating useable spaces for your target market will help you maximise your result. If it means that you need to bring in staging in order to create them, it is money well spent and will ultimately be an investment in your end price.
Stop the Oversell
Too much information isn’t a good thing when it comes to advertising a property for sale. In fact, less is more. The art of good real estate advertising is to show just enough to encourage a buyer to visit, and then present your home so it doesn’t disappoint. If we showcase every aspect of your property in the advertising e.g. a large walk up, high maintenance section or a floor plan with a strange layout, it will only assist buyers in choosing not to view your home.
The facts are, unless we can attract buyers to view your home, we have absolutely no chance of selling it to them. When you’re selecting your next agent, ask;
‘What is the target buyer for my home and how should my property be best presented to appeal to them?’
Pay attention to the care your chosen agent takes with styling and photography. Well-presented homes showcased through good quality photography, coupled with a photo tour (which highlights the positives and minimises the negatives), will give your home the best chance. As the old saying goes, you only get one chance to make a first impression, so don’t underestimate the value that care taken in this area can have on your buyer numbers and the result.
List and Pray
To create an excellent result in the current market, it requires more effort than putting a signboard on the fence and waiting for the buyers to turn up.
Any agent worth their commission will work tirelessly and proactively advertise your home. Collectively our team spend a large proportion of our week calling likely buyers to invite them to our listings.
A couple of great questions to identify if your agent is the proactive type or the ‘list and pray’ type are;
- ‘What recent sales have you had in the area which are comparable to ours’
- ‘What will you do to target these buyers?’
Don’t be sucked in by big social media audiences and advertising packages. It’s outbound calling where your home will WIN against a large pool of other potential homes. To expect anything less from your agent you’d be short-changing yourself.
Market Feedback and Communication
When it comes to making informed decisions during your campaign, feedback from the market is key. A great agent will be diligent in their buyer follow up and reporting, so be sure to ask your next agent.
‘Can you provide a few examples of your open home reporting?’
Good quality reporting will include outbound calling to buyers as discussed above, private inspection feedback, open home feedback and pricing feedback. It’s surprising just how many agents do not actually do any form of vendor reporting.
In the words of the great real estate trainer Mark McLeod, if you don’t do vendor reports, I feel sorry for your vendor having chosen you.
The Wellington Market
It’s been a tough few months for the Wellington market with some properties achieving great results and others failing to get off the starting blocks. Our strength as a city has always been secure, well-paid Government jobs and low housing stock. But with the incoming Government focused on slashing the public spend, contractors are nervous, and many are sitting on their hands.
The Reserve Bank has left the OCR unchanged but has threatened hikes if we don’t behave. My gut feeling is interest rates cuts will come sooner than 2025 as anecdotal evidence from the front line is that business and households are really struggling. What 2024 has in store for us, only time will tell.
Thanks again to all of you who have read my thoughts over 2023. This is our 12th year on the hop so if you have any burning topics you would like discussed, we would be absolutely delighted to give you a credit in our February Barometer.
Here’s to a safe and happy holiday and a prosperous 2024 for us all!
Wellington Market Quick Stats
Meet the Ben Stevens & the Team
What’s on this summer in Wellington?
Dinosaurs of Patagonia, Te Papa, 16th December 2023 – 28th April 2024
Some of the most important dinosaur discoveries of our time will be on display at Te Papa from December 2023. The New Zealand exclusive exhibition includes fossils and casts of bones discovered in Patagonia in South America. You’ll see one of the biggest dinosaur bones on the planet, a 2.4-metre-long, half-ton thigh bone from the Patagotitan.
Undoubtedly, the biggest drawcard will be the showstopping cast of one of the world’s biggest dinosaurs. The 30-metre-long herbivore Patagotitan mayorum was said to weigh the equivalent of over 14 elephants.
Click here to find out more info
The Foo Fighters, Sky Stadium, 27th January 2024
Foo Fighters will return to New Zealand this summer, bringing their unrivalled live show to Sky Stadium. The legendary rock band will be hitting the road for a massive world tour in support of their new album, ‘But Here We Are’. Foo Fighters are one of the world’s most popular and successful rock bands, having sold over 25 million albums worldwide and won 15 Grammy Awards.
Click here to find out more info
Marvel: Earth’s Mightiest Exhibition, Tākina Wellington Convention & Exhibition Centre, 14 Dec 2023 – 28 Apr 2024
This summer, Wellington will welcome the Super Heroes of the Marvel Universe in an exclusive exhibition. Taking you on a journey through the Marvel Universe, the exhibition will celebrate and explore Marvel’s 80-year history. Audiences will have a behind-the scenes look at some of Marvel’s most iconic characters. Celebrate the creators who have brought these heroes (and villains) to life, and explore the worldwide impact of the Marvel Universe.
Click here to find out more info
