This is a very important question, as by the time a second agent has come along, normally over 12 weeks or 3 months have passed.
In recent data released, the overwhelming trend confirms that nearly 60% of properties that have been marketed to sell, finally sell once the first agent is ditched and a second agent is instructed.
This is an alarming figure!! Why? Because you would certainly expect some properties not to sell (for many reasons) and to instruct a second agent to take on a different perspective and freshen up the marketing. However, nearly 60%, that’s actually crazy.
There are some quite simple reasons for this.
- Over Valuing – This is one of the biggest issues in the UK property right now. Some agents are so keen to get the property on their portfolio they will produce a higher value they claim can be achieved for the vendor. Eg – If one agent puts their value figure at £200,000 and knows that is achievable, then another agent, desperate for the business claims they can achieve £230,000, then natuarally you are going to sign up to the higher value. However, the property then seems expensive compared to others, it stays on the market for weeks, months. The original agent tries to convince you to reduce the price to £200,000. Some will reduce, some will choose a second agent. Why are they desperate to take on a property they know will not sell? Insider knowledge here: Many agents will pay bonuses to staff, just for signing the property onto their books. They know that once they have the property owner committed to them, they just have to convince the owner to reduce the price before they switch agents.
- Cheap Fees – Selling a property, contry to belief is actually an expensive task. There are numerous elements involved, hence the price. However, you may see other agents with cheap prices. This can be very tempting to save a few hundred pounds, sometimes thousands. If an agent is cheap, they are likely skipping important steps which could cost you in the long run. Either the property doesn’t sell and you choose a second agent after wasting months of time, or you sell the property, but under achieve on its potential price.
- Paying Upfront – If an agent, (normally online) requires you to pay for their service whether they sell your property or not, then you have to question their comitment to selling the property and achieving the maximum price. Again, this may seem cheaper to start with, but if you save £1000 on fees, but over all the final result has cost you £10,000 in lost value, then step back and re-assess your options. Recently, more agents are now asking for a part upfront fee (normally called a marketing fee), then you pay the remainder of their fee upon completion. This is not the same thing as above, and I actually think this will be the future way for agents to market properties.
These are just the main reasons, but others exist. I have put together a list of 6 Costly Mistakes To Avoid When Selling Your Property. Please read this quick presentation as it could save or make you £1000’s. Read it HERE
If you are stuggling to sell you home or would like any no obligation advice before you do so, then contact me here;
With years of experience I can help you maximise your properties potential.
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Working with property professionals for over 20 years providing advice and services to all property investors.