Conveyancing

Choosing a real estate agent can be a challenge. In todays fast pace business environment where disruptive marketing is on the increase, it is important to do some research to avoid falling into the trap of accepting the first slick opportunity that presents. The inner workings of the real estate industry can work to your advantage in some instance and disadvantage in others. This why you need to become aware of how the real estate transaction process works.

When the commission structure payable to agents is tied to the purchase price of the house, and disclosure laws require that the agent convey all information to the seller, the real estate agent works both sides of the transaction to complete the sale. In the case of the seller and acting agent, the higher sale price the greater the commission payable to the acting agent. If you are the purchaser you can easily succumb to pressure tactics designed to close the deal irrespective of whether the price represents fair market value or not. Although you have no choice of which agent you choose if you are the purchaser, it is important to be aware of this process.

Listing fee compensation payable to the listing agent are also an incentive for real estate agents to submit inflated market estimates for the value of the home in an attempt to win your business. A seller's natural desire to appoint the agent who presents the best estimate can setup a process of disappointment. If the gap between the listing price and fair market value is significant, the prospective seller is inevitably faced with a down sell process where the listing agent presents a case to justify why the current offers do not match up to the original home assessment. A common tactic used by real estate agents to support this mode of operation is to declare that the market in your area has 'cooled' somewhat in recent weeks in response to oversupply, economic uncertainty or potential interest rate increases. Although some of these factors may in fact reflect market reality, you need to exercise keen discernment throughout this process. It is, therefore, prudent to investigate the market to make a realistic assessment of your property because choosing a real estate agent who submits the highest prospective price may not be the best option for listing your property.

If you are a seller of the property, choosing a real estate agent who is active in your area and price range is very important. Often the local real estate market is dominated by a limited number of pro active individuals who do a large volume of the real estate business in the area. These individuals are well connected and often have a list of prospective buyers who are holding out until the property meets their defined criteria. Part of choosing a real estate agent involves finding out who the active players are in your area. You can then meet and select an agent who best suits your needs.

Choosing a real estate agent who is part of a real estate cooperative can increase the exposure your property receives if you are the seller. L J Hooker and Century 21 are prime examples of networks that have a large network of offices, diverse exposure and progressive marketing initiatives. Opening your property to the expatriate market is a prime example of how these networks can increase your potential exposure. It is a factor you should consider when selling your home.

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