Best Real Estate Agents

Is it worth using a real estate agent?

To answer the question straight off the bat, it’s often worth it to use a real estate agent if you’re selling a property (but not buying).

A real estate agent is also called a seller agent, as their number one priority is to get sellers the best possible price for their home.

The alternative to hiring a real estate agent is to sell your property privately. This may initially seem appealing, as you'll avoid paying commission. However, paying this commission will probably be worth it in the end, considering the following:

Expert knowledge and experience

An experienced agent will be know the steps that going into selling a properties back to front.

The daily duties of a real estate agent are extensive, and can help you navigate a long, potentially daunting process that has lots of red tape, including legal paperwork.

Real estate agents can save you time

If you’re selling privately, you have to manage the whole process from start to finish - including being on call for potential buyers round the clock. It's an estate agent's job to handle this for you.

Real estate agents also have industry contacts and a little black book of potential buyers, casting the net wide.

You can save money using a real estate agent

Due to their skills in negotiation, a good real estate agent is able to market your property in its most attractive light, and get you a higher selling price for it.

Here's an example - if you plan to sell your property for $600K, and an agent secures a $50K increase on this, this means an average agent’s commission of 2.5% - or $16, 250 - can easily be taken out of the extra $50K they secured - leaving you with an extra $33, 750 in pocket.

What does a real estate agent do for a buyer?

If you’re buying instead of selling, a real estate agent isn’t going to be the best fit for you. While they can help you find properties to inspect or attend auctions for, ultimately real estate agents put a buyer’s interests first as part of their job description.

If you’re in the market to buy and would like some professional assistance, a buyer’s agent is a better match. They help buyers to source potential properties, and negotiate the property price in a buyer’s favour (often with a real estate agent, on behalf of you).

What does a real estate agent do?

Property appraisal

A real estate agent will have a realistic estimate of the price your property will fetch. This is gained by having a thorough knowledge of properties in your local area that are similar to yours, and how much they usually sell for. There are still a few other things to know, which you can find out by jumping down to the section about Appraisal Accuracy.

Advertising and Marketing

A real estate agent is well-versed in marketing strategy, choosing the best mix of advertising and a targeted marketing campaign to help sell your property for maximum profit.

They should work within your budget to create a marketing strategy suited to your home. This strategy includes placing ads - a mix of traditional and digital methods including newspaper ads, property agency shopfronts, open homes, and websites like Domain.

Along with this, an estate agent can help you take steps to increase the marketability and attractiveness of your home to prospective buyers. For example, they might suggest hiring an interior decorator interior decorator to spruce up the way your place looks.

Buyer liaison and negotiation

A real estate agent is armed with training and experience when it comes to negotiating with buyers to agree on a purchase price suitable to both parties. It’s also their job to field queries from prospective buyers round the clock, so you don’t have to worry about standing guard over your phone in case a prospective buyer calls or otherwise shows interest. (repeats earlier section)

Potential buyers may also be able to talk with a real estate agency more freely about any concerns they may have about the property. For example, if they don’t like the way your favourite room in the house looks, a new home shopper may feel more comfortable telling a real estate agent this, versus the homeowner who’s more, naturally, emotionally attached to the house.

Sales decisions

A real estate agent will also recommend the best way of selling your home, including whether you go the more common route of private sale or selling in auction.

Property management

While not related to property transactions, some real estate agents are hired by property owners or landlords, who lease their property out to tenants.

How to find a good real estate agent

Location

First and foremost, make sure to hire a local real estate agent, as familiarity with the properties in your neighbourhood is essential.

Accreditation

Getting a licensed real estate agent is the minimum requirement, when it comes to professional standards. This allows a person or individual working for an agency to legally act as an agent for a real estate transaction.

However, professional accreditation takes this one step further and can help ensure standards are kept high, as the real estate agent is part of a professional association. Also note that some steps in the property transaction process, such as auctioneering, require specialist accreditation.

Appraisal Accuracy

A good real estate agent will value your property at its correct price. It’s good practice to obtain at least three independent property evaluations, and then compare them to the figure a real estate agent has quoted.

Some real estate agents may inflate the valuation price, to flood your vision with dollar signs and make you hope for more money from the sale. However, this will inevitably leave you disappointed when the property sells for a lower amount.

Other estate agents will underquote, and then represent this lower value to potential buyers, to expand the pool of available buyers. This means you could also end up getting less for your property.

Sales history

Being familiar with a prospective agent’s track record when it comes to selling properties can help ensure you’re getting someone who excels in their field. Look for the type of properties the agent typically sells (those similar to yours are better), the average time of each property on the market, and the selling price.

If you’re starting at square one and have no specific agent in mind, research recently sold properties in your neighbourhood like yours.

Check whether any real estate agent’s names keep popping up, keeping a tally of their successes against other agents.

Current listings

In the same vein as checking an agent’s sales history, also check out their current listings. Agents shouldn't be inundated with existing work, as this may mean they have less time to dedicate to selling your property.

Real estate agent commission

Real estate agents make most of their money through commission, usually earned as a percentage of the property price after the house is sold.

As an average in Australia, property agents charge an average commission of around 2-3% of the price your property fetches.

However, while this is the most common method of charging commission, there are other ways. Be familiar with the agency agreement to find out how commission is charged.

Some agents are paid on a ‘no sale, no fee’ basis, and others have low flat-rate fees.

A portion charge higher commission of 5%, but you may have more inclusions. For example, marketing and advertising costs might be factored into this commission.

Marketing and advertising costs

For example, a property anywhere up to $500K can rack up advertising costs of $1-2K, whereas a property over $1 million can cost over $4K in advertising.

Keep in mind that marketing and advertising costs are usually charged in addition to a real estate agent’s commission. The cost of advertising varies according to property value.

Some advertising expenses like signage costs, are charged separate to commission, regardless of whether an agent successfully makes a sale.

Be familiar with the agency agreement

This is really important, as it sets out the following important information and helps make sure you won’t have any unpleasant surprises later:

• Services: Details the services an agent will provide, including their scope.
• Commission: Sets out the amount of commission charged, how it’s calculated, when and how it’s payable, and whether you have to pay it to more than one agent.
• Estimated selling price: This can include a range of likely selling prices, rather than a single figure.

Remember you’re also allowed to shop around and compare agreements, and negotiate the terms if anything appears unfavourable to you.

Personality

Since you’ll be closely working with a real estate agent to make a major transaction, it’s important that they have good professional integrity, and also that you both get along.

Accordingly, it makes sense to do a bit of sleuthing before deciding to work with a property agent.

You can find out whether they have good communication, and will regularly keep you in the loop about any updates. You also want to check that prospective buyers will find them to be friendly and that approachable.

One way to do this is to create a shortlist of at least three agents, then anonymously shadow them at open homes and auctions. You'll be able to witness first-hand how effectively they do their job and communicate with interested potential buyers.

Conclusion

Overall, hiring a real estate to help with selling your property can be a decision that saves you both time, money and worry. However, don't just go with the agent who promises to sell your property for the highest price.

You should be picky about selecting an experienced agent who understand your unique property, and who demonstrates good communication and people skills. Also be clear on the terms of an agency agreement before you begin working together.