There’s a reason why estate agents are often touted as one of the least-trusted professions.
Research firm Ipsos Mori once ran a survey that found estate agents were the UK’s joint 4th least trusted profession.
Just 27% of those surveyed said they trusted estate agents to tell the truth.
So, why is it that people put so little faith in the people entrusted with selling their homes?
It’s not an easy one to answer. Over the years, estate agents have received a bad name for all manner of reasons.
From overcharging for the service they provide through to telling lies to secure a sale, everyone has their theories as to why the public loathe them so much.
But one possible reason is that they tend to only tell you what they HAVE to tell you. And that means some important things may never be mentioned.
That brings us neatly to why we wrote this article in the first place…
Here are three things your estate agent won’t tell you:
1) You’re Overpaying For A ‘No Sale, No Fee’ Service
Did you think that selling on a ‘no sale, no fee’ basis was a ‘no-brainer’ and completely free of downsides?
It’s an easy mistake to make. On the face of it, you only have to pay if you successfully sell your home so it looks like a good deal.
All of the risk is shifted to the estate agent. What’s not to like?
Well, how about the fact that in order to calculate the price to charge you, estate agents have to take into account all of the properties they fail to sell?
Think about it. If they only sell one in every three properties they list, they need to ensure that the profit they make covers the costs of all three properties.
That means, when you choose to only pay on completion, what you gain in minimising your risk, you lose in paying to cover the costs of people whose properties didn’t sell.
And it HAS to work like this, otherwise, the estate agent would go out of business.
Need more evidence? Check out the table below that shows how much more expensive the main online estate agents are when you choose their ‘no sale, no fee’ price rather than their up-front fee.
Price Premium On ‘No Sale, No Fee’:
|Estate Agent||Up-Front Price||‘No Sale, No Fee’ Price||Price Premium|
At best you are paying 63% more to sell on a ‘no sale, no fee’ basis and at worst you’re paying a whopping 242% more than the upfront price.
And that’s just online agents, high street estate agents are even worse.
They don’t tend to even off an up-front option. That means you are forced into paying for the costs of the homes that don’t sell.
Plus, they’ll usually charge you even more than the online estate agents for the privilege.
So, as you can see, ‘no sale, no fee’ isn’t all it’s cracked up to be.
That said, it doesn’t mean it’s not worthwhile. Just that you have to be willing to accept paying a premium in return for the reduced risk it offers.
2) They Don’t Know How To Write A Good Property Description
Estate agents are not marketers. Sure, they may offer ‘marketing’ packages for selling your property, but they’re not marketers in the true sense of the word.
They usually know very little about the theory of marketing or how psychology plays it’s role in the decision-making process.
Simply put, most estate agents are there to do the admin work that’s needed to sell a property, not the actual selling.
And that translates to poor, ineffective property descriptions.
Think about it, when was the last time you read a property description and your heart skipped a beat as you realised you might have just found the home for you?
That’s because the vast majority of estate agents write dull, uninteresting property descriptions. Why? Because that’s what everyone else does.
There’s a real herd mentality, no one is thinking for themselves. Worse still, no-one is actually TESTING what works or trying different methods.
Yet marketers do test. Marketers understand how emotion sells a product. Marketers know not to simply do as everyone else does.
That’s why, when you need a property description writing you should turn to a marketer, NOT an estate agent.
We wrote a detailed post on writing property descriptions here.
3) You’re Better Off Conducting Your Own Viewings
When someone comes to view your property, you only have one opportunity to impress them.
If you miss the chance you’re left waiting for the next appointment, hoping it will be different.
Think that your estate agent has your back here and knows what they are doing?
Sorry, think again.
The vast majority of estate agents are terrible at selling properties.
It’s a lost art. Agents have become lazy and think that properties sell themselves. They don’t, at least, not entirely.
If you don’t believe us, we have proof. Check out this video that backs up our point perfectly.
In the vast majority of cases, we’d bet that most homeowners could do a better job at conducting viewings and selling their home than the estate agent they are paying thousands to.
All that is required is a basic understanding of how peoples minds work when making a decision to buy something.
And that’s something we covered in our article on how to conduct your own house viewings.
Why Estate Agents Get Away With It
We’ve highlighted three key things your estate agent won’t tell you (but really should). But the bigger question is why are estate agents even getting away with this?
They charge massive amounts of money, often in the thousands of pounds, and can’t even get some of the basics right.
Well, being a good estate agent is still a highly skilled job. It’s just that there’s not many of them left.
The rise of portals such as Rightmove has made it so easy for estate agents to find prospective buyers that they have stopped having to understand marketing.
But the biggest reason why they have got away with it is that they have never been challenged on it. And that’s worrying. Really worrying.