Why go to an estate agent?

'Why should I use the services of an Estate Agent when I can sell my property directly to prospective buyers or buy my home directly from the owners?' many frequently ask. It is true that property owners can place an advert in the papers or put up a ‘For Sale’ sign to attract prospective purchasers. Property buyers can also daily browse through the classified adverts or drive around building sites looking for their dream home - but is this really effective? Selling or buying your home is probably one of the most important steps which you will take in your life. It is worth examining all your options and ensuring that you do not make the wrong decision which you could regret for a long time.

Property owners and buyers in most developed European Countries, in USA and Canada, would not even think of selling or buying their home without going to a reputable Real Estate Agent. These people have realized how much more advantageous it is to deal with professional people who will ensure a fair and safe deal for all concerned.

A study conducted recently by the National Association of Realtors in the United States came out with the following facts:

1. More than 8 in 10 home purchases are through a Real Estate Professional.
2. More than 8 out of every 10 sellers surveyed, employed the assistance of a Real Estate Professional to sell their home.
3. The longer the selling time, the greater the difference between the asking and selling price.
4. When sellers list their homes with a Real Estate Agent, the house is typically on the market for 8 weeks.
5. Nearly 7 out of every 10 home sellers would use the Real Estate Agent/Sales Person the next time they sell their home.
6. 50% of all assisted sellers placed the most importance on knowledge and competence when selecting a Real Estate Agent.

The following are some of the benefits which both the vendors and purchasers stand to gain by using an Estate Agent. I must emphasize that I am referring to reputable Real Estate Companies, most of whom are members of the federation. The business of an Estate Agent is basically built on trust. Trust between the Agent and the owner and trust between the Agent and the prospective purchaser. Offices are staffed with professionally trained Consultants who offer all services relating to Real Estate.

BENEFITS TO THE PROPERTY OWNERS

Some property owners think that selling a property means simply advertising it and taking prospective buyers round the house. There is much more to it than that. These are some of the questions which should come to mind when you decide to put your property up for sale.

1. What is the best way to attract buyers?
2. How do I know how much to ask?
3. Is my home ready for sale? Should I invest in any major improvements?
4. How quickly can I sell?
5. How should I go about showing the house?
6. How do I know if the buyers are serious, or even if they can afford my house?
7. How can I be sure I am getting the best deal?
8. How do I negotiate on the sale?

The Agent as Valuer and Consultant

The risks incurred when placing your property on the market are various. You have to make sure that you do not over-price or under-price your property. Exposing your property in the market at the wrong market price would greatly delay the sale of the property. An experienced Agent, who would know the prevailing market conditions at the time when you wish to place your property on the market, will be able to guide you and give you a realistic market valuation of your property. He will be able to advise you as to how to make the property more saleable and attractive to potential buyers.

The Agent will also be able to advise you of the procedures and steps to take to ensure a smooth transfer, from the sale of your property to the purchase of another property. An experienced professional will be able to deal with all the various aspects in concluding a satisfactory sale of your property because he has the knowledge, training and experience.

Most property owners unfortunately are not familiar with how professional Real Estate Companies operate and I believe that this is one reason why sometimes they do not appreciate the time and cost involved in this business.

Promotion and Marketing

One of the most important advantages to property owners when they register the property with an Estate Agent is the tremendous exposure which their property will obtain, directed towards prospective purchasers who are on that Agent’s database. There is a vast database of clients who are constantly updated with the properties which meet their requirements that are being registered daily. Furthermore, the property will be featured in every list of properties which are daily sent out to prospective purchasers.

Another advantage to property owners relates to the marketing of the property. There is no way a property owner can market his property more effectively than through a Real Estate Company. Thousands of Liri every month are channeled towards promotions both locally and overseas. Some Companies actually have their own marketing personnel who constantly monitor market movements on a daily basis. These promotions include daily advertising in local papers, Company newsletter, overseas property exhibitions and advertising in foreign press. The Company’ website is today becoming one of the most important sources of promotion. This source on its own necessitates full time staff solely to keep it updated daily.

Through overseas representatives, some Real Estate Companies carry out extensive promotions, resulting in a number of sales to foreign buyers. Recent up-market developments have benefited considerably through these promotions.

BENEFITS TO PROSPECTIVE BUYERS

Looking for a house could be a nightmare. What comes to mind when you decide to look for a property? This is an extremely important decision and you cannot afford to make mistakes.

You want to make sure that you are given a good choice of properties. You want to make sure that you can afford that property. You want to make sure that you are paying the right market price for the property and there is nothing relating to the property which could adversely effect its future value. You want to make sure that the advice and guidance which you are given is genuine and will lead you to a fair and smooth conclusion of your home purchase.

A Professional Service

One of the qualities of a professional Real Estate Agent is his ability to identify the clients’ needs. These qualities are the fruit of intensive professional training, extensive market knowledge and experience in dealing with all types of buyers. The advice and guidance given by these individuals to prospective buyers, particularly first time buyers, is sufficient reason to seek the services of these professionals when purchasing your future home. This alone could save you thousands of Liri and provide you with peace of mind.

Choice of Properties

One of the preliminary tasks of an Estate Agent is to ensure a constant supply of saleable properties throughout Malta and Gozo, coming on its registers for sale, thus offering a vast choice to prospective purchasers. The network of offices in different areas throughout the Island ensures that all areas are covered, having each office specializing in that particular area.

A professional Agent does not stop after showing one property to a buyer, who may have come through an advert enquiry. He will follow up that client with further visits to other similar properties. If the Agent does not have the right property readily available, he will go out looking for that property and if this also proves unsuccessful, he will wait for the right property to come in and immediately take his client to view it.

Sometimes, it can take months to find the right property. We come across clients who have been taken to view 50 or 60 properties before they managed to find the right property.

Professional Agents will advise their clients on the best property which meets their requirements and will guide them through the whole process of buying the property. Through special business relationships which they have with local Banks, reputable Estate Agents can offer the best loan packages to their clients, as well as liaise with the client’s Notary to ensure a smooth transfer of the property.

Real Estate Companies also provide assistance and guidance to foreign clients in the purchase or lease of property and in taking up Permanent or Temporary Residence in Malta or Gozo. Considerable marketing is directed towards this sector by leading Agents who are coming across stiff competition from other Mediterranean localities.

The Agent as Negotiator

A process which forms a very important part of any property transaction is the process of negotiating a successful sale which is satisfactory to both the seller and the buyer. This is a very delicate stage and it is the stage where most sales could fall through to the great disappointment of both the seller and the buyer. That is why it should be handled by a professional Property Negotiator. An experienced Sales Negotiator whose only job is to negotiate and sell property and who has had professional training, stands a better chance in successfully closing a sale.

In negotiations, the third party i.e. the Agent, plays a very important role, as he can see both parties’ point of view and can thus better evaluate the whole process. Direct negotiations between buyers and sellers tend to, sometimes, involve conflict of personalities. In direct negotiations, objections by either party may not come out for fear of hurting one of the party’s feelings. A professional Negotiator will be able to assess objections and possibly overcome them, leading to a successful conclusion. The art of negotiation is too vast to go into in this Article, but this is where most Real Estate professionals excel.

THE ESTATE AGENTS COMMISSION

Estate Agents’ fees are paid by the vendor and not by the purchaser. Obviously some vendors tend to take this cost into consideration when establishing their asking price. It is absolutely not true that reputable Estate Agents put up property prices. It is not in the interest of the Agent to advertise and have on his registers unsaleable over-priced property to sell. He will only get paid his commission if he sells the property.

For some reason or another, most people dislike paying any fees for any service provided. They are prepared to pay thousands to buy a product but when it comes to services, they expect to get them for free. Estate Agency Fees are no exception. I find this fact very had to understand, when one considers what is at stake if one takes the wrong decision by not seeking professional advice. However, I must point out that to most property owners and buyers, most of the services, assistance, marketing and guidance is provided free of charge, as an Estate Agent is only paid if he successfully sells the property. An Estate Agent’s daily activities include taking out a substantial number of clients to view properties and registering hundreds of properties that are processed and marketed throughout a network of offices. These efforts do not always result in a successful sale. However, these activities still have to be paid for and, particularly in the case of a sizeable Real Estate Company, they amount to thousands of Liri every month.

These costs can only be covered by the sales which are successfully concluded.

The main objection, I believe, why people prefer not to use the services of an Estate Agent is because of the brokerage fee. This is because they are not aware of the benefits which both vendor and purchaser will enjoy by using the services of a professional Agent, as I outlined in this Article and prefer to try to sell or buy on their own. While I know of a number who have been successful in doing so, I also know of quite a few who have greatly regretted this decision.

COSTS

Operating a large scale Real Estate operation is indeed an extremely expensive business to run and the risks are high. However, I believe that it is only this way that clients mostly benefit, as this will provide them with the widest choice of properties available and the best service possible.

Most people are under the mistaken impression that all commission received by the company is profit. Almost 50% of commission received by the Company goes to very hardworking individuals who are constantly investing energy in showing clients properties and looking for property for their clients. These are the Sales Consultants, their Managers and supporting Staff. They earn a substantial amount of money and they deserve every penny of it. Real Estate Agents are constantly on the look out for such individuals.

A substantial amount of the remaining 50% goes towards marketing, advertising, telephone calls and communications, including an efficient IT system througout the offices, salaries and motor vehicle expenses. All in all these amount to a substantial figure every month and if the Estate Agent fails to reach his targets during that month it could mean a loss for the Company. This explains why a number of Estate Agents crop up every now and then but do not survive for long as the stakes are very high.

By far, the majority of buyers and sellers who have opted to use the services of a professional Real Estate Agent, have not regretted doing so. In fact most of these people have used these services more than once and have even recommended these same services to friends and relatives. I still meet clients today who, I am proud to say, still remember using a Company’s services when they bought their property 20 years ago. This is simply because the Real Estate Agent was a very important person, if not the determining factor, in the decision made at the time.

While there is no sure way to attract the right buyer for your home or to find the home of your dreams, Real Estate Agents know the best ways to represent you because selling houses is their full time job.

Are you still thinking of buying or selling your home without the services of a Reputable Real Estate Agent? If so Good Luck – You’ll Need It!!