What, in good estate agencies, are regarded as the absolute essential contributions that an agent should be expected to make to the sale process?
Asked this question recently, Nancy Todd, Business Development Manager for the Rawson Property Group in the Western Cape, said that the agent’s first task should be to help the seller set an achievable market-related price.
“That,” she said, “is not nearly as simple a task as it appears for two good reasons: the first is that the majority of sellers (perhaps as many as 70%) will have value expectations that in today’s market are simply unrealistic. These will be based on dinner table talk, on the occasional above average sale achieved on certain out-of-the-ordinary properties and in some cases on fictitious figures fed to them by estate agents hoping thereby to be mandated for the sale. Often these agents will know that their valuation is over optimistic but will foist it onto the client in the hope of adjusting it later.
It can, said Todd, take ‘major surgery’ to extract from a client’s brain a misconceived, over-optimistic price – but that is very much the agent’s duty.
“The second reason why arriving at a realistic price may be difficult,” said Todd, “is that some agents are not equipped to carry out an in-depth Comparative Market Analysis.”
Such analyses, she said, should take into account recent national and regional price movements, historic price movements, sales achieved recently in the area on similar properties (a very important part of every survey) and the extra factors which might add to or detract from the property’s value. The CMA should also assess the strength of the current demand in that area and in that price bracket. This can vary from month to month.
Reputable estate agency groups, said Todd, train their agents to do such CMAs thoroughly and show them how to present them in a typed format to the client. If for any reason, the agent is unwilling to come up with a CMA (e.g. he is too busy), that should immediately be regarded as grounds for suspicion of his overall competency.
Next, said Todd, the client has the right to expect that the agent will advertise the property thoroughly, possibly agreeing with the client on the media selected and on the sums to be spent initially.
Then, too, Todd is insistent that the agent should be able to offer some form of national exposure, usually via an IT network. This, she said, is one of the big advantages to be gained from working with groups which have a national footprint.
A good agent, added Todd, will ensure that the home is prepared for its viewings and will encourage the client to spend time and money where possible; on upgrading the garden, the paintwork or any other unfortunate features which might detract from its value. On show days the client can expect the agent to help him to prepare the home so that it is well presented and to be in attendance all day, taking the names and contact details of all visitors. (The agent, said Todd, will discourage the client from being present on these occasions because it can lead to constraint in buyers who do not wish to give offence to the sellers by criticizing their property openly.)
When it comes to negotiating with a client, the agent’s duty, said Todd, is to achieve the maximum price while still being fair to all involved.
“It is in this field that the difference between a really good agent and a weak one is most evident: good agents negotiate calmly and rationally, preserving a pleasant atmosphere at all times and relying on hard facts to back up all their statements and arguments. Poor agents turn negotiations into a battle of wills in which tempers can become frayed, irrational accusations are made and, all too easily, one or other of the parties involved walks out.”
An in-depth knowledge of property law and all the details of the deed of sale should be part of the good estate agent’s ‘armoury’, said Todd.
“Here at the Rawson Property Group we try to encourage agents to build up a relationship with a highly reputable and competent lawyer and consult with them all along the line. However one sometimes comes across the view that, as the contract will be vetted by the conveyancer, anomalies and inaccuracies are not serious as they will be put right later. The belief in our group is that the agents should be so well trained that after regular consultation all down the line, the document presented to the attorney will be 100% and will need no further input from the legal profession.”
A good agent, said Todd, will also help clients with their move, finding them reliable cartage contractors and ensuring that the handed-over house is in working condition. If disasters, such as broken pipes or failed electricity, crop up, the agent will be on hand to assist with negotiating a fair solution between buyer and seller.
“These are not, strictly speaking, part of the agent’s responsibilities or concerns, but a good agent does not put limitations on being helpful. After the sale has taken place he will call regularly to find out how the seller and the new occupants are faring in the building as post sale or post occupation depression can sometimes be encountered. He will understand that this is a fact of life and will help his clients to get through this transitional stage in their lives. The good news is that, after a month or two, both sellers and buyers see the light and realize they have done what is best for them.”
