{"id":20418,"date":"2018-03-01T01:00:08","date_gmt":"2018-02-28T14:00:08","guid":{"rendered":"https:\/\/www.realestatetalk.com.au\/?p=20418"},"modified":"2018-03-01T01:00:08","modified_gmt":"2018-02-28T14:00:08","slug":"how-agents-set-values-chris-blakeley","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/how-agents-set-values-chris-blakeley\/","title":{"rendered":"How agents set values \u2013 Chris Blakeley"},"content":{"rendered":"

Most agents dread this question \u2013 \u201cWhat is my place worth?\u201d.\u00a0 Most sellers want more than its worth but they still don\u2019t want to let the agent know what that price is so it becomes a battle.\u00a0 Chris Blakeley<\/strong> breaks down the agents task.<\/p>\n

Transcript:<\/h5>\n

Kevin:<\/strong>\u00a0 My guest is Chris Blakeley. Chris is the regional manager for Raine & Horne.
\nTell me, how do agents go about setting a value on a property, because that\u2019s the one thing that someone wants to know when they call an agent up, what my place is worth?
\nChris:<\/strong>\u00a0 And I think it\u2019s important just to note before we go into that that agents aren\u2019t registered valuers. What an agent does is we look at the comparable sales for the area, so we try to find a home that\u2019s very similar to yours with fixtures and fittings, block size, bedrooms, bath, car, and we try and compare that to yours. But then we also try and predict what\u2019s happening in the market in the future for the next three months, what\u2019s going to be happening with the buyers.
\nSo, quite often, we will have an optimistic view about what\u2019s going on compared to the valuer who\u2019s just looking purely at historical data.
\nKevin:<\/strong>\u00a0 One of the things that most agents\u2026 Well, I\u2019ll talk personally now. One of the things that really scared me was going to do an appraisal and that expectation of the owner wanting to know the price. It almost becomes like a competition, because my experience is that most sellers want more than their house is worth. Everyone has an over-inflated opinion of value. They have a right to expect that, but they judge the agent based on the price they give.
\nChris:<\/strong>\u00a0 And I think it\u2019s at that point that you go back to the agent and test their knowledge and get them to justify why they\u2019ve come up with that price. If they have the facts and figures there, I guess you cannot argue with that.
\nKevin:<\/strong>\u00a0 It\u2019s difficult to change a seller\u2019s mind, though, if they have an over-inflated opinion of value. The value of the property is not the only reason you should appoint an agent.
\nChris:<\/strong>\u00a0 No, definitely not. It has to be the skills. It has to be the plan of attack that they have around the property of how they\u2019re going to market it to find the best buyer for your home. Price is just a small part of it. At the end of the day, it\u2019s not the agent that\u2019s buying. You\u2019re not buying it. It\u2019s the buyer who\u2019s out there.
\nKevin:<\/strong>\u00a0 Let\u2019s talk about auction and marketing for a moment. With the Internet nowadays, most agents, most smart agents who have a fairly good database, they collect lots of data on buyers, people they meet who come to open homes and so on, is it reasonable to expect that an agent may do a little bit of soft marketing before spending any money? That is going to the database and saying \u201cWell, let\u2019s just see if I can find a buyer for you?\u201d
\nChris:<\/strong>\u00a0 I think it\u2019s really important to do that before you hit the market full noise. You invite that database of buyers in for maybe a VIP inspection prior to the open market coming to it. But a good agent will hold anyone who\u2019s interested in that little group of buyers over until it is released, and that\u2019s just to create that competition. We all know that competition drives price. Let\u2019s get those people through, get the interested ones, and then take it to the first open home and then put them in competition with the rest of the public.
\nKevin:<\/strong>\u00a0 Is it a misconception to think that the agents who get the most marketing \u2013 these are the ones who are most dominant, in either the Internet or on press \u2013 are the ones who sell the most properties?
\nChris:<\/strong>\u00a0 Nine times out of ten, they probably are selling the most property because they\u2019re meeting the most amount of buyers out there and getting them through your property. I guess they\u2019re just covering all bases to make sure that they know they have you the best price possible.
\nKevin:<\/strong>\u00a0 So, shouldn\u2019t the agent be paying for the marketing?
\nChris:<\/strong>\u00a0 Well, it\u2019s like when you go to the mechanic, I guess. Do you ask them to pay for all the tools and oil and everything to service your car? All the agent is doing is asking you to give them the tools to do their job properly.
\nKevin:<\/strong>\u00a0 How much should someone spend on marketing their property?
\nChris:<\/strong>\u00a0 There\u2019s no hard and fast rule. I guess it comes down to your situation, and I think the agent needs to acknowledge your situation, too, So, if you are very budget-conscious and they need to work with what you can give them, they should know every tool available to them in the market to make sure that they can hit as many people as possible.
\nKevin:<\/strong>\u00a0 Is it reasonable for a seller to want to take the cost of the advertising out of the sale proceeds when it\u2019s settled?
\nChris:<\/strong>\u00a0 The commission and the marketing are two different things. The commission is a service fee. You are paying the agent for the work that they\u2019ve done. The marketing is the tool. So, I think you have to keep those two things separate.
\nKevin:<\/strong>\u00a0 There\u2019s been a lot of criticism of open homes. Neil Jenman, as an example, has come out and said you shouldn\u2019t do open homes on your property because it\u2019s a major security risk. Is it a security risk? And if it is, how can someone protect themselves?
\nChris:<\/strong>\u00a0 It\u2019s always important to make sure you do remove all your valuables from the property before you have an open home. But I don\u2019t believe it is a security risk. Agents these days are asking for your name, e-mail address, phone number before you\u2019re allowed to enter an open home. It\u2019s purely a security thing. If anything does happen during that open home or afterwards and the police need to be notified, we can say \u201cThese are the people who attended the property.\u201d
\nKevin:<\/strong>\u00a0 I think most people are reluctant to give all that information for fear that the agent is going to follow them up, but really, there\u2019s nothing wrong with that; that is the agent\u2019s job.
\nChris:<\/strong>\u00a0 That is the agent\u2019s job, and most of those buyers are going to be sellers one day and they\u2019ll want to know that the agent is going to do their job.
\nKevin:<\/strong>\u00a0 That\u2019s a good point you make, because that\u2019s actually how you can pick a good agent as one who follows you up well as a buyer.
\nChris:<\/strong>\u00a0 Absolutely. I would expect a good agent would have at least touched base with that buyer that afternoon and probably again early that week just to gauge their interest. And it\u2019s just because they\u2019re doing their job. They want to give that feedback to the seller and say \u201cThis is what the marketplace thinks of your home.\u201d
\nKevin:<\/strong>\u00a0 As an industry, we know that all agents should follow-up. You should follow-up every buyer that you do. But you only have to go to an open house, as I do, from time to time. I don\u2019t necessarily do it to test people out. I generally want to know what\u2019s happening in the market. But it is surprising how many agents don\u2019t follow you up.
\nChris:<\/strong>\u00a0 It\u2019s appalling.
\nKevin:<\/strong>\u00a0 Why is that, if we know, as agents, that\u2019s that is how we build a database?
\nChris:<\/strong>\u00a0 I always say if you going out to select an agent, you secret shop them first, anyway. You go to their open homes and if they\u2019re not following you up, they shouldn\u2019t be on the shopping list.
\nKevin:<\/strong>\u00a0 That\u2019s a very good way to pick an agent.
\nChris:<\/strong>\u00a0 Absolutely. That\u2019s the first step that I would do when I was picking an agent.
\nAs an industry, I think we need to acknowledge that this is what people are expecting these days. They\u2019re expecting the follow-up. They want to know what\u2019s going on with their homes once it\u2019s listed. We really need to get better at that. We need to be doing our weekly reports and saying \u201cThis is the activity that I\u2019ve done, this is what it\u2019s created, and this is the feedback from it.\u201d
\nKevin:<\/strong>\u00a0 Yes. There you go. Great advice and if you\u2019re looking to employ an agent, make sure that you secret shop them. The best way to do it is to go and check out a few of their open homes, maybe even go to a couple of their auctions and see how they perform at the auction, as well. Lots of things you can do, but don\u2019t just judge it purely on the price they give you or how you perceive them to be in terms of their own marketing in the area. Test them out.<\/p>\n","protected":false},"excerpt":{"rendered":"

Most agents dread this question \u2013 \u201cWhat is my place worth?\u201d.\u00a0 Most sellers want more than its worth but they still don\u2019t want to let the agent know what that price is so it becomes a battle.\u00a0 Chris Blakeley breaks down the agents task. Transcript:…<\/p>\n","protected":false},"author":176692471,"featured_media":20419,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,11,13,36,22,23,25],"tags":[101],"class_list":["post-20418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-kevin-turner-sponsored-channels","category-kevin-update","category-latest-story","category-property-investment-topic","category-research-topic","category-selling-a-property-topic","category-sponsored-channels","tag-podcast"],"yoast_head":"\nHow agents set values \u2013 Chris Blakeley - Realty Talk<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/channels.realty.com.au\/realtytalk\/how-agents-set-values-chris-blakeley\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How agents set values \u2013 Chris Blakeley - Realty Talk\" \/>\n<meta property=\"og:description\" content=\"Most agents dread this question \u2013 \u201cWhat is my place worth?\u201d.\u00a0 Most sellers want more than its worth but they still don\u2019t want to let the agent know what that price is so it becomes a battle.\u00a0 Chris Blakeley breaks down the agents task. 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