{"id":6200,"date":"2015-11-01T01:00:21","date_gmt":"2015-10-31T14:00:21","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=6200"},"modified":"2015-11-01T01:00:21","modified_gmt":"2015-10-31T14:00:21","slug":"8-key-questions-most-sellers-dont-ask-agents","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/8-key-questions-most-sellers-dont-ask-agents\/","title":{"rendered":"8 key questions most sellers don\u2019t ask agents – Tim Eaton"},"content":{"rendered":"

 
\nThere is a great book I want to tell you about today \u2013 its called The Real Estate Matchmaker. In it,\u00a0Tim Eaton<\/strong>\u00a0sets about explaining the 8 key questions most sellers don\u2019t ask agents to guarantee they never leave any money on the table when negotiating the sale of a property. You will hear them in the show today.
\n <\/p>\n

Transcript:<\/h4>\n

Kevin<\/b>:\u00a0 I told you I\u2019d tell you about a book that\u2019s been written by Tim Eaton. It\u2019s one of two books actually that Tim has sent me, but today, we\u2019re going to talk about the one that\u2019s called \u201cThe Real Estate Matchmaker\u201d because inside the book, he gives you the eight key questions that nobody asks to guarantee that you never leave money on the table.
\nFirst of all, I\u2019ll say hello to Tim. Good day, Tim.
\nTim<\/b>:\u00a0 Good morning, Kevin. Good to be here.
\nKevin<\/b>:\u00a0 I\u2019ve been trying to put together a list of key questions that you should ask every agent before you appoint them, but the thing that I\u2019ve found is that quite often we can ask the questions but we just don\u2019t know what kind of answers we should be expecting because agents are very good at not spinning but selling themselves, Tim.
\nTim<\/b>:\u00a0 Yes, spinning is not an unfair word sometimes, Kevin. Yes, that\u2019s true. They\u2019re looking to convince the homeowner why they should choose them and selling the big story about themselves. The great agents sometimes appear a little intrusive. They\u2019ll ask questions of the homeowner, which is the best way to get a conversation going.
\nKevin<\/b>:\u00a0 Yes, you have to understand about the person. A house is a house. It\u2019s the person you\u2019re actually either taking to auction or taking through the sale process.
\nTim<\/b>:\u00a0 Absolutely.
\nKevin<\/b>:\u00a0 Yes, I did promise that we\u2019d go through the eight key questions. We\u2019re not going to be able to talk about them all in detail, but we\u2019ll certainly get across the top of them. There\u2019s one in particular I want to talk about, and then I think over the next few weeks, we might pick up on some of the others. Let\u2019s quickly run through what are the eight key questions that need to be asked or understood about how an agent works, Tim.
\nTim<\/b>:\u00a0 The subtitle of the book, Kevin, is that everything sells best fresh. The first of the eight keys is days on market. It\u2019s a terminology that is a bit of jargonized within the industry called the DOM, or days on market. It means how long has the property been on the market before it sells, and the earlier it does that, the better.
\nKevin<\/b>:\u00a0 The measure of a good agent is that their days on market is likely going to be less than their opposition or the market generally.
\nTim<\/b>:\u00a0 Absolutely, and that information is available to the homeowner. It\u2019s free. It\u2019s on public websites. What is the average days on market in that area? You want to see your agent would be less than the average in the area.
\nKevin<\/b>:\u00a0 Okay, second one.
\nTim<\/b>:\u00a0 Auction clearance rates. This won\u2019t apply to every jurisdiction in Australia, but for most of them, you want to see high auction clearance rates. An agent who\u2019s bringing properties to auction, getting somewhere between seven to eight out of ten sold under the hammer, that\u2019s fantastic. Most of those will get sold. If they\u2019re not sold on the day, they\u2019ll get sold shortly after.
\nKevin<\/b>:\u00a0 Yes, a lot of focus is currently on what\u2019s happening with clearance rates in Sydney, and we\u2019re seeing that\u2019s a good indicator that that particular market is actually slowing down. What\u2019s number three, mate?
\nTim<\/b>:\u00a0 Private treaty average discounts. The house that we call for sale \u2013 with a \u201cfor sale\u201d sign \u2013 that\u2019s called a private treaty. It\u2019ll get listed at a first starting price. Let\u2019s say it gets listed at $500,000. Most properties at that point have a little bit chipped off the top of them before they\u2019re negotiated to a sale price. The percentage that they come down is what we call the average discount. With your agent, you want to see that to be a very low figure \u2013 they start at much closer to where it finishes.
\nKevin<\/b>:\u00a0 Number four?
\nTim<\/b>:\u00a0 Number four is the ratio of private treaties to auction that your agent has. Are they in offices with a great sense of urgency, that they bring to their properties, that they bring to the market? Offices that have a high ratio of auctions tend to have a higher sense of urgency. That feeds back into the first key: they\u2019ll probably have lower days on market.
\nKevin<\/b>:\u00a0 I\u2019m going to dig more into some of these topics in the coming weeks, as well. What\u2019s number five?
\nTim<\/b>:\u00a0 Five is the vendor\u2019s investment in promotion. There\u2019s an old-fashioned saying, Kevin. You\u2019ve probably heard it. You can\u2019t sell a secret.
\nKevin<\/b>:\u00a0 That\u2019s right.
\nTim<\/b>:\u00a0 The homeowners have to be prepared to put a bit of money on the table to invest in the marketing of their property to attract an emotional buyer.
\nKevin<\/b>:\u00a0 Yes, that\u2019s always cause for a lot of debate. \u201cWhy should I pay for the advertising when it\u2019s all going to be about you and so on?\u201d But I don\u2019t want to get into that debate today; I\u2019d love to have it in the weeks to come. What\u2019s number six?
\nTim<\/b>:\u00a0 Number six is surveys. You\u2019ll probably find that when the agent is sitting down with the homeowner looking to bring their property onto the market, they\u2019ll put some testimonials down from their previous selling clients.
\nIt\u2019s very strong if the agent can have both surveys done from buyers and sellers. If you have a good report from the buyer and from the seller, you have an agent who\u2019s got a tremendous ability to create rapport and that\u2019ll always end up with getting a better price for the homeowner.
\nKevin<\/b>:\u00a0 Number seven?
\nTim<\/b>:\u00a0 Guarantee of service, Kevin. It\u2019s a big one. When the homeowner is prepared to make their commitment to presenting the home as well as they have, when they have been prepared to put some investment into their marketing, your agent should be able to guarantee that \u201cIf we don\u2019t do what we said we\u2019re going to do, you can just tear up the agreement.\u201d
\nKevin<\/b>:\u00a0 More and more agents are using them now, too, so you should expect your agent to have one. The final one is the one that I want to spend another minute or two talking about. What is it?
\nTim<\/b>:\u00a0 It\u2019s an odd one, Kevin. It says: your fee is the highest in the area.
\nKevin<\/b>:\u00a0 Yes, now why would you want to do that as a seller?
\nTim<\/b>:\u00a0 We can look at the implications, Kevin, of why would you want the lowest fee? That appears to be obvious. It appears at a glance that that\u2019s a good deal, but really, if you were choosing any other profession \u2013 in the book, I use an analogy of a medical professional \u2013 would you be going looking for a heart surgeon who\u2019s the cheapest, or do you just want the best?
\nThe implications here for the homeowner are that the quality in the service and the ability of the agent you choose has a massive input on the outcome that you\u2019re going to have. You should be looking for somebody who is able to justify being the best in their area.
\nThe competition will know that. The competition will either be able to match that higher fee or they won\u2019t be able to. They simply won\u2019t be able to match the service and the outcome so you should be looking for somebody who is able to justify the best fees in the area.
\nKevin<\/b>:\u00a0 I work with a lot of top agents, and the thing I know about them is that they\u2019re not afraid to ask for the top fee, but demonstrating how they can actually earn that is because they demonstrate how good a negotiator they are. Some of them actually will say, \u201cWhen I get a buyer, this is how I\u2019m going to negotiate.\u201d They can actually tell you how they\u2019re going to negotiate to give you confidence.
\nTim<\/b>:\u00a0 It\u2019s chapter six, Kevin, negotiation. It\u2019s \u201cShow me, and show me the money.\u201d You should be able to demand of your agent, \u201cDo it for me right now. Show me exactly how you\u2019ll be doing it for me.\u201d
\nKevin<\/b>:\u00a0 Yes, you\u2019re going to hear a lot more about this book and this man too. \u201cThe Real Estate Matchmaker\u201d is the book. Timothy Eaton has been my guest.
\nHey Tim, we\u2019re out of time, unfortunately, but I want to catch up with you again in the weeks to come. We\u2019ll talk about a couple of the other eight key questions you need to ask to make sure you don\u2019t leave any money on the table.
\nHey, Tim, thanks for your time.
\nTim<\/b>:\u00a0 My pleasure, Kevin. Thanks for having me.<\/p>\n","protected":false},"excerpt":{"rendered":"

  There is a great book I want to tell you about today \u2013 its called The Real Estate Matchmaker. 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