The Worst Question in Real Estate
“How Much & How Much”??
How much are you going to get me and how much do you charge?
This is the most dangerous question you can ask a real estate agent as an initial enquiry.
Why?
The question seems reasonable and a logical starting point when interviewing a potential agency.
It is known in professional agencies Australia wide as the “King Hit” question.
It places quality agents and agencies at a complete disadvantage and opens the door for cheap poor performing or pop-up agencies/agents.
You are now at high risk of becoming carrion for the worst agencies to prey upon.
The prospective client becomes seduced by the low fee and high quote so engages with this agent on the assumption that all agencies are the same or at least have no significant points of difference to dissuade them otherwise.
When it comes to Asset Management proof of a strong track record in selection of quality tenants should be paramount in any investor’s thoughts. Therefore, that agency should be proficient in their management of tenant enquiry traffic.
Shop the agency as a potential tenant and see how your enquiry was handled.
What viewing options were offered? Direct appointment, open home, walk through tour, 3d virtual tours, FaceTime appointment.
If the agent just tries to funnel everyone through at one single open home timeslot, then you are possibly disqualifying your best tenant an opportunity of viewing the property because of work commitments, family obligations, other appointments, health etc. If you are offered the agents mobile number…how long till they respond or do they even?
A healthy number of positive reviews and testimonials often helps sort the wheat from chaff as a starting point.
What points of difference should…make a difference?
What service guarantees do they offer if any?
Do they have their own maintenance team or do they rely on third party contractors?
Do they exclude prospects who have not viewed the property directly?
Is there an on-line booking system that prospects can utilize to choose a time that suits them?
Are marketing costs included in fees and what do they cover?
What do their inspection reports look like? You really need to see this as so many agents take massive short cuts to save time and money…more often the agent is oblivious to issues until a tenant is vacating and are then faced with a dispute situation whereby, they don’t have the evidence to challenge the dispute in a tribunal or court hearing.
The Clincher
Search realestate.com “Oldest to Newest” the agencies with a large number of listings on the back four pages will be the ones most likely of over quoting and not being able to manage their tenant’s enquiry traffic. These listing have been on the market for months not weeks which is an exorbitant amount of lost rental earnings for the property.
Remember every week your property is vacant is a 2% loss on your annual income!
Ideally reframe the question to “What services are included in your fee package?”
