Melbourne's cooling property market has put the heat on real estate agents and seen vendor advocacy usage rates soar. In this post, we'll explain why many sellers are questioning the relationship with real estate agents, and choose to use vendor advocates instead.
You may be thinking that a vendor advocate is just another costly middleman within a costly process. However, you'll soon see that this is not the case.If your thinking about selling your property and you worry about achieving your asking price in a jittery market, then read on.
If your thinking about selling your property and you worry about achieving your asking price in a jittery market, then read on.
In Melbourne, selling a property by Auction is very popular. By contrast, selling a property by Auction in the UK is rare. What's going on here?
The biggest advantage of selling by Auction is that with increased buyer competition, the chances for a property selling at the highest possible price is increased. Emotion can also come into play as bidders have to make quick decisions. This can result in buyers paying in excess of what the property is worth.
This obviously works well in a buoyant market. However, an auction may not be the best way to sell your property in a market that is stagnant or falling. In this case, the competitive bidding environment may not eventuate on Auction day.
As a vendor, you need to be aware of real estate agents who are committed to the Auction process when it may not be in your best interests. An auction is attractive to some real estate agents as:
- The vendor has to commit to the sale of the property early. They 'invest' money in marketing and other expenses so by the time auction day comes around, if they don't sell, they stand to lose tens of thousands of dollars.
- The auction process can take as little as 6 weeks from start to finish. A real estate agent can better manage their time and resources when the sale process is rigid and fixed.
Vendor Advocacy usage rates are skyrocketing in Melbourne as the market starts to worry about property prices. Vendors are considering their options rather than blindly stumbling into the auction process.
Jmac Vendors Advocacy will sit down with you and understand your unique situation and requirements. We'll look at the type of property you own and the latest market conditions before designing a selling process to match.
For example, you may want to test the market before you decide to sell. During this phase, we would minimise advertising and marketing expenses until feedback from the market is received.
Interestingly, it’s very common to sell a property during this test phase. This is especially true in a rising market, where buyers will be queuing up to make offers on the back of a simple and inexpensive “realestate.com.au" listing.
The fees for a vendor advocate are often more flexible than a real estate agents. If you decided not to sell after the test phase, this would further limit your costs.
JMAC Vendor Advocacy is a fully licensed real estate agent and we do not need to outsource any work relating to the sale of your property. We take full responsibility for the sale of your property from start to finish. However, we can also act as an intermediary and appoint a suitable real estate agent if your situation demands.
As always, always consult the experts for advice.
Call JMAC on 0417-505-851 to get advice on your unique set of requirements.