1. They think that there is no other viable alternative. Some people even think that they are legally required to use a real estate agent to sell their property, while others think that choosing between three or four agents is having choice enough. What they don’t realise is that in reality, these three or four agents from different agencies will be working in the same system, playing by the same rules, and using similar tactics, even if they have slightly different approaches. In addition, they will all charge you a commission and most likely, a hefty marketing fee. There are much better alternatives (other than a private sale) that can provide superior results that no traditional real estate agent can. Most people are simply not aware of them.
2. People forget.Even if people have had a previously unpleasant experience, they will sell with a real estate agent again, because this is the kind of transaction that most people only engage in once every seven to ten years on average. Generally, this is enough time for most people to forget the experience, even if it was unpleasant.
3. The large cost of using agents is disguised.The cost – however horrendous – comes out of the equity in the property, so it doesn’t hurt so much. People are not handing over thick wads of hundred dollar bills or clicking on the ‘transfer’ button to pay the agent $15,000, $20,000 or $30,000. People never see the money they pay to their agent and so they don’t feel the pain of paying it.
4. Lack of knowledge about what really sells a property.Most vendors don’t understand what makes people buy property, or put another way, they don’t understand what factors contribute to the successful sale of a property. This is ironic considering that most people, who are selling, will have bought at some stage, and if they reflected on the circumstances of their purchase, they would gain some valuable insights into what made them buy in the first place.
Most people who really think about what made them buy their home will admit that the agent had very little to do with not just their buying decision, but much of the rest of the process.
If vendors really appreciated the recipe, or the process that lead to a successful sale, they would look for other alternatives to the very expensive traditional real estate agents. Agents know this and so they play their cards very close to their chests, revealing little about this recipe or the components to a successful sale. They know that if they don’t hoard this information, they will quickly become irrelevant.
5. Conditioning by the industry.
There are a number of myths that people have been conditioned to believe about this industry. These myths have become deeply entrenched in the Australian psyche over several decades, thanks mainly to conditioning by the real estate sales industry. Some of these myths are:
- Real estate agents actually sell properties.
- Real estate agents do all the work and and make the process easy and convenient.
- Real estate agents have a database of buyers.
- Open homes are the best way to display your home.
- Real estate agents are expert negotiators who always achieve the highest price.
- As local area experts, real estate agents know the market better than anyone and as a result will always achieve the highest price.