Are low-cost home marketers delivering?

How many times have we, as consumers, walked into a shop with the intention of spending x but went home having spent more?

That was because we were attended to by a skilled sales person who had an in-depth knowledge of the products on his shelves and how best to sell them.

The point is that buyers of any product or service can be persuaded to purchase at a level above their comfort ceiling – provided the price premium is justified.

This principle certainly applies to the process of buying and selling a home.

The modus operandi, and major objective, of career estate agents is to create price tension and competition between interested buyers. In doing so, the price could be nudged upwards to the benefit of the seller.

This requires top negotiation and sales skills.

Best result

Optimum price is not the only consideration. The best result requires having the right terms and conditions in place (i.e. the deposit; length of time for a bond and guarantees to be provided; as well as occupation date and time on the market).

Furthermore, special conditions (normally at the end of a contract) need careful outlining. For example, are there any other suspensive conditions, such as the sale of another house; seller warranties; or other buyer / seller undertakings?

Top estate agents do all of this! It’s what they do best. But it is a time- and effort-consuming process. And it is far removed from the seemingly fast-track, quick-sale, online option that is unfolding in the current downmarket.

There are several digital-focused marketers of residential property out there today. They are trumpeting an exclusively online homes selling service at a nominal fixed commission. In the process, they are seemingly promoting the concept that the seller is saving money.

That is very unlikely. The point is that, for them to offer their extremely low commission rates and still be competitive, they need to eliminate a number of marketing skills and costs incurred that professional real estate companies routinely provide.

Key problem

The key problem with the digital option remains that it cuts out the skill of a seasoned agent negotiating with the buyer and pushing him or her to a higher price. At the same time, it generally dumps on the homeowner the responsibility for showing the buyer through the home, and conducting the negotiations himself.

This is unfamiliar territory for the seller.

It is simply naïve to think that compromising on a number of essential steps in a best-outcome marketing programme will still lead to optimum price or result. It won’t.

Another point is that, in showing the house, the digital seller could well be compromised by the personal discomfort of having to discuss features and perceived drawbacks that the potential buyer may raise during the viewing process.