Most property sellers are unclear as to why someone might need a vendor advocate. It’s normal to assume a real estate agent will do all the work when selling, hence there is no need to complicate a complex process. We look at what a vendor advocate does and how they can add value when selling.

 

In A Nutshell

Vendor advocates sit between the real estate agent and the property seller. There role is to make sure the seller’s property is positioned well against it’s competition on price, presentation and have the best agent in town representing them. Secondly, they make sure the real estate agent behaves ethically when dealing with vendors and buyers alike.

 

 


Five Big Problems With Real Estate Agents.

 

When dealing with a real estate agent for the first time, it can be hard to pick up on the ethical warning signs. Like with most things in life, you learn from your mistakes or when its too late. Below are some hot tips on the inner workings of real estate agents and how vendor advocates can help. 

 

  1. Agents put pressure on vendors to set a highly paid commission. Real estate agents negotiate a standard commission rate for achieving a standard result. An excessive rate of commission is negotiated if a good price is achieved. This sounds normal enough, in a strong real estate market, it’s common for a property to sell over the exceed market value with little work from the agent. In cases like this, agents can walk away with double there pay normal pay cheque.
  2. Real estate agents sell vendors expensive market campaigns that are not necessary. The advertising campaign are aimed at public exposure of the real estate agency rather than the seller’s property.
  3. When your interviewing real estate agents for the job of selling your property, agents tend to quote higher than normal prices to win your business. The agent then spends a large part of the real estate campaign reverses conditioning the vendors with negative public feedback to accept a low price.
  4. It’s common knowledge that real estate agents under quote a property’s true price to attract attention from buyers. Since early 2018, Consumer Affairs Victoria has implemented rules around under quoting, somehow, the agents still find a way to uses price quoting to their advantage.
  5. Every agent claims there the best in town, or they work for the best agency, but how do you work out fact from fiction.

 


Positioning your property against the competition.


In any metro suburb across Melbourne or Sydney, there are hundreds of properties for sale that are competing for a small pool of buyers. To get your property in ahead of the rest, a vendor advocate can give wise advice on:

 

Property presentation: decluttering, conducting minor repairs or renovations and property staging.

 

Pricing strategy & sales method: when your property hits the market, price is the main source of buyer interest. Therefor an educated decision on which pricing approach will be most effective for the campaign. For instance, to use a single price, a selling range, sale by set date or an expression of interest. Depending on the local market, they will also decide on auction or a private negotiation.
 

Marketing: Professional photos, advertising on digital sites with high buyer traffic, advertising signage and run open for inspections when it’s convenient for buyers. All these factors need to be perfect to make sure your property doesn’t stay on the market too long and become a stale listing.

 


Vendor advocates bring balance to each of the above scenarios. How? They started off there real estate carriers as agents, hence understand the whole ins and outs of selling property.

 

From staging your property for sale, organising an effective well-balanced advertising campaign, negotiating with buyers and making sure an estate agent behaves ethically.

 

The best part of vendor advocates is how they get paid. Vendor advocates take a percentage of the real estate agents commission once a sale is achieved. So the end it doesn’t cost the seller any more than it normally would. 

By Mark Ribarsky.