How to incentise Estate Agents Work Harder

linda_brew

warwicktiger wrote: »

Really incentivise them!

Eg, if they want 2% to sell your £200k house they stand to make £4k, but if they recommend you accept an offer of £190K they still make £3800, costing them £200, costing you £9800. So, do a deal, offer them 20% of the sale price over £180K. If thy sell the house for £200K they still get £4K, but if it sells for £190K they only get £2,000. This has worked for me before, suddenly they are losing 20p in the pound for sales under their valuation instead of 2p!

When they tell you what they can sell your house for, in my example £200K, look them in the eye and ask, so you can really get £200 K for my house? If so, what have they got to lose?

the best answer yet!!!

sounds very constructive.

The agent she wants to go with valued it at £250k along with 2 others. One agent at £245k.

Sis thinks it should realistically fetch £240k, maybe if she offer 20% of anything above £240k its ok or do you think a different figure? Over £250k may be unrealistic given stamp

googler

linda_brew wrote: »

4 valuations received. £245k, £250k, £250k and £250k. Sis thinks it should realistically fetch £240k, so she is not wildly optimistic about the price. Was thinking of putting it on for either £250k or a little over.

Madness. No-one will buy at a little over £250k. Folks won't tend to look at just over £250k.

Pricing at or just below £250k sends the message to viewers that you know what's what, and you're looking to sell at close to the threshold (say £248, 249k....)

chewmylegoff

googler wrote: »

Madness. No-one will buy at a little over £250k. Folks won't tend to look at just over £250k.

Pricing at or just below £250k sends the message to viewers that you know what's what, and you're looking to sell at close to the threshold (say £248, 249k....)

i don't think it really is madness to list at just above £250k, if you want to get £250k, you're unlikely to achieve that by listing at £250k IMO. people intending to pay no more than £250k will still look at stuff priced quite a bit over that, intending to make lower offers. i certainly did anyway, albeit with a different stamp duty band.

brit1234

linda_brew wrote: »

4 valuations received. £245k, £250k, £250k and £250k. Sis thinks it should realistically fetch £240k, so she is not wildly optimistic about the price. Was thinking of putting it on for either £250k or a little over.

So with 4 estate agents overvaluing to get business you won't get a quick sale. Better lowering the price well below £250k.

By the way what are similar properties selling for in the area, that is a better indication than estate agent valuations.

nollag2006

warwicktiger wrote: »

Really incentivise them!

Eg, if they want 2% to sell your £200k house they stand to make £4k, but if they recommend you accept an offer of £190K they still make £3800, costing them £200, costing you £9800. So, do a deal, offer them 20% of the sale price over £180K. If thy sell the house for £200K they still get £4K, but if it sells for £190K they only get £2,000. This has worked for me before, suddenly they are losing 20p in the pound for sales under their valuation instead of 2p!

When they tell you what they can sell your house for, in my example £200K, look them in the eye and ask, so you can really get £200 K for my house? If so, what have they got to lose?

I've used this model before, and it works well.

She needs to put it on at, or just under, the £250 mark for stamp duty.

I also wouldn't counsel using multiple EAs. It makes me nervous when I am buying property to see it marketed by multiple EAs.