Leap of faith; noun. An act of believing in or attempting something whose existence or outcome cannot be proven or known.
Assuming you’re a property owner, and naturally you want to achieve the greatest amount of money from your sale or rent; I’m going to make a recommendation which may initially seem counter-intuitive. If you’re wanting to rent or sell your property, put all your eggs in one basket – entrust a single company with marketing it. This may seem counter-intuitive because the market is perceived to be quiet; not so. While yes, the market is price sensitive, there is no shortage of potential buyers or tenants and it is the perception that there is a shortage which fuels buyers and tenants to continue to offer ever lower amounts for their next potential home. We’ll come back to that leap of faith definition.
The economics are simple supply and demand; more buyers than sellers creates urgency, demand, and values rise. Conversely, more sellers than buyers provides greater choice and buyers assume control. With this rudimentary premise in mind it makes sense that the more companies who advertise the same property, the greater the illusion of choice and by extension, stronger bargaining power. Advertising your home with multiple companies is technically bidding against yourself.
The next counter-intuitive argument is that a property receives limited market exposure as a result of advertising with only one company. Again, this is not necessarily true provided the company who is entrusted with marketing the property has a measurable, multi-faceted strategy. There are a limited number of digital portals which buyers, tenants and brokers review daily. If the property is advertised professionally and priced correctly the buyer, tenant or broker will contact your appointed realtor to arrange a viewing. The reality is your buyer/tenant doesn’t have to be registered with your appointed realtor, their own appointed broker will find your property on their behalf. In addition to this reactive marketing solution you should also expect a robust and measurable marketing plan which includes exploring your designated companies own database of registered buyers or tenants – ideally current and historic. Note, prices are more affordable than they have been – a buyer/tenant who was registered in previous years was expecting to pay more for your home, they must be contacted. In addition to all the above you’re ideally looking for a company who operate their business as a series of community specialists, with dedicated teams who operate solely within a specified geography. A team of three experienced brokers working together within the same company are much more effective than employing three different companies.
By limiting the number of companies the property is marketed by, you manage the deliverables (the viewings) with much more efficiency. Unfortunately, too many of us have experienced the frustration of a company arriving later than arranged, usually at the time the children are going to bed! Similarly, too many owners, or tenants, have endured the experience of conducting the viewing themselves as a result of the broker simply failing to attend the viewing. What is undoubtedly disappointing for you as the home owner can become a deal breaker for your incumbent tenant, who from sheer frustration, may flatly refuse future viewings to be conducted on your property. Instructing multiple realtors can actually become the reason why you are physically unable to sell your home as a result of your tenant not allowing viewings to be conducted.
Empowering an established real estate company to represent you exclusively, for a finite period of time, can actually lead to an enjoyable home selling process. However, you should meet, and vet, a number of realtors before you decide who to trust. Do not simply instruct the company who provides the highest valuation – this may be their ploy to initially snare you, only to reduce the selling price over time. You should expect to be presented with a marketing strategy, linked to timelines, which then forms a measurable and accountable business plan which in turn is used to monitor the performance. Agreeing a fee for the service (provided you see value in the service) will ensure your appointed broker is working for you, and will naturally sharpen their focus on delivering a timely and professional conclusion to their marketing efforts.
Finally, if we assume most properties currently being advertised are being advertised by multiple companies; and then we experience a paradigm shift of homes being marketed on an exclusive or sole arrangement, we should ultimately expect a significant drop in the number of homes being advertised. We then revisit the simple economics of supply and demand and we should expect the weighting to be more in favour of the homeowner. Now, does that leap of faith still appear to be an outcome that cannot be proven or known?