When approaching the sale of a property for the first time, choosing the right strategy always implies some thought and comparison of the various opportunities that the property market can offer. In the first part of this guide, we looked at the possibility of selling free of intermediaries, with a practical 15-question checklist to learn about all the possible implications. We now move on to examine the next two cases: the free assignment and the exclusive assignment.
2. ENTRUSTING A FREE SALE ASSIGNMENT TO SEVERAL REAL ESTATE AGENCIES
Entrusting the sales assignment to several agencies generates a surprising number of issues, the most significant of which is the lack of or poor follow-up of the market and of the advertisements performance, which are published on multiple channels.
The second major problem lies in the management of relationships with the agencies. For any professional, the best opportunity is to consolidate a relationship of trust with the client, towards whom they focus the maximum commitment and resources in order to achieve a common goal. In the presence of an open sales mandate, the message that the owner conveys to agencies is the opposite:
‘I don’t trust anyone, whoever comes first and whoever is best will sell my property‘.
What may appear to be a healthy stimulus to competition, instead puts the agency or professional in the position of pouring their efforts into other properties, those most likely to lead to proper recognition for their work and a smooth and reliable sale.
For these reasons, with a free assignment, very few agencies offer the possibility of verifying the performance of published advertisements, and none are willing to offer comprehensive advice. Moreover, potential buyers will see the property on many different websites, promoted by many different brands. We will see below how these factors can contribute to property devaluation.
Sale assignment granted to various agencies with different prices: how it will depreciate your property.
The value placed on the property at the start of the buying and selling process may vary depending on the agencies handling it. This is a scenario that may seem unlikely, yet once the property is advertised for sale, any of the agencies to which you have entrusted your free sale assignment may decide, in its sole discretion, to lower the value of your property. There are cases where the price adjustment is legitimate and justified, but let’s analyse what happens when this occurs because several agencies are competing for recognition of a sale with uncertain outcomes.
This situation generates a chain of consequences: a price cut, published online, is visible both to other agencies and to your potential buyers. The former will aim to match the asking value, but will provide different reasons and information to anyone who asks for it. The latter will think that the price drop and lack of transparency may mean that the property is worth less than stated, and that it is therefore still possible to bargain down.
By posting your sales ad on several channels and with multiple agencies, you gave the impression that you were in a hurry to sell under any conditions. Now that the price fluctuation has occurred and the differences between the approaches of the various agencies have become more evident, your property is in danger of losing credibility on the market.
The real winner in this situation will only be the agency that has attracted the interest of buyers at the lowest price.
Some agencies systematically implement the technique of discounting in order to receive offers, a method that we professionals of the Great Estate group consider deeply disrespectful, both to the owner and to the market.
However, there are thousands of such cases, leading to the following consequences:
- A suspicious approach from potential buyers
- Agencies inclined to sell at all costs rather than at best value
- Inferior attention and services provided by agencies
- Low profile and non-exclusive property visibility
Having verified the critical issues of selling without intermediaries and giving a free mandate to many agencies, let us discover together a possible optimal solution to sell your property at the best value and in the shortest possible time.
3. HOW THE SHARED EXCLUSIVE ASSIGNMENT WORKS – The My Agent service
If you are thinking that it is too early to entrust the sale of your property to a single agency, or you still believe that having several resources may be the best strategy, our advice is to make a selection of the 2 or 3 top agencies that could share the sales mandate.
The most effective way to do so is to check that the chosen agencies meet the same quality standards: below you will find some hints for selecting the right agency.
- History. A company that has performed very well over the years is statistically more likely to do so in the future and thus also for your property. (See the success stories of the Great Estate group).
- Services. It is essential that the real estate agency or professional of reference offers you an established working method, put into practice in a systematic and efficient manner. Ask to be told, clearly and transparently, what services are offered to you for the valuation, promotion and performance analysis of your property.
- Fairness and professionalism. Choose an agency that is based on these values and ensures that they are upheld throughout the process, even better if this agency has a code of ethics. Market fluctuations, marketing investments and further cases that you can analyse by continuing to read our in-depth articles, if approached with an ethical approach, will always ensure that your interests are respected.
- Structure. At present, an agency consisting of less than 5-6 professionals is unlikely to be able to provide you with comprehensive advice, as skills need to be increasingly specialised and supported by digitisation and internationalisation initiatives.
- MLS strategy (agreements with other agencies). Working with one professional using innovative collaboration systems, you will get the best advice and a one-stop shop. At the same time, you will be able to count on many agencies to present your property to their clients. Always remember that it is not important for you to have a large number of advertisements, but to have the right and effective ones and, above all, to present your property to the right clients.
In conclusion, keep in mind that recognising the capabilities of your agent or organisation through a fair rate will lead them to invest the maximum on your property. For an extra 1-2% in brokerage investment, you can achieve higher goals of 15-20%, with a realistic gain of 13-18%.
Now that you have a better knowledge of the subject, have you thought about how convenient it would be for you to start from point 3, by entering into a path of trust with a structured and competent organisation?
You can do this thanks to the “My Agent” service: the sales assignment of the Great Estate group that allows you to place your property on the market in an exclusive way, with the aim of achieving the best possible result in terms of time and profitability.