What to look for in an estate agent
Category Seller Advice
Knowing what to look for in an estate agent is vital because the right property practitioner will help you achieve your goals and make the experience of selling your home a good one.
But choosing an estate agent is not always easy. There are tens of thousands of realtors in South Africa. With so many agents out there, you can take your pick.
Because South Africa's real estate industry is well regulated, most estate agents are capable of handling the sales process. But when you're selling your house, you don't just want someone who knows how to close a deal. You need an agent on your team that understands your needs and has the know-how to help you achieve your goals.
Telling a good agent from a great one is luckily not as complicated as it sounds. In this article, we're sharing all the hallmarks of a great estate agent so you can weed out your list of potential realtors to find the perfect one to sell your house.
But first: What are estate agents?
There are registered estate agents, and then there are people out there who have helped sell a house somewhere in the last few decades. Not everyone who's sold a home in the past can be considered a property practitioner - and with good reason.
Any person who participates in helping to sell property, whether they are an estate agent or work for a company involved in real estate, has to be registered with the Property Practitioner Regulatory Authority (PPRA), previously known as the Estate Agency Affairs Board (EAAB). This is to ensure that property practitioners remain accountable for their actions.
If someone approaches you to sell your home, you need to ensure that they are a registered property practitioner. Verifying this is not rocket science. If the estate agent says they work for an estate agency, you can easily check whether their name is listed on the agency's website or give the company a call.
You can even ask the agent for their Fidelity Fund Certificate (FFC) and give the PPRA a call on 087 285 3222 to verify this.
Why does it matter that you choose the right real estate agent?
Anyone can sell a house, right? Wrong. Finding a buyer for a property is only one of many steps that need to be completed before your home is considered sold. Even if an estate agent knows the sales process, they could be a bad fit for your needs.
When you're just commencing the process of selling your home, it's hard to imagine any stumbling blocks along the way, but the sales process is never an entirely smooth one. It takes the right agent to make the process effortless, and that's where your choice of the right property partner will make all the difference.
If you choose an estate agent without careful consideration, you could end up selling your home for less than necessary. You could also end up waiting for a long time for a buyer, and not every homeowner can afford to put their life on hold until their house eventually sells.
Worse yet, the wrong realtor will spoil your experience of selling your home. Selling a property can be a tough experience. Hard decisions need to be made, and it's often difficult to let go. But the right estate agent will make the experience a good one, despite the challenges.
When you've picked the right realtor, you'll find that the sales process can be full of fun and thrills. It's not something you want to miss out on, so finding the right partner is vital - and easier than you think with our tips.
Qualities of a great estate agent
1. They are a registered property practitioner
According to new South African laws, estate agents can only sell properties if they are a:
- registered full status property practitioner
- a registered intern estate agent working under the supervision of a registered full status practitioner
Full status property practitioners have completed training and passed an examination by the PPRA to ensure they properly grasp the sales process.
But many intern estate agents, who aren't full status property practitioners yet, make great realtors because they have the support of a team of qualified professionals that oversee their work.
Choosing an intern estate agent might mean that you're getting the best of both worlds: an agent with ambition and drive to get you the best deal for your home, along with a veteran full status team that brings years of experience to the process.
2. Real estate experience
There is no substitute for experience in real estate. There are so many steps in the sales process, each of which can be a potential pitfall. You want an estate agent or agency with many property sales under their belts.
With experience comes the knowledge of how to avoid or resolve those little pitfalls that would otherwise set you back several months or hundreds of thousands of rands.
Choose an estate agent or estate agency that can give you proof of past sales. Ask whether the estate agent and/or their team have sold homes similar to yours in the past. An estate agent that's only in the business of selling high-value houses might not have enough experience to make the process of selling your bachelor pad stress-free. A realtor that has never sold an expensive home might also not be the best fit for selling a 12-bedroom mansion.
Everyone starts somewhere and you might come across an estate agent who's yet to make their first sale. It's not a problem if they are paired up with a registered, fully qualified realtor. You're allowed - and even encouraged - to ask whether a new estate agent will be teaming up with someone that has industry experience.
3. In-depth knowledge of your neighbourhood
Too often a homeowner misses out on turning a profit because they've asked a friend of a friend who's an estate agent to sell their property. If you want to get the most out of your sale, you'll need a realtor who knows your area inside out.
Why? An estate agent that specialises in your area will know how to price your house correctly. They'll use their knowledge of a) past sales in your suburb, b) existing market conditions and c) future plans in your location to recommend a price that will attract the right buyer at the right time.
A property practitioner from the neighbourhood across the road might not have the same insights and could suggest a price that's too high or low for your home. It might not sound like the end of the world now, but incorrectly pricing your house can have several negative consequences, which is why you need a realtor with local knowledge.
Read more about why you need to price your home correctly in our article Pricing property: How to choose the Right Price for your home.
4. Contacts in your community
Another reason why you need an estate agent that specialises in sales in your neighbourhood is that they will have a network of interested buyers in your area.
Good realtors have their fingers on the pulse of what's happening in their area of operation. They know who's in the market for a new home and who might be open to investing in a bigger/smaller/more convenient house.
In addition, proper estate agents have social media followers interested in homes for sale in a specific area. If you choose a property practitioner who doesn't sell a lot of houses in your suburb, their social media followers won't be that interested in your place. The realtor also won't have a list of potential buyers looking for homes in your neck of the woods.
5. Honest advice about your property
Your real estate agent can be well-qualified, have lots of experience, knowledge of your area and a list of buyers on speed dial, but if they're not giving you honest advice about your property and the process, then they're not a good fit for your sale.
You'll almost always have questions as a seller, especially if this is the first time you're selling a property. It would help if you had an estate agent willing to share their insights and opinion. Their advice on essential maintenance before viewings or price negotiations could go a long way to help you achieve your goals and making the sales experience a better one.
A realtor whose promises sound too good to be true about how much you'll get for your property is a cause for concern. Unfortunately, a handful of dishonest estate agents out there recommend that homeowners promote their houses for much more than they are worth, just so that agent can make a larger commission. This almost always backfires, and sellers pay dearly.
Not sure your property is priced correctly? Read our advice on valuations here.
6. Backing by a reputable estate agency
Property practitioners are only as good as the mentors that train them. Realtors receive their training from estate agencies, and respected estate agencies create reputable agents.
Choosing an estate agent that works with a recognised estate agency can give you as the seller peace of mind that your deal is in good hands. Because your realtor gets proper training and has the support of an effective team, they'll be more thorough at every step - leaving less chance for nasty surprises along the way.
You can check whether the estate agency you've chosen is credible by doing an online search for reviews of the company. Have a look at their Google profile, Facebook reviews or testimonials on their website, and feel free to ask your community for their experiences with the company.
7. Time and patience for your property-related questions
How do you know that you, as the seller, are in good hands? Your real estate agent answers their phone or returns your calls when you reach out to them.
Agents that are too busy to speak to you when you need them probably have too many other properties and priorities on their plate and won't be able to give your sale the attention it deserves.
If you're a homeowner, you deserve the attention of your realtor, no matter how small your property or low its asking price is. Any estate agent worth their salt knows the value of building solid relationships with customers, even if it's a small or straightforward sale.
Choose a property practitioner that actively makes time for you. They might not be able to come to see you every week and can't answer your calls and messages after hours, but they should provide you with as much information as you need to make good decisions.
No question is a dumb question either. If you want to know whether cleaning your gutters will help you sell your house for a higher price, ask! If you're excited to know how long it takes for a sale to go through, send your realtor a message and find out.
When you've narrowed down your list of potential estate agents based on experience, knowledge and reputation, and you come across someone that you feel has your best interest at heart, you know you've found the right partner.
With the right property practitioner by your side, selling your home can be an adventure. There might be tough decisions to make and realities to face, but a good real estate agent will be able to guide you through them with ease and give you the peace of mind that you're doing the right thing.
Not sure whether to trust the sale of your property to one realtor or to many? Read our article on How a sole mandate can make your house sell faster
Or perhaps you're unsure that now is the right time to sell your home, given the economic climate? Get more information in our article on Myths about selling your home during a recession
If you're ready for more advice or to meet one of our estate agents in the Western or Eastern Cape, get in touch with us for more information.
Author: NS Property Solutions