The Progressive Property Podcast 7 Estate & Letting Agent Hacks You NEED To Know
‘Overall estate agents are good at helping you to get the best deal, but they are also great at ensuring the best deal for themselves’
In this fascinating episode, Kevin shares 7 tricks that are vital for anyone who is a property entrepreneur. He explains why agents use these tricks and how you can respond to make sure you are getting what YOU want from an agent, listen in now.
KEY TAKEAWAYS
- Losing the keys
If a letting agent is competing with another agent it can stop access, so they do not miss out on commission.
Estate agents also lose keys to manipulate who is viewing a property because they may have a preferred buyer.
- Making you feel that you have to act now
Agents are commission based so their focus is getting deals done. They will tell you there are other offers on the table or that the vendor is about to remove the property from the market to build FOMO (Fear of missing out).
- Talking you out of the best deal for you
Never let the agent know your bottom price when selling, or your top price for buying remember they are working for commission.
If you let them know these prices they will make the deal at the figures you have disclosed.
- Selling you extra advertising
If your property is not selling agents will often tell you they can introduce extra advertising if you pay them more, the question you should be asking is why weren’t they doing this at the start of the sale process?
- Incorrect valuations
There are 3 types of agents, and they value in different ways.
Overvaluation – the aim is to tie you into a contract with them by offering an above market
valuation that entices you to sign up with them and then managing your expectations.
A correct valuation – this agent is realistic they may not have as many properties on their books but are the most honest and accurate in their valuation.
A low valuation – this is aimed at getting the property it sold as quickly as possible.
- Getting you to sign along-termsole agency contract or charging up front
Only use one agent to market your property but keep flexible and don’t get tied into a long-term contract.
High street agents usually operate on a contract and charge you at the end
Online agents entice you in with a lower fee, but you have to pay up front. This means they have no incentive to sell the property.
- Convincing you to use their recommended mortgage broker
If you need a mortgage they will be keen for you to use the in-house mortgage broker as this will be double commission for them. The mortgage broker is unlikely to be an independent and will therefore not have access to the ‘whole of the market’ for the buyer this results in a more limited choice of mortgage products.
BEST MOMENTS
‘Trust me they know where the keys are’
At the end of the day, a bid is just a bid, it doesn’t mean it will go through to completion’
‘Get 3 different quotes to ensure you have an understanding of the ways agents value properties’
‘As you will be buying and selling a number of properties building a positive relationship with your agent is key’
‘It costs you because you will not have access to the best mortgage product for you’
VALUABLE RESOURCES
No Money Down: Property Investing book by Kevin McDonnell
ABOUT THE HOST
Kevin McDonnell is a Speaker, Author, Mentor & Professional Property Investor. He is an expert when it comes to creative property investment strategies. His book No Money Down: Property Invest talks about how to control and cash flow other people’s property to create financial freedom.
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