The benefits of using a reputable Estate Agent
by the FEA Malta

Recently many magazines are being published claiming to sell a person’s property directly. These organizations are misleading prospective buyers into thinking that they are buying directly from an owner without paying any agency fees in the process. The fact is that an owner is paying a 3% commission to these magazine publishers and committing him/herself to a two year contract, and therefore a buyer is still paying a commission in the purchase price without getting any services or assistance in the process. For a mere 0.5% more a property owner can sign a sole agency agreement with a reputable agency and benefit from the additional marketing and professional assistance throughout the whole process.

A few of the important benefits of using an estates agent to assist you in the sale or purchase of a property are highlighted below.

'Why should I use the services of an Estate Agent when I can sell my property directly to prospective buyers or buy my home directly from the owners?' many frequently ask. It is true that property owners can place an advert in the papers or put up a ‘For Sale’ sign to attract prospective purchasers. Property buyers can also daily browse through the classified adverts or drive around building sites looking for their dream home - but is this really effective? Selling or buying your home is probably one of the most important steps which you will take in your life. It is worth examining all your options and ensuring that you do not make the wrong decision which you could regret for a long time.

Property owners and buyers in most developed European Countries, in USA and Canada , would not even think of selling or buying their home without going to a reputable Real Estate Agent. These people have realized how much more advantageous it is to deal with professional people who will ensure a fair and safe deal for all concerned.

Some property owners think that selling a property means simply advertising it and taking prospective buyers round the house. There is much more to it than that. These are some of the questions which should come to mind when you decide to put your property up for sale.

1. What is the best way to attract buyers?
2. How do I know how much to ask?
3. Is my home ready for sale? Should I invest in any major improvements?
4. How quickly can I sell?
5. How should I go about showing the house?
6. How do I know if the buyers are serious, or even if they can afford my house?
7. How can I be sure I am getting the best deal?
8. How do I negotiate on the sale?

A process which forms a very important part of any property transaction is the process of negotiating a successful sale which is satisfactory to both the seller and the buyer. This is a very delicate stage and it is the stage where most sales could fall through to the great disappointment of both the seller and the buyer. That is why it should be handled by a professional Property Negotiator. An experienced Sales Negotiator whose only job is to negotiate and sell property and who has had professional training, stands a better chance in successfully closing a sale.

In negotiations, the third party i.e. the Agent, plays a very important role, as he can see both parties’ point of view and can thus better evaluate the whole process. Direct negotiations between buyers and sellers tend to, sometimes, involve conflict of personalities. In direct negotiations, objections by either party may not come out for fear of hurting one of the party’s feelings. A professional Negotiator will be able to assess objections and possibly overcome them, leading to a successful conclusion. The art of negotiation is too vast to go into in this Article, but this is where most Real Estate professionals excel.

Operating a large scale Real Estate operation is indeed an extremely expensive business to run and the risks are high. However, we believe that it is only this way that clients mostly benefit, as this will provide them with the widest choice of properties available and the best service possible.

Most people are under the mistaken impression that all commission received by the company is profit. Almost 50% of commission received by the Company goes to very hardworking individuals who are constantly investing energy in showing clients properties and looking for property for their clients. These are the Sales Consultants, their Managers and supporting Staff. They earn a substantial amount of money and they deserve every penny of it. Real Estate Agents are constantly on the look out for such individuals.

A substantial amount of the remaining 50% goes towards marketing, advertising, telephone calls and communications, including an efficient IT system througout the offices, salaries and motor vehicle expenses. All in all these amount to a substantial figure every month and if the Estate Agent fails to reach his targets during that month it could mean a loss for the Company. This explains why a number of Estate Agents crop up every now and then but do not survive for long as the stakes are very high.

By far, the majority of buyers and sellers who have opted to use the services of a professional Real Estate Agent, have not regretted doing so. In fact most of these people have used these services more than once and have even recommended these same services to friends and relatives. I still meet clients today who, I am proud to say, still remember using a Company’s services when they bought their property 20 years ago. This is simply because the Real Estate Agent was a very important person, if not the determining factor, in the decision made at the time.