What is a real estate agent?
A real estate agent is someone who helps people to either buy or sell property. A real estate agent acts as the intermediary between the two parties seeking to buy or sell a property. They can either market a property for sale or look for properties that suits their client’s needs. In Western Australia (WA) it is important to understand that when buying a property a real estate agent has been hired by the seller. As such an agent’s aim is to sell the property for the seller at the best possible price and under the best terms.
Choosing the right fit
As a seller the real estate agent you choose is a crucial element of selling your property. When selecting an agent consider the following:
- Does the agent have experience in selling your type of property?
- What marketing plan do they have in mind for your budget? Is it multi-channelled, e.g. online, social media and/or digital. Can they define the target demographics and successfully market to the right audience?
- Has the agent given you a sense of market conditions (whether it’s a buyer’s or seller’s market), an idea of the best time to sell, advice on pricing strategies and sale methods?
- How does the agent present themselves, how are their listings written
- Are they able to add value in discussions about the presentation of your property. You want someone who will be able to offer you great tips on staging your home, who has an eye for the things potential buyers may or may not like.
- Do they work alone or as part of a small or large team. Will you have access to the agent throughout the process?
- Ask the agent about their database and how this can be leveraged to achieve the best result for you?
- Is the agent familiar with the local real estate market? Do they know the neighbourhood, schools, demographics, amenities, trends etc.
- Is the agent able to provide reference, referrals, and / or can you access reviews from their past clients (buyers and sellers)?
- How fine tuned are their negotiation skills. Agents use well-honed sales techniques to display the advantages of each home they present.
- Some agents may offer an inflated indication of the price your home can realistically achieve, the best agents will provide an honest opinion based on recent sales and hard data.
- Has the agent taken the time to understand your needs, your motivation for selling, timeframes and any budgetary constraints. Are you comfortable with them. Do they seem trustworthy, honest and reliable. Are they likely to give you timely guidance and advice so that you feel confident when making decisions?
What is required, legally
Any party that wishes to operate as a real estate agent in Western Australia is required under the Real Estate and Business Agents Act 1978, to be licensed and hold a current triennial certificate, and have registered its principal place of business with the DMIRS. Whilst a sales representative must work under the supervision of a licensed real estate and business agent. According to the Department of Mines Industry Regulation and Safety (DMIRS) the following rules apply:
- The real estate agent must be licensed.
- Sales representatives, including property managers, are required to be registered and real estate agents are responsible for the conduct of the sales representatives they employ.
- The real estate agent must have a written contract with the owner/s to sell a property.
- If you make a written offer on a property, the real estate agent or sales representative must present your offer to the seller unless it’s below a value decided by the seller.
- The real estate agent or sales representative must obtain a copy of the certificate of title for the property.
- The real estate agent or sales representative should try to find out and tell you important information about a property, such as whether there are any restrictions about the use of a property and disclose these to prospective buyers
- If a real estate agent suggests that you use a particular service provider the agent must tell you in writing if they have any connection with that supplier.
- If you are considering buying a strata titled property, the real estate agent (or owner) must give you a copy of the strata plan, showing what you are buying and the Pre-contractual Disclosure Statement to the Buyer.
How does An Agent work with a seller
- Meet with and understand the needs of a seller(s).
- Demonstrate your market knowledge, marketing abilities, and negotiation skills.
- Research the current local market activity and comparable properties to establish an asking price.
- Coordinate staging, photographs, videos, floor plan scans, cleaners etc.
- List the property and promote the property across appropriate marketing channels.
- Coordinate and conduct home opens. Creating an atmosphere that encourages buyers to connect to a property.
How does an agent work with buyers
- Meet with, talk to, understand, and qualify prospective buyers.
- Coordinate inspections for buyers, and set up appointments that fit their schedule.
- Follow up all prospective parties.
- Negotiate on behalf of the seller.
Under Offer! Now what happens?
Once negotiations have been finalised and contracts executed by all parties your real estate agent will be in touch with:
- Coordinate access for qualified contractors to undertake any pre-purchase inspections.
- Liaise with the buyer’s broker or financial institution regarding their finance application and valuations (if required).
- Coordinate access for the buyer’s final inspection of the property 5 business days before settlement.
- Liaise with the buyer and sellers conveyancer to ensure the process tracks smoothly to settlement.
Where to from here…
Now that you understand the roles and duties of a real estate agent throughout the selling process I’d love to hear from you.
If you would like to discuss an appraisal of your property, click here.
