An Exclusive Appointment for Selling Your Property in 2020

An Exclusive Appointment with Realtor

This has always been a classic. We are coming to an end of a decade, did the principles changed over the years since January 2010?

Slower Resale Volume since 2018

Resale (with sub-sale) Volume, YOY since 2015

According to SRI Research, the resale volume has dropped from 2017 – 2018 on comparison and if we were to button 2019 to 2018, the trajectory has shown at least a 50% drop in number of resale transactions (including sub-sale)

Button pegged transactions between 2018 and 2019 month on month till September 2019

Marketing Engagement has Evolved

Since then we see marketing methods has evolved because of the drop of resale buyers. We see less emphasis on print media and higher concentration on online media. Realtors primarily depend their listing advertisements on both Property Guru and where most of the consumers sought their day to day real estate listing needs.

The online portals know, and because of that the cost of advertising on the portals has gone significantly higher. In order to get good “first page” coverage, a typical Realtor might have to refresh their listings with chargeable credits often.

Online video marketing has also gone viral, with realtors looking for the right type of buyers and creating their own brand awareness.

Staging of the homes has became apparent too with a substantial cost loading in order for the apartment to look good. Coupled with great looking photos, it’ll attract good attention for buyers to pay heed.

An Exclusive Appointment with Realtor
An exclusive appointment with a responsible realtor will ensure your home gets sold with the best possible marketing methods. This is a staged home for the buyers to have a sense of space planning.

Evolvement also simply means cost has gone up, in which realtors might not work at their best to your interest if it is not an exclusive appointment considering the efforts and monetary loading.

Same Principles, But Trust is of Utmost Importance

Recently, there has been a high profile case of an agent who was charged by CEA because of irresponsible selling. That was unfortunate and puts dent on our industry, but fortunately most other cases are happy ones according to the recent surveys that we gathered from radio discussions.

There is always more benefits for the clients to have an exclusive appointment compared to leaving it open; Unless you are a season investor who is monitoring the price action, and is aware completely of the market and loves to manage between realtors’ expectations, you are better off appointing a responsible realtor to take care of your home sale. Season product owners also understand the importance of appointing sole marketing distributor, let alone real estate.

Clients will usually be looking out for accolades and experience of a realtor to take care of their home sale, but it works best and most effective with friends whom recommend them one as they would have positive experiences from their own.

If you decide to engage in one and would prefer formalising the process by interviewing and reviewing plans of individual realtors, go with your gut on whether you can connect well with the serving realtor alongside with his/her credentials.

Trust and responsibility would be still the primal factors to look for. On this end I would also urge any clients who are appointing any realtors to be upfront with their expectations before the appointment is signed (ie. the amount on professional fees, the intent to sell, your requirements on viewing schedules) so it would be a pleasant experience through the journey of your home sale. Trust is a two-way street.

Advantage of Having An Exclusive Agent To Market Your Property

Ah, I’ll have critics soon for blunting the reasons of getting simply one property agent to do your marketing. Let’s see the disadvantage of awarding an exclusive and advantage of doing so.

Disadvantages of Engaging an Exclusive Property Agent

You have gotten yourself an unethical agent

He appears eloquent, looks capable and has good product knowledge to win your trust for an exclusive contract for 3 months. Trusting he’ll do his job, you left him alone for 1 month.

When you realise time has passed but there are no updates, your mind began to wonder what has the agent done. You called him for updates but he says he has been marketing but there wasn’t any response.

You flip your Classifieds or fire up your browser, to realise that he hasn’t been even trying to market your unit at all. Frustrated, you wanted to end his exclusive, but you realise you’re bounded for 3 months.

This happens.

You decide not to sell for various reasons

The market is in your favour, you’ve decided to put your home in the market to catch the trend. Unfortunately, the cycle ended, a crisis has happened in the financial sector.

Or for some reasons your family goes against your will to sell, you’re in a pickle but you have your exclusive signed.

These are definitely the possible factors that you would regret having an exclusive contract signed with a Realtor if you haven’t think things through or haven’t done your research properly on the Realtor whom you have appointed.

On the contrary, if you found the correct person to deal with,

Advantages of Engaging an Exclusive Property Agent

One of SRI5000 exclusive shophouse unit sold
One of SRI5000 exclusive shophouse unit sold

Clear Relationship Established

With the exclusive contract, you won’t have to haggle with the Realtor when a deal is closed on his commission. He would also know his roles and duties as your agent to be responsible to his principle, which is you.

Efficient and Dedication to Marketing

With an exclusive contract signed with the right Realtor, he would be literally working towards a clear goal; to reach your target price stipulated in the exclusive contract. He feels more motivated as there couldn’t be another Realtor which could undercut him. He will work hand in hand with other Realtors to reach your price goal as his interest is protected.

Unchallenged Price Control

With too many Realtors handling an open listing, it tends to bring the price down as Realtors will try to attract any buyers with the lowest price. With a smart Realtor, he would be controlling the price and work hand in hand with other Realtor agents to bring the BEST offer to you.

One Point of Contact

Without notion, having your home marketed by a couple of agents, you’ll have to macro manage them and remember what you have told them.

You will also have dilemma on who to award to if both agents brings you the same offer.

One point of contact, one person to liaise. Best results with one person. One clearly has to find the right Realtor to achieve the best results in terms of pricing and satisfaction.

In a Nutshell

If you have gotten yourself someone who’s inefficient in marketing and is irresponsible to their listings, you would have wasted your opportunity for the duration of your exclusive is covered.

Should you have gotten a prized Realtor who knows how to take care of your interest, goals would be achieved in a stipulated time. Win-win situation.