Firstly we need to look at the definition of a Vendor Advocate. If you are selling your property that makes you the vendor. Therefore, a Vendor’s Advocate represents you when it comes to selling your property. How does a Vendor Advocate differ from a real estate agent? Good question.
Essentially Vendor Advocates act as an independent agent and works exclusively for you as the vendor. Just like a real estate agent, they are actually licensed however, they perform different roles when it comes to undertaking property transactions. Let’s take a look at the top 7 reasons you should use a Vendor Advocates:
1). Agent selection
If you were to go to a regular real estate agent and ask them to help sell your house, in theory, they would be representing the company that employs them. Not you. They are not necessarily obligated to sell your house for the highest price.
Their main objective is to get a sale, regardless of whether or not the sales price meets your expectations. However, with a Vendor’s Advocate, they will speak to a number of different real estate firms in the locality to determine who they think will give you the best level of service.
In other words, you could say that Vendors Advocacy works watchdog to ensure that the real estate agent is being realistic with pricing expectations.
2). Independent valuation
Real estate agents will tell you what they think the property is worth or what they think they can sell it for. This will normally be on the high side in order to lure you into using their services. However, Vendor Advocates will provide an independent written market appraisal. They will also provide comparable sales in your locality which will normally include other current listings.
This helps you to establish an accurate and realistic price range for which to market your property.
3). Best method of sale
Which method of selling is best for your property in the current market – auction or private sale? Just because one of your neighbours sold their house at auction and got a great price doesn’t necessarily mean that you should do that either. If you plan to sell your house at auction, some of the cons are that you need to spend more money on the marketing campaign and engaging a quality auctioneer. However, the upside can be it creates a sense of urgency and also competition amongst potential buyers. This can push the price up fairly high.
However, if you choose to sell your house by private sale the downside is your property could take a lot longer to sell compared to an auction and buyers might actually be able to negotiate the price down if your property has been on the market for some time.
On the upside, it is less intimidating for buyers compared to an auction and generally speaking your marketing expenses and advertising will be less. Whichever way you decide to go, a Vendor’s Advocate can assist in determining the best method of sale for you.
4). Marketing strategy
The marketing strategy doesn’t necessarily relate to just having beautiful photos and videos of your property. If the agent isn’t putting in the time to actively market any of the lovely photos and videos of your property, this will impact his outreach to potential buyers. Your marketing strategy could also relate to any improvements that might need to be done to your property in order to maximize the sales price.
Vendor Advocates will be able to give you advice on what should be done and may also assist you in organising to carry out any minor renovations all repairs.
So when it comes to marketing your property, Vendor Advocates can provide you with a number of different strategies and see to it that they are being carried out. They can also advise on how much should you spend on advertising, marketing and/or renovations based on the strategy.
5). Best time to sell
Something that can impact the marketing strategy is the time of year in which a plan to sell your property. Generally speaking, we know that spring is the best time of year to sell your property as there are generally more people in the market at that time of year. However, what happens if you need to sell your property more urgently and are not able to hold of until spring? Of course the marketing strategy will need to be built upon the time of year in which you plan to sell, but sometimes it may be worth holding out until a better time of year to sell your property.
Vendor Advocates are best placed to assist with advice in this area.
6). Screening of offers
Vendor Advocates can also assist you in screening any offers that are made to you are appointed real estate agent from any interested buyers. This can save you anytime and confusion by only being presented with offers that are reasonable for you to consider.
Vendor Advocates can then talk to any potential buyers on your behalf to gauge their level of interest.
7). Advice on agent commission
How do Vendor Advocates actually get paid if the real estate agent is also being pay commission? This is an important question to understand. In a way, you may feel like you are paying two sets of commissions.
Generally speaking, it shouldn’t cost you anymore out of the total commissions that would have been payable. Vendor Advocates will be able to negotiate with the real estate agent to lower their commission. The real estate agent may then pay the Vendor Advocates a referral fee.
Then Vendor Advocates may also charge the vendor 0.5% of the sales price. At the end of the day, you need to remember that Vendor Advocates is managing the entire sales process for you. Despite this, it can still result in you saving money on commissions.
8). Sales contracts
Vendor Advocates will also assist you in working with the buyer, lawyers and banks with regard to drawing up the terms and conditions of your sales contract. Remember, Vendors Advocacy represents you as the vendor and will make sure that everything is completed in your favour.