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Sell your unit fast(er)

Sell your unit fast(er)

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I recently received a call from someone who was referred by an associate to ask for help in selling her unit. It has been in the market for almost a year. When I asked about the price, it was quite on the wishful side although not really impossible to sell. However, she was wondering why she was not having serious offers, more so, she had very few viewings from brokers. When I asked who was handling her unit, she immediately replied that she has talked to a lot of brokers and agents already to help her sell her property. 

The funny thing is that she has not issued any formal Authority to Sell to anyone, whether Exclusive or even Non-exclusive. She felt that she does not want to be committed to anyone so whoever brings in the client gets the sale. For her, the best way is to ask as many agents as she can to sell this, believing that this would create a sense of ‘urgency’ since that brokers will be competing to sell her unit.

Another thing is that she was only giving a three percent commission to whoever sells it because she believes that her property was really special since she has put a lot of work in finishing it and personally did the interiors. This made her so confident that anybody who would see the unit would love it and immediately buy it.

Actually, there is absolutely nothing wrong with everything that she was doing.  She can always dictate her price, talk to a hundred agents, give whatever commission rate she wants and not issue formal Authority to sell to anyone. However, results may be better and she may sell her unit faster if done differently.

First, while it is true that it is better to talk to as many sellers as possible to increase your chances of closing, this was applicable before the practice of online networking for practitioners and advertising in the social media. If she knows how to do it, she may have a better chance doing it by herself since the law allows the owners to sell their own property. However, talking to so many agents and not even issuing an authority to sell does not motivate the sellers to actively promote and market the inventory since they do not have any protection in case of a bypass. No one would also want to take the initiative to invest in marketing collaterals, advertisements, open houses, etc. if they know that other agents would only benefit from their efforts.

The good news is that more and more property owners in the Philippines are getting enlightened with the benefits of issuing Exclusive Authority to Sell to trusted Licensed Brokers with very good track records just like the way they do it in most countries with more matured real estate markets. They know that professional practitioners will aggressively promote their exclusive listings, invest in time and resources, and share with their network. This lessens the headache of the property owner because they are dealing with only one person as long as they have done their due diligence in checking the background of the broker to make sure that they are dealing with a responsible professional. Generally, Exclusive Authorities are given for a very limited time, usually at least 90 days. This forces the broker to act on the listing immediately and bring as many qualified prospects as possible to close (or at least register) within the validity period of the said Authority.

As far as the commission is concerned, while there is no law setting a standard rate of Five percent (5%) nor are there any minimum or maximum rates. The Professional brokers will also always offer the property that perfectly matches the client’s requirement as close as possible and not necessarily base their offers on the rate of commission.  However, all things being equal in terms of unit features, amenities, finishes, etc., it is a natural tendency for Brokers to prioritize units that give higher commission rates since they still have to split it with several parties in most cases. In essence, the commission actually comes from the buyer because it is a part of the purchase price. Thus, what is important is for the owner to determine his desired net profit and simply adjust the price accordingly with consideration of the corresponding taxes.

Being an investor too, there are times that I could not personally attend to some of my units to sell or to lease due to my busy schedule when I was still working full time for a developer so I had to get the services of licensed brokers, issue authority to sell and give full commission. Now, I can already do it on my own and actually personally handle some properties for my clients.  So, if you want your properties to be sold fast, let the professionals do it! 

Editor’s note:

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