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How does the Bestag algorithm work?
Bestag’s algorithm does only one thing: find out which agents have sold similar properties to yours at the best price by analyzing hundreds of thousands of listings.
Our 15 criterias testing for portfolio fit, past performance and quality would bore you, so it’s really best to test: Get your own report right now for free!
Real estate agents do more than just putting phone pictures online on websites
A good agent will understand your needs at first: is it the optimal price only, or do you have a deadline? Or do you want to choose the buyers for the family house?
After that, they will market your property with professional pictures, possibly a 3D rendering or drone pictures, if that adds value. They will help you gather the required documentation and put together a brochure that has all the required information. That brochure will be tailored to your potential buyers.
They will register every interested party, including their budget and search criteria, in their CRM (their own sophisticated database of potential buyers), so they can call them up for another similar property in the future. This is one key reason why the agent’s portfolio matters when choosing an agent.
They will do the actual selling, i.e. meeting potential buyers and putting them at ease, so the property can properly charm them. Visiting a property with a skilled agent, the buyers will feel at home, whereas visiting with the owner, they will usually feel like an intruder. This feeling matters a lot when it comes to making an offer or no.
When offers start coming in, they will help the seller negotiate to the optimal price. That’s where their compensation matters a lot. When taking a fixed fee, the agent will drive the deal to a quick conclusion to save time (and lose the seller some money). With adequate compensation, or even better a tailored performance linked compensation, the agent will negotiate to get the best possible deal. For example, they may help the buyer in mortgage negotiation with their bank (or offer a bank who will finance at a given price).
And once a deal is agreed, they will work through the legal papers: reservation agreement, mortgage transfer (when applicable), sale contract, and so on.
They learn this on the job, but they also have qualifications
Although, there’s no legal requirements to become a real estate agent. There are a lot of qualifications that are required to be a competent agent. In Switzerland, many organisations offer courses and certifications (SVIT and SMK in the German part of Switzerland, SVIT USPI ARCID in the French part): Several CAS “certificates of advanced studies” are available for real estate: digital real estate marketing, real estate investment management, and several more.
How does one distinguish good agents from bad agents
With the provisions they charge, few agents are really bad (otherwise they would be out of business). Most agents have decent credentials. But many agents sell properties they are not very qualified to sell, or not qualified at all.<>Our recurring Bestag study actually shows that only 13% of transactions in Switzerland happen with one of the top three agents for that sale. It means 87% of transactions (7 out of 8) are being executed by an agent who is either “not the best in the area or the price category” or even “totally clueless about both area and price segment”.
That sounds complicated. How do I choose an agent?
Choose an agent who has sold similar properties, and has some on the market right now too
If most of their properties for sale (and recently sold ones) are similar to yours, this is the ultimate proof that this is their speciality. So ask for references, visit their website, look at the listing portals.
Choose an agent who is local
Check the location of their offices. A local agent will know more about the region, which is essential to convince potential buyers and to help you prepare your house for the sale. Also, during the listing process, they will be more likely to be flexible and spontaneously accommodate potential buyers “tonight at 18:00? Sure”.
Choose an agent with a good certification
While you inquire on their website (where you might find out about their compensation too), check their credentials: This will indicate their studies, the courses in real estate marketing that they have taken, and the organisation they are affiliated to. Most organisations have requirements for continuous education.
Beware of false promises: The sky high valuation
Several agents try to convince you to sell with them by giving you the highest valuation you have heard. So first: do NOT give away your price expectations upfront (no indication on purchase price, no indication on mortgage). And then: After hearing their valuation, remember it is not an offer. An agent saying a high number that they cannot achieve is simply costing you time and patience, since you will end up listing the property for a long time without selling it… And later be in a difficult negotiation, when the buyer knows the house has been on the market for a long time.
Beware false promises: The low cost offer
While it sounds like a good idea to save money on the agent, remember your number one goal: maximize the sale price. This has a much bigger impact on your funds after the sale. Invest in a good agent to sell for 100’000 francs more, rather than saving 10’000 francs to sell at a lower price.Also most low cost offers have a hook: with some, the money is due even if there is no sale, with others, the sellers do everything except preparing the listing (if that is what you are looking for: a good listing costs no more than 2’000 francs)...
Beware false promises: No strategy is always right
Several agents do the same every time. There is no “one strategy that is always right”. Most often, the “list low and have an auction” is supposed to do it all. It has advantages for the agent: There will be visits, there will be 2-3 offers, the process will feel right, and it will close soon enough. It has several drawbacks: usually the agent will be removing the listing too soon (since there are hundreds of enquiries), very serious buyers will not even have had it on the radar. And a random buyer will end up buying at a discount.
But mostly: Try Bestag’s self-service tool to find the top three agents in your area and price segment. Or call a Bestag representative for a free consultation.
the best agent
and at a better price