Vendor Advocates have been around for decades. However in Australia the concept is catching on and it’s growing quickly because it offers huge benefits, if done correctly. Simply, with an exceptional vendor advocate you can gain better terms for the sale process and a better sale price as well.
There are however a couple of ‘grey areas’ with regards to understanding a vendor advocate’s remuneration and role in the selling process and evaluating whether it benefits home sellers.
In this brief article we share our thoughts on what to look for, and more importantly, what you should look out for. It’s essential information if you are considering to appoint a vendor advocate to act on your behalf when selling a property.
We here at Vendor Marketing pride ourselves as Melbourne’s most qualified vendor advocates. Throughout this article we will outline why.
Firstly, we are not real estate agents. This is important to know as otherwise you may just be engaging a failed or unsuccessful real estate agent, acting as a vendor advocate, for them to then recommend another real estate agent to sell your home or property.
Critically, it’s the non-aligned independence that safeguards the value in our vendor advocacy service.
Instead, we work alongside and without interfering with the selected real estate agent to ensure the vendor’s interests is protected 110% of the time. As the vendor advocate, Vendor Marketing provides qualified and strategic advice throughout the selling process until the property is sold successfully.
We’re independent experts in BOTH property marketing and real estate agent selection. For starters, at Vendor Marketing we specialise in a more cost efficient sales process. Marketing a home these days can be the greatest expense when selling a property. Therefore we reduce, then optimise this expense which means we carefully examine any proposed advertising schedule and ensure the key messages are directed at the identified target market(s) – cost efficiently.
Essential things to look out for when appointing a vendor advocate:
What home sellers should watch out are vendor advocates claiming his or her service is free. Yes, that’s right – FREE. There is no such thing as a free lunch!
Here’s how they are paid;
A vendor advocate may be tempted to recommend the real estate agent who pays them the highest split of the sales commission OR
The vendor advocate will choose a real estate agent with whom they have a good relationship with but who might not necessarily be the right person for the job. That is, in terms of achieving the best sale price for the client
In these type of arrangement(s), which applies to most if not all vendor advocacy firms the real estate agent’s sales commission is higher. Because they share up-to 50% of their sales commission with the vendor advocate upon sale. Quite simply, because the vendor advocate advises the real estate agent beforehand of their percentage split of the sales commission each real estate agent will come in at a far higher rate. Sometimes up to double what they would normally charge directly to a vendor.
If a vendor advocate is receiving a high split of the sales commission the real estate agent’s motivation will surely be degraded however some will accept this arrangement because the more desperate agents want a listing and their board displayed.
But ultimately will the real estate agent then give the sale 100% of their effort? Will the vendor get the best real estate agent available? The answer is simply “NO”.
Vendor advocacy – the way it should be:
Vendor Marketing is different. We charge a fixed – cost neutral fee – upon successful sale. For this fee, we offer more than just ‘protection’ which is what most vendor advocates can only provide.
In addition to ‘protection’ we offer the best and most qualified property marketing advice. Property Marketing is one of the most important variables when selling these days. The proof is asking yourself the following question. Would a real estate agent sell your home without marketing it? The answer is rather obvious.
Other important key benefits Vendor Marketing provides its clients is exposing the ‘hidden’ value-add in property marketing and recommending only the BEST real estate agents in Melbourne to pitch on the business to start with. Furthermore we create a detailed social media campaign for our client’s property. And we’re there by the vendor’s side from start to finish. By initiating an independent, qualified tender process we ultimately save our client’s stress, time and money!
Don’t just “pay” for a real estate agent’s branding:
On another important marketing note, real estate is one of very few industries where vendors pay for agent’s branding, during the property advertising process. This is further exemplified with real estate agents now owning and receiving shares in the media they recommend. Therefore we also scrutinise this independently.
We believe this type of vendor advocacy service avoids any conflict of interest. It ensures one acts totally independently and without bias. It also encourages the real estate agent to put their best efforts into the sale for the benefit of all stakeholders concerned. Ultimately, if you have the BEST selling agent along with the BEST marketing strategy – this is how maximum sale prices are achieved!
One word of caution though. Beware of buyer advocates also acting as vendor advocates and vice-versa. From our point of view this is unacceptable and also highly unethical. It could easily lead to a conflict of interest. That is, where a vendor advocate representing a vendor introduces a buyer he/she is representing – therefore one advocate advising both parties in the same transaction. It’s also used as means of increasing ones revenue base. In our opinion, an advocate can only be one or the other. Not both! Vendor Marketing only represents home sellers. That is, we are vendor advocates only!
The fact is the market for vendor advocates is growing at a rapid rate in Australia. Vendors can gain huge benefits from this service by engaging a qualified independent property professional. And why not? Selling a home is something one should never take lightly. Remember, you only get one shot at it! And it’s worth getting right!
Vendor Marketing – Melbourne’s most qualified vendor advocates offers expert strategic independent vendor advocacy advice in both property marketing and real estate agent selection. For more information regarding your particular property and circumstances just call 03 9696 5375. A quick chat will give you a clear idea about the options – and the benefits!
Want to learn how to sell for more? Download our free eBook and get the most out of selling with our 4 steps to success: The Essential Guide For Every Home Seller.
Vendor Marketing – Melbourne’s most qualified vendor advocates! Specialising in the following suburbs: Abbotsford. Albert Park. Alphington. Armadale. Ashburton. Ashwood. Auburn. Balaclava. Balwyn. Balwyn North. Beaumaris. Bentleigh. Bentleigh East. Black Rock. Box Hill North. Brighton. Brighton East. Brunswick. Brunswick East. Brunswick West. Burwood. Camberwell. Canterbury. Carlton. Carlton North. Carnegie. Caulfield. Caulfield East. Caulfield North. Caulfield South. Cheltenham. Clifton Hill. Collingwood. Cremorne. Deepdene. Docklands. Eaglemont. East Melbourne. Elsternwick. Elwood. Fairfield. Fitzroy. Fitzroy North. Flemington. Gardenvale. Glen Iris. Glen Waverley. Hampton. Hawthorn. Hawthorn East. Highett. Hughesdale. Ivanhoe. Kensington. Kensington Banks. Kew. Kew East. Kooyong. Malvern. Malvern East. McKinnon. Melbourne. Middle Park. Mont Albert. Mont Albert North. Moorabbin. Mount Waverley. Murrumbeena. Newport. North Melbourne. Northcote. Ormond. Parkville. Port Melbourne. Prahran. Richmond. Ripponlea. Sandringham. Seddon. South Melbourne. South Yarra. Spotswood. St Kilda. St Kilda East. St Kilda West. Surrey Hills. Thornbury. Toorak. West Melbourne. Williamstown. Windsor. Yarras Edge. Yarraville.
Craig Knudsen
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