89% of vendors choose agents on knowledge not how much their fees are

Surprising claim is made by sales progression platform Mio following research among 350 home movers about their attitudes to estate agents.

property valuation

New research reveals that 89% of vendors based their choice of estate agent on market knowledge and trust rather than commission, something that might worry the many online and hybrid agents who use rock-bottom fees as their main instruction-winning tool.

The subject is back on the table as the sales market has seen instructions dwindle in recent months following the post-Covid property boom.

Only a few months ago, in August last year, Nest Seekers boss Daniel McPeake caused a stir by saying that ‘people who want to be estate agents pitch a fee, and those who are estate agents pitch a service’.

Recommendation

The new research, which is from sales progression platform mio, was among 350 home movers and also found that 50% of home movers used a conveyancer recommended by their estate agent.

It also highlighted how an increasing number of home movers expect to use digital tools such as smartphone apps during the sales progression/conveyancing process, with only 17% insisting on only face-to-face interactions.

Three-quarters of respondents said good communication and convenience are the key attributes they seek from an agent, and the answers also suggested that agents who use tech well are less likely to face price competition from other agents.

Link to Conveyancing featureWith market knowledge and trust as the main consumer drivers for selecting an estate agency, agents should consider how to leverage these strengths at other stages of the process, so that business reputations aren’t damaged by slow, stressful sales transactions and high fall through rates,” says Sales Director, Nick Ball (pictured).


2 Comments

  1. Research shows that 12% of vendors are fee sensitive, hence your online option catering for the low fee clients. Recommendations and past experience with agents goes a long way to gaining instructions, as does market share, in the sense that people know who is a dominant agent in their area, and in the type of property that they are looking to sell. I agree that a great personality will help secure an instruction, but often potential vendors already have ‘chosen’ their agent, and it is up to that agent to lose the ability to list by how they represent themselves between market appraisal and being instructed. Knowledge is key also, and not only of property, but of the ability to read people, having listed thousands of properties, each time you ‘meet’ a potential vendor your skill set increases, and your ability to close more business increases.

  2. Could not disagree more.

    In my opinion, vendors simply make an emotional decision based on them finding affinity with the agent – do they like the agent? – and then justifying their decision logically that competence /knowledge was the factor.

    It doesn’t matter to the vendor how much you know, if they don’t like you. They can also instinctively spot inauthenticity.

What's your opinion?

Back to top button