Selling real estate is one of life's most important decisions. For many people, real estate is their most expensive asset, and its sale requires careful consideration.
One of the most important factors affecting the success of a real estate sale is how you choose your salesperson. The ability to find an excellent salesperson can make a big difference in the sale price, the length of the sale, and your satisfaction with the entire sale process.
In this article, we will explain in detail how to choose the right salesperson for your real estate sale, based on our many years of experience in the real estate industry as INA & Associates, Inc. We provide practical know-how so that readers can find the best salesperson and realize a satisfying real estate sale.
The Importance of Sales Representatives in the Sale of Real Estate
Impact of the sales representative on the success of the sale
In real estate sales, a salesperson is more than just an intermediary. They are an important partner in the entire sale process, from market analysis, pricing, and sales strategy development to negotiations with the buyer.
A good salesperson will be able to maximize the appeal of the property and close the sale quickly at the right price. On the other hand, if you hire an inexperienced or insufficiently knowledgeable sales representative, you increase the risk of selling at a price lower than the market price or remaining unsold for a long period of time.
Differences between good and bad salespeople
The following table compares the characteristics of good and bad salespeople.
| Item | Good sales representative | Bad Sales Rep |
|---|---|---|
| Expertise | Familiarity with market trends, laws, and taxation | Lack of basic knowledge |
| Communication | Careful and clear explanations | Explanations vague and one-sided |
| Ability to make proposals | Concrete and feasible strategies | Unsubstantiated and optimistic proposals |
| Response | Quick and precise response | Late and inaccurate communication |
| Integrity | Honest and transparent response | Conceals inconvenient information |
| Track record | Proven track record and high reputation | Low track record and low evaluation |
Impact of sales representative selection on sale price
According to our analysis of past cases, we have confirmed that there is an average difference of 5-15% in the final sale price between hiring an excellent sales representative and not hiring an excellent sales representative.
For example, a 30 million yen property could generate a difference of 1.5 to 4.5 million yen. This difference is due to differences in the salesperson's market analysis, pricing ability, and sales strategy.
Seven points to identify an excellent sales representative
1. expertise and experience
A good salesperson has in-depth knowledge of real estate market trends, relevant laws and regulations, and the tax system. We recommend that you ask the following questions during the initial interview to confirm their level of knowledge.
- Recent market trends
- Closing examples of similar properties
- Points to note regarding taxation
- Legal procedures related to the sale
A salesperson who can explain things in an easy-to-understand manner without using too many technical terms is evidence of true expertise.
2. good communication skills
Selling real estate is a complex process. Sales representatives must be able to explain technical details in a way that is easily understood by the general public.
Characteristics of a good salesperson:
- Gives clear and specific answers to questions
- Whenever technical terms are used, an explanation is always provided.
- Thinks and proposes from the seller's point of view
- Keeps regular progress reports. 3.
3. ability to analyze the market and set the price
Proper pricing is the key to a successful sale. A good salesperson will propose a price based on a comprehensive analysis of the following factors.
| Analysis Elements | Contents |
|---|---|
| Location conditions | Station distance, surrounding environment, future potential |
| Property characteristics | Building age, structure, facility condition |
| Market Trends | Supply-demand balance, price trend |
| Competing properties | Sales of similar properties |
| Seasonal factors | Impact of timing of sale |
4. ability to make proposals and develop strategies
It is important to select a salesperson who can propose specific sales strategies, not merely offer an appraisal price.
What a good sales representative will propose:
- Clarification of target demographics
- Effective advertising strategies
- How to stage the viewing
- Timing of price adjustments
- Negotiation strategies
5. integrity and transparency
In real estate sales, a relationship of trust with the salesperson is extremely important. Integrity can be judged by the following points.
- Explain honestly, including disadvantages
- Explain the details of the contract
- Clearly present fees and costs
- Not averse to comparisons with other companies
- Not pressuring you into an unreasonable contract
6. speed and accuracy of response
The real estate market is rapidly changing, and a quick response is required. A good salesperson has the following characteristics
- Responds within 24 hours
- Providing accurate and specific information
- Adherence to promised deadlines
- 6. responsiveness to emergency situations
7. track record and reputation
Past performance is an important indicator of a salesperson's ability. The following items should be checked.
| Items to be checked | Details |
|---|---|
| Number of contracts closed | Annual sales contracts closed |
| Average period of sale | Time from appraisal to closing |
| Customer Satisfaction | Evaluation by past clients |
| Professional Qualifications | Building contractor, real estate appraiser, etc. |
| Years of industry experience | Experience in the real estate industry |
How to choose a real estate brokerage firm
Comparison of large firms and community-based firms
There are two types of real estate brokerage firms: large firms and community-based firms. Each has its own characteristics, and the best choice depends on the property and seller's situation.
| Item | Large company | Community-based company |
|---|---|---|
| Network | Nationwide wide network | Deep localized network |
| Advertising power | Large-scale advertising development possible | Effective localized advertising |
| Volume of information | Extensive market data | Detailed region-specific information |
| Services | Standardized services | Individualized and flexible services |
| Fees and commissions | Generally fixed price | Negotiable in some cases |
| Person in charge | May change due to changes in personnel | Possible to build a long-term relationship |
Brokerage fee structure and points to note
The maximum amount of real estate brokerage commission is set by the Building Lots and Buildings Transaction Business Law.
The maximum amount of a mediating fee
- Sale price of 2 million yen or less: Sale price × 5% + consumption tax
- Sale price of more than 2 million yen and less than 4 million yen: Sale price × 4% + 20,000 yen + consumption tax
- Sale price exceeds 4 million yen: Sale price x 3% + 60,000 yen + consumption tax
Example: In the case of a 30 million yen property
30 million yen x 3% + 60,000 yen + consumption tax = 1,056,000 yen (including tax)
Comparison of services
When selecting a brokerage firm, not only the commission fee, but also the services offered are important factors in making a decision.
| Service Item | Points to check |
|---|---|
| Assessment service | Accuracy and basis for free appraisal |
| Sales activities | Advertising media, frequency, scope |
| Response to previews | Availability of witnessing service |
| Document Preparation | Support for preparation of contract documents |
| After-sales service | Post-sale support system |
| Warranty System | Warranty for defects, etc. |
Flow from sales appraisal to contract
Method and notes of an appraisal request
The first step in the sale of real estate is to request an appraisal. We will explain the method of an effective appraisal request.
Types of appraisal requests
1. desk appraisal (simple appraisal)
- An approximate appraisal performed only by property information.
- A result is obtained in a short time.
- Accuracy is limited.
2. home visit appraisal (detailed appraisal)
- A detailed appraisal conducted by actually seeing the property
- More accurate appraisal value
- It takes time, but reliability is high.
Advantages of requesting assessments from multiple companies
- Grasp of a market price
- Comparison of sales representatives
- Comparison of sales strategies
- Acquisition of negotiation materials
Points to be confirmed during the interview with the sales representative
The initial meeting is an important opportunity to evaluate the sales representative. Be sure to confirm the following points.
Checklist of points to be confirmed
- ☐ Explanation of the basis for the appraisal price
- ☐ Examples of similar properties that have been sold
- ☐ Specific proposal of sales strategy
- ☐ Estimated time frame for sale
- ☐ Brokerage fee and other expenses
- ☐ Type and details of brokerage contract
- ☐ Experience and track record of the person in charge
- ☐ Support system of the company
Type of mediation contract and how to choose
There are three types of mediation contracts, and each has different characteristics.
| Type of contract | Contract with several companies | Self-discovery dealings | Reporting duty | Contract term |
|---|---|---|---|---|
| General mediation contract | Possible | Possible | None | No limitation |
| Full-time mediation contract | Not possible | Possible | More than once every two weeks | Within 3 months |
| Under-exclusive-contract exclusive duty mediation contract | Not possible | Not possible | More than once a week | Within 3 months |
Point of choice
- Property in popular area: Utilize the principle of competition through a general mediation contract
- Special property: Intensive sales activities by a full-time mediation contract
- Early sale hope: Maximum support by under-exclusive-contract exclusive duty mediation contract
Conclusion
The way to choose a sales representative in the sale of real estate is an important element that holds the key to success in sale. I hope you will carefully select a sales representative with reference to the seven points conveyed in this article.
Reconfirmation of key points
- Abundance of expertise and experience
- Good communication skills
- Market analysis and pricing ability
- Ability to make proposals and develop strategies
- Integrity and transparency
- Response speed and accuracy
- Track record and reputation
We also recommend that you interview and compare multiple sales representatives. It is important to make a comprehensive judgment based not only on the assessed value, but also on the sales strategy and the personality of the person in charge.
Next Action
If you are considering selling your property, the first step is to find a sales representative you can trust. Please feel free to contact us.
Frequently Asked Questions
Q1: Is it possible to change sales representatives?
A: Yes, it is possible. A mediation contract is a contract with a real estate company, not an individual sales representative. If the affinity with the person in charge does not match or if there is dissatisfaction with service, you can consult with the company and request a change of the person in charge.
Q2: Should I request assessments from more than one company?
A: Yes, we recommend that you request assessments from multiple companies. 3 to 5 companies will enable you to grasp the market price and compare sales representatives. However, it is important to narrow down the list by checking the reputation and track record of the companies beforehand, because it will be difficult to deal with too many companies if you request too many companies.
Q3: Can I negotiate the brokerage fee?
A: The maximum amount is set by law and can be negotiated. However, it is important to consider the balance between the services provided and the low commission alone. Quality service provided by an excellent salesperson may result in a higher sale price.
Q4: How long does a sale take?
A: Generally, 3-6 months, but it varies greatly depending on the condition of the property and market conditions. A property in a favorable condition in a popular area may be sold in less than one month, while a special property or a property in poor market conditions may take more than one year. It is important to consult with a sales representative to set a realistic time frame.
Q5: Is it possible to change the price during the sales process?
A: Yes, it is possible. It is common practice to adjust the price based on market reaction. Analyze the number of viewings and inquiries, and discuss with your sales representative to consider changing the price at the appropriate time. However, frequent price changes may give buyers a sense of distrust, so you should use your best judgment.
Daisuke Inazawa
Representative Director of INA&Associates Inc. Based in Osaka, Tokyo, and Kanagawa, he is engaged in real estate sales, leasing, and management. He provides services based on his extensive experience in the real estate industry. Based on the philosophy that “human resources are a company's most important asset,” he places great importance on human resource development. He continues to take on the challenge of creating sustainable corporate value.
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