When it comes to selecting an agent, you are really selecting a lead Real Estate agent and the brokerage they work for. Depending on the number of sales required and how the agent operates they may also have partners or even a team of agents that will work on your project. Usually the agent is more important than the branded agency except where your development is boutique or in the luxury bracket. In that case the caché and reputation of the agency may also be very important.
Ideally the agent you select should have extensive experience with your product type, be a notable and respected figure in your effective real estate neighbourhood, have personal and agency branding that compliments your target market, have completed a tonne of sales in recent months, and not already involved with every one of your competitors so they can focus on your project![1]
Ask for referrals from your contacts and look through the local online and published real estate listings and find those agents that stand out. Typically they are the ones selling similar developments or have the most listings comparable in price, product and location to your project. The top contenders in any market will become obvious very quickly. Remember your market is your effective real estate neighbourhood, so geographically the most appropriate agents may not have current listings near your site’s location. Make contact and interview at least five agents, both to see if they are an appropriate fit that you can work with hand in hand (during design and pricing) and to ascertain if they have what it takes to sell your product (although this takes time to figure out). Ask the agents to follow you up with further information. How they follow up will give an indication of how good they will be at communicating if you do decide to engage them. Make a shortlist of the best two or three and have them submit proposals to market your development.
Whilst you are selecting an agent,
the agent is also selecting you as a potential developer client, so you are
both selling to each other. Agents don’t typically get paid all their
commission until your project is real and construction is complete. This can be
years after they first start selling and no agent wants to embark on a long
voyage with a developer whose project (and therefore commission) never
eventuates. You should also be selecting your agent very early into the
development process so you can leverage their input into the design and pricing
for your feasibility. Achieving commitment from the best agents — who are well
experienced with developers — when your project is just a concept, may
initially be challenging. It is up to you as developer to cultivate the
long-term relationships necessary. You may find the best chance on your first
project is to engage an agent who is enthusiastic and talented with some
experience (but not so much that they are already too busy with other
developers) and still has access to the experience and mentorship of some old
hands in their agency.
[1] Of course they are not mutually exclusive, the good agents will already be involved with the active developers.
Andrew Crosby
+64 21 982 444
andrew@xpectproperty.com
