A Vendor Advocate is engaged to devise the optimum marketing strategy that will attract the highest selling price for the Vendor.

As well as this, the expectation is that a Vendor Advocate will appoint the best Real Estate team and will also help make the overall selling experience, less stressful for the client.

Here are some tips from RealRenta that you should consider before engaging a Vendor Advocacy firm:

• Some firms charge bonuses that are higher than Real Estate Agent Base commissions
• Some Advocacy firms who have a very prominent presence in the media, can often pass on their expensive promotional costs to their clients
• You may not necessarily be represented by the Principal of the firm- you may be palmed off to a lesser player .
• Vendor Advocacy firms generally require clients to obtain a paid Bank Valuation on their property, which in contrast to a Real Estate Agent’s valuation- is more often than not, on the conservative side. Many firms will convince clients to base their reserve price on this and will suggest to their clients, that they should pay a bonus for any sale price that exceeds the very conservative estimate.
• It is common for the larger Vendor Advocacy firms to share 50% of the total commission with Real Estate Agents. Under this type of commission model, you may pay twice as much as what you originally expected.
• Make sure you have a clear understanding of the commission structure and any bonus fees before signing any contracts.
• Do not be misled by any Vendor Advocates who claim that their services are free. These firms are predominantly remunerated 50% of the sale commission and they tend to negotiate directly with the Buyer, which compromises their loyalty, as they tend to want to keep buyers on side, as buyers will ultimately become vendors.
• Look for Independent Buyer Advocates who offer a fixed fee where possible.

• Want to learn more about Self Managing your own Investments and increasing your return?

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