The difference between price and value

As Warren Buffet observed, “Price is what you pay, value is what you get”.

I often ponder this after receiving enquiries from prospective clients who cannot think of anything to talk about except price.  I’d say most of our incoming calls from prospective clients start out with them saying something like “I have a property to let, and I’d like to know what your fees are”.

Even those who are being rinsed by their existing agent often start with the same question.  I’ve taken countless calls from landlords who start out by saying their agent hasn’t paid them any rent for several months.  Then in the next breath they ask, “What are your fees?”.  One could be forgiven for thinking that their first question might be “How quickly would you pass on any rent received from my tenant?”.

Perhaps the modern world drives us all to adopt a mindset where everything is commoditized and so the only thing left to do is check the price.  The truth is that competition is so fierce in our sector that price variation is almost non-existent.  If you’ve ever used a letting agent, you’ll know it costs 10%+VAT.

Or perhaps you managed to beat your agent down to 9%+VAT.  Roughly 10% less expensive.  Congratulations, with the average rent in Glasgow now standing at £1105 you’ll be receiving an additional £13.30 (1.2%) net rent each month.

What does vary enormously is the customer experience.  An incompetent or indifferent letting agent can easily cause a huge amount of stress and expense for an unsuspecting landlord.

There are a host of ways to help make the right choice.  Are they regulated?  Are they qualified?  What do their online reviews say?  How many properties per staff member?  Do they answer the phone?  Any awards or accreditations?

Oh, and don’t forget to ask about the price.