What is a vendor advocate?

Real Estate Agents

November 15, 2024

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This blog is where to find articles on real estate, renovations & projects. For more info about Kristen and Wealth House, check out the
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I'm Kristen Jackson

Stock image of a vendor advocate meeting with homeowners

Have you heard of the term “vendor advocate?”

If you’re thinking of selling, or you know someone is, you may have heard this term. But what is it really, and how does it differ from your real estate agent?

In this post, I’ll break down exactly what a vendor advocate is, how it has some similarities with my pre-sale renovation service and clarify when and why homeowners might choose each option.

What is a vendor advocate?

A vendor advocate is essentially another person a vendor, or seller, hires to assist in the property sales process.

They’re generally brought in before the real estate agent because a lot of their function includes helping select an agent and giving realistic expectations on the same price.

They essentially cut through the sales agents’ BS.

How vendor advocates get paid

Most vendor advocates will advertise their services as free, which is a little misleading. Of course they are getting paid (and by you), it’s just a portion of the sales agents commission.

Because of this, vendor advocates need to be licenced to legally share the commission. However, they’re not really performing any of the sales agent role. They won’t be at open for inspections and interacting with the public.

It’s also important to understand the implications of essentially job sharing and splitting the commission – not all sales agents will be up for this.

You may be limited in which sales agent will work with you. Plus, it might impact how hard they’re working for you. After all, they might be doing the same amount of work and getting paid half the price.

What vendor advocates typically offer

As I mentioned, vendor advocates are best to be hired first.

That’s because they will:

  • Give an independent valuation of a reasonable price guide (vs. many sales agents who quote high to win the listing)
  • Make recommendations on decluttering, minor repairs, and small-scale staging or renovations to improve the property’s presentation. They will sometimes project manage this as well.
  • Shortlist and help you interview real estate agents and advise on who to choose. Some may also negotiate the agent commission (although remember they’re splitting this with the agent!)
  • Advise on the best selling method (auction, private treaty or off-market)
  • Review the marketing plan and budget
  • Keep an eye on the agent’s performance throughout the campaign
  • Check in regularly, and offer a little more hand holding than most sales agents
  • Give recommendations on the offers received

Now you might be wondering… why do I need two people for a job that should be done by the sales agent?

One huge benefit to a vendor’s advocate is their independent advice on price and marketing spend.

Unfortunately, many sales agents will give a high valuation in order to “buy the listing”. Once they have the listing, they’ll claim the market changed or you need to price low to attract buyers.

Another issue I see is because vendors typically pay for all the marketing fees, agents may try to sell you on all the bells and whistles. That often includes a listing video featuring the sales agent which is more a promotion for their business than for your house.

While a vendor advocate may feel like an extra cook in the kitchen, there are some benefits.

If you want to go down this path, make sure the vendor advocate is actively licenced (you can check their licence in NSW here). Looking at their history, there should be a variety of real estate agents and agencies they’ve worked with.

Similarities between a vendor advocate and my services

Image of Kristen adjusting the rug in the added bedroom of the Sandringham pre-sale renovation

I recently got asked if I was a vendor advocate, or whether my services were similar.

In short, I do not call myself a vendor advocate because I am not actively licenced and I do not take any part of the sales agent’s commission.

However, there is certainly some overlap in services.

For example:

  • Valuation of the property’s current value with at least 3 comparable prices to back up the price
  • Recommendations on the best way to present the property
  • I can vet and set up interviews with real estate agents and advise on the best one to pick
  • I can review the marketing plan and budget
  • Manage the staging and photography
  • I will check in regularly throughout the campaign

Beyond that, I provide a more extensive service that focuses on maximising the value of your home sale.

How my pre-sale renovation service differs from a vendor advocate

I also:

  • Estimate the post-renovation value after strategic updates. We can even explore options to determine what’s the most profitable or quickest.
  • Estimate the additional profit from the strategic updates (or determine that there isn’t one and it’s best to sell as-is or with a few quick updates).
  • Create a plan on how to add value before selling. We can do any renovation (including an extension or addition), as long as I see a profit and it’s the best outcome for your individual situation.
  • Assist with council approvals (if applicable)
  • Vet and interview at least 3 builders (and any other professionals needed)
  • Compare quotes and help you select the best person for the job.
  • Schedule all work and project manage throughout the renovations.
  • Be onsite anytime the trades are present.
  • Create and implement my own marketing plan, including social media and press opportunities so more buyers see your home.
  • Offer a renovate now, pay at settlement program in case you don’t have the funds to renovate now.

Which option is right for you?

Selling your home is a big deal and not something you do often. Having an extra person in your corner throughout the process can make it less stressful.

Vendor Advocate Pros & Cons:

Infographic of the pros and cons of a vendor advocate

Pros:

  • Licensing Requirement: To legally share in the agent’s commission, vendor advocates need to be licensed. Most will have selling experience and will need to be up to date on CPD requirements.
  • Convenient Payment Structure: Typically, their fee is no additional cost to you.
  • Less Decision-Making for Homeowners: For those feeling overwhelmed, vendor advocates can reduce the decision-making burden by coordinating and managing sales tasks.

Cons:

  • Agent Selection Limitations: Many agents dislike splitting their commission with an advocate, potentially limiting your choice of agents or affecting their motivation and effort in marketing your home.
  • Limited Impact on Property Value: Vendor advocates focus on decluttering, minor repairs, and cosmetic staging rather than major upgrades. This means the property’s base value might not increase substantially.
  • Not much legislation: There isn’t much legislation or regulation regarding vendor advocates, beyond the licensing requirement. There could be some tightening which may include eliminating shared commissions (to being how a buyer agent gets paid). Also, be sure to understand what is and isn’t included before you sign any agreements.

Pre-Sale Renovation Specialist (my service) Pros & Cons:

Infographic of the pros and cons of a pre-sale renovation specialist

Pros

  • Significant Value Addition: A pre-sale renovation specialist focuses on strategic upgrades—such as full renovations, layout changes, and extensions—that can directly enhance the home’s market value, attracting higher offers.
  • Transparent Pricing and Direct Control: Payment is project-based, meaning no commission-sharing arrangements with agents. This allows for a transparent fee structure and ensures agents stay fully motivated to sell at top dollar.
  • Consult or Full Service: You can choose to hire me for a consult to get guidance on the price & receive tailored recommendations. Then you can do it yourself, which would be cheaper than a vendor advocate. Or you can hire me to do it for you, which is full service from planning to the home selling.

Cons

  • An Additional Payment: Unlike vendor advocates, a pre-sale renovation specialist typically has an additional fee. My renovate now, pay later program allows you to defer all costs to settlement.
  • Longer project timelines: Depending on the scope of work, renovations can extend the preparation timeline. I recommend contacting me early so we can explore all the options. That way you can make the best decision, rather than the quickest.
  • Renovation Disruptions: Renovations can be disruptive, particularly if the homeowner still lives in the property during the work. The noise, dust, and temporary lack of access to certain areas might be inconvenient. Good project management can help ease this. We can also work out a plan for temporary housing or moving to your next place before renovations.

Final Thoughts

Both vendor advocacy and pre-sale renovations are emerging trends in real estate.

In this article, I shared what a vendor advocate does, how they get paid, and how they differ from a sales agent. Then I shared how my pre-sale renovation service is similar but how I go deeper into adding value to your home.

If you’d like to get specific advice on your home in the Sydney area, the first step is to schedule a consultation.

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