Agents can ‘double revenue’ via radical UK strategy

Agents can ‘double revenue’ via radical UK strategy

by 0 comments

Stacey Moseley

Buyer representation is an untapped source of income for agents and principals says one of the UK’s leading authorities in radical real estate.

At the recent Real Estate Institute of Queensland (REIQ) North Queensland Convention held in Townsville, Richard Rawlings of Estate Agency Insight told principals and agents that the next chapter in real estate was harnessing potential buyers as clients.

“Sales and buyer representation does not have to be mutually exclusive,” he said to delegates.

“Estate agents have loads of buyers already communicating with them, that they can sell their services too.

“They’ve already built a relationship with them, they’ve shown them properties. They get to the end of the properties they’ve got and nothing has been suitable. This is often where an agent and buyer will part ways.

“This is a great opportunity to say, ‘well I haven’t got anything for you but why don’t you let me represent you, and I’ll go out and find you something. I’ll speak to all the other agents on your behalf and I’ll look at everything on the market for you’.

Mr Rawlings has already seen great success with smaller agencies in the UK rolling this service out to their clients.

“I am increasingly helping implement these services to a number of agencies in the UK,” he said.

“The smaller agencies are seeing their revenue doubling.

According to Mr Rawlings most UK agents only sell property to about six per cent of their registered buyers.

“So that is 94 per cent who are buying elsewhere. They walk into your office and walk straight out and put their money elsewhere,” he said.

When it comes to negotiating a price Mr Rawlings said he charges 15-20 per cent of the difference between the asking price and selling price as a brokerage fee. In the event there was no advertised price an agent would charge a commission of the actual price, he said.

“I don’t know of any agencies in Australia who are actively using this technique,” he said.

“Effectively you are using your client’s properties to draw in buyers, and if they don’t want to buy that particular property then you can offer them this service.”

Stacey Moseley

Buyer representation is an untapped source of income for agents and principals says one of the UK’s leading authorities in radical real estate.

At the recent Real Estate Institute of Queensland (REIQ) North Queensland Convention held in Townsville, Richard Rawlings of Estate Agency Insight told principals and agents that the next chapter in real estate was harnessing potential buyers as clients.

“Sales and buyer representation does not have to be mutually exclusive,” he said to delegates.

“Estate agents have loads of buyers already communicating with them, that they can sell their services too.

“They’ve already built a relationship with them, they’ve shown them properties. They get to the end of the properties they’ve got and nothing has been suitable. This is often where an agent and buyer will part ways.

“This is a great opportunity to say, ‘well I haven’t got anything for you but why don’t you let me represent you, and I’ll go out and find you something. I’ll speak to all the other agents on your behalf and I’ll look at everything on the market for you’.

Mr Rawlings has already seen great success with smaller agencies in the UK rolling this service out to their clients.

“I am increasingly helping implement these services to a number of agencies in the UK,” he said.

“The smaller agencies are seeing their revenue doubling.

According to Mr Rawlings most UK agents only sell property to about six per cent of their registered buyers.

“So that is 94 per cent who are buying elsewhere. They walk into your office and walk straight out and put their money elsewhere,” he said.

When it comes to negotiating a price Mr Rawlings said he charges 15-20 per cent of the difference between the asking price and selling price as a brokerage fee. In the event there was no advertised price an agent would charge a commission of the actual price, he said.

“I don’t know of any agencies in Australia who are actively using this technique,” he said.

“Effectively you are using your client’s properties to draw in buyers, and if they don’t want to buy that particular property then you can offer them this service.”

promoted content
Recommended by Spike Native Network
Listen to other installment of the Real Estate Business Podcast
reb top 100 agents 2017

With a combined sales volume of over $14 billion in 2017, the Top 100 Agents ranking represents the very best sales agents in Australia. Find out what sets them apart and learn their secrets to success.

featured podcast

featured podcast
How this agent grew his database by 50% in five years

In this episode of Secrets of the Top 100 Agents, Robert Pignataro joins host Tim Neary to explain how he increased his personal database by...

View all podcasts

Does the benefit of being part of a branded group outweigh the cost?

Yes
No
Depends on the group
Do you have an industry update?