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There’s no doubt technology has made our lives much easier.
(The third in a five-part series addressing the biggest challenges for real estate professionals.)
As I discussed in part one of this series, there’s no doubt technology has made our lives much easier.
That said, it has not only changed the way we do things but created challenges we can’t ignore.
As many, or for some most, inquiries come from online, so does a corresponding increase in competition.
I wish I could say this competition all came from other agents, but there is a growing trend for people to sell their homes using companies that list online for a fixed fee. There is a proliferation of these businesses in Australia now, and they are making small, but significant, inroads into traditional real estate agencies.
The advantage of this do-it-yourself selling is the seller saves thousands, if not tens of thousands, in agency commission. Likewise, you stand to lose out on tens of thousands of dollars.
I’ll share with you the stories of two sales, one in Queensland and one in Western Australia.
Example one was an old Queenslander in Bundaberg where the owners had an agent who told them they were the leading agency for Queenslanders and had buyers waiting. After several weeks and little interest, the owners listed the property themselves and sold it within a few weeks.
Example two was a modern 4 x 1 home with granny flat in a West Australian country town. The owners had two agents around for coffee and a chat saying they were about to sell. When they had not heard back from either agent, they listed themselves and sold within five days over the asking price. A bank mortgage valuer said they could have perhaps got an additional $20,000 with an agent, but they pointed out they would have paid that much in commission.
These are genuine sales, which should ring the warning bells for all of us.
First and most importantly, we must be truthful and accurate in what we tell sellers. This may seem obvious, but if you say you have buyers waiting, you’d better show up with them.
Second, and this is part of a theme running through this series, add the people to your database and make sure you get back to them. Property is not our lifeblood; people are.
Third, go and ask people selling themselves why they are doing it. I know this may be tough for some people but make the time. The first answer will be that they can save money and not pay a commission. It is then up to you to talk up your business and point out the advantages of having an agency. Remember the other theme of this series, service. Not many people are comfortable negotiating a price with competing buyers, but it is what we do for a living. If they don’t sell it themselves, you will be the first person they contact.
One of the positives of online competition is that you can see what your competitors are doing. You can see what works for them, and maybe there are some ideas you can borrow.
Look at all the online ads in your area and see how long they have been on the market and try to determine why, if they have been there for a long time. Which pictures are the best, and which is the best pic to have first.
I am always scrolling through online listings and trying to pick something up, even if it is NOT what to do!
Of course, using social media is a must, as platforms like Facebook and Twitter allow you to share news about the industry and give you a chance to showcase your abilities. The more you do it, the better your online presence will be, which can lead to some valuable sales and give your career a real push.
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