Beat the DIY Salesmen – Real Estate Business
There is no doubt that technology has made our lives much easier.
(The third in a five-part series dealing with the biggest challenges for real estate professionals.)
As I explained in the first part of this series, there is no doubt that technology has made our lives much easier.
That said, it has not only changed the way we do things, but created challenges that we cannot ignore.
As many, or most, demands come from the Internet, so does the corresponding increase in competition.
I wish I could say that this competition has come from other agents, but there is a growing trend for people to sell their homes using companies that list online for a flat fee. There is now a proliferation of these businesses in Australia, and they are making small but significant inroads into traditional estate agencies.
The benefit of this do-it-yourself sale is that the seller saves thousands, if not tens of thousands, in agency commission. Likewise, you stand to lose tens of thousands of dollars.
I will share with you the stories of two sales, one in Queensland and one in Western Australia.
The first example was a former Queenslander in Bundaberg where the owners had an agent who told them they were the main agency for Queenslanders and there were buyers waiting. After several weeks and little interest, the owners listed the property themselves and sold it within weeks.
The second example was a modern 4 x 1 house with a granny flat in a country town in Western Australia. The owners had two agents around for coffee and a chat saying they were about to sell. When they had no response from either agent, they signed up and sold within five days above the asking price. A bank mortgage appraiser said he might have been able to get $20,000 more with an agent, but he pointed out that he would have paid that much in commission.
These are real sales, which should ring alarm bells for all of us.
First and foremost, we must be truthful and accurate in what we say to sellers. It may seem obvious, but if you say you have buyers waiting for you, you better show up with them.
Second, and this is a running theme in this series, add people to your database and be sure to come back to them. Ownership is not our driving force; people are.
Third, go ask people who are selling why they are doing it. I know this can be difficult for some people, but take your time. The first answer will be that they can save money and not pay commission. Then it’s up to you to talk about your business and highlight the advantages of having an agency. Remember the other theme of this series, service. Few people are comfortable negotiating a price with competing buyers, but that’s our job. If they’re not selling it themselves, you’ll be the first person they contact.
One of the benefits of competing online is that you can see what your competitors are doing. You can see what works for them, and maybe you have ideas to borrow.
Look at all the ads online in your area and see how long they have been on the market and try to figure out why, if they have been there for a long time. Which images are the best and which is the best image to have first.
I’m still scrolling through listings online and trying to find something, even if it’s NOT the right thing to do!
Of course, using social media is a must, as platforms like Facebook and Twitter allow you to share industry news and give you a chance to showcase your abilities. The more you do, the better your online presence will be, which can generate great sales and give your career a real boost.