BEST Real Estate Agent by NUMBERS when Selling your Home Auchenflower?

Barry Osborne


Real_Estate_Agents_measured_on_the_numbersHave you gone to the internet searching for a Real Estate Agent and see how they are qualified? Well it seems that this Industry wants to make everything easy. Keep it simple. The BEST agents are of course the ones who sell the most properties. Now that is simple. Just add up the sales and bingo you have the BEST. But what if we want change and innovation? Is this the way to ensure that we are going to encourage new innovative people into the industry. I always remember talking to a friend of mine an expert and author on Change Management, Bill Synnot who said that change is often instigated by the new people coming into an organisation or industry or those on the fringes of the organisation or industry. The leaders are too often ingrained into the sameness.






I recently went to a site Find an Agent to see how you get the best rated agent and the site immediately came up with the high performers of the area. They talked the numbers such as top person 140 properties sold in the year as NUMBER 1 and the next one 132 or so at that time. How would a new innovative agent get a look in on a site like this?. My mind started to think again in its own dyslectic way and thought, “in a business world, would you simply accept a contract from only the biggest operators to do a specific project for you”. Of course not; you would contact a number of operators and get a comparison as to what they are advising as well as a feel of how you relate to them Then would come the PRICE comparison as to what it was going to cost for their particular service.


Now in the Real Estate world it seems to work totally different and for reasons I cannot explain. We are talking significant fees in the Selling your Home Auchenflower, Bardon, Paddington and yet decisions are often simply made on meeting a NICE man or woman who gives you a good feeling and sells a lot of properties. There is no in depth discussion as occurs in any other business type transaction. Do home owners realise that they are committing to significant fees that will come off the price of their home leaving less money to buy the next home?


But if we are talking Numbers


Than in my opinion, the numbers that are most important in real estate are:



  • The reserve price that was agreed by owner and agent when signing up the agent

  • The number of properties listed by agent and the number of these sold

  • The actual sale price achieved

  • The number of days on the market

  • The amount of money spent by the owner on marketing

  • The cost of preparing the property for sale

  • The time spent by agent on the sale of your property specifically

  • The number of Innovative methods used to make a property stand out from the rest

But of course, it would be very difficult to get these sort of numbers because in the Real Estate game it is all smoke and mirrors. You may ask, “Why is the actual marketing being done today in 2014, is still very similar to the marketing done 20 years ago and some of it like the press advertisements, brochures, and flyers are still what was being done in the 80’s”? The reason is very simple


why change when things are working so well.


But working so well for whom? 


So we keep the simple criteria - Number of sales


Here is an article that sells the present situation in term of the agent very well. "The difference between marketing and closing" written of course by a representative of News Corp. The article makes it really clear with the statement:


"It’s quite simple: the agent that has the listings is the agent that gets the listings"


This is re-enforced by an old friend of mine who is a successful Real Estate Agent in Sydney who was telling me that he lost a good client because the client said that a large competitor agency was the agency selling most of the properties in the area. How is this determined? Well, the impression comes from looking at the press advertising and see the number of adds by the agency. The article says:


"It’s no accident that attraction agents are highly skilled at selling vendor-paid advertising (VPA)"


Now you just ask any RE Agent who you know personally and who will give you a truthful answer and he/she will tell you that the press advertisements as well as other forms of Outbound Marketing is mainly for promotion of the agents, because what other information do you get? There are no prices only pretty pictures. But at what cost is this advertising and consider the effectiveness of Real Estate marketing when selling your property? The beneficiaries of the marketing don't even have to pay for it. I cannot see that happening in any other Industry.


These numbers don't lie, 74% of Australians search the Internet for property before they even talk to an agent. In the US, it is something more like 92% which will be the figure in Australia in the near future. So why waste your money on the newspaper advertisements. Truthfully, there is a need for some press advertising to inform the local audience that the property has come onto the market. This is because that properties are only on the market for a fairly relatively short time so you need as much exposure as possible in the few weeks it goes to market. But you sure don't want a massive budget being spent, it is only to support your Individual Property Website which has all the information and is kept up to date.


Considering more important numbers


If the top performing agent settles 140 properties in the last 12 months than that means the agent has sold 2.7 properties per week. Wow that is an outstanding performance and just imagine the fees achieved. But my concern is if I had my property on their listing, how much designated time would I receive for the sale of my property and more importantly achieving the best exposure and the best price. I am confident as with anything, the more effort the better the result. But the high performing agents will be limited by NUMBERS, how can they give the necessary attention to all these properties. Maybe this is the real reason why there is no change. Agents simply want to add a property to their listing, get photos taken, prepare the advertisements for the press and the portals and hope the property sells. All properties get the same streamlined attention. No innovation here.


 




In all industries, change and innovation is essential in making things better. The striving to improve and ensuring that the customer is better off by a much improved service at a lower cost giving better value for money which is all we want. So if you are considering Selling your Home in Auchenflower, Bardon or Paddington, just don't go for the simple numbers like the Biggest, include in your research and discussions some of the newer innovative companies coming onto the market. It only means an informative meeting and you can decide and receive a refreshing change. Make contact today.

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