Where do Real Estate Agents get most of their sales?

We interviewed a couple of Agents today and a couple of interesting points came up. NB. More interviews to come.

One of the questions I asked was what their suggested marketing strategy would be and what sort of marketing budget we could expect.

The first quoted figures of around $3500 for about 4 or 5 weeks and the second one was a flat $850 for a 'Stage 1' type advertising until it was sold. Quite a difference.

When I queried the $850 figure they said that one question they always ask prospective buyers is how they heard about the property. In about 90% of cases the result they now get is throught the Internet and therefore they suggest initially listing on the 4 major Internet Sites and see how we go. The attitude was really one of why pay more for more marketing when their experience has been that this is where most buyers are now sourced. NB. They would still put up a generic sign out the front, have their normal client database, window advertisement etc.

It was interesting, large coloured billboard signs, local paper advertisments etc. was something they considered may be something you'd look at in certain instances and depending what initial responses were like but not to spend on those unless necessary.

Has that been others experience too? Is Internet advertising by far and away the major way Real Estate Agents get their sales these days? It rings true with us. It's how we check things out.......

 

Speaking purely from your side, not the real estate agent's, we also look for properties mainly online. We try to get the local paper of the area too but that is not as convenient or up to date.

 

Though most of us use the net, there are still (shock horror!) potential buyers who actually don't have access or indeed possess a home PC. In order to reach your maximum audience I would still consider some form of newspaper advertising- even if it's only an 8-12 wk campaign in the local paper with your ad going in every second week. It doesn't need to be fancy (though asking your REA could they get it put into an editorial is always a good idea and free!), just as long as it's present for potential buyers to see. I like Homes Pictorial and Property Showcase too, but consider your market carefully and see how many buyers are likely to only pick up your ad from such publications....
The most important issue is that every agent in the office you employ is aware of your property on their listings sheet and able to direct potential buyers to your home, regardless of what property they are initially enquiring about.
Signage is important too, and if you're not on a main road, ask your REA to get pointer signs on nearby streets to increase traffic.
Alan, before you get your property on the web, ask to see the photos and read the proof to ensure you are happy with it and it entices buyers to want your home
Get as many pics as you can (these add enormously to the ads online, in my opinion), add a map (whereis.com) on the bottom of your ad and make sure all facts are correct.

 

Good post Jacque, i think all your points are valid.

 

What

Heathens!

This would indicate they are missing out on excellent sites such as InvestEd..


Another fascinating bit of salesmanship theatre occurs when you ask the followup question after what commission they charge, and that is........"How negotiable are you with this?"

Fascinating to see the different reactions here.

Eveything from immediate capitulation, through avoidancew to fained indignation.

It's a lot of fun........I'm thinking of inviting over a Real Estate Agent for an interview each Thursday night from now on instead of watching the West Wing.

Hmmm...maybe I need to get out more.......

 

Ummm... methinks that you do indeed

 

REA's in high demand areas for a particular type of property tend to retain better buyer databases, in my experience. Many has a property been quietly sold before it evens gets a chance to be advertised, simply because the agent contacts potential buyers immediately after listing (and, in some cases, before) to gage their interest.
Unique properties or real estate that is highly sought after is often acquired by the wealthier homeowners who also don't mind paying a premium, in some circumstances, to obtain the "house of their dreams". I've heard several stories of buyers happily paying asking price as they snapped up what may well have been once in a generation opportunity.
Grand old homes in places like Wollstonecraft or Hunters Hill or Point Piper are in a class of their own

 

"How negotiable are you with this?"

This is a good question to ask purely for the purpose of testing the REA's negotiating skills. The guy who rolls over on his fee will probably do the same with your sale price and vice versa. I'm happy to pay full fee to get the REA who'se going to get me the highest price.

 

Any REA you elect to sell your home should be aiming to get what's referred to as the BHP- the Buyers' Highest Price, as opposed to the SLP (Sellers Lowest Price). Sounds simple in theory, but a great negotiator should be able to achieve for you what you couldn't do yourself.