When you have a look around the property market it is likely that you will see lots of competitor agents all claiming to be ‘good’ at what they do. It’s no wonder the clients get confused and invite several agents or brokers to pitch on a listing. All of a sudden the client makes a listing decision based on discounts and low fees. Some clients are very ‘naive’.
The only way you can handle the ‘noise’ from your competitors is to really stand out as the top agent for the category based on performance. That’s why specialisation always helps in building your listings and commissions.
When you are the top agent in the category you can command attention. Clients and prospects will have to listen if they want a top result in their sale or lease.
A Story from the Market
Here is a case in point of a lady that recently chose an agent to sell her ‘industrial warehouse and office’ in an inner city suburb. The agency that pitched firstly for the property (and should have won the listing), had the best marketing strategy (comprehensive coverage using vendor paid funds), plus the right method of sale for the property (auction).
The agency that did win the listing chose a poor method of sale (sale at a fixed high price – vendor nominated price) and no marketing fees (very dumb). It is clear that the client chose the final agent based on high listing price, and no fees and costs. Simplicity and costs won over logic and best marketing solutions. The client has made a big mistake and will suffer the consequences of frugality over best sales practice.
There is no doubt that the lady in question made a very poor agency decision. To this date (over the last 3 weeks), the listing agent has done nothing of consequence in marketing, and it now being so close to Christmas the property will soon be lost in the abundance of stale listings that roll through into next year.
It is interesting to note that:
- The property is not yet listed on the internet!
- A signboard has not been placed on the property!
- The property has not been placed in the newspaper!
What a waste of time for the client! These things are the result of no marketing funds and a manipulated listing. The winning agent ‘bought’ the listing on the chance they could do something with it through a ‘generic’ approach to marketing, and so they will rely more on ‘luck’ and ‘referral’ to get a potential inspection underway. Maybe a potential buyer will come from another listing in the same area? That is really the only chance of success at the moment.
What will happen next with a listing like this? There is a high chance that it will remain unsold and be very stale on the market; high prices do that quickly and also discourage enquiry and inspections. After about a month or so the listing agent will be focusing on other ‘genuine and realistic’ property listings. Maybe the agent will try to pitch again on the same listing and get the client to drop the price and pay marketing funds!
Some clients get what they deserve. Luck doesn’t get the best price or usually resolve a property sale; industry experience and marketing does however solve most property challenges. Clients like this should be overlooked. They are very hard work and can waste a lot of your time. Here are some rules for you:
- Only work with genuine clients that match the market conditions
- Only list properties that you can market professionally and completely
- Pitch your services comprehensively for the property and the location
It directly follows from this that exclusive listings are really important in getting results for any property listing. It is easy to see why. Control your listings and control your clients. You are the professional!