What Do Real Estate Agents Really Do For Their Money?
I see a lot of people on online property investment forums posing questions such as “I would like to know what Real Estate Agents actually DO to earn their commission on the sale of a property?”
The answers given by respondents are generally mixed. Some say “By finding a buyer”, others say “By giving people the opportunity to buy your property”. Well this is true. We do bring buyers to your property, but that is only what the public see.
Do you want to know the real secret about real estate agents?
Well as you have probably figured out yourself, any monkey can put up a sign board, order a professional real estate photographer and load the photographs up onto the internet.
Yes, of course buyers will come to your house in droves (provided the advertised price is right). The agent doesn’t even need to be the one showing them through.
At this stage you’re probably thinking “I’m selling myself out of a job!”
I’ll tell you the secret now….. The answer is NEGOTIATION.
If you are a buyer here is some great negotiation strategies for getting the home you want.
Now let me break this down for you. A good agent creates an environment/system, almost like a pressure cooker situation, where he/she can make the buyer push up their offer, beyond what they were originally willing to pay for the house. So when the agent is talking to the seller he/she can say with confidence “This is the maximum that all the buyers can pay”.
Now you might be thinking “Well I can do that. I’m good at negotiating.”.
Well Good real estate agents spend $1000’s of dollars learning from the top Agents in Australia and the U.S.A. I have seen some Top Gun real estate agents spend countless hours in coaching and honing their selling system in the real word. If you look at the top ten real estate agents in Australia you notice they are highly systemised in their negotiation process, stick to what works, and learnt it all from the school of hard knocks.
If you are still not willing to pay an agent for this skill let me tell you a little story.
In the 1980s there was a big-time newspaper company in New York City but there was a problem with their printing press. The whole thing shut down despite the efforts of staff and for each minute the printing press was down it cost the newspaper company $10,000. They called in a specialist engineer immediately at 3am in the morning. He was down there in 12mins, walked up to the machine, asked one question, opened the operators box, rubbed his chin, and said “AAHHH… here it is.” He turned one screw and the printing press restarted. 2 days later the specialist engineer received a phone call from the newspaper company editor. “A $100,000 bill for one screw and 5mins? Are you crazy? How do you justify that?” the editor screamed. The engineer said, “Well if you want an invoice break down: call-out free $40, knowing what screw to turn, $999,060.”
Negotiation kills are the same and a 5 minute convocation can make or lose you $10,000. If you want to prove that a real estate agent is worth their money. Ask them to demonstrate their negotiation process and skills. If you’re not happy with the answer don’t hire them. Simple!
The art of property sales writing and how it’s proven to generate more buyer enquiry?
I personally know a real estate agent that sold a house in 11 hours because of his creative sales writing skills. Agents call this skill copy writing and it is technical writing skills all big newspapers and magazines use to get you to read their stories. My agent friend was trying to sell a DUMP of a house and the previous agent had gotten very little enquiry on over 18 months.
So what did he do? No he didn’t write “renovated delight”. He did copy writing 101, he wrote an engaging head line, “A-grade dump” and went on in the description Tell buyer to ‘Bring your vomit bucket’, ‘wear your safety goggles’ and ‘call in the CSI crew’.
Now I don’t suggest this for all homes in all markets but think about it, would you read this ad if you were scrolling for homes on you mobile, I would?
Now this gained the attention of the British and Australian media. What I found most interesting is that the buyers loved it, it was memorable and they shared it with their friends.
Stay tuned for our next topics about;
How real estate agents legally bend the rules when it comes to photography!
Databases and Buyer filters.
What is Internet marketing and this skill finds you more buyers.
How the agreed sale falls apart and how agents keep it’s together.
Emotion around property.
What happens when we take the deposits.
About Jhai Mitchell
Jhai is an award winning Internet Marketing Real Estate Agent for Elders Toongabbie and Kings Langley. After running his own internet marketing business he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to market themselves online. Jhai is now fixed on one goal. To teach real estate agents that they can market online so much better than they currently are.
Since then he has been consistently quoted in the Sydney Morning Herald and Real Estate Business online. He is a regular guest blogger on TheHomePage.com.au, sharing his expertise of marketing aspects for the Real Estate Industry. His biggest passions are his wife, martial arts, dogs and most of all property.