Making Your "Open Homes" More Effective For You & Your Vendor!
The "Open Home"; Nearly Everyone Does Them, But Too Few Do Them Well!
Please do not take the following as criticism, ok it is, but it is meant to point out significant issues and offer significant solutions, so chill out and give these bullet points a bit of consideration:
- Generally speaking, open homes represent extra work for both you and your vendor. If the property is not "Ready To View", it should be. Few agents mind holding opens in listings that sparkle or are so much better than competing listings. At the same time, you might feel it useless to show off a "dog", but the real question for you and your client should be... will the listing sell as well "as is", or should some effort and or cash be applied to making the most of what you have to work with. Obviously, this question will require substantial commitment (read as time and cash) to provide any benefit. It will also require honesty!
- Speaking of effort, what precisely is proven by the image below? Does it suggest that there is so little "curb appeal", that you must scream at everyone driving by? There is evidence of a much more effective approach, though it will require some extra effort on your part. I am suggesting that you examine a street map and select the sign locations at all/most of the major intersections and then use a few signs to help guide the buyers along the way.
- Reduce the mob scene! Sure by allowing only 30 minutes per open you get as many who will consider your listing, their number one priority, but suppose your listing is the second or third in a given half-hour, on their priority list...how does that help you or the vendor. Also, how much time can you spend with each interested parties, if you can barely keep up with getting them to sign in? My suggestion, have fewer opens for each listing and make each open for at least a full hour. The best part, less of your time, placing signs and more working with your clients and customers.
There are additional points regarding opens, but I think I will let them simmer a bit longer and allow some time for you to consider those presented here.
If You Do Not Understand Buyer Agency Today, You Will Miss Income Tomorrow!
Ask, any 10 randomly selected real estate agents, "What is Buyer Agency?"
and you will likely receive answers like this:
- A Buyer Agent works for the listing agent.
- A Buyer Agent assists a listing agent in finding possible buyers.
- A Buyer Agent assists a listing agent with "Open Homes".
- All of the above.
- None of the above.
So what did you select?
OK, so you have been in practice for decades; have had Buyer Agents assist with sales and are at a loss to understand what this is all about. So, just a wee bit of history.
When MP Clayton Cosgrove placed the 2008 REAA Act before Parliament, its stated purpose was to reduce marketplace confusion, with regard to agent/salesperson fiduciary responsibilities and how the consumers were being negatively impacted by this confusion.
Accordingly, the REA (then REAA) was empowered to establish a clear set of licensing and conduct rules, which were to make it finally clear to both vendors and purchasers, exactly what relationship they had with their real estate agent and what services they could expect to receive.
So, here are the bits you might misunderstand the most and care about less than is desirable. One thing for sure; ignore them and pain is just around the corner, along with lost profits.
- Just as a vendor is entitled to have and benefits from a professional listing agent, so is the purchaser.
- When you look at Australia; the U.K.; Canada and the U.S., you will find that buyer agency has been in place for up to 25 years and for the same reasons it has made its way to New Zealand. Actually, the majority of U.S. agents are involved in transactions as a buyer agent and nearly 70% of their commissions are derived from buyer agency clients!
- A Buyers Agent in New Zealand represents the Buyer and accordingly is looking to find the best property and at price and terms beneficial to the buyer. They do not "collaborate" with the listing agent in the process, nor do they have listings.
- What about my Exclusive Listing Commission you ask? It is unchanged and completely unaffected by the buyer agent, as they are being paid by the purchaser and will not and indeed cannot claim any portion of your commission!
- Under the Act, as an exclusive listing agent, you are still required to present any contract, including one from a buyer agent to your vendor on receipt. You will also need to provide access for showings. But, remember that none of these requirements will affect your commission in any manner
Finally, as we head into buyer markets, you just might want to consider acting as a buyer agent yourself; the water is fine and so is the income! As always your comments are most welcome.