Skip to content

Posts from the ‘Mastermind’ Category

9
Mar

Woo Hoo. I’m The Client’s Second Choice.

agent number 2
A few weeks ago, at our regular Mastermind meeting, we were talking about how an agent managed to sell a client a new home. This wasn’t all that surprising until the agent told us that the client had worked with a few other agents before who without any success. So the conversation turned towards a discussion about why the first few agents couldn’t make a sale. What was it that made the client stop working with one agent and eventually buy with another?
Some of the answers were pretty obvious…that agent didn’t know the area, that agent wasn’t available on the client’s schedule, or that agent didn’t understand what the client was looking for. But to get more great answers I consulted the great oracle itself, Facebook’s Real Estate Corner. There I got a few to add to the list. Here are some of the best.

I made myself more available.
I made an effort to take the clients out more often, even when there wasn’t much to see.
I gave the client more information than what was on the listing.
I returned phone calls, texts and e-mails quickly.
I listened and didn’t waste their time.
I am more accessible.
I was truthful about a listing.

Now, to be fair, agents lose clients for lots of other reasons. It’s not always about failing at the job. I was reminded of a very good agent in my office who had long-standing relationship with a buyer client. After months of showing properties, the agent figured it wasn’t going to happen so she passed the lead on to a new agent who ended up selling the client a condo in about two weeks. Turns out the client never really liked the first agent and was thrilled to work with an agent who could devote more time and attention. Simple.

There’ an old saying about being the first love, second wife and third real estate agent. There’s probably some truth to that (well at least the end of that anyway).

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.

7
Jan

Selling Houses to People Who Aren’t In The Market.

thinkingHappy New Year and welcome to another year of Mastermind. We kicked off the year with a bang, talking about our hopes and dreams and aspirations for the new year, oil and interest rates, the power of Facebook ads and their new policies and we talked about billboard and bus shelter ads. All good stuff.
But the one topic that garnered the most interest was a round the room discussion about where the agents find their clients. Naturally you would expect answers like Facebook, socializing, friends and family, door knocking and open houses but one agent talked about her unique approach. She looks at a lot of houses and condos. She goes out all the time, often with a buddy. They look at everything, all over the central core. Some of the time she is looking for her buyer clients but sometimes she walks into a house and thinks “oh, I know who would love this house…”. Then she calls her friends and tells them to drop everything and come and see this house. You would be surprised at her success rate. Now, she has one of the largest social circles of anyone I know and she is a trusted and likeable person so when she tells people to drop everything…they often do.
This approach goes beyond just touching base with your past clients, because she does that too. This is as targeted an approach as I’ve ever heard. A lot of the time the clients aren’t ready to pull the trigger on such short notice, but if they are she negotiates the transaction and then gracefully coordinates the sale of their home. The process is so seamless that often the clients don’t know what hit them. It’s like they jumped ahead two months and woke up in a different house.
I loved this approach. It goes to re-iterate the point that buyers, and for that matter sellers, can come from anywhere. They can even be people you never thought were even in the market. So next time you are out visiting open houses and see something that would be perfect for (insert name here) give them a call right away. At the very least, you have made a connection or sparked an idea.

Happy Selling!

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.

27
Nov

Mastermind for November 26th. Do Incentives Really Work?

incentives We had a rather interesting debate during our Mastermind yesterday about offering a buyer agent incentive as a way of generating more activity to a listing. We had a pretty big crowd and I was surprised to see that there was no general consensus on the matter. In fact opinion was split right down the middle, 50-50. So, looking for some more input on the matter (read tie-breaker) I did what any manager would do, I consulted the great oracle itself…Facebook. More specifically one of the several groups I belong to. While I got some great stories there, I didn’t find the tie-breaker either.

One side of the argument seems pretty clear. Price the property well, work hard, don’t leave any marketing stone unturned and generate exposure. It’s a simple theory…as long as the property is “saleable” you don’t need to offer any incentives to the buyer agent. This side of the discussion felt that incentives might add fuel to the consumer’s potential belief that agents are greedy or that offering more commission only generated interest from the buyer agent and not the buyer.

The other side argued that offering a higher commission got their properties more showings. More showings meant more competition which lead to a better price to the seller and a faster sale. One agent said that it worked particularly well when there were a number of comparable properties in the area or in situations where the property had some serious disadvantages, like deficiencies in the reserve fund. I can remember a condo building downtown that had an unusually high special assessment on all the suites. Sellers would agree to pre-pay the fee down in order to make their properties more attractive. Much like buyer incentives for a new condominium project, this is somewhat different as it is not an advantage geared toward the buyer agent, more just a marketing tool.

I especially loved some of the stories from the naysayers who told of sellers throwing in fast cars, cash bonuses, and even a free massage (but I think they might have been kidding about that one). Now, when we sign a Buyer Representation Agreement (BRA) we specify the commission that we would like to receive so if the offering is more than that amount, are we duty bound to return the difference to the buyer? The short answer is that it depends. One agent fills out the commission portion like this…”X% or as offered by the MLS Agreement, whichever is greater” while another credited the extra commission back to the Buyer.

Finally, I would caution everyone to remember their fiduciary duties to their Buyer clients. When in doubt….disclose!

mark mclean is the Broker/Manager at the Bosley Real Estate Queen St W office and President-Elect for the Toronto Real Estate Board. The opinions expressed here do not reflect the opinions of TREB or Bosley RE.

Follow

Get every new post delivered to your Inbox.

Join 4,795 other followers

%d bloggers like this: