I am fascinated by the RE industry and love to gather information on it and figure how it works. I consider it my life's work.
Its not easy for an outsider as they keep all the tricks/secrets very much in house. Luckily i have been friends with a few over the years. With 2 leaving the industry disgusted at the duplicity and lack of ethics.
Anyway, as usual i have been thinking about agents and have come up with 2 questions. I have my own views on these but would like to throw it out for comment.
1. Why do agents continue to chase listings in a dead market (such as now in most places) when they know it adds to the over supply problem, as most listings don't sell. I know they have to pay bills as well but most listings are overpriced in the current market and just sit there for a long time.
If anyone can influence the supply/demand equation in their favor its agents.
(By the way, i read a story recently about an agent who is consistently the top seller in her state. How she does it is she qualifies the sellers much more then the buyers.
She does this by not listing any property where the vendor is not truly motivated and realistic about the selling price in the prevailing market. I'm sure she has other qualifying criteria but these are her 2 biggies.
She has less listings than almost every agent but sells more. Sounds like a rare thing in the RE industry. Someone that actually understands the dynamics of sales & marketing.)
2. We all know the 'for sale' signs out the front of properties are to promote the image of the agency as much as sell the property (actually more so)
Is there a 3rd not so obvious motivation why agents hate selling properties with out the sign out the front. And that is if anyone walks in and attempts to buy the property and circumvent the agent (deal directly with vendor) the agent can easily say that his marketing attracted the prospect and therefore is entitled to commission.
Without the sign, they would have a hard time doing that.
Its not easy for an outsider as they keep all the tricks/secrets very much in house. Luckily i have been friends with a few over the years. With 2 leaving the industry disgusted at the duplicity and lack of ethics.
Anyway, as usual i have been thinking about agents and have come up with 2 questions. I have my own views on these but would like to throw it out for comment.
1. Why do agents continue to chase listings in a dead market (such as now in most places) when they know it adds to the over supply problem, as most listings don't sell. I know they have to pay bills as well but most listings are overpriced in the current market and just sit there for a long time.
If anyone can influence the supply/demand equation in their favor its agents.
(By the way, i read a story recently about an agent who is consistently the top seller in her state. How she does it is she qualifies the sellers much more then the buyers.
She does this by not listing any property where the vendor is not truly motivated and realistic about the selling price in the prevailing market. I'm sure she has other qualifying criteria but these are her 2 biggies.
She has less listings than almost every agent but sells more. Sounds like a rare thing in the RE industry. Someone that actually understands the dynamics of sales & marketing.)
2. We all know the 'for sale' signs out the front of properties are to promote the image of the agency as much as sell the property (actually more so)
Is there a 3rd not so obvious motivation why agents hate selling properties with out the sign out the front. And that is if anyone walks in and attempts to buy the property and circumvent the agent (deal directly with vendor) the agent can easily say that his marketing attracted the prospect and therefore is entitled to commission.
Without the sign, they would have a hard time doing that.