Do you want to be a Real Estate Agent ???

[geoffw]

Kevin,

Thanks for the reponse. I was asking for an agent's viewpoint. I am fortunate that there are a few agents to respond. It was not just at you- but I do appreciate the reponse.

I'm sorry to mention the "J" man. I may have muddied the waters.

You've mentioned on your website. It does mention a few things about advertising- I'm not even quite sure whether you recommend advertising or not. And it certainly (on that webpage anyway) does not say anything about extra charges for advertising over and above commission (which is really my question). And whether such charges are incurred regardless of sale. My friend was not going to be charged anything regardless of whether he proceeded with the sale or not- and that surpried me.

 

[Kevin Hockey]

Hi Geoff,

The advertising is different for every property, it depends on the owner. We do many things to attract a buyer. Local papers and Courier Mail are paid by owners, if that's what they want. Every agency has its own theory, in general. Like everything at the end of the day you get what you pay for.

Cheap low cost fees will get you a cheap low cost agent. I recommend a correctly designed advertising campaign suitable to the property I am selling. But you can lead a horse yada yada... If an owner selects not to do it, I'll do everything I can to find a buyer. It's difficult to fully explain through the forum but I hope this has helped.

An agent cannot have a beneficial interest in selling a property. If they pay for advertising, the property then owes them money. They then have a vested interest in selling the property above their normal duty. The waters now become muddy. Agents should not pay for advertising.

I'd be surprised if the agent spent much in promoting the property and if they did what comm rate did they charge. If that is low they are desperate for listings and I would ask yourself why. Obviously not too many referals and repeat business I would suggest.

Kev

www.nundahrealestate.com.au

 

[brains]

Do you agree that much of the adverstising of a roperty for sale is actually advertising the real esate office, and the vendor pays for that.

Why else would they have the "24 hour salesperson" with half the board taken up by the RE office details.

 

[geoffw]

Originally posted by Kevin Hockey
I'd be surprised if the agent spent much in promoting the property and if they did what comm rate did they charge. If that is low they are desperate for listings and I would ask yourself why. Obviously not too many referals and repeat business I would suggest

Thanks for all that Kev. I appreciate the explanation.

The agent is one of the leading advertisers in the Saturday Canberra Times. The ad for this block is not large- but it is a burnt down house, so a picture is not very helpful.

The commission was a flat $5000.

 

[geoffw]

I notice today in the paper that the same company marketing the Duffy burnt out block is also marketing the block next door.

And the local RE agent is suggesting that the ACT are quite amenable to dual occupancies (Queanbeyan- he doesn't deal directly in that area).

There may be possibilities for someone a bit more cashed up than myself.

 

[karsal]

Look out everyone.

I actually agree with brains this time. Yes too much is spent on promoting the agency.

Unfortunately, sucess is based on percption, so the more boards the better the perception of how successful you are.

Try and look at this from a vendor's point of view.
Real estate is a numbers game. The more interest in the property, the better the competition and eventually a better price.
So from the perspective, exposure is the best way to go. Competition seems to create more urgency from a buyer, and will lead to a quicker sale. I qualify this by stating that the vendors expectation must be realistic.

Does the J method create this excitement? I have never sold through them so perhaps others are in a better position to comment. What I do know is that just about everytime I inspect their properties they just happen to have someone coming in to sign up, so I'd better be quick. From a buyer's perspective I don't think that they are vany more better than normal(?) agents.

Personally, I refuse to pay vendor advertising for my vendor. Why should I? Only if it is priced correctly then I will do a no sale no charge deal, on a higher rate of comm, and take the risk. Being a tight wad, I prefer to spend less for my clients and not waste their $$$. Mind you the Melb CBD market is quite unique, and standard methods don't work well at all.

Classic case today when a client offered to list his apartment with me because of my frankness. He listed @ $15k less than he was advertising himself. Price is still a bit heavy and he has been made aware of this. He wnats me to advertise, but I refuse to spend his money or mine until he adjusts his price and becomes more realistic.

Kevin has summed it up 100%

Have a great one.

Sam.

 

[Kevin Hockey]

Originally posted by brains
Do you agree that much of the adverstising of a roperty for sale is actually advertising the real esate office, and the vendor pays for that.

Why else would they have the "24 hour salesperson" with half the board taken up by the RE office details.

Everyone hold on to your seats - Check your pacemaker.

Brains - I agree with you.

One reason I left the first office I worked at was over this issue. It's also one of the reasons why I am not a big Auction advocate. The advertising should be paid by the owner, but it should only be what is necessary and in the owners best interests.

It's interesting to see the current backlash on financial planners. The two industries have the same common denominator - big money. This will always attract undesirables. But it doesn't make everyone the same. We are not necessarily all tarnished with the same brush.

I have just come home from dinner with my family. I bumped into one of my landlords. He told me of a property he inspected today with a local agency. The salesperson did the old phone call trick - that was the boss and he's coming with 2 buyers to inspect the house....... He then said.... Make an offer, you can always crash the contract on a building inspection because there is no white ant capping on the stumps. This agency is a disgrace to our profession but the office of fair trading do nothing, even after I have sent letters from owners to them about abuse and swearing and poor treatment by these people. No independant body without a vested interest in their own wealth creation wants to seriously do anything about the industry. This is why I believe the best person out there right now is John McGrath.

He is educating the owner that the old methods are no longer acceptable. To be successful, put the client first. In his words "treat your customers royally".

I've just realised I'm rambling. My point is I guess, Brains that is a problem but it doesn't mean Mr J has all the answers either. One tip though - when you do find a good agent, one who proves their trust to you, stay loyal with them. Try to buy and sell with them whenever possible. It can be a profitable relationship for both parties.

an unsure just how much sense he's made
Kev

www.nundahrealestate.com.au

 

[Sim]

No, you're making perfect sense Kev.

I'd like you to expand a bit on the John McGrath story though - there's a lot of people who don't know who that is and what his "platform" is. Care to explain a bit more ?

 

[Kevin Hockey]

Thanks Sim, but to explain it fully would take a long time. John McGrath was interviewed by 60 minutes over 10 years ago as an Australian success story of the future, along with a couple of other guys. They revisited the story again 10 years later. I will try and explain what I can as briefly as I can. Remember this is my opinion of how I see things from what I have learnt. His book "you don't have to born brilliant" is my fave all time read.

McGrath is an agency, 7 I now believe in fact, in Syd. He is a former No. 1 Australian auctioneer award winner etc etc. What I like about him is, as I see it, he is training agents through his conferences to realise that if you build a reputation based on integrity, honesty and goodwill, the referals and repeat business will make you far more successful than those who choose to lie cheat and steal. It's not a system, no-one is put in a position where once you are in there is a constant cashflow back to the original source. You have a choice, you can pay the money to attend his conference or don't. You can buy his book or don't. He isn't selling franchises, systems, printing resources and his books so far aren't about real estate either, just a good motivational message for everyone. His message is entirely POSITIVE. No bagging anyone. Not his competition, who might I say he greets at his conferences, not Jenman, not anyone.

His websites are www.mcgrath.com.au and www.totalrealestatetraining.com.au

I would like to add that I believe there are a lot more better educated and more honest agents available now because of his training. I would like to restate what I said earlier. If you want to clean up the industry we need to start with the Principals and train them in the value of better business ethics. Damn I hate using that word now, it's been so overdone.

McGrath is not the only one. There are many others who are now training for an honest approach to real estate. Lee Woodward and Julie Ryan to name a few. Robert Bevan (www.bestpractice.com.au) is another. I think the industry is moving forward, maybe all too slowly but the mud slinging is not helping. If TOTS is going to do the same, well ........ If you want your house sold, as early as possible and at the best price, what better system than an incentive for the higher the price the higher the comm. If you sell it you get paid, if you don't you don't. What the argument is over wanting a set fee, I don't understand.

Read John McGrath's book, I haven't met anyone yet who didn't like it. Thank you Sim for the opportunity to explain my thoughts a little more. I for one will be in Sydney in May 2003 for the AREC conference.


Kev


www,nundahrealestate.com.au

 

[geoffw]

I say John McGrath last year, speaking at a Peter Spann event (along with a number of other excellent speakers- http://www.somersoft.com/forums/showthread.php?s=&threadid=3177). He was very impressive. He did not touch then on ethics in Real estate- it was more his story, and his view on Sydney Reals estate at the time.

Thanks for letting us know something about another side of him. It's interesting that he is promoting ethics without having to promote himself.

I didn't buy the book- it did seem to be rather scant- and I suspect he had already covered a lot of the same ground in his talk.

 

[asy]

Thanks for the websites again Kev,

We subscribed to the bestpractice site some time ago, and I am dilligently going through all their literature, and his tapes make great listening in the car.

Robert Bevan appeals to me because he extolls ethics, and exlains what he thinks should be happenning and gives lots of really great ideas. I am starting to implement them at my agency.

Thanks for the email telling me about the AREC conference, maybe I will get there next year..

asy

 

[Kevin Hockey]

Hi Asy,

If you think his material makes good listening, go to www.primetraining.com.au and www.leaderslive.com.au and subscribe to them.

Kev


www.nundahrealestate.com.au