I’ve been working with a Realtor in the DC area for a couple months and have done a large amount of research into the competitive landscape – only to find that there really isn’t one. No one is competitive. Sure, there are consistently high performers, but there’s no rhyme or reason behind the performance. There’s one guy that wears a top-hat, one woman that loves cats and enjoys a good party, there’s another that dropped out of school to become an agent, and another that donates money to the school of your choice… and then there’s one that has absolutely no marketing message at all – just a picture of a sexy looking young blonde woman holding a phone (okay, so the last one isn’t a surprising success…)
It seems to me that Realtors must be going through some sort of training that says “You need to be different! Find a way to be memorable! Yay!!!” I too tell my clients this (minus the exclamation,) but I follow it with “…and make that memorable quality real by basing it on a genuine connection that is relevant to the consumer.”
Is being a cat lover relevant to Realty? I’d argue that it probably isn’t. I’ve noticed many websites that provide pictures of Realtor families – and even more with gratuitous pictures of pets. Tell me why I should care about this! So, you’ve got a Labrador that wears a kerchief… does that mean you’re willing to work for less or provide better value?
I admit that I will likely not forget the Realtor in the top hat. But I’ve got no idea why I would ever want to do business with him. It’s like the Aflac duck. Sure it’s memorable (and annoying) but can you name me one reason why you would select Aflac? Additionally, if you hadn’t seen me spell the name would you have known how to do so? Seems like it should have a K on the end to me – since it uses a duck as the spokesperson and the sound rhymes with Quack.
Here’s my philosophy regarding the relevance of your market message: If your product or service identity isn’t communicated in your message then you’re missing the mark. Sure, you might get press for naming a town after your company, for having an annoying duck in your ad, or for having two women go at each other in a public fountain… but the press won’t lead to sales.
My challenge: If you’re going to work with a Realtor or Broker then make them work for the 5 to 6 percent they’re earning. If that money is only going into attracting more customers through ad buys and marketing campaigns then you’re probably not going to get much for your money. You’ll be helping them to reach President’s Club, but they’ll just be babysitting your transaction.
So… Ask for something more – or demand it! A Realtor should be more than a trusted advisor, they should make the transaction easy. Imagine a world in which you only had to provide information once to your Realtor rather than filling out countless forms. Why aren’t the Realtors taking this labor intensive task and streamlining it? Why are homebuyers required to dig through all sorts of public records to find crime reports, school districts, and insurance claims on homes they purchase? Realtors know where this stuff is and can streamline the acquisition of the information even if they can’t by law provide it directly. Why don’t most Realtors put some sweat equity into making the homes they sell look sharp?
The next time your Realtor picks you up in their Lexus/BMW/Mercedes ask ‘em what they’re providing for their cut of your transaction. In my area homes cost upwards of $600K, meaning that more than $36,000 is being paid to organizations or people that are often adding little value. A combination buyer/seller agent representative could well be earning their next luxury car off of your transaction. In the UK the same low-level of service nets agents about 1 to 2 percent of the transaction. What is your Realtor doing to earn the additional 4 percent?
So – Make ‘em work! If the services they provide aren’t worth a new car then find a Realtor who has services that ARE worth that. The one I’m working with now qualifies as a guy that gets it. He’s got about a dozen services that are pretty unique in the real-estate world and remove much of the time-commitment and stress involved. Even knowing there’s one guy out there doing stuff like this makes me sleep easier.
Say “No!” to top hats, cat fanatics, and glad-handers! If you wouldn’t give a car to someone with those qualities then they shouldn’t be your Realtor. Say “Yes” to those that can provide you with compelling reasons to work with them. (And make sure that the value you’re getting is actually worth the money you’re going to pay them. And no, “We’ll put you in the MLS system” is not worth 6%.)
That’s my rant for the day. (I’m getting ready to buy another property now myself, and am aghast at the low levels of service people are assuming I’ll live with.)
Tate Linden
Principal Consultant
Stokefire Consulting Group
703-778-9925
Well, I sure wouldn’t want you to treat the industry with kid gloves, would I?
The fact is that many realtors are in the business as part-timers, or as an entry into their retirement job, or in between jobs. Those people make it difficult for the professional who sees the industry as a valuable service to people’s financial health and personal well-being.
The realtors who have spent lots of real money in advertising (and missed the mark completely) are likely not getting the best advertising support. One can argue than another industry which gets a lot of fly-by-night, or part-time-wannabes is advertising. After all, isn’t that just learning html & having a good color sense?
A good realtor is key to the process; most of those are from referrals, not from the best advertising. As for clients, it’s often easy to only be as good as the client wants. If the client is asking for nothing, and the hours of the day are ticking, I’m sure that some clients don’t get the full compliment of services. And that’s a shame to the industry.