I was just reading through a "prominent real estate agent magazine" (I'll leave their name out) and a writer there states something of the following (I'm going to paraphrase).

As a new agent, you will be working with a lot of buyers, because you will be out talking to people, shaking hands, holding open houses and trying to get floor time.  As you progress forward, and you get more referrals, you will be getting more sellers.  Your ultimate goal is to work with 80% of sellers and 20% of buyers, so the quicker you can get to this ratio, the better off your business will be.

Hmmmm... I know traditional trains of thoughts were "She (or he) who has the most listings wins" but isn't that old school thinking?  I am working with a lot of buyers, perhaps it is because I'm new to the business.  But every Realtor out there (especially those in 10-20 years) is asking me how I get so many buyers.  Their listings are sitting there, their sellers are anxious and getting upset, and they can't figure out where to find a buyer.  

 

My own humble opinion here:

  • Buyers are more leg work, but less cost upfront.  I help my buyers with lunch and drinks, but that is small verses the costs of magazine, newspaper, and other advertising that doesn't always work, but sellers expect to see. 
  • With a buyer, you have options.  With a buyer, if the house doesn't work out, you go to the next. With a listing, if the buyer doesn't work out, there is not always a "next". 
  • I still get referrals of buyers to other buyers.  So why would I be waiting for a referral of a listing, and pass up on a buyer?


I guess I'm a "Wild Card" throwing tradition into the wind, but I haven't had a selling agent yet that was upset when I brought them a buyer's offer.

 

 

 
Post is included in group: Real Estate Rookie

29 Comments on Buyers or Sellers?

AUG
31
2007
2 Featured Posts
Oh, I do have listings also, I'm not a buyer's only agent.  I just prefer buyers.
4:38pm • #1
100,154 Points 1 Featured Post

I like working with buyers, too.

Just think....  in a few years your Buyers will be turning into Sellers and hopefully calling on you to list the homes you once helped them to buy!

4:41pm • #2
Localism Sponsor Outside Blog
This is so true--we're to be finding BUYERS! for all those listings!
4:43pm • #3
Lexa, in my opinion tradition is almost out the window.  Buyers may be less money "out of pocket" but it can be a lot more time and our time is definitely $$$.  While sellers allow you to market yourself in publications almost to the point of saying hey look everyone, see what listings I have, and if I have these then I can list yours!  The more listings you have, the more TIME & MONEY it takes to keep them updated, advertising, etc.  I believe a healthy mix, depending on the market at the time.  Two things; ask your buyers a lot of questions so you can narrow down your showings, and with listings, make sure they are priced right, otherwise they will bleed your wallet and have an unsatisfied constumer.  Best wishes.
4:43pm • #4
123,792 Points 4 Featured Posts
smart lady who understands her niche.  Sometimes I think that we just need to take advise with a grain of salt and do what we know works for us!
4:46pm • #5
2 Featured Posts

Ian, with my buyers, I encourage and try and get as much information for them before we even go out.  When we do go out, I have them narrow it down to their five favorites. That way, they already have the properties down just from the basics. Most buyers today are very savvy, and know what they want almost to the color of light switches.  When they see it, they know it and go for it.  I just know how to read people and help them sort through the ....stuff....to get to the one they really want.  

 

Thanks everyone for commenting.  I am still waiting for someone to stand up and say that having 80% buyers is a bad thing :)

 

Lexa 

4:54pm • #6

Thanks for the blog. I feel agents that make the statement (I'm a listing agent) sounds a little arrogant. Its all most as if their a little to big to work with buyers.  I think we need to remember what we are in the business for: to be of service to those in need Real estate services, buyers and sellers.  I do know buyers can run you ragged, but lately listing can sit a while too.  I'm up for either. 

 Any agents not wanting to work with buyers can send them my way :)

God bless

4:54pm • #7
Today I want (serious) buyer more than I want sellers. But if they can fog a mirror and we get along well (very important) I will work'em...
4:56pm • #8
SEP
01
2007
271,088 Points 41 Featured Posts Outside Blog
Lexa - there are a few reasons for this mindset.  First of all, a listing is working when you are not.  It is available to be seen 24 hours a day / 7 days a week on the Internet.  You conceivably have thousands of agents working to get your listing sold as well.  In a normal market, listings should generate buyers as well, whether it's from an open house, sign call or ad call.  However, in this market, I've had listings generate no buyers, and it was not for a lack of follow-up or trying.  When this happens, and the home languishes on the market, it is actually a negative because it is costing money, but not generating any.  There is also a certain satisfaction in finding the right home for a buyer.  It's kind of like solving a puzzle.  I personally enjoy my time with buyers, but many agents prefer not to work with them.
6:19am • #9
419,580 Points 3 Featured Posts Outside Blog

I work with anyone who wants help buyers,sellers, and renters. Today's buyers are tomorrow's sellers.

In this market I wish I had more buyers. It would be fun to help them negotiate.

6:26am • #10
190,689 Points 18 Featured Posts Outside Blog
I would think that buyers would be like Gold right now! I think a lot depends on how your perspective is. If you like negotiating and getting a great deal, then buyers. If you want to get your name on a lot of signs, sellers. I personally work with both and it seems to even out.
6:53am • #11
Personally I work with a lot more buyers than sellers. That's just the way things have ended up, and I think that the way the market is, it is best to have buyers!! Not to mention they are so many people who decide to be either a "buyers agent" or a "seller's agent". It is part of their niche!! 
10:06am • #12
130,211 Points Outside Blog
Lexa - I am with you on that! You hit the nail right square on the head! Buyer's are indeed easier to work with!
10:11am • #13
222,226 Points 12 Featured Posts Outside Blog

I work mostly with buyers and do enjoy it.  While I like to have a couple of listings; I like buyers!

I suppose the theory is : How many buyers can you show properties to in a weekend?  I have done 3 over a 2-day weekend and was stressed.  Could have written 3 offers and submitted them all in the same weekend?  MAYBE... If I had 4 listings and 2 buyers I could (in theory) have 6 offers to negotiate.

In this market; my goal is 80% buyers 20% sellers.... time will tell.

10:12am • #14
2 Featured Posts

James, Maybe I'm in a strange world, but almost all of my buyers came to me during the weekdays and wanted to see things during the week.  I do work some saturdays but it seems that people have weird schedules like my husbands usually and need to see something in the middle of the week.

 

Adam, Even though a listing can be seen 24/7, couldn't you, in theory,  advertise yourself as a buyers agent 24/7? 80 % of buyers are starting on the internet, I think you could grab them then as their agent.  I did pull in some buyers off of a listing of mine, but the listing wouldn't sell.  I have had horrible luck with my listings also, maybe that is why I feel like I like buyers so much better.  

 

Thanks everyone for your input :)

Lexa 

11:18am • #15
SEP
02
2007
419,580 Points 3 Featured Posts Outside Blog
I wish I would get buyers who like to look at houses on week days. Most people want to look on weekends at this limits the number of buyers you can work with.
6:52am • #16
Thanks for posing this simple question. I like hearing what people have to say. I'm fairly new to real estate and am focusing and advertising myself as a buyer's agent. I have a hand full of listing but I don't solicit them. Working for buyers is natural for me. I have a lot of patience...it doesn't seem like a chore as I'm hearing from some of the "listers" here. Every time I have to explain a dual agency agreement to someone, the more I think I'll eventually be an exclusive buyer's agent. I do love the process of helping my client find exactly what they're looking for with no conflicts of interest. It keeps things simple. 
12:53pm • #17

Buyers are wonderful.  We have many buyers right now and they make what we do fun.  Sure they make us pull our hair out from time to time, and test our patients and multi-tasking abilities, but it is beyond worth it when they get the keys to thier new home.

 

Good Stuff !!!

2:19pm • #18
SEP
03
2007
Good post. I have found that to be a succesful agent with longevity you must have a well rounded arsenal of buyer and seller goods. The market ebbs and flows, and the agent that is flexable wins.
4:36pm • #19
SEP
05
2007
142,186 Points 4 Featured Posts Outside Blog

Hi Lexa,

I also think a healthy mix of buyers and sellers can work out well.

My business is normally made up of about 70% buyers and 30% sellers.  I've been teaching home buying classes for many years and get to work with first-time buyers from those classes.  As for sellers, they are mostly clients, who bought from me in the past.

I think now it's so important to do consultations with prospects and clients to really find out what it is that they're looking for and to show them how the buying and/or selling process works in today's market.

You need to tell people what they need to hear, especially if they're going to be a seller.

1:50pm • #20
SEP
08
2007
125,840 Points Outside Blog
I guess everyone has their opinion of who is easier to work with, buyers or sellers.  I am new to the business, so I am starting out with buyers.  I hear that the buyer will run me all over town and change their mind 100 times!  Well, I guess that is my job right now.  I need to help the buyer find the right home for them.  At this point in my career, I can't afford a seller anyway, so I will stick with the buyer.  By the time the buyer is ready to sell the house I sold them, I will be ready to list it! 
12:49am • #21
142,186 Points 4 Featured Posts Outside Blog

Hi Roberta,

Buyers won't run you all over town if you meet with them first and find out what they really want in a home.  As you go through homes, ask what they like and don't like and if they aren't interested in what they're seeing, change their search parameters.  Also, make sure they've been pre-approved and you know what price range they're qualified to look in.

11:15am • #22

I think you should simply do what comes naturally to you. It seems to me that working with buyers is a no brainer. However, reading all the books written by the "Real Estate Gurus" you would think that working with mostly buyers is a bad business model. In all reality the market is the ultimate dictator of where your focus should be. Isn't it?

TAFN

12:12pm • #23
SEP
10
2007
2 Featured Posts
I agree Tellis!  I think everyone is itching for a buyer, knowing that you could get some ganga deals for them right now.  Now two years ago I might of wanted to have all the listings, all you did was put up a sign and rake in the dough (I should know, We sold our house in one day)
11:07am • #24
Localism Sponsor
I think a good mix of both would be optimal.  I think sellers hold you more accountable - looking directly to you for answers on why their house hasn't sold.  But I have never had a buyer turn around and say why haven't you found me the perfect house?  Right now I represent a lot of sellers, and like many would like to increase by buyer pool given today's market.
11:30am • #25
197,943 Points Outside Blog
I also think a good mix of both is good.  I do like buyers because its a lot quicker to get to the end of the deal.
9:42pm • #26
SEP
16
2007
I find that most agents also fail to pursue sellers as potential buyers.  I know of a top producer in town who captures less than 30% of the sellers as new buyers.  Listings are the primary source to finding new prospects through proper marketing and it is helpful to work with a loan originator who can provide you with turn key marketing systems to help find those buyers. 
8:02pm • #27
483,322 Points 50 Featured Posts Outside Blog

Lexa,

I definitely agree with you about working more with Sellers. I am not choosy though. I'll welcome any clients.

I experienced this very recently on the Labor Day weekend. I was NOT AVAILABLE because my family threw me a baby shower so I did not work. Many buyer's agents showed my property. One even came back 3 times and with an offer. So, you are right. It should be our goal to become a listing agent. It is easier I feel. But alot of hardwork is put upfront...

9:53pm • #28
SEP
17
2007
2 Featured Posts
Loreena, I actually didn't agree with becoming a listing agent.  But it is easier somedays to sell than to buy.  
11:48am • #29

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Lexa Montierth

Benson, AZ

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Office Phone: (520) 405-2857

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I'm not out to change the world of blogging, nor do I feel like I have some earth shattering discovery. I am blogging for history, for information, for help, and to help others. I blog to advertise, I blog to find advertisements. Real Estate is all about Networking, and I am proud to be a part of this community!


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