Technology plays a key part in the modern Investors toolbox, gone are the days of “Real Estate Listing Ledgers” that were updated biweekly and were always out of date. Now we have Multiple Listing Services like FreedomSoft, Listingbook, etc. to give us up to the minute information about new listings, withdrawn ones and expired listings. This is all done at the touch of a button; we can walk down the street, look at the condition of properties and do “comps” from our desk while talking to buyers and sellers.
Of course nothing beats the personal touch and all the above is geared to getting appointments to win listings and get contracts signed by next step of getting your foot in the door. After measuring up with a digital laser and complimenting the seller on their new granite kitchen worktops it’s time to make a marketing presentation to show how well the local market is understood and by listing the real estate seller will get top dollar for their house. To keep real estate seller grounded about price expectation it may be necessary to do a “Market Absorption Analysis” comparing current situation with previous 12 months for current homes on the market, current days on the market, current average listed price, number of homes sold, average sold days on the market and current average sold price.
The modern owner or manager needs to apply the Key Performance Indicators not just to Real Estate Buyers and Sellers stats but to the motivation and performance of all employed in the business. This includes following but is not an exhaustive list of the KPI’s:
- No of houses business lists in a year
- No of houses business sells in a year
- Average percentage of asking price achieved in a year
- Amount business invests in Marketing
- No of days it takes for average listing to sell
- Marketing Plan
- Regular verbal follow up and feedback program
- Have own in-house mortgage company
- No of days a week office is open
- Designations held by Owner and employed agents. Example ABR, SFR, RSPS, E-PRO
- Huddles held between owner, agents and all staff to involve team in overall objectives and individual goals
Technology plays a part in the process of the buyers and sellers and 90% (below age 44 years it’s 96%) start the process with searches on the internet or by contact with an agent through websites and or e-mails. Buyers and sellers can find each other without the aid of estate agents. Although this is true there are many good reasons to list with an agent, rather than be a For Sale By Owner (FSBO):
- On Average FSBO’s get 18% less for their house than an good agent will get
- FSBO’s think they will save money, typically it’s less than $400.00 to advertise compared to 6% with an agent
- Buyers expect a lot more leverage on price when a seller is an FSBO than is the case with an agent
- Not so many buyers are going to find a seller on just one FSBO site, whereas agents have a whole bunch of marketing strategies, including local newspaper advertising, radio advertising, listing on the MSL and even get the millionaires houses shown on TV programs
- Savvy agents arrange pre-inspections that resolve issues and avoid buyers using defects as leverage to reduce the price
- Priced correctly good agents typically get 97% of asking prices so paying 6% commission can make sense
- Modern agents are skilled and knowledgeable about the lending process and often have contacts who can get buyers loans that they otherwise would find very hard to raise. This is very relevant as in 2012 87% of homebuyers relied on finance
In short, by using an agent you are more likely to get top dollar and the most money for your home and guide you through the daunting processes from contract to closing and to de-stress the whole process. Without the right agent fighting your corner, the processes will very likely fall through due to technical difficulties.
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