Where do buyers really come from? 
So you are thinking of selling. You hire your favorite real estate agent and what comes next? Where do the buyers come from? Well, most assume if you hire Joe Agent, they must have a bucket full of buyers that they know and they will simply bring them over and sell the home: a pretty simple process, right?
If it’s so simple, then why does it sometimes seem to take so long to sell a home? Why does your agent never seem to show up with a buyer who actually buys your home? Why do buyers show up and say they won't buy your home because it only has 3 bedrooms and they need 4 bedrooms? Can’t they read? If there are so many open houses on my home why hasn't a buyer walked in and bought it already?
Anyone that has been in the real estate business for more than an hour will tell you if your home isn't sold, it is likely overpriced. With that being said, then why haven't the buyers written an offer at "their price"? Are you that owner that is sitting there wondering: “Why did I bother putting my home on the market only to deal with all of these hassles? Why can’t I just make a phone call to a few prominent agents in town and tell them to bring me an offer?
When I think back to my first day in Real Estate 25 years ago, I actually assumed that buyers just showed up at the office looking for a home. Coming from the retail jewelry business, that is exactly who I sold jewelry to: people who showed up at the store. Well, after about 8 hours in the business staring at the front door of the office, I realized nearly no one walks into the office looking for a home. I quickly learned if I ever intended to represent a buyer or seller then I had to figure out how to go find my own client.
I asked my manager at the time “where do buyers come from?” and he said, "Ed, hit the streets". I said, "what do you mean"? He said, “pick a street, knock on the door and ask them if they would like to buy or sell a home.” I said, “Won’t they get mad?” He went on to tell ne that some do, but if you smile and are polite, (and they don't own a gun or a German Shepherd,) you will be just fine. I spent the next 10 years of my career following his advice. With only two dog bites, one angry bird incident and, fortunately, no gunshot wounds, it ended up being a great way to find new clients.
This was, of course, before the internet; before cell phones or even fax machines were used. When we agents talked about marketing to find a buyer for our listing, the plan was this: a 2 line ad in the newspaper, a sign in the front lawn, and a Sunday open house. Life was simpler for sure.
Classic Realtor Marketing, in a different era, circa 1994 . . . (yes, that's me at age 12)
Fast forward to my 25th year in the business and the buzz is all about Twitter, Facebook, YouTube, and Google. Buyers are no longer coming from just around the corner. They are coming from every corner of the Earth. Finding them brings a whole new set of challenges. A bulk of them (62%, per the National Association of Realtors) found the home they bought through agent and broker branding. This really points to agents doing their job finding buyers on their own and bringing them to the properties that are for sale. Surprisingly, only 1% of homes sold were originally discovered from an open house a buyer visited. The balance comes from a variety of sources including, but not limited, to relocation services (similar to SportStar Relocation), print advertisements, the MLS systems, and For Sale signs.
Knowing that 62% of the buyers are going to be sourced through a broker’s diligence, it is also important to know that a majority of those buyers will not likely be working specifically with the agent you hire to market your home. A listing agent’s ability to market to the agents in the area becomes as critical to the marketing process as anything they do in their plan for your home.
Reaching beyond the walls of local agents and local buyers is where creativity and effort becomes necessary. Whether buyers are coming from 25 miles away, 2,500 miles away or from the other side of the globe, it takes diligence and skill to attract their eyes. With millions of internet sites syndicating your listing automatically, it continually becomes a challenge to direct and focus those buyer’s eyes on your own home or listings. In addition, the demographics of today's buyers run the complete gambit. Surprisingly, we are seeing more buyers are under 30 years old with the means to buy a home worth millions. There are buyers, 30-50 years old, and others who are in their twilight years. Knowing how to get a listing in front of all of these buyers, while simultaneously appealing to each generation, is of the utmost importance.
Today there is no question that quality and quantity of property photos online is critical. No matter the generation identifier, buyers spend hours doing research online and the more an agent can offer them up front, the better. Reaching the international market is certainly the hot topic of today. Providing excellent online content to those international Real Estate investors and buyers relocating to the States from overseas is the critical first step to garnering their interest.
Staying ahead of the game, be it via technology or otherwise, is imperative to finding the best buyers in the market. Just last week our team implemented a new “flying camera” to capture a Birdseye view of a large estate home, offering a view that could not be captured from the ground. The video camera is literally attached to a remote control Quiet-Copter™* to ensure that buyers get a full perspective of our inventory from the comfort of their own computer or handheld device on-the-run.
What is the real answer to where buyers come from? Here, there and everywhere. If you are selling, be sure you have a full service agent who has a plan to reach them all if maximizing your price is important to you.
310-798-1277/ EK@ItzSold.com
*View the Quiet-Copter in action as filmed by Hoverfly Studios
Quiet-Copter is manufactured, owned and operated by Hoverfly Studios, based right here in the South Bay.
Comments(5)