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Competition? What's That?

By
Real Estate Agent with Better Properties Seattle

I totally get, after 16 years, that I am an "Odd Duck" when it comes to this topic.  I truly have never gotten why agents seem to feel that Real Estate is an overly-competitive industry, relative to other fields of endeavor.

I rarely run into a competiton factor.  So I'd like to suggest to those who do, that maybe they are creating that scenario somehow, as in "What you resist, persists."  Maybe you invite the issue of competition into your discussion with consumers, more than I do.  I'm not sure why I don't run into competition as often as others seem to, but maybe by starting a "thread" on this topic, I can help some others deal with "fear of competition".  In many ways, those who dislike/fear the new alternative business models, do that because they feel somehow it will impact them, when that is not at all the case, as I see it anyway.

Where do you all run into competition?  Seller calls me, for instance.  Wants to talk to me about selling their house.  I go to their house and talk about their house and how we (they and I) will sell their house.  That's all.  Where does the topic go to some "competition" issue?  It doesn't for me.  Are you, the agent, bringing the issue of "other agents" into the conversation you are having with the owner of the house?  And if so, why are you doing that?  If someone wants to talk to ten other agents before and after talking with me, that's their business and not mine.  Usually they just hire me.  Once in a blue moon they don't hire me and more often I say "Thanks but no thanks", but mostly we, the seller and I, just get cracking at the work to be done to get the house ready for sale.  Where does this whole "competition" thing start and why?

Next example, buyer calls me and is considering hiring me as their Buyer's Agent.  We meet and I decide if I want to work with them and they decide if they want to work with me.  That usually takes one meeting, sometimes two.  Once in a while I refuse to meet with them, but not very often.  One last week wanted a complete list of every transaction I did this year including all of my clients' phone numbers!  That was a "thanks but no thanks" and I cancelled our first meeting.  But that is rare.  If my "competitors" are willing to hand over all of their clients' phone numbers to a complete stranger at first contact...oh well!!  No skin off my nose, as they say.

Once a client is my client...that's pretty much that.  Had a guy call me Saturday morning on his way out to ski, wanted to buy something he saw up in Whatcom County.  We talked for three minutes and I took care of it.  There we go.  Contract about signed around while he was off having fun.  Where's my competitor there?  I have clients call me from all over the place like that.  We're in Florida and saw a...  Hi, do you remember me, I want to sell now.  I get calls like this all the time.  How does a "competitor" make it into your conversation with people?

Again, I know I'm the odd duck on most issues regarding our industry...my thoughts on blogging included!!  I'm the  odd duck in that photo trying to figure out what everyone's squabbling about up on that log :-)   I'd love to hear from agents who think this is a competitive business.  Is this just perception and fear?  Or is it truly a reality in your every day life?  And if it is your reality and not mine, why is that? Even when I'm training and coaching agents...we don't talk about "the competition".  Rarely comes up.  Is it insecurity?  Is it just that I'm dense and SHOULD be talking about "the competition".  I truly don't get all of the chatter about all of the competition. Hundreds of people buy homes every month, probably thousands every month.  You only work with 2-5 in a month.  Sounds like damned good odds to me?  Where am I "off"on this? 

Cynthia Sloop
Community Association Manager - Indianapolis, IN
Ardell I do like your attitude and will look at things a bit differently when speaking with clients and at listing presentations.    You made me think about the times that competition came up and who brought it up.  I'd have to say that it's about 50/50 for me and then my customer.  Most of the time I'm asked about commission and not given much chance about the 1% difference that my commission is from some of the others.  I often lose over the commission factor that the customer wants to go with another agent who is cheaper.  I appreceiate you asking the question, it has given me a reason to think about what is happening.
Feb 17, 2007 10:59 PM
Diane Bell, Hilton Head Real Estate, Bluffton
Charter 1 Real Estate, Hilton Head, Bluffton, SC - Hilton Head Island, SC

Ardell,

Your post just goes to show that we ARE what we  THINK.  I admire the fact that you see competition in such a creative light.  As I always said---The only person I compete with is myself!

Feb 17, 2007 11:13 PM
delete delete
delete - Whale Cove, YN

Ardell, I used to really think it was so competitive, I got told that over and over and over. But, on the other hand, I have not yet lost a job because somebody was better than me. If fact only not gotten one listing I interviewed for, and the other agent got selected for reasons not even related to quality of work. And you are right  as far as buyers. I sure never raise the subject, in fact I  never say anything about the other guys.

I do see it as competitive in the sense that being "THERE" matters almost as much as being "GOOD" in getting business. The agent who can get in front of people may be who gets hired. But then again, thats not really competing with them, just yourself to be a better promoter, so dang guess you are right again LOL.

Diane, can I steal that and remind myself now and then? When I want to say it the other guys beating me out for things? Instead of figuring out how I could have simply done better myself?

Feb 17, 2007 11:38 PM
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time
Ardell, I, like you, rarely have any competition. Why? Because we are established in what we do and customer/clients seek us out to do business with us. The competition in our business is on a different level. Companies competing in the same market for market share etc. The reason we are not experiencing it is because the consumer has already made up their minds prior to calling. BUT there are many consumers that may choose a different biz model. We are not competing with these companies on an agent level because we are not even invited to the game.  
Feb 17, 2007 11:58 PM
Anonymous
Aziz Abdur-Ra'oof
Ardell,
Your graphic reinforces your point and i am thankful that you shared it. REALLY GOOD STUFF!
I will be conscious of how i present myself and what i am putting out there as I communicate with people --- timely subject for me b/c i blogged about it a few days ago.


Muchos gracias




Feb 18, 2007 12:19 AM
#9
John Klassen
M & T Bank - Kingston, NY

There is a lot of competition, meaning there are many choices for the consumer. These choices would not be available if there wasn't demand for them.

If you have a plan to get in front of the people you want to do buisness with, you will develop relationships that lead to business. You become the number one source of expertise in your community.

Similar to the mortgage business, those that complain about competition (choices) are seeking to justify their failures.

Feb 18, 2007 01:18 AM
Netta Blackwood
La Rosa Realty - Kissimmee, FL
REO/BPO Expert
Ardell, good post....I believe that my biggest competition is myself.  I don't waste my time wondering what other agents are doing.  I focus on how I can better improve myself.
Feb 18, 2007 03:25 AM
Kelley Eling
Fathom Realty Group - Sonoma, CA
Realtor Extraordinaire

I was introduced to a potential client (an elderly man) several years ago by their neighbor, a home inspector that I frequently did business with.  The elderly man and I became friends, I called him about once a month to check in on him and always included him in my mailings.  I got an email from the home inspector this morning saying that the elderly man had been moved to a nursing home and that the nephew was handling his affairs.

I called the nephew this morning to let them know who I was and that I was here to help.  He didn't recognize my name and asked his wife if she had contacted me.  (He wasn't listening when I described who I was and how I was introduced to his uncle.)  The wife immediately got on the other line and started in, "We know how you real estate people work!  He was an old man all by himself and now you see that he's not in his home anymore!...."  and on and on...  I let her get it all out of her system and then started over with who I was and how I came into the picture.  I explained once again that their uncle was a friend of mine and that I was here to help.

She then recognized my name from things she had seen around the uncle's house.  She also said that they had contacted another realtor, a friend of a friend, and wasn't sure about the value that he placed on the home and asked me if it would be appropriate for her to get more than one opinion, including mine.  I encouraged her to do just that.

Similarly, another older man whose children I went through school with, and I have known for over 30 years.  Yes, I went to school with his children, but in my adult years my primary relationship was with him -- an attorney.  For the past year and a half we have been discussing which properties of his we should sell and in which order.  He did not tell me that he had cancer.  The day we were supposed to meet and sign the listing agreement he had a seizure and went into a coma.  One of the daughters, whom I do not know, has a friend that is a Realtor.  The mother is going blind and the father is now in a coma.  They will likely be going with this other Realtor because of the youngest daughter's friend.

There are plenty of agents/competitors to choose from in our neck of the woods.  I have strong relationships with both of these people.  Neither of which are currently able to speak for themselves.  I must be graceful and start over, building relationships with these new people.

 

Feb 18, 2007 05:45 AM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA

Kelley,

All I have to say on that is look up "stepped up basis".  Every agent should know that a property gain can often be eliminated if a family inherits a property vs. it being sold. Cost basis becomes value as of DOD...at least last I checked.  Make sure the elderly person's attorney and accountant are involved regarding gain tax issues. 

 

Feb 18, 2007 08:46 AM
Joan Snodgrass
Midamerica Referral Network - Kimberling City, MO

Kelley:  How difficult that has to be for you.  And you raise a good addition to this dialog - how and when - do you contact family members of someone you have a realtionship with, who has fallen into ill health or died, etc.  Family members coming from across the country may not know you or have heard of you.

When and how can you speak to the family and not appear to be an ambulance chaser, but you know the property and have been a friend or neighbor to the now deceased?  Very sticky whicket. 

Thanks Ardell for bring this topic up.  Any suggestions? 

 

Ozarks Joan 

 

Feb 18, 2007 08:57 AM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA
I had a client die during the listing and it proceeded to closing.  There was only one heir so it was relatively simple to proceed.  I involved the Estate Attorney and the son.  She was hit by a truck.  She was wishing she didn't have to move and that "God would take her before she had to leave".  At the funeral, I felt like her prayers had been answered.  She had outlived her husband by 23 years and said she never thought she would have to move as she felt God would take her before that would happen.  I'll never forget that event, for sure.
Feb 18, 2007 10:13 AM
Lola Audu
Lola Audu~Audu Real Estate~Grand Rapids, MI Real Estate - Grand Rapids, MI
Audu Real Estate~Grand Rapids, MI ~Welcome Home!
Ardell, Once again a very powerful post!  You have a way of making us think...again.  Just wanted you to know that we have included your post in the Suggested Reading Guide for the Fraiche Aire RendezVous in Black & White.  Thanks for a good read.
Mar 01, 2007 12:24 PM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Ardell.... very good topic and excellent post. Even though I am a loan officer, I think I have more competition at times. Here's a biggie... everyone and their brother is a loan officer nowadays.  I had clients that were referred to me by Ravi Shah here on Active Rain. I was up against 5 other loan officers, 3 of which were recommended by friends and family. My problem with this one was that I was upfront with the clients, knowing that they weren't going to close at the end of April, meaning that I had to give them a 90 day rate that could be locked in and not a 30 day shopping rate, that I know a few of the loan officers gave them.

2nd, in regards to the above client... they were buying a condo. Most condo's have set-up fees and sometimes collect 2 months assoc. dues upfront. SO I guessed really quick and put $500 down. Come to find out from the realtor that it was $520. The other good faith estimates, I was a little higher because of this fee. I guess my experience gets the best of sometimes.

Overall...Ardell... I have competition all over the place. Clients will believe what they see and hear, thinking that if it's on paper, it's a contract and can't be changed. Even when I educate them on this, their comment is..."well, they promised me."  LOL  Anyone can break a promise. One reason why I hope to get business from realtors here on AR, no matter what state you are in. I am honest and I am sticking to that, not changing myself, because of how other loan officers low ball rates and fees.

Again, great discussion here. Sorry that mine was a little different, because I am not a realtor. I also think certain areas are different for realtors, depending on the saturation.  But as several of you have stated, getting yourself out there, being known, can help control a certain market.

Mar 02, 2007 12:22 AM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA

Jeff,

I absolutely agree that loan reps have a much harder time as you are all leading to the same place.  A loan.  With agents, the product is many and varied...houses.  When someone has an 800 credit score, they only need the best rate.  But they still need a lot of guidance regarding which home to choose.

Definitely more competition for lenders.  I agree.

 

 

 

Mar 04, 2007 12:56 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Hi ARDELL,
I'm baaaaack.

As for the topic at hand... the competition, of course, is in getting them to call you (or me) in the first place. Once we have them on the phone or in front of us, competition is history.   

 

Mar 05, 2007 04:46 PM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA
I don't worry about the people who don't call me.  I have my hands full as it is :)
Mar 05, 2007 05:19 PM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA
ARDELL,  See... this flippant attitude of yours is why you don't get it.  The people who don't call you are calling the competition.  Duh.  If you didn't have your hands full, you would worry about those people that don't call you.  You would take out (useless) ads that tell people how great you are and why they should call you... and not the COMPETITION.   Do you get it now???
Mar 06, 2007 12:16 AM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA

Carol,

Didn't get it my first year in the business or since 1990.  Don't think there's any home for me.  Focus on yourself and put blinders on to the competition.  Be the best you can be.  That should be good enough.  If not...new line of work. If you are a good agent, you should be worrying about the competiiton.  If you are not, you shouldn't be finding ways for people to hire you anyway.

 

Not "you" personally Carol, of course.  Just how I see it.  When someone has no clients, there's usually a good reason.  Work on knowledge skills, not on promoting yourself better.

 

Mar 06, 2007 06:06 AM
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA
ARDELL,    I agree totally about getting the knowledge & skills.  You do know my tag line is... "Information Is FREE.  Knowledge, Experience & Integrity Are Priceless".   
Mar 06, 2007 11:05 AM
ARDELL DellaLoggia
Better Properties Seattle - Kirkland, WA
Good Tagline!  No I didn't know that. 
Mar 06, 2007 04:21 PM