It’s about a new brokerage concept coming into the mainland from Hawaii. They will be offering full service real estate services for 2% listings. The 2% is split between buyer and seller brokerage! In the comments there are threads of pissed off brokers complaining about how companies like these kill our industry. I think companies like these improve our industry because they force the rest of us to get better! SRE Matrix (name of brokerage company) is not the only “discount” brokerage in town. There are many other brokerages offering discounts trying to out price their competition and save consumers money, but is that a good thing?
My personal opinion is that discount brokers give you discount service. Did you ever notice that many newly licensed and/or inexperienced agents tend to work at these types of brokerages? They are given clients to work with vs. having to rely on their own lead generation. There is nothing wrong with that. It’s a win-win for the brokerage and the agents working there. There is a market for this and all they are doing is serving it. More power to them, this is capitalism. I don’t feel threatened by them in any way.
Once those agents mature in the business, their experience typically graduates them into a traditional real estate brokerage. The discount brokerage served as a stepping stone for newer agents to get to the next part of their career. Do you see many top producers in your market hang their license with these brokerages? I believe these models will always have a “revolving door” of agents, which is key to my next point.
You see, saving money is not always what EVERYONE wants. It’s also not always in the best interest of consumers.
People will pay more for things they feel they are receiving value with. Have you ever seen what women’s purses sell for today? I was trying to buy my wife a purse and didn’t know it would cost me a mortgage payment. What’s wrong with the purses at Target?
Creating Value For Consumers…
Not long ago my wife and I were at dinner with a couple we just met. I found out they just bought a house FSBO. They gave me the info on where they bought and I knew immediately they way overpaid! I probably could have gotten them the exact same property for 50,000-75,000 less!
Do you think this couple would have any problem with me making a full 2.5% commission if I found them them another house at a much lower price? HELL NO!
The reason why I attract buyers is because I’m great at what I do. My job on the buyer side is to advise whether or not their investment is a good one. This is my value proposition to any buyer I work with and why there is a demand for my services. It’s my job through marketing to educate consumers on that.
Listings…
There’s a discount brokerage in my market and their agents are very new to the industry. Everything they list seems to be at a great price and sells within days. I’m sure the sellers think they saved 2.5% of the sales price not knowing that an agent with the experience and a true marketing plan can easily find a buyer that would exceed the 2.5% savings!
The discount brokerage’s marketing proposition is the savings on commission. They do a great job educating consumers of this and it works!
Here’s the point. There are good agents and there are bad agents. Just because someone has a real estate license does not make them equal to another agent who has the experience and expertise to do a better job!
It’s like plastic surgeons. Some of these doctors get top dollar for their procedures while the newly licensed surgeon does the same surgery for less money. There will always be a market for a more or less expensive price point of the same product.
They think that anyone with a real estate license can provide the same level of service more or less.
So back to the good news…
The discount brokerages, the Zillow’s, Trulia’s, Realtor.com’s, and all the rest of technologies out there are competition. If there wasn’t competition, how would our industry advance?
Adapt these 6 things into your business and you will begin attracting business so you can eliminate the peaks and valleys of real estate.
1. Create A Better Listing Marketing System
Create a better listing marketing system– What’s your current value proposition for a seller? What’s you marketing plan? We know you will put a sign in the yard and list it on the MLS, but what else are you going to do? If you cannot answer this question, then yes I am speaking to you. I’m not talking about hosting an open house or your print brochures either, those don’t count. Sellers can do this without us!
Technology has caught up and we need to do more than the status quo to compete with the ‘discount brokerages” and Zillow’s of the world. Check out a couple of these articles and you’ll see how you can create a value added proposition through enhancing your listing marketing plan so that you may begin attracting business, not chasing it.
2. Create A Referral Marketing System
61% of ALL agent business is attributed to referrals and repeat business. Real estate is like a popularity contest. The more relationships you have that know you’re in real estate…the more referrals you’ll get.
A good referral marketing system will nurture your relationships keeping your name at the forefront. Anytime the word real estate comes to mind, everyone in your database immediately thinks of you! When you pair this with a value driven selling proposition, you will ATTRACT clients so you can throw the cold calling scripts out the window!
3. Create A Better Process
Have you ever thought about your process to working with clients? Do you have a system you follow with each buyer or seller client you work with? Can you think of any business that exists today that doesn’t have a process to follow with their customers? What if Dunkin Donuts coffee tasted different every time you went there? What if the next time you went to Apple Bee’s the honey mustard sauce was totally different?
You cannot have a brand without consistency. You cannot have a real estate business without a brand. A better process will allow you to create a level of service that transforms your current clients into referral sources. A better process will have you performing marketing tasks during the course of each transaction so that you can leverage existing clients into additional spin off business. Things like Facebook Just Listed Ads, Just Sold Postcards, You Tube video marketing, and online listing marketing! If you are not using your existing clients to market your brand you are missing out! Check out some of these articles if you want some more pointers.
4. Become The “Expert”
We are living in a Content Marketing world. Content marketing is how to market your business by sharing your expertise with people who are highly likely to need your services. Much like I am writing this article you are reading. If you are looking to market your business online, you are going to need to consistently create content. This is how you attract business to you. People look online for the content you produce and are naturally drawn to you.
People want to use an expert. Your goal in all of your marketing efforts online and offline should be to become the real estate expert in your area.
You will realize that once your focus becomes education, that you will rarely ever feel like you are selling anything!
5. Start Using Video
It’s 2017 and whether you like it or not video is here to stay. I know it’s very scary for most agents, but you aren’t alone. It’s supposed to be scary, but wasn’t your first showing the same way? Don’t you remember the first time you had to show a house, how nervous you were? I was so nervous and didn’t know what to do! That didn’t stop me from doing it though. Video will take some getting used to, but it has so many advantages. I suggest using video for content creation, social media, listings, neighborhoods, about you, and email marketing for referrals. Here are some articles that have some more ideas how you can use video in your real estate business.
6. Set Up Multiple Lead Generation Systems
Relying on a single source of business is never a wise thing. In real estate you should have several different lead generation systems set up in your business. This is how you avoid peaks and valleys. I suggest using permission based marketing strategies that have leads coming to you vs. you having to chase business through old school prospecting techniques and cold calling. You can buy internet leads, use direct mail, video marketing, blogging, and Facebook ads. It’s not hard to make your phone ring, it’s all about what you say when it does. Check out some of these articles to get a better idea of some things you can implement.
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