Full disclosure, when I started my real estate career back in June 2001 and fresh off the aeroplane from England, I went right into working with home sellers. I turned my 20 years of corporate sales and marketing experience to create a program that got me listings, primarily from For Sale by Owners and sometimes expired listings.
Is this best way to get started? Looking back, I’m not so sure. Let’s examine the pros and cons of working with sellers and compare it to working with buyers.
Working with Sellers
Pros
1. It can be an opportunity to get sign calls and enjoy some local branding.
2. If you manage the listing relationship properly, you have about a 50% chance of receiving a commission when the house or condo sells, (we like to call it a Success Fee at Ambergate).
3. Some sellers must buy afterward, so there is a chance to serve the same client twice.
Cons
1. Listings can be hard to win, especially if you are new.
2. Finding sellers can be hard work and expensive.
3. Home sellers are discerning. Most will interview 3 or more REALTORS® before picking one to represent them. What will you do to stand out?
4. Listings are expensive. Consumers want more than a brief description, one photo on the MLS and a sign on the lawn. Setting up a listing correctly to include virtual tours, professional photos, floor plan and social media advertising can be very costly. Can you afford to bankroll a listing, knowing that about 50% of the time it won’t sell, even in a hot market.
5. Sellers are demanding. Most of the time, sellers over price in their minds. Your job will be to firstly gain their trust, secondly win the bid and third get them to position their home in the market, so that it sells.
Working with Home Buyers
Pros
1. Looking at homes is fun. Buying homes is fun. There is far more joy in the home buying process than in the selling process.
2. Identifying potential home buyers is easier. Its not hard just by talking to friends, advertising online, or going to social gatherings to find people that want to go out looking at homes.
3. Its much easier to get hired. Based on research, most home buyers interview only 2 REALTORS® before committing to one of them. That means you only must meet 2 potential buyers and you have a job.
4. Are you punctual, likeable and trustworthy? If the answer is yes, chances are you will get hired.
5. If you do great job, you have a future listing client (most people move every 10 years) and they will likely refer you to their home buying friends.
6. Buyers don’t cost anything to service, other than your time and perhaps the odd cup of coffee.
7. Despite technology making it so easy for home buyers to find homes for sale, the vast majority in our market look for a REALTOR® to help with search, selection and to guide them through the entire process.
8. The smile on your clients face when you hand over the key and watch them walk across the threshold and into their new home is priceless.
Cons
1. Many buyers are not real buyers. They may want to look at homes, many homes for a very long time. They may waste too much of your time.
2. Many buyers think they know what they want, but they don’t really know what they want. You will save yourself a lot of time and trouble by working to a proven process.
3. In our market where most people work during the day, you will be asked to show homes in the evening and over the weekend.
After reading this blog and perhaps after you have considered your own strengths and weaknesses, to which market are you best suited? Buyer or sellers?
About the author:
You can read more about the author of this blog by clicking this link - Stuart Neal, Broker REALTOR® & Team Lead.
You can watch and hear Stuart share other ideas on his You Tube Channel: Stuart Neal Edmonton Real Estate Career Coach.
Follow Stuart on his Facebook coaching page: Stuart Neal Edmonton Real Estate Career Coach Facebook.
Want more information about becoming a team member or Associate REALTOR® with Ambergate? Call Stuart our broker owner at: 780-760-2014 ext. 3 or go to our Careers page - Vital Home Realty Careers.
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