Category: Marketing

Surviving Armageddon: The End of Real Estate As We Know It

So, you think the real estate ‘downturn’ (ok:  ‘collapse‘ would be a better word) after the bursting of the bubble was bad?  You ain’t seen nothin’ yet.

Trulia and Zillow – two companies who brilliantly found a way to suck the wind out of the real estate industry’s sails by putting the consumer first (something the industry quit doing the moment recruiting was invented) – are joining forces.  While the goal, as always, is to maximize revenue, the marriage is one giant leap in the direction of eliminating Realtors as we know them, altogether.

I say it’s about time.  Let’s celebrate.

Advances in technology and the success of (non-real estate) companies that put tech in the hands of consumers are rapidly making real estate agents and brokers irrelevant.  Back when I was training agents, the factoid supplied by the industry was that 80% of the business would be done by 20% of the agents.  The National Association of Realtors is now telling us that 90% of the business is being done by 10% of the agents. So 9 out of 10 people ‘selling’ real estate ought to be asking if you’d prefer paper or plastic instead.  If that’s not a definition of irrelevance, I don’t know what is.

If you’ve paid any attention to this blog over the past 5 years (our anniversary is next month), you know I believe real estate brokers got off track way back in the early 70s.  That’s when the accent in their business shifted from selling real estate to recruiting.  It quit being about the consumer and started being about the agent.  Innovation focused on how to enable agents to make more money (Re/Max et.al.) rather than how to better serve the customer.  Per person productivity started to slide and has never stopped.  That’s what’s brought us to this 90/10 place.

The ultimate insanity happened over the past decade as Multi-Level Marketing invaded real estate.  Several companies incorporated the concept into their recruiting platforms and a number of new companies were built entirely around it.  Having done some contract work for a couple of these organizations, here is my somewhat jaded description of the real estate MLM operating system:

Since most real estate agents are worth just 4 or 5 deals a year . . . and since nobody can live on that . . . if we can get every agent we have to recruit every other agent they know to be on their ‘Team’ (so whenever anyone lucks up and sells anything everyone gets paid) . . . even bad real estate agents can make enough on the production of others to keep going . . . and so on.

Hear this:  if there is enough commission in the deal so that Suzie and her broker get paid when her cousin’s house sells, so that an outside selling broker and agent get paid, so that the six people in Suzie’s upline (some of whom don’t even know Suzie and most of whom had no idea a transaction was working) get paid . . . well, there’s way too much commission in the deal.  This is how the industry self-destructs in its final moments.

Also hear this:  if you think consumers don’t know or don’t care about this, you are not paying attention.  They are painfully aware.  No matter how much they love you, even if they think you did a good job, part of them Zillow-Trulia Merger: Godzillowlocks down in quiet rage when they see the commission line on the Closing Statement.  GodZillow and others are increasingly giving consumers a way to accomplish the task of buying and selling real estate without you.  (By the way, that is not a reference to the Lord, but rather to the Japanese monster who wrecked Tokyo in the 60s and San Francisco last year).

So Help-U-Sell:  what does this mean for you?

You’re different, remember?  Or did you forget?  Did the realization during the last downturn that buyers are very important cause you to emulate the antics of your competitors?  Did you put the accent (and the dollar) on generating buyer leads?  Are you spending more time showing property than listing it?  If so, you’re off track too – and headed for the junk heap.

Ours is a gorgeous operating system custom designed for the reality of irrelevant agents.  If implemented properly, it positions you to be the beloved alternative to the rabid dinosaur that is the dying industry.  It is real estate that makes sense, without the smoke, without the mirrors, without the crap.  But you have to do it right.  That means:

  • Focus on dominating listings in a specific target market.  (By the way:  I think it’s time we quit measuring market share by closed sides.  Count listings.  That’s all that matters for us.  Let everyone else do it the other way).
  • Market your services in a tangible, geographically targeted manner, emphasizing VISIBILITY.  Get your logo out everywhere in your target market.  Signs of all kinds, billboards, bus benches, car wraps, directionals, postcards, door hangers and so on.
  • Market to Sellers only. That’s where your superior consumer offer is aimed.  Save sellers tons of money and let them spread the word about you . . . and the buyers will line up to do business with you.
  • Stop recruiting!  What were you thinking anyway?  Build a team of support staff that helps you take care of the business you have created.  Sure, have buyers agents – you’re going to need them – but don’t ever forget that every person in the company is supporting your effort.  It’s your business.
  • Remember that not every listing needs the involvement of outside brokers to sell.  The best will sell without the MLS and those sellers will save huge amounts of money, which doesn’t affect your bottom line and makes you a hero.  Go for it.
  • Remind yourself that sometimes, with minimal effort, sellers can find their own buyers and thereby can achieve maximum savings.  Stop convincing yourself that nobody wants that.  Open your mind up to possibility.
  • Implement the 180° Theory of Help-U-Sell Success:  learn as much as you can about what your competitors are doing and then do the exact opposite!

We got here by being different.  We got here by putting consumers first, by focusing on doing great work for them and charging them less.  Quit chasing buyers, get back to basics, become the Anti-Realtor and you’ll do fine as the industry implodes.  I’ve never been surer of anything in my life.

(Thanks, Robbie)

 

Can You Cancel Your Listing?

I don’t know.  That’s a legal question and the answer will vary by State and by specific Listing Agreement.  The more important question is: Why do you want to cancel your listing?  Usually the reason is one of the following:

  • No activity
  • No marketing
  • Greener Grass
  • No communication

Let’s take them in order.

If your house is not being shown, if your open house is the loneliest place in town, you have to ask why.  First, look at the market.  How long does it take a properly priced listing in your area to sell?  Is it 30 days or 300?  If the market is racing along like molasses on a cold November morning, even the best listing, offered by the best agent is not going to be shown much.  Have a conversation with your agent, get the facts, and adjust your expectations.

If it is a normal 30 – 90 day market look at the product.  By that, I mean your house.  It is a product now, one that has to compete with similar products on the market at the same time.  How does it stack up in terms of curb appeal?  Does it show well?  And most important, is it properly priced?  It can be very difficult for home owners to see their houses through a cold buyer’s eyes. History and emotion cloud the vision and the run-down-fixer-upper that’s priced 10% over market looks like a bargain-priced-palace to the seller.  Shake yourself out of that stupor!  Call your agent and ask them to show you six homes any potential buyer who might look at yours would also see.  Then come back to your house, take a careful look and talk with your agent about how to be more competitive.

By far, the biggest reason homes aren’t shown and don’t sell is price.  Did you take your agent’s advice on pricing at the time of listing?  Or did you insist that you wanted to start higher?  (after all, you could always come down)  Take a moment and watch this short video about pricing and see if it resonates with your situation:

Now let’s talk about ‘No Marketing.’  Sometimes sellers complain about marketing because they don’t see ads in the newspaper or in the homes magazine and so on.  The reason is simple: print media DOESN’T WORK ANYMORE.  Yes, that’s how you sold a house back in the ’80’s, but it’s a new world now.  Marketing takes place mostly online.  So, go to Zillow.com.  Can you find your house?  Now go to Trulia.com.  Is it there?  Go to your local MLS’s public website and see if the listing is there.  Now go to one of your agent’s major competitor’s website.  Verify that the site is displaying ALL local MLS listings and then look for yours.  If you’re finding your home online, that part of marketing is being done.

Is there a sign in the yard?  Are flyers available?  Is there a QR code on the sign or some other means for SmartPhone enabled passersby to get information about the house?

Is there a lockbox on the door?  Is the house available to be shown on short notice?  Understand that if you restrict showing activity by limiting accessibility what you’re going to get is restricted activity!  I understand that your reasons for not wanting a lockbox are probably sound and there probably is a good reason why the house can only be shown between the hours of 1pm and 5pm, Monday thru Friday . . . but if you really want to sell, maybe you better find another workaround.

Greener Grass.  There is a natural emotional response to making a major purchase.  It is called buyer’s remorse.  You fall in love with the convertible on the lot and buy it, but shortly after driving away you begin to wonder if you made the right decision.  Other cars start to look very attractive.  You know how it goes.  The same dynamic is present when you make the listing decision.  What makes it worse is that the world is full of real estate agents who will do a little courtship dance to inflame those natural doubts you are probably having.  They will imply (or flat out say) they could get you more money or that your agent isn’t doing it right or any number of things to drive a wedge between you and your chosen agent.  Of course, this kind of nonsense is highly unethical . . . but it happens all the time.

If you get this kind of song and dance from another agent, I’d suggest you ask the agent to hang on for a moment while you call your agent.  Then the three of you can discuss the problem!  Most of us are not that confrontational, so plan B would be to listen to what the other agent has to say and call your agent as soon as they leave.  When your doubts are on the rise, you need reassurance and your agent is the person who can give that to you.

Here’s the truth:  if you have a good product that is properly priced and marketed, there is very little more or different one agent or company can do over another.  If there is a difference it’s usually a matter of personality – which is not a good reason to ditch your agent and go with another – or competence.  If you’re discovering that your agent does not seem to know his or her business . . . well, where were you when you decided to sign the listing agreement?  What?  You didn’t ask how many transactions your agent was doing each year?  You didn’t ask about the experience and productivity of the office?

There are some very good real estate agents who do a handful of transactions each year.  However, they are the exception, not the rule.  There is no way an agent doing 8 deals a year (which is industry average) knows as much about putting a transaction together and solving problems as one who is doing, say, 20.  If you are just now realizing that your agent is a little greener than you’d like, get them some help!  Call their Broker (that’s the person the agent works for) and talk about it.  They will likely find a way to add a more experienced agent into the mix and you’ll be able to relax.

Finally, Communication.  Your agent should be talking to you every week whether there is anything to report or not.  You should be reviewing market activity together once a month.  If this isn’t happening, call your agent and communicate your expectation for staying in touch.  If things don’t change, call the agent’s Broker.

To summarize, if you are unhappy and want to cancel your listing, first talk to your agent.  Tell them exactly why you are unhappy and give them a chance to make it right.  If that fails, talk to the Broker.  That person is building a business based on the testimonials of happy customers.  If you are unhappy, he or she is going to want to know about it.  And you’ll probably find that the Broker will do whatever it takes to make you happy because an unhappy customer or two can greatly impact a business plan!

If talking to the Broker doesn’t help, then you probably need to seek legal advice.  A listing agreement is a legally binding contract that rarely can be cancelled unilaterally.  The last thing you want is to think you fired your agent,  list with another agent who sells the house . . . and find your are obligated to pay both agents a full commission!  It happens!

My final and most important piece of advice is this:  When you get ready to list, talk to a Help-U-Sell Broker.  This group does it differently and better.  All you have to do is look at a typical Help-U-Sell broker’s website to see how important happy customers are to them.  Testimonials are everywhere as are pictures of homes they’ve sold and how much those sellers have saved.  If being well-taken-care-of is your goal, you can’t do better than Help-U-Sell.  You can find a Broker HERE.

Saving the MOST When Selling

There is a new tool for Help-U-Sell Brokers and Agents to use with home sellers during the listing consultation process. This little video was designed to help sellers understand the benefits of participating in the marketing phase of the selling process. It’s something we’ve always offered our sellers as a means of maximizing their savings, but honestly – it’s something we haven’t done a great job of selling.

People list with ordinary brokers and then find their own buyers all the time. Unfortunately, that means nothing in terms of what they’ll pay in commission. Ordinary brokers gleefully write the deal up and then charge . . . full fare. At Help-U-Sell, if a seller finds his or her own buyer, they pay LESS – because we charge our fee based on how the house sells.

Of course, seller participation is always an option; it’s not something a seller has to do, and many choose to let their Help-U-Sell office handle everything – which is fine.  But those interested in saving the most wisely choose to take on some of the small tasks mentioned in this video.  Give a look!

THINK Before You QR

Remember when we all went crazy for QR codes?  I think I first encountered them at a NAR meeting about four years ago.  All the badges had QR codes so that a vendor, wanting to add an attendee to a mailing list only had to scan a code.  Brilliant!  And attendees wanting more information about a product only needed to scan the code.  The little square wonders were everywhere!

We did training on QR Codes, talked about them in the Power Hour, hyped them at Success Summit – and Help-U-Sell Brokers everywhere got on board.  And that’s a good thing; QR codes are a valuable tool . . . when used properly.

A QR Code is simply a LINK.  It is designed to take a smartphone enabled consumer to a specific webpage.  There is a lot in that statement, so let’s break it down.  A consumer accessing a QR Code is on a smartphone.  He or she is not on a PC or MAC – if they were,  we’d just send them a link.  We don’t send QR Codes via email or text because those items are most likely being read on the same smartphone the consumer would have to use to access them — which is impossible.   OR they are being read on a PC or MAC, in which case WE SHOULD HAVE JUST SENT A LINK!

Use QR Codes on your signs.  They enable smartphone enabled consumers to instantly get to the listing’s individual webpage.  Use QR codes on other forms of printed marketing, but only if they link to webpages that provide more information than what’s on the printed piece.  Don’t put a QR Code on a flyer if it’s just linking to an online version of the flyer!  Do put a QR Code on the back of your business card with the caption:  ‘Find Out About Help-U-Sell’ and link it to a good overview page on your website (or maybe to the great video overview).

Above all, THINK before you QR.  Who are you trying to reach?  How will they likely access your information (smartphone, PC, MAC?).  Is the information you are linking to going to enhance their experience or just repeat it?  And for a little QR inspiration, watch this:

New Consumer Videos (and more to come)

I’ve done a lot of video with Help-U-Sell.  Most of it was training oriented, usually as part of Help-U-Sell University.  In those cases the audience was internal:  I was speaking to the  family about  Help-U-Sell and how it works.

But lately, Robbie has me working on a series of short videos directed at consumers.   The idea is to present some of the basic information a buyer or seller should have before meeting with a Help-U-Sell broker or agent.  Already available is a short piece on pricing your home to sell.  It makes strong  points about what market value is and the problems overpricing creates.  The  goal is to help sellers set a marketable price at the time of listing rather than to overprice with the idea that they can always come down.

Brokers are encouraged to add this video to their websites and then share a link to it with home sellers before they arrive for a listing consultation.  It is also short enough to be used during the consultation.

Last week, I completed a 4 1/2 minute video on how to save the most with Help-U-Sell.  It focuses in on seller participation and some of the easy things a seller can do to find their own buyer – things like taking flyers to the neighbors and to their workplace and holding their own open houses.  Robbie has shipped that one off to Theo in South Africa to apply the graphics and it should be available in a matter of days.

I know we want to do one on HOW to hold your own Open House, getting into safety, staging, signage, signing in, showing and  so on.  But I’d be very curious to now what you Help-U-Sell brokers and agents would like to see.  What other topics directed at consumers should we explore?  I’m looking for items that would help you do a better job for buyers or sellers.

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