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I was just thinking...

Re-Thinking This and That

By: Mike Farmer
Wednesday, November 14, 2007 10:31 AM

This is a follow up to a post below which seems to state that the way to have a good source of buyers is to have a lot of listings. Since I’m always re-thinking everything I’ve learned in real estate, especially in these times of rapid change, it has occurred to me that having a lot of listings may not be the most effective way to attract buyers. I’ve intuitively known this for awhile, but never stopped to put my intuition into a reasoned argument.

 

There are many lookers in the market, the ones who ride around on Saturday and Sunday and call the number on the for sale sign to get information about the listing. Since being in real estate I have answered a lot of these calls, and I have developed a response to these calls. I was told early on that the “buyer” calling about the house is not likely to buy that particular home, so the first order of business is to give them information about the home, then when they don’t respond favorably, ask them if they are represented and if they aren’t, offer my services to find for them the house they’re looking for.

 

To be honest, this HAS created business, but now, looking back, it hasn’t been near as effective as meeting buyers upfront on the internet when they are in the early stages of home-hunting.

 

Creating a bond of trust upfront with buyers searching on the internet has been more effective and productive, and I think mainly because I’m not meeting them in the position of a salesman trying to sell a particular home, which is how I meet them when they call on a listing.

 

It’s easier to gain their trust when we meet online and they see me as a real estate professional offering information and service. When they meet me through a sign-call they see me as a salesman trying to sell that particular home, and the switch to offering buyer services may be rendered ineffective by that first impression.

 

If I can get a buyer in the beginning when they are gathering information, then I can offer whatever listings I have that meet their criteria much easier because they see me as a professional offering buyer services with my listings as just a piece of the wide array of options available – especially if I offer them the option of getting a buyer agent if my listing is, indeed, the one they are interested in.

 

So, while I’m not saying sign-calls are ineffective in gaining buyer clients, I’m saying that the argument you HAVE to have a lot of listings to keep a good source of buyers doesn’t ring true for me, and my experience since going heavy on the internet shows otherwise.

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Comments

Gregory Bain
Member Since '03

Gregory Bain said:

Mike,

The NJAR Convention in Atlantic City has a speaker named Frank Mears. He has a bunch of letters after his name, so he must be smart. I’m going to go see him. Here is the seminar synopsis: IF YOU DON’T LIST, YOU DON’T LAST; Real estate is an inventory-driven business. Companies and agents that control the inventory control the marketplace. We can’t control the number of buyers in the marketplace at any given time, but we can control the number of listings we have. Buyers come to us because of our listings; they contact us from our signs, advertising, the internet, another agent with another company. As professionals we need to provide sellers with value-added service above and beyond their expectations. Remember, listings are the key to success.

November 14, 2007 9:53 AM
Mike Farmer
Member Since '03

Mike Farmer said:

I simply disagree with the esteemed expert.

November 14, 2007 9:56 AM
Mike Farmer
Member Since '03

Mike Farmer said:

How about I give a seminar:

You Have To Provide Full Service, Be Internet Savvy And Take A Holistic Approach To The Real Estate Profession To Last

Catchy, huh?

November 14, 2007 9:59 AM
Gregory Bain
Member Since '03

Gregory Bain said:

Do you have a lot of letters after your name?

November 14, 2007 10:03 AM
Gregory Bain
Member Since '03

Gregory Bain said:

I'm only twisting your tail. I know you're a smart guy and I even take some of your advice.

November 14, 2007 10:04 AM
Mike Farmer
Member Since '03

Mike Farmer said:

I know, Gregory. You just like to mess with me.

I don't have any letters after my name, they don't go with my wardrobe.

November 14, 2007 10:08 AM
Gregory Bain
Member Since '03

Gregory Bain said:

Mike, the guru agrees with you. "As professionals we need to provide sellers with value-added service above and beyond their expectations." And, he mentions buyers come from the internet, too. I got to go mess with someone else now. Have a great day.

November 14, 2007 10:30 AM
Bill Thompson, REALTOR®
Member Since '07

Bill Thompson, REALTOR® said:

I bestow upon Mike and Greg the GHEUMM designation!

November 14, 2007 10:35 AM
Mike Farmer
Member Since '03

Mike Farmer said:

I'm afraid to ask, Bill.

November 14, 2007 10:37 AM
Bill Thompson, REALTOR®
Member Since '07

Bill Thompson, REALTOR® said:

Grand High Exaulted Untouchable Muckity Muck!

November 14, 2007 10:42 AM
Vance Remele
Member Since '06

Vance Remele said:

Gregory Bain said:

Do you have a lot of letters after your name?

Gee, can I buy some vowels !!!!!

Vance ICUA and GHEUMM   accredited

November 14, 2007 10:45 AM
Mike Farmer
Member Since '03

Mike Farmer said:

Dang! How did you know my lifelong dream has been to become a Muckity Muck?

I remember when I was five, my mother asked me what I wanted to become -- I said in my child-voice - a Muckime Wuck

November 14, 2007 10:49 AM
Cathy  Clark
Member Since '06

Cathy Clark said:

Let's make it easy.......Grand Poo Bah.

Spidey!

November 14, 2007 10:52 AM
Mike Farmer
Member Since '03

Mike Farmer said:

Catz! Grand Poo Bah sounds nice.

November 14, 2007 11:10 AM
Barb  Van Stensel
Member Since '06

Barb Van Stensel said:

We have a lot of inventory out there Greg.  My brother-in-law, a college professor has always said it well:  "Anybody can memorize to get those letters.  It's what you apply from what you memorized and life's experiences that make it work."  I'm not trying to minimize here at all.  However, my father didn't have a college education, however, he was offer the position of President of a major bank because of his knowledge and expertise from life's experiences.  

I think what Mike is saying and I agree (correct me if I'm wrong Mike) but anybody can get those letters but that doesn't mean that they are qualified.   If someone is good at what they do, the letters just back up that they are always learning - which is great as well.  

List to Last is a great slogan/theme.  However, unless you are a closer and know how to market to get one out of ten properties sold right now - Mike has got some great thought and I was rethinking as well about revamping and adjusting to the everchanging marketplace.  

List to Last was not invented when 30% or more of the houses are short sales or going into foreclosure.  

Not attacking -- but this is a great thread to make people rethink about their future success in real estate.  

November 14, 2007 11:31 AM
Dennis  Jonas
Member Since '07

Dennis Jonas said:

Mike,

I still believe that you must list to last.  I believe that buyers go to the internet to preview homes, no to find a buyer's agent.  I think we are both on the same tract.  We know that listings are important, we know if we have listings priced right, and in great condition, they sale, even in this market.  I believe that you need inventory to attract buyers, but in todays market you also must be very aware that the buyer is a very important part of the equation.

Dennis

November 14, 2007 11:49 AM
Mary Welch
Member Since '04

Mary Welch said:

Mike just gets it, it isn't about inventory, whether you list or not we have access to all the inventory available. It is about service.  Mike has chosen to provide a much needed service and he will do well.

and he doesn't have to spend his time babysitting listings.

I give him a 10. Hold up your cards!

November 14, 2007 12:37 PM
Mike Farmer
Member Since '03

Mike Farmer said:

Damn, I just wrote a long post and it disappeared.

I will put it all in a another blog post later.

I will just add one thing here about the absolute statement that you have to LIST TO LAST.

My previous broker had an exclusive buyer agent company -- no listings, no signs. He had a heart condition and his heart didn't last, but he lasted a long time in real estate and was always in the top 5% for sales for this area. Some years he was in the top 1%.

There are exclusive buyer agents across the country, and agents who carry a few listings but work a lot with buyers, who are lasting and succeeding.

I believe the emphasis on listings is misleading -- I will save it all for the next blog post, though.

November 14, 2007 12:51 PM
Corie Seymour
Member Since '06

Corie Seymour said:

Mike.. In my opinion you are absolutely correct. Buyers have become the lifeblood of the business. (maybe always have been) With buyers you can control time and cost. With sellers, until you are truly independent, you must handle the transaction the way they (or their friends and family think is best).

Like you I have given this some thought, and think you are more than intuitive, you simply understand what the business has become.

I'll look for the long post.

November 14, 2007 2:36 PM
Vance Remele
Member Since '04

Vance Remele said:

There are exclusive buyer agents across the country, and agents who carry a few listings but work a lot with buyers, who are lasting and succeeding.

I agree 100% and why not ha ha

Buyers Agent ahead, --->  http://www.511RealEstate.com

November 14, 2007 3:44 PM
Gregory Bain
Member Since '03

Gregory Bain said:

Mike,

I just wanted to follow up with you on this seminar, “If you don’t list, you don’t last”, by Frank Mears.

It turns out he’s a Georgia Boy and has been a little successful in his short time in real estate. Here’s a short clip of some of his common sense talk I think you might enjoy: http://frankmears.com/video/

Anyway, I went to several classes at the Atlantic City Realtor Convention and Trade Expo this week. Frank was one of the better ones attended. Unfortunately, the one I was all hyped about going to was full. I was kind of shocked. I had never heard of this guy and thought it would be good way to help motivate me into getting some listings.

I arrived 10 minutes before the seminar started and as I approached the room I noticed this long line almost going down the escalator. At first I thought, it was just for those PA and NY agents that need to get their CE credits (NJ Brokers don’t like their agents educated) and proceeded to the closed door where a small crowd had gathered. I could see in small window in the door that the place was packed and I asked the crowd if we were waiting for the current seminar to finish so we could go in to hear Frank Mears. No! That wasn’t it at all. There was no room left to hear the Frank Mears seminar. Standing room only and they had a bouncer posted to the doorway so no one else could get in. The crowd was waiting for someone to get claustrophobic and leave so they could take their place.

I ended up sitting in a disappointing class of Pat Zaby called, “Showdown for a Slowdown”. I won’t go into any details of that seminar (I didn’t buy his pitch or his software) but, I am disappointed I didn’t get into to the other seminar. Most of the seminars I attended had something to do with taking “quality” listings instead of quantity. And, I think I heard one guru mention “salable” as if it were a “new buzz word”. In all, it was worth the admission price. So, if you get a chance to hear Frank I would recommend it.

December 6, 2007 11:00 AM
Mike Farmer
Member Since '03

Mike Farmer said:

Thanks, Gregory, I'll be on the lookout for one of his seminars.

December 6, 2007 11:29 AM

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