Is a Realtors Job to Sell a Home or a Service!!!
Posted: Tuesday, March 17, 2009
by Chris Brennan
Because there are 300 hundred gazillion real estate agents' competing for 10 gazillion transactions the number one requirement for success as a realtor turns out to be prospecting and not servicing. If you can't find clients to work with you don't get paid period.
In reality the role of a real estate agent is to service their client's needs in buying or selling a home. However in practice the role of a successful real estate agent is to earn commissions. This is achieved not by being an excellent service provider but by being an excellent prospector.
It is really sales, sales, sales. The politician and the real estate agent must sell themselves to the weary rabble who believe that they are looking for leadership and guidance, but are in actuality looking to believe that they matter and are liked and accepted.
Charisma will always win out over ability because charisma makes you feel that it likes you, that you are special. Charisma like a worm on a hook looks good and might taste good but its motives are always self serving.
So before you commit to a realtors script or politicians pledge ask yourself what can this person do for me. And more pertinently why is this person interested in me. Could it be that I have something that they need, and that the only reason they are in my face is because I can help them and definitely not because they can help me.
There is a difference between selling a produce and a service. In most cases good products sell themselves and the sales person is merely facilitating the sale. By being ever present and hardworking a seller of products excels.
Selling a service is a different matter because in effect you are selling a promise. Now if the service you are selling is yourself then you are in fact selling a promise that you have no intention in keeping.
How can you service a home buyer or seller who has committed to you when the bulk of you time is spent selling yourself to new prospects.
Why do you think real estate agents want you to sign an exclusive contract? Because once your signature is on the dotted line you are joined at the hip with whatever level of service they are forced to give you for the duration of the agreement.
If they are in fact as good as they are promising to be why would a contract be needed at all, surely you would not ever consider leaving such a great realtor. The contract is to protect the realtor and the effort they have put into finding you and getting you to sign it, and definitely not you the buyer/seller.
The reality of real estate sales is that most agents believe their only reason and purpose is the commission check.
The fact that as a realtor one is contracted to act as the "agent" for a member of the public in matters relating to a real estate transaction and are therefore employed by the buyer/seller to represent their needs never occurs to the vast majority of real estate agents.
The process should be that excellent representation leads to monetary success. The reality is that selling oneself and definitely not serving the client leads to success when the service you offer is yourself.
There are two aspects to selling.
1. The physical aspect of being in the marketplace, being where the buyers and sellers are.
2. Selling which is 99% psychology and 1% luck
If you are not constantly in the marketplace then you cannot sell.
If you can not convince the prospect that you are the best option then you cannot sell.
But with real estate sales you are not selling you are facilitating a sale. You are providing professional guidance to the party that has contacted/hired you guide them through the process of buying or selling of a home.
The home owner is selling, the buyer is buying, the realtors are ensuring that their client's needs and rights are protected.
The only thing a real estate ever sells is their ability to successfully facilitate real estate truncations.
Marketing
Perhaps a realtor might assist in the marketing of the home with MLS Listing, Media Advertising, and presenting Open Houses.
The National Association of Realtors numbers are that less than 1% of home sales result from open houses. The home owner can themselves advertise in the local newspaper or on craigslist and listing on the MLS can now be had for a $99.00 flat fee whit no commission to the listing broker.
From the perspective of a buyer's agent every listing is now freely available on the internet.
So why would you need a realtor. Basically because the advertising told you that you do.
Or!! Because you don't want to deal with the everyday nitty gritty of representing yourself in a market place paved with pitfalls, waiting to devour the gullible. In the old days it was Caveat Emptor, come to think of it regardless of what the rules say, it still is.
So the reason to employ a realtor is to be there for you with professional knowledge of a marketplace in which you feel uneasy being in alone.
The reason not to employ a realtor is: (a) you like then, (b) they look good, (c) they make you feel good about yourself, (d) Their uncle is your aunts first cousin.
Are they wiling to work with you without commitment? If not then how do you get rid of them when you find out that they are useless.
Also check to find out how many clients their office has sued for loss of commission or breech of contract.
In the end if their reason for practicing real estate is primarily to financial reward then they have put the cart before the horse and you would be well advised to look elsewhere.
A great realtor knows that great service always results in great financial rewards.
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