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What am I missing?
Hey all,
First off, great website. As a passionate (wannabe) real estate videographer, I am greatful that there is a site specifically dedicted to the industry! Some great tools and people on here!
I am just getting into the game, and I have seen many tactics as far as recruiting customers (real estate agents). Industry gurus like Fred Light talk about how he never approached a realtor or office, and still does good business. For me, I am just starting and I chose to go down alot of avenues, including becoming a salesman.....seeing how I am a one man operation. I put on my slacks and sport coat, with some fancy flyers and go door to door to literally 100+ offices in my area.....so far......crickets.
Agents and brokers looking at me as if I was selling them a knife set. What I am basically saying/asking is this?
Besides offering free videos (which I have and still cant get that many takers)
What should I know?
Thanksgiving? Christmas, Winter alwasy slow?
Product is premature?
Economy / Real Estate market play a role?
Impatience?
I think that real estate videos are going to explode, sure all of us here do it, but when you think about it, it is rare. How would agents choose a Virtual tour when they can get a video walkthrough for the same price....
Wating for the phone to ring still.........
Ryan.
Ryan
It must be a regional thing. While some areas of the country have embraced video for listings most haven't. Here on Long Island most agents don't seem to be interested. I have been offering free videos to generate interest and most say no. Some are adamantly against it. They don't think it's a good thing but don't explain why. So houses listed in the 700k to 1.2 range have a few pictures and that's it. Fortunately I have a thriving video business so I don't need Real Estate video work. If and when it takes off I'll be ready.
Steve
The fact that most agents wouldn't even spring for a virtual tour, should come as no surprise. Typically, they practice a three "P" marketing plan... (P)lace the listing in the MLS - (P)lace an ad... (P)ray! Most agents wouldn't know a marketing plan if it slapped them in the face. They don't have a marketing plan, nor do they have a business plan. A major goal for most agents is to try to get into the office before 10:00 AM. The fact that the fallout ratio for agents is about 90% should also come as no surprise. I know I sound pessimistic, but I’ve had a front row seat to this three ring circus for over twenty years. You are dealing with folks that are no more than typical
Also, most videographers have little or no experience in real estate, and they don't have a clue about what's most important to agents. What's funny is that many agents don't know this either. Your videos will not sell them, your video marketing plans will... after you demonstrate how you will create a higher probability of success for them.
Arlee,
Be careful how you characterize agents. I can see from your standpoint how some agents may fit the bill, but I work in an area where most agents are well versed in what they do and we are still abused by the general public every day.
I have an MBA, have graduated from the Graduate Realtor Institute, and log over 100 hours of CE credit each year. I am in the office by 7:30 am and usually am not done with my day until after 6pm, 6-7 days a week. I shoot my own videos, edit them, and market them extensively. I prepare a business plan each year, as does each of the 65 agents in my office.
If you are looking for agents to help you earn a living, perhaps you should view them is a bit better light.
OK Peter, like I said, I had a front row seat to this as a licensed Broker concurrently in for states in my heyday... Big whoop! Credentials mean very little in the world of sales. I have seen high school gads make me LOL at MBA's, PHD's and agents with the GRI tag. If you succeed in real estate, it won't be because of the initials beside your name. But, congrats on all of your hard work to obtain those initials.
So, are you telling me that a home owner in your area is just as well off using the average agent in your market or would you seriously recommend they use the average agent in your group, if they do indeed have the level of expertise that you claim? I suppose you find yourself competing with the average agent (order-takers with no initials beside their name) in your area, and don't mind operating for the same rates that they end up working for because the sellers don't see enough of a difference or value in them and won't pay full commissions. You don't even think twice about it, even though you offer so much more with your marketing plan, right? Have you ever wondered why most home owners say things like; "If I give you the listing you will have to lower your commission, because ABC Realty will?" Do you think this is possible because they see agents as a commodity, offering the same marketing plans and promises? I tell agents all the time that other agents are not your main competition... Ignorance is! The same holds true for videographers trying to get business from these average agents. They end up giving their services away in an effort to get business from those agents that look at them the same way home owners look at agents. The videographer makes the "Free" video, and because of the result oriented aspect of the agent, the conditions of the market, the home or the price of the home, it doesn't sell in 7 days. Thus the mindset of the agent is... "This is no better than a 25 dollar slideshow, where I get the same results... nothing!" Remember ignorance is your biggest competitor? Neither the videographer nor the agent see the where the true value of a video marketing plan is. I'll wager you that as an agent using video, you have discovered that the proper results to look for are increased listing or agency capture ratios, as opposed to a quick sale. Yo know that so much more is involved in the successful sale of a home, and marketing is only one aspect. albeit an important factor. As an agent, don't you know that your success is determined by your ability to market effectively? Most agents don't... remember the 3 'P' marketing plan of the average agent? Perhaps you have figured out that having a much larger inventory of listings or signed agency agreements will increase the probability that you will close more transactions, thus make more income. Those increased closings, which are due to an increased inventory, make you look more successful, which make your services look more valuable and lessens the likelihood that you will lower your commission percentages. In fact, because you have created such value, your criteria for even taking a listing means that It has to meet your standards: "Good Location - Good Condition - Popular Floor plan - Priced for the Market and Not for the Seller," right? With an increased inventory of homes that meet this criteria, you close even more sales, right? I must assume that your business plan falls inline with this, or does it? Does this describe the average agent and how they think, or operate? Do you think that videographers would be more successful if they would find agents, not order-takers and convincing them to operate under a plan similar to this? MBA, GRI, PHD, blah, blah, blah, if you don't have a large inventory of signed agency agreements, your company will fail... PERIOD! No amount of initials or credentials will save you unless your focus is primarily on agency capture. Does the average agent in this Nation, much less your market area, have a large inventory of signed agency agreements? Do you think they would like to? Do you think that the fallout ratios of agents wouldn't be so high if each agent had lots of signed agency agreements, initials or not? Do you think that the average agent understands this? Do you think videographers would be more valuable to agents if they could teach agents how to use video to capture more signed agency agreements, and... that an increased inventory of these agreements stack the odds of success in their favor?
Oh, by the by, I make a very good living and I see agents in the perfect light. I know how to filter out the lookie-loues and get to the agents that understand how video will get them more signed agency agreements. Or, I teach them how signed agency agreements are only the first step in the daisy chain towards making a commission, and how having a large inventory of signed agency agreements will stack the odds of income success in their favor. It doesn't take a rocket scientist to figure that out, just a little perspective. But, you would be astounded at the amount of agents that let ignorance get in their way, and eventually quit. Where exactly am I missing the boat, Sir?
Arlee,
I respect your opinions and from your words you have spoken, you seem to have a grasp of how things work, hence the 20 years and all.
I guess I was nieve to think that most agents would think like me. What do I mean? Well, yes I know what an agency agreement is...why? becasue I take my real estate exam next week. Point is, I figured real estate video is a no brainer and I also figured that most agents would see real estate video as a no brain appraoch to market homes, but not only that...TO GET LISTINGS!
This is how I think, that is why I not only am attempting to start a real estate video company, I am also trying to become an agent becasue I think that, as an agent, the general public would see me as more valuable and a good choice to represent their listing due to my position as a videographer. Seems pretty simple to me......
"Im an agent.............list with me.........your property is marketed to the fullest." I am a Visual Communications major, I am using my skills in Web Design, Illustration, Animation, Videography, Design for Print, towards marketing real estate!
Seems like a good way to be an outstanding agent and also provide a service to other agents.....unfortunetly, like you state, many feel they can put on a name tag and sell $1 million. Im sure agents like Peter exist, but few and far between it seems.
I have said since I started, its not all about showcasing million dollar homes to me, its about convienence, and saving time and money. I had an agent say to me: "I dont wanna give anyone a reason not to see my listing" Im thinking.....You want to try to talk them into a sale??? You want them to waste thier time and drive to your property they dont want? Hey, I get it, Im no expert and have only taken Real Estate Fund and Prac....ok ok....but as a man who has seen things in life, dealt with people in life just like anyone else, I still have a gut instinct, a way of thinking and a feel about things regardless if Im a vet in the industry.
My wife and I would look at properties in PA and think "I wanna see more" Why are agents posting 2-3 pictures? YOUR NOT GOING TO ENTICE ME TO BUY A HOUSE I DONT LIKE.....also, they are just plain lazy....I dont get it, I actually had 4-5 agents NOT RETURN MY CALLS. For all they knew, I was a millionare ready to make an offer over the phone and they COULDNT EVEN CALL ME BACK?!?!?!??! ARE THEY CRAZY?!?!??! I cannot even begin to comprehend this at all.....so I will become an agent and be aggressive, and use what I know to market and try to be the best there is. Common sense tells me to return phone calls and do whatever my client asks, and market the heck out of their property. People wanna see more, they want to see inside the homes! Just the other day my wife showed me a house and I seriously forgot I was a videographer, and there were 2 pictures, and I was anxious looking around the screen for anything else to get me inside, like a drug! Nothing.....these people must be born into money and get a real estate license out of boredom.
What bothers me is the $800K homes that are turning down free tours. I think "If only the home owner knew their agent was refusing this service..FOR FREE to boot" Will I go over the heads of agents and contact homeowners....NO....but I will continue to scratch my head.
The absolute arrogance and laziness of agents is laughable....I cant wait till I have my picture on a billboard next to my real estate video business logo with a plus sign in the middle and a phone number underneath.
Tru - you said exactly what I have seen. Forgetting all the benefits of video. I see agents all the time who advertise they go above and beyond everyone else and will do everything to market a home. Looks like false advertising to me.
Peter - You and your office are the exception. And yes I know the real estate world. I used to have a licence.
Tru:
Sounds like you have the right ideas. Keep pursuing the license and I bet you do well.
Arlee:
I respect your opinion, although your lack of respect for the "Initials" concerns me. I graduated 2nd in my class from a top notch school in order to get my MBA. I used it for years in my own business ventures. Now that I am in Real Estate, I find it helps as well. Sorry to have pricked an obvious sore with you. I guess we just have two perceptions of an industry that both have their truths. Hopefully, the agents who are lacking in vision will come around and help us all.
You've got the right perspective and your skills will take you far in real estate. Service is extremely important, and hearing about your experiences, come as no surprise to me. After you get your license, and use your video marketing plan to capture agency agreements, go around and teach other agents how they can use the "Generic" unbranded versions of your listing's videos as tools to help themselves save on wasted showings, by having their buyer prospects preview the video online before even scheduling a showing or your listings. In fact, make it a policy within your operational procedures for your listings, that NO showings are to be scheduled for your listings unless the buyer prospects have seen the video first.
When you meet with prospective listing clients, and go over your full marketing plan, explain to them how you also use video to create a "Higher Probability Selling Scenario." In that I mean, show them that your procedures require that the unbranded video of their property has to be previewed before a showing of their home is scheduled, and by doing so, you as their representative will be more effective than others because your video system will effectively filter out the lookie-lous and drastically reduce the amount wasted showings Advise them that there may be fewer showings, but the higher probability selling scenario is created because your system is designed to only allow serious, high quality buyers, already very familiar with their home inside & out, to walk through their front door. They won't waste their time preparing their home for agents bringing buyers kicking tires... or in some cases, not even getting out of their car.
Since you are new to real estate, and if you are interested, I can teach or coach you, showing you how you can really jump start your real estate career in many different ways that I am sure you haven't considered; only because you are new to the exciting field of real estate. You go straight to benefits of effective & efficient, or you can get stuck with the cost of trial & error. Good luck either way!
Peter, I do respect your educational accomplishments and I don't mean to demean them. I have just been around too long to see many a seller & buyer get hurt with incompetent representation by so-called learned individuals. I have also seen many educated individuals fail because they thought that's all they needed. I have however seen many agents succeed. not because they were that smart or that good; they succeeded just because they were there. There early & late, there online and in print, there because they were persistent & determined. People don't succeed because they were destined to, people succeed because they are determined to. Calvin Coolidge said it best when he said, "Persistence produces success!" He said; "Nothing in the world produces success like persistence... talent can not, nothing is more common today than unsuccessful men... loaded with talent. Education will not, the world is full of educated derelicts. Persistence and determination alone will win the day!" Your credentials may give you confidence, but the secret to your success is hidden in your daily routine.
Unfortunately, the barrier to entry into this field is only.... a pulse. That's about it. You don't even need a high school degree, and you most certainly don't need any sales skills or business skills to get a license.
Business people with business minds think DIFFERENTLY than average folks that work a 9-5 job. Entrepreneurs are a different breed of cat.... in many ways.
Successful ealtors need to be (and must be) business people. They claim they are, they tell everyone they're self employed, but the reality is that 90% of them have an employee/ employer relationship with their broker. They'll do what the broker tells them, they'll take whatever marketing tools the broker gives them, and they'll bitch until the cows come home about their endless "expenses" (my car, my dues, my this, my that....).
90% of Realtors don't understand:
1) Expenses are PART of being in business. Every business has expenses - you're no different.
2) The concept of 'risk vs. reward'
3) The concept of spending money to make money
4) The concept of branding. Standing APART from the other 100 people (competitors) in your office and the rest of the town, not looking JUST LIKE THEM with a different head on the [same] business card and offering the exact same cookie cutter services and marketing options.
They don't understand basic business concepts. They went into the business with enough money to cover their classes, their license and their dues, and then they sit in the office trying to figure out how to generate some income - for free. Because they're new, they give back 50% of their commission to their broker, so they don't feel they should have to spend a nickel of their own money. Essentially they're dead in the water before they get started - and most never get out of that hole. Especially in THIS market.
A business person goes into business with a marketing plan, a business plan, WORKING CAPITAL.... every business owner! Except Realtors. I would venture to guess that 95% that get into this business have none of the above!
That's why so many agents look at video as a "fix" for a single property, and base the worth of the video on the price of the property (and their eventual commission). They also look at "what happens if it doesn't sell... then I'm out the $XXXXX. (that's like me saying I'm not going to buy my camera equipment until I have my first customer!) They don't understand you have to take risks in order to reap the rewards.
A business person looks at video as a marketing tool for their business and their brand. They understand that 60% of the value of the video is in selling THEM, not the house. They understand that using video marketing is a ongoing process and a strategy, not a quick fix for an ailing listing. Just like in the days of newspaper advertising. SMART business people ran ads consistently every week. EVERY week. It was branding, it wasn't just to sell one single item. Many Realtors will spend money on ONE listing, and when that ad/ video doesn't sell that listing, they view it as a "failure" instead of looking at the big picture. And of course, that was their last dollar until the next commission check comes in... whenever that may be!
Those Realtors who used to be nurses, teachers, mechanics, day care providers and housewives generally think this way. They will look at a video tour and see pretty pictures, nice appliances, a beautiful location, etc. A BUSINESS person will look at the same video and think about how they can use that as a branding and marketing pieces for their entire business!
Totally different mindset. And both are seeing the same video and interpreting it in completely different ways.
Back in 1995 when I was selling websites to Realtors, it was exactly the same thing. Some people would see a web site (or web PAGE back then!) and look at the content of the page and the message that was being conveyed. Another person would look at the same website and see a marketing opportunity and "I want my business to be there"!
Fast forward 15 years, that last agent is sitting pretty with a high traffic website, and the other agent still doesn't have a website (and yes, even with 90%+ of buyers beginning their search on the web, 50% of real estate agents STILL don't have their own website!)
You need to find top listing agents that are BUSINESS people. Who THINK like business people, and have a business and marketing mindset. They will be your best customers, consistent customers, and oddly enough - they also tend to be your most successful Realtors. (funny how that works!). Most of my clients use me for either all of their best listings, and many, many use me on EVERY listing, regardless of price. It's a marketing strategy for their BUSINESS and their BRAND.
It's really that simple.
Good stuff Fred,
I must be surrounded by the most non business minded agents, becasue they are looking at me like Im trying to sell them a knife set.
But that's the key! You probably ARE surrounded by non business minded agents, just like all of us are! If you try to "sell" them, 9 out of 10 WILL look at you like you're trying to sell them a knife set.
Instead of hunting for the needle in the haystack, I just get the product OUT there. Do it for free if you have to. Find a smart, high producing agent who LISTS a lot of properties in a medium to high end market. Work out a deal with them freebies for a period of time... or a certain number. They will mostly likely be on board in the future as they will see how well it works... and more importantly, don't for a minute think their direct competitors won't be watching every move they make, watching "their" listings slip out of their hands and into the hands of their competitor... and they will be calling you as well because they will feel that they HAVE to up their game in order to compete!
Realtors are the single most competitive people on the planet earth. They'd sell their first born for a listing! Make it work for you!
Also, be sure it's EASY to find you (your name at the end of the video, a link on a web page, YouTube, etc.).
The 10% that DO get it will find YOU.
People think I'm joking when I say I absolutely do NOT market to Realtors. It's a complete and utter waste of my time. Always. I'd rather watch cars rust....
If you get videos out there (I upload EVERY video to at least 10 websites). I'm all over Facebook, Twitter, etc. I used to blog a lot (no time any more). But I push MY videos out there as much as possible and wait for the 10% to find ME. And they do. Seriously. I couldn't be any busier than I have been this year - I shoot 3-7 houses every single day of the week....Even shot 2 houses last Christmas Eve day! The business IS there... it really is!
Fred,
Again....great stuff. But, Ill go ahead and ask a dumb question anyway....well, maybe that dumb...
What is the best way to find the top agents in the reason. Is there a website? Does every company boast their top agent?
I havent seen any info of this kind yet, and Ive visted EVERY agency site in the area....maybe Im not reading each profile....maybe Im right.....anyway.....best way to find this info?
Thanks
Ryan
Lots of ways....
> Go to the website of a top agency in the neighborhood or town you're targeting. Look at their top 20 listings (price wise). In most cases, you'll see the same listing agent on many of them (the name of the listing agent is on every listing... but maybe in small print at the bottom).
You can then go to their broker page, which also generally has their listings attached to their bio, etc. Great way to see who is using video, professional photography, etc.
>Drive through an upscale neighborhood and look at the signs. Generally, you'll find the same signs with same agent dominating the area.
>See who spends money marketing in other places, like upscale real estate magazines, etc. They usually have marketing money to spend and they just need to be educated that print probably isn't the biggest bang for the buck anymore. But they HAVE a marketing budget - you just need to get them to rearrange themoney allocations a bit!
Really, if you just pay attention to the real estate industry in your area, you'll see the same names popping up a lot. What you DON'T want to bother with are primarily buyers agents (they don't often list much) and oftentimes (but not always), rookies. They're usually working on a shoestring budget if any budget at all.
What you DON'T want to do is pigeonhole people based on age. That's the biggest mistake you can make. It's all an attitude and what's inside someone's head... there are many young people that wouldn't touch this stuff and are uncomfortable with technology. There are many middle aged folks who are totally into it, recognize the value, and throw themselves into it, wanting to learn as much as they can and willing to try just about anything.
For example, two of my better clients... one is 76, the other is 94. (not a typo). They don't necessarily understand all the technical mumbo jumbo (they have assistants for that), but they GET IT, and they understand the impact that video can have for their business. Don't make a common mistake and think it's about age. It's absolutely, positively NOT.
Just do your homework.. the information is freely out there online, which makes it MUCH easier than it would have been 10 years ago.
Sage Advice... because the bottom line is, nothing works until you do.
Everything makes sense. I have explored a few agents that have a couple million dollar listings. The other issue I run into here is the fact that they are with big guns like Prudential. There seems to be a certain grasp these bigger corporate offices have on thier agents. Especially when they are support the offices with Virtual Tours at no expense to the agent. But yes, local publications and other sources of the like shall work.
Irony seems to be prevalent when looking for top agents, or agents in general that are willing to invest in video. I cant see them! lol. But obvious avenues to find them exist and they are out there.
Thanks again all
There is no "grasp" on agents by the big companies. SMART and SUCCESSFUL agents do their own thing. They create their own brand, their own identity and their own marketing. In fact, most of them will do as much as they can possibly do to distance themselves from their broker and the other 100 clones in the office that are doing exactly the same thing with a different face on the [same] business card.
In fact, most of the successful agents would tell you, if it weren't for liability issues, they would go out on their own. They really have nothing to do with the company/ franchise and distance themselves from the broker in every way possible as long as they stay within the NAR rules. Even on their websites - the company name is usually as small as they can get away with legally.
They're smart. They want to create their OWN brand and market themselves, not their broker. They do their OWN thing under their broker's umbrella - nothing more. Most never even attend sales meetings or the like, which is why speaking at those is a complete waste of time - it's usually filled with agents who do no business and who are looking for a magic pill for their business. The successful agents are out in the field - working!
Having said that, many boutique agencies are also likely targets. And this this tough market, I'm seeing many, many of these agencies opening. I was a little surprised, but they are mostly thriving and even expanding! They are usually formed by successful agents with long careers that come from the big franchises. They also bring with them and hire top agents as well. So where the local Prudential office will have 100 agents (10 producing, 90 dead weight), a small boutique agency will have 10 agents, all top producers with tons of experience. More importantly, they have no franchise fees to pay, therefore they have additional money they can use for marketing. Also, they are always looking for a way to compete against the big franchises (after all, they don't have the name behind them, which means less and less all the time), and video is a great way to stand out and offer something that the big guns don't offer.
I see Fred, I guess what I meant was, alot of brokers had turned me down at the door: "We use Visual Tours out of Flordia" " We have free software programs, but ill tell the agents about your service" "Centruy 21 is launching a free slideshow program for the agents images" This is what I meant by "grasp"
Ok, yes, I understand, visiting offices may be a waste of my time, but my point is, I have brokers turning me down at the door, telling me about the services they already have, as if they are speaking for the whole office. I find it hard to believe, not one person wants a video. Again by grasp I mean, these brokers are buying virtual tour packages for thier office, so the broker pays for the year and the agents get to have a virtual tour created for them for any listing for nothing....
but yes I know I know I get it.......agents are free to ad for themselves, find the top dogs who arent clinging to thier broker.....I just was amazed at the feedback I was getting from brokers...let alone agents..
Whats funny is, I think like you Fred and I figured many did. That is why I was trying to get my real estate sales license. I saw myself as a listing agent who can create and edit his own video, creaet my own websites, create my own print ad layouts.....I thought there would be a ton of agents doing this, but I have an advantage becasue this is my college backround, so I already have all the software programs and know-how. On top of this I could sell videos to agents......I was really just trying to get the video off the ground...
I also agree with the boutique agencies.....Ive said to friends...I need to get in with a small company.....even these people are lookin at me like a deer in headlights.....and they have anywhere from 5-15 agents!
Im starting to blame tuff times, tuff market....tuff timing with christmans and thanksgiving....i dunno.
Ah, but you're missing the point. DON'T GO TO BROKERS. Go to agents. I've never once approached a broker! They have no control over what their agents do in regards to marketing... they do their own thing. Don't target brokers at all!
Agents work for themselves (technically anyway.... ). They do their own thing, create their own marketing, and have their own expenses and budgets (technically, anyway). But again 90% ARE slaves to their broker and have none of the above and will only do what the broker gives them for free. THAT'S NOT YOUR CUSTOMER!
You need to target the other 10% of AGENTS... not offices or brokers. Honestly, I think that's why many people have a tough time getting a video business off the ground. It's not so easy as to just go to an office and get all of their listings by talking to "the boss". You have to sell to every agent individually.... understanding that 90% will never do it! And for the record, most brokers are just as ignorant (often times more ignorant) in regards to video, marketing, the internet, etc. as the agents - It's really scary. I find the brokers are even worse than the agents to talk to. They're really in another world sometimes! (remember, a broker is just an agent with a broker's license!!!)
It's a tough game. But if you understand how it all works, target the right people, do a good job, are very flexible, the business will just roll in.
I didnt get it 2 weeks ago, but I get it now. I just sent out emails one by one to all agents for every office I visited...it took me 4 days and counting.....still nothing....now its onto contacting the ones that appear to be the big agents
Thanks for the great feedback!
One more thing Fred, or anyone with feedback.......whats my angle here?
I feel if I contact these agents, they will view me as a salesman like other agents have and do thier best to get of the phone with me.....emails are easier to ignore....do I show up at the office? Whats my angle?
Tru Tour,
As a newbie here, I have read (most of) this thread with great interest. I am re-posting a response I made to a similar inquiry on one of the Flickr groups:
Interesting thread. As a broker for going on 28 years, I'll share my two cents worth. There is one underlying reason many agents don't pay for professional photography - fear. They are afraid that they will incur an additional cost on a home that they will not sell and it will be an additional loss for them.
The average agent in Atlanta sells about 34% of the listings they take. A handful of the so-called "top" agents sell about 10% of their listings. In fact, one of those "top" agents has about 40 listings, ranging up to $10 million and he either has his assistant shoot it with a P&S or hires a well-known company that provides 15 pictures for $89.
The reason agents sell so few of their listings is the way the system works - our MLS system requires listings to be entered, including photos, within 24 hours of signing the listing agreement. If Bob & Sally Homeowner call an agent up on Saturday morning to list their home, that agent goes over, guesses at the market value, takes a few photos and puts the home into the MLS. There's no time to do it right - or so the agent thinks.
I take a different tack - and it results in selling an average of 80% of my listings (and 100% over the last three years). I get the seller to sign a listing agreement dated two weeks into the future. In the meantime, I get the house professionally appraised, inspected and staged. Once the staging is completed I'll have it photographed. Then when it hits the market it is priced accurately, we have made the necessary repairs and it looks great. I get the seller to pay for these expenses with a written agreement that if they close with me, I'll reimburse them at closing. Once the seller has accepted the appraised value and made the necessary repairs, I cover all of the marketing costs.
(The way I sell it - and it always seems to work - is to give the example of a nice S-Class Mercedes being traded in on a new one. What is the likelihood that the Mercedes dealer is going to put the car on the lot without any knowledge of the market value, without running it through a 100-point inspection, and having it detailed? That's right. Zilch)
An agent who lets the seller dictate the list price, doesn't identify potential repair problems prior to the buyer finding them through his/her own inspection and doesn't have the courage to tell the owners to stage the house are setting themselves up for a very difficult sale.
----------------
So, you can see why many agents are afraid to spend money. One approach you might try is to find one of the more productive agents in your area. Offer to do some videos for him/her (oh heck, let's call her Sue) with payment being made when the sale closes. Then, sell the other agents on the fact that Sue is a client of yours and that they shouldn't let her get the upper hand by offering something to her buyers that they aren't offering. What I have found in 28 years in real estate is that agents are sort of like fish - they are attracted to bright shiny objects and will fight like hell to keep the other fish/agent from getting more than they do.
True…
And there is a huge difference between being “On the market” and “In the market.” Your description of the agent’s challenge is accurate in the since that when it comes to listing capture, most agents become glorified order takers and are more apt to getting into a price bidding war for the listing and lower their odds of a sale, period. You know as well as anyone that regardless of MLS time constraints, video, web sites, photographs etc… overpriced listings don’t sell.
Here’s a tip from my mentor, www.DavidKnox.com. There are 5 principles in real estate that will directly affect the successful sale of any type of real estate. When using an agent, two of the principles no one can control, two principles the seller controls and there’s only one principle the agents controls. They are as follows:
1) Location (No one can control, because you can’t move the land.)
2) Financing (We can’t control interest rates, loan terms, buyers ability to qualify, etc.)
3) Condition (Seller controls upkeep, trim options, landscaping, etc)
4) Price (Seller sets the price, agents provide CMA’s, "Take the order" and then ask if they would like fries with that.)
5) Marketing (Agents can control only one thing… Marketing!) Video as a marketing medium will not sell the home unless the previous four principles fall in line with the needs of most buyers, or the market conditions in general. BUT, it will sell the agent.
You mentioned procuring cause with regard to percentage of listings sold. I am not concerning myself with whom the procuring cause of the actual home sale is, and frankly, I don’t even care. In fact, I won’t even work with buyers, I refer them out. Because I have a large listing inventory, I get a more inquiries from buyers and refer them to a few great experienced buyer agents in the area. I have a pre-arranged agreement with them… If they sell one of my listings to that referred buyer, I won’t charge a buyer referral fee, and we split a normal commission. If they sell someone else’s listing to that referred buyer, obviously I get my 25% referral fee. Either way I win, and can focus on nothing but listing capture using video and MARKETING. What I have been describing is a video marketing, or in this case, business plan that works well. I have design several others. They are unique plans designed around how to use video to enhance your ability to capture more listings & referrals and ultimately make more income. Whether the listing is a “Good” listing or not is somewhat of a moot point and up to the agent. If you have many listings, your odds of success are raised dramatically because of the extra exposure to potential buyer and listing clients. Once you get to the point of having many listings, you can, if you wish, tweak your business plan to only taking “Good” listings, and referring out the rest. Then you will see even more sales with less effort. If the agents you described understood that when they invest in photos, videos, web sites, social media, etc… they would realize that they are investing in themselves and their success more so than the listing itself.
As a marketing vendor, videographers need to find agents that understand and believe in that one principle alone... MARKETING; simply because that is all they really can control, so why not excel! They can learn how to help agents implement video into a new business and/or marketing plan which will increase the odds of success in their client's favor.
Thanks for all the great input here. When we decided to produce video home tours 3 years ago we thought it would be a slam dunk for the thousands of local realtors to understand the value of video. Yeah right! It is the least productive and lowest income in our videography business. About the time we decide to forgo video home tours, a new realtor pops up and so we keep doing video home tours.
We focus on business videos and they are a little more lucrative but it seems only videographers really see the importance and value of using video to sell anything. I read dozens of articles every week about how the consumers love video but somehow that never translates into the business owner or realtor "getting it"
I've been out of the hood for awhile, and had to put my 2 cents in with this discussion.
Tru, if you're getting your license, screw offering video services for them. That will be your USP to offer your potential sellers. Ignorance is a great word to describe how the MAJORITY of agents are with any enhanced listing tool. For agents, like Peter and the one's that Fred works with, they are in the minority group. That's where you want to be as an agent. Home sellers "get it", and listing agents objection about spending money for professional services is crap. The home seller doesn't care that you're getting a percentage of a percentage, they only care that they are paying out 6% at close. If their house sells for a million, they are paying 60k for services. If I was in your position, I wouldn't spend another dime or time on trying to get agents to do your service. Use the video to kick em where it counts...in the wallet.
I'm going to give you an example of what I'd suggest saying to the homeowner on a listing appointment. I can guarantee nobody else is going to explain to the homeowner this, and whether your their first agent they interview or the last. They will not forget what you told them.
"Mr/Mrs homeseller, agents all have the same marketing tools available to them. What separates me from the others, is that everything that I do has one objective. That objective is to sell your home! How do I do that? With 90% of homebuyers starting their search online, I know that the presentation of the online listing is very critical. The point of selection for a buyer is where the sale is starting. Buyers are including or eliminating properties based on what they see online. I do photos, and also do a professional video presentation of your home. (Insert your experience/education) I create a sales tool of your property. The purpose of the combination of photo/videos is to show the buyer your entire property, and to allow them to start viewing their furniture in the home. It allows them to imagine cooking family dinners in the kitchen, having their kids swing set in the backyard. It is to psychologically allow the buyer to start assuming ownership of your home, and thus moving them further along in the buying process. When they contact an agent to schedule a showing, they are already "hot" on your property. I know that leaving your home, and taking your pets with you for showings can be a pain. This is why when I list a property, I put the extra effort in to make sure it's listed effectively. So to minimize any inconviences of showings for you, and to get the buyers that are already "hot."
You can see that this example explains two things that the homeowner wants to know. Why should I list with you, and how are you going to market my home to sell?
I beat my head against the wall for a couple of years in my market offering virtual tours. What is the most important thing needed to sell a service, or product? Demand..business 101, if you've already approached agents, and got no where. Your service maybe the best in the world, however if there's no demand..there's no business. Anyone whose considering a service or product, I'd highly recommend watching Dragons Den on youtube. Shark Tank is the American version with two of the investors from the Canadian version of Dragons Den. These are very successful millionaires, and billionaires that you can learn a lot about business from watching. Agents in my market don't "get it", and they don't want to change. Homesellers get it, I've talked to many, and they totally understand virtual tour/video.
My experience has been in listing/selling RV's and boats on the internet at two dealerships. I've recently accepted a position at a multi-location auto dealership to grow their Internet operations. I also handle all the listing/selling for their ebay motors account. This position didn't exist, and I approached them a few months ago about creating it. The combination of my incredible passion for Internet listing/selling, and my mastering the fundementials of sales/buying process. Got me the position. Some may say, yeah I haven't sold real estate, however whether I'm listing a 200k motorhome, or your listing a 200k house, the same listing principles apply.
