I've been reading with interest blog posts, listserv e-mails and other articles from real-estate agents who claim to be on the leading edge of technology as they work to sell their clients' homes. The inference is anyone relying solely on the MLS is a real-estate dinosaur doomed never to sell another listing.
(As an aside, these arguments don't sound too different than themes of the new economy before the dot-coms brought the stock market down upon many of our heads. In 2000, the co-CEO of Charles Schwab, Dave Pottruck, co-authored the book "Clicks and Mortar" to discuss the new dynamics created by the web. Four years later, he was out of a job.)
At some point, though, the question should become are these agents marketing your home or using your home to help market themselves? Here are a few examples, some traditional and some "cutting edge," with Tobey's foolproof sniffer deciding who benefits most:
- Real-estate yard signs. The single-most visible marketing method around. In theory, will generate sign calls which could lead to a sale. Or could lead only to prospective buyers for your agents. FOR THE SELLER OR THE AGENT? Tobey says it's a wash.
- Custom yard signs. One local company designs a unique sign for every listing with multiple details about the house on the sign. Not sure how much fine print is being read at 25 mph and not sure how much time is spent jotting down notes from the sign. FOR THE SELLER OR THE AGENT? Tobey says the agent, since these signs are not any more effective than regular signs with a flier box attached.
- Open houses. A great source of prospective buyers for the agents. A historically terrible source of buyers for any one individual property. FOR THE SELLER OR THE AGENT? Tobey says the agent, paws down.
- MLS listing. The second-most prevalent source of sales according to NAR's most recent buyers and sellers survey. FOR THE SELLER OR THE AGENT? Tobey says the seller.
- Internet listings. 80% of all buyers begin their home search on the web. It's possible for an agent to capture prospective buyers off Homes.com or Realtor.com, but not likely. FOR THE SELLER OR THE AGENT? Tobey says it's probably a wash.
- Agent web site listings. If the site ranks highly on the search engines and/or has a significant amount of traffic, it's a benefit to the seller. If the site is like most web sites and is invisible to all but the most dogged of buyers, it's solely for the agent. FOR THE SELLER OR THE AGENT? Tobey says the agent. He also says to check to see where our site, Dalton's AZ Homes, ranks. In our case, we rightly can claim it's for both the seller and our benefit.
- Mass e-mail advertising. We get to aggravate 99% of our fellow agents. But there's always the 1% who has the right buyer for our home. FOR THE SELLER OR THE AGENT? Tobey says the seller.
- Newspaper ads. Fewer and fewer people are starting their search in the real-estate section. Many agents still have advertising in Homes Illustrated and other such magazines, but in truth they're using such avenues to help build their listing inventory. FOR THE SELLER OR THE AGENT? Tobey says the agent.
- Staging. Especially in vacant properties, a little staging can go a long way. Impact for the agent is nil unless the staging is done in conjunction with an open house. But it does help buyers differentiate between houses and picture themselves in the staged house a little easier. FOR THE SELLER OR THE AGENT? Tobey says for the seller.
One of my peers is fond of saying he plays the odds when it comes to listings. There are certain activities which give the greatest chance of success - MLS listings, Internet Listings, informative fliers. There also are certain activities that sellers love that have little impact in selling a home - open houses, newspaper and magazine ads, etc.
Agents know what sells and what doesn't. So if you're discussing a marketing strategy for your home and they seem all to happy to perform several duties that traditionally don't yield a sale, ask yourself whether they're doing those tasks for you or for themselves?
If the answer is for themselves, perhaps it's worth talking to an agent who dedicates his resources and his time to the activities that sell homes. Tobey says it's the smart thing to do.
(c) Jonathan Dalton, 2006 / Jonathan Dalton's Arizona Homes |
