Go Gecko, the discount real estate agency group, is feeling the pinch of a tight property market with the franchisor getting into trouble as sales numbers stay down. It has just been announced that the company has been placed into receivership.
The property market has seen a significant reduction in sales volumes over the last 2-3 years and agencies are closing and salespeople leaving the industry on a weekly basis.
The REIQ estimates a reduction of some 30% of salespeople over the last 3 years and I predict the trend will continue for some time. Incomes are down for both agencies and salespeople and discount operations such as Go Gecko will struggle more than most as a result.
Property agents with long term experience will be the survivors as they have experienced downturns before, lived through tough markets, and know how to sell. Many of the salespeople who have entered the property market in the last 5 to 6 years have had it easy and not really had the need to do things properly or in many instances received proper training.
Selling real estate is far from being a glamorous job. Those who are successful work very hard, longer hours than most are prepared to work, and do all the things they commit to do without shortcuts, even if it means interfering with family life.
Making phone calls at all hours and working late into the night are ingredients which many fail to include in their daily routine. Those not prepared to do the above are the ones leaving the industry, as they feel they are not being paid enough to undertake these activities especially where discounting is involved.
So back to the discount agencies. Property prices and sales volumes I predict, will stay where they are for some time and, unless there is a change in the economy, (and I can't see on the horizon), we will see more agencies close.
Not only is there not enough commission for the sales people in a discounted transaction, they are reluctant to do all the necessary activities to get a good result for their seller, which, in turn, reduces the possibility of a sale. It's a chicken and egg situation.
So, how does a seller choose an agent to market their property? Conduct an interview. Look behind all the gloss and pretty pictures on the leaflets and company brochures. Ask all the questions you really want to ask without fear of upsetting someone.
There are three vital ingredients to a sale.
1. Presentation. Marketing material, the personal presentation of the salesperson, the quality of the material they produce and the way they obtain prospects details.
2. Personability: do you feel at easy when you talk with the person you are interviewing and feel you are being told the truth in a frank and open way. If you don't it is also likely a purchaser won't and therefore a transaction will be hard to secure.
3. Follow up: Will the salesperson follow up all enquiry? Do some mystery shopping by asking your friends to attend Open Homes this agent is conducting and see if they get a follow up call.
Selling property is a specialized field, so engage a specialized agent and pay them what they are worth. You will be rewarded with a higher sale price and therefore a better result all round.
Your property and you deserve it!
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