Technology and the internet have not only changed how we do business, they have also changed how consumers think, feel, and buy real estate! Those who understand these changes will own their markets. Those who remain ignorant of these changes will no longer be here!
If the buyers change their behavior, then the agent needs to change as well. If you understand the new behavior, you will profit – SERIOUSLY profit. Agents who refuse to acknowledge these changes and function as they were, they will be gone – no longer relevant.
01:24 Recap of the shift.
01:47 Buyer importance
Do you remember a time before the MLS? Splits were controlled more by the buyer. 70/30 split (selling/listing)
Listing advertising IS not as important or lucrative any longer.
02:43 Buyers can see ALL listings – not just the person who has them anymore. This changes EVERYTHING.
03:00 Who will the buyer use? What determines their selection? It’s no longer whomever found them the house because THEY are finding their own houses.
03:23 The Great Illusions: Why do fewer than 15% of folks relist with whomever sold them the house? ANSWER: They didn’t like the agent who sold it to them in the first place.
04:51 Why did they buy from them then? It used to be because you didn’t have a choice; they had the house you wanted.
06:42 Researching the market… really?
06:50 “I have to find a house for my buyer…” No you don’t, it’s just another way to waste time.
07:06 Changes in Marketing – the purpose is still to make the phone ring, but not for the same reason.
09:08 Buyers now have direct access. They don’t need us to FIND THEM THE HOUSE. Are you listening? I want to pound this home. Neighborhood and school information is so important. They do the research on one of the 900 sites with listings.
As the resource for neighborhood and school info, you are obsolete, give it up!
10:30 55% and rising of homebuyers pick out their own homes online!
11:20 All they depend on you for is to get them the house they already found.
Who knows the home inspectors? Who knows how to get the best deals on loans? Who can keep the whole transaction moving along? Facilitators and coordinators – that is our entire role now.
12:45 The buyer now gets to choose which agent sells it to them. How do you become THAT agent?
13:15 How many of you remember showing 30-40 homes?
14:40 How many of you used to have to bring a buyer back to reality?
This is no longer the case. They know their price range, what is available, can calculate the loan and payments. They also know the market. The average buyer looks at about eight homes or less before purchasing.
17:00 Most are prequalified for a loan, have checked their own credit.
18:40 Shorter, direct contact cycle with an Agent. Most agents think internet leads are a waste of time. They are not. The agents are a waste of time. House buying cycle is about 30 days instead of months.
20:20 When the buyer calls now, they are usually prepared to buy the house that day. If you do not sell him that house that day, he will find the next person to sell it to him.
21:00 The longer, indirect contact period. This is why most agents hate internet leads. 90% of all buyers search online. They start looking 8 1/2 months before. They may contact 16-18 realtors before they buy a house. WHY? No follow up by those agents.
22:00 Qualify for time.
22:30 Whoever feeds them the information they want to see is going to hold on to them.
24:00 90% of the agents fail at the incubation level.
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