Archive for the ‘Research’ Category

Greg Vincent

What’s The Future For Real Estate Agent’s Commissions in 2011?

What’s happening with real estate agent commissions?

Are you interested in gaining an insight into how other agents are dealing with the constant pressure that’s being exerted on real estate agents and their commissions?

Well! Last year, I was able to gain an amazing insight into what was happening out there in the front line with real estate agent’s commissions via a quick online survey that I conducted and shared through this Real Estate Mentors site.

Once the survey was finished my team and I compiled a detailed report called ‘The Future of Agent’s Commission 2010 Report’.

The statistical data, opinions, insights and feedback that we received from this initiative was really eye-opening.

But before I share the link to the previous report with you, I wondered if you may be able to help us gain an insight into what you are currently experiencing within your market place?

You see, over the next few weeks, we’ve opened up a similar study for agents in 2011 and we’d love to hear your side of the story.

Could you please take a couple of minutes (it’s really brief) to answer this year’s ‘The Future of Agents Commission – 2011 Questionnaire’?

From some of the data that we’ve already received, this years report looks like being even more comprehensive.

Plus this years online questionnaire is being promoted more broadly via Kevin Turner’s REUNCUT radio show PLUS other real estate trainers/coaches have also joined in to share it with their agents.

We anticipate that the report will provide an insight into where real estate commissions are heading and help us to provide real answers to what agents can do to ensure that they can not only secure more business but also retain a healthy professional fee for their service both now and into the future.

Please join in and have your say by clicking here now.

NOTE: Those agents who contribute to the Questionnaire will receive ‘Exclusive’ access to the full report prior to its official release.

Please take a few moments and help with this important real estate industry initiative by Clicking Here Now.

Thanking You in Advance.

Warm regards

Greg Vincent

www.GregVincent.com.au

PS: Here’s the link to last year’s Future of Agent’s Commission – 2010 Report.

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Greg Vincent

Agent Horrified About Stuff Up!!! Where Is Our Data Going?

This is the question that an agent posed to me earlier today after yet another stuff up by the big boys.

I was speaking at an event yesterday where one of the agents mentioned the CommBank Property Guide iPhone App and the significant amount of data that was now being made available via realestate.com.au and RPData.

As the discussion went on, one of the agents logged on and started searching through the Comm Bank’s app. Only by fluke, another agent suggested they take a look at one of his latest listings which is going up for Auction.

The listing agent was absolutely horrified to see that the property which was uploaded onto realestate.com.au as an auction now appeared on Comm Bank’s app with an asking price displayed.

The price that was displayed on the Comm Bank app was the same price that the agent had inserted under the search price field.

Any pricing entered within the search price field has always been a hidden price whether a property goes up for auction or whether it has an asking price. These prices have never been for public viewing, or at least until now.

I was blown away when the agent showed me the listing in question on the Commbank site. I couldn’t believe that something so fundamental and basic could be breached.

I followed up with the agent again today. To REA’s credit the pricing issue for that listing has now been rectified but in typical fashion the agent was told that it’s not their fault the issue seemed to be from CommBank’s side? So who’s fault is it really?

Agents don’t have an agreement with CommBank’s Property Guide app, they have an agreement with REA Group.

Under the circumstances, should agents have the option to not make listings, etc available to Comm Bank’s app?

Is this only an isolated case? Has it happened to others? Will it happen again? Can REA Group and Comm Bank guarantee that no such issue will ever happen again?

Can you imagine what would have happened if the vendor had seen it? Who knows whether a buyer has seen it or not? Does this mean that agents have to check every listing on every site that their data is being uploaded to?

NOTE: Out of respect for the agent and the vendor trying to sell their property I have deliberately left out the specific details of the price, property, area, agent, etc because sharing that information could have a detrimental impact on the result of the property auction.

This article was originally featured on Business2.com.au

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Petra Sprekos

Survey Reveals Lengths Buyers Will Go To, to Purchase Property in 2010

A recent national survey of 1100 users, conducted by Real Estate View aimed to gather data on potential home buyers in 2010 and their feeling about the year ahead, as well as the sacrifices they would be willing to make to purchase a property.

While rising interest rates and house prices are concerns echoed by many home buyers, people still seem to be optimistic about successfully purchasing a home in 2010, although it may not be exactly what they had in mind when they originally started their property search.

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How market demand and price increases are changing buyer decisions

With the market showing record growth over the 4th quarter of 2009, there was no surprise that buyers were reviewing their budget to buy in 2010.   In fact a whopping 2 out of 3 people expected to have to increase their budget in order to find a suitable property in a suitable location in 2010, with 72% of these individuals expecting to raise their original budget by over $20,000.  Showing that potential buyers are at least prepared for what the year ahead may bring.

However it seems that increasing their budget is not the only consideration buyers are making.  When asked about what compromises buyers are making it seems many of them are considering other alternatives to their find a suitable home.  62% of those surveyed thought they may need to look ‘further out’ than they originally planned, whilst 55% of people would look for a property of smaller size and 51% would look for a home of lower quality than originally planned.

So while prices are still rising it seems potential buyers out there are prepared to make some sacrifices to get onto the property ladder.

Overall market data such as that provided by Realestateview Property Data seems to point to the fact that the prime inner suburban properties will continue to be snapped up, but more humble buyers as shown from the realestateVIEW.com.au survey are willing to move ‘out’ to find something that suits.  They may not be getting a house that is as nice as they originally planned or the house as large as they might first have thought, but they know that there are ways to make this work.  It seems that demand may not slow; it may just change a little.

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Kent Lardner

Map Based Prospecting

Lower affordability is not the only problem created by our housing shortage. Many agents tell me finding listings is becoming increasingly harder, creating a stronger emphasis on skilled prospecting.

The challenges of prospecting for listings have much in common with prospecting for gold. I found an article on this subject written by Les Lowe in 2009, which highlights the benefits of being flexible, using maps and technology and pursuing every target.

“It should be remembered that almost all of today’s major gold mines originated as a result of a prospector’s discovery. Prospectors are flexible… and are open-minded. They’ve led where mining companies have followed”.

When working a specific suburb or geographical region you can use demographic trends, ownership data and freely available information on the Australian Bureau of Statistics (ABS) website to enhance your prospecting efforts.

In terms of being flexible, you may find the way you prospect for listings varies between each market segment. The classic fridge magnet may continue to generate some leads, but trying new techniques could yield better results.

“Geological maps and the writings of past gold explorers are two valuable sources of information on where to find gold”.

Ownership reports at a suburb level are generally too large to manage and street level reports too small. Using mapping technology to define a region in terms of demographics or years since purchased can be valuable.

The ABS offers 2006 Census information on maps for free. MapStats – A series of thematic maps showing the distribution of Census data for a chosen location can help an agent analyse a market in terms of average age, income, occupation or one of near 30 data variable options.

Steps:

  • Go to www.abs.gov.au and follow the links to MapStats
  • Select the location (suburb) you wish to review
  • Select the topic (for example age)
  • View MapStats by Census Collection District (click here to view sample)

The MAP tab is also a great tool. Go to 2006 Census Data by Location and select the map tab, then select Census Collection District. Each CCD is numbered, allowing you to label each prospecting zone.

Example:

map-search-1

“Today’s prospectors also have many advantages over his predecessors …. advanced technologythe internet and government departments”.

Australian agents do have it pretty good when it comes to creating prospect reports. In the US, a list of 1200 prospects would sell for more than $100 (example). Subscribers to data products (like PriceFinder) can generate effectively the same report combing ABS information with our ownership reports, without spending anything more than your subscription fee.

Creating an ownership report at a suburb level is generally too large. Breaking the market down into smaller districts like a Census Collection District (CCD) helps. For the 2006 Census, there is an average of about 225 dwellings in each CCD.

Example:

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Searching using the CCD number 1241208 then presents all of the relevant census data for the location.

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Here we can see that 18% of the area are aged 65 or over, which is our target market segment for this example.

Ownership reports can be created that follow the CCD boundary, or any other zone specific by you.

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Within this CCD I can then locate nearly 40 owners who have purchased before the year 2000 using the Owner Report (address, DoNotCall washed phone number and names) for a targeted campaign. Creating this map and report took all of 20 seconds using PriceFinder, allowing me to build a list of up to 1000 well profiled prospects in my market within 1 or 2 hours. Once you export the Excel version of the report you may even save it with the CCD number for future reference in your Customer Relationship Management Database (CRM).

“When using a metal detector, always dig every target. What sounds like a tin can has often been a decent nugget.”

Keep building on your CRM database and your brand through this work. Maybe none of those 40 owners we target today may list this year, but you can establish strong long-term relationships and referrals through these prospecting efforts.

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Greg Vincent

‘New’ Australian Real Estate Widgets Launched

Yesterday, I was speaking at the Brisbane session of ‘A Morning with Australia and New Zealand’s Top Agents’ when it was announced that PriceFinder have just launched a new offering to agents.

Taking inspiration from the success of Zillow and Trulia’s ‘cool’ web site widgets, PriceFinder has released its own range of agent website tools for Australia.

Widgets are an easy way to enhance your own website, increasing traffic and generating leads.

According to Kent Lardner, Chief Operating Officer of PriceFinder;

“Your web site visitors can now search for recent sales that match their property as well as view sales and growth charts for free. We have several new widgets now available as well as banners to enhance both the look and the functionality of a real estate agency website”

Click Here to see these new widgets.

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