Chris Stuart
The subject of real estate disruption has been a staple of most, if not all, industry education and “brainstorming” gatherings for years.
Occasionally, someone will stray from the thought of us needing to prepare for the looming threat of externally-driven disruption by declaring a need for self-disruption. Unfortunately, there never seems to be any ideas or strategies for how this act would be accomplished.
Yet, the need for listing agent disruption is routinely in evidence.
For example, just today (at press time), we were at an event where we heard a very impressive REALTOR® from Cape Cod say, “The buyer determines the price of what a home sells for,” and the person on the panel with her from Utah said the key to success in real estate is to be a listing agent.
To us, these two industry-wide declarations are crying out for listing agent disruption. When referring to a fellow real estate professional or oneself as a listing agent, it suggests the following:
Allan Dalton
A. I am a listing agent versus a marketing agent; therefore, my job is done as I have the listing. Consequently, I have no influence over the end result. Accordingly, the buyer or the market will determine the price…yet I want to determine the fee.
A listing agent definition stultifies reaching the understanding that the buyer, the buyer’s agent, the seller, the seller’s agent, the appraiser and the lender all contribute to the determination of the final price.
B. Myopically proclaiming listing agent status means that I’ll train myself to make listing presentations versus marketing proposals.
This behavior is a byproduct of being a listing agent even though, presumably, every homeowner on Earth would prefer a marketing proposal.
C. This is also why so-called discount companies will pointedly declare that they will “list” a home for a certain fee—instead of marketing a home for that fee—as the minimalism surrounding merely listing a home keeps the bar low, which invites limited-value companies into the arena. Why wouldn’t any home seller want to pay less to get their home listed?
D. When one identifies as a listing agent, this compels us to think that homes do not sell due to price, as this is all a listing agent, by definition, is capable of accomplishing—setting the price.
However, if one announces to themselves that they are a marketing agent, then homes do not sell due to price…because price is just one part of marketing!
When listing agents surmise that homes do not sell due to price, it essentially has our entire industry stepping on our own proverbial air hose and collectively reducing the professional significance of an entire industry.
For if the only reason a home does not sell is because of price, then the only reason a home does sell is because of price, thereby relegating the value of the listing agent to that of an overpaid and feckless appraiser.
We could share numerous other examples of the counterproductive consequences connected to the value-killing title of listing agent (as opposed to marketing agent), but hopefully you get our emphatically stated premise.
We need to disrupt the words, and, in many cases, the self-fulfilling behavior of the words we have long worshiped: listing agent.
You see, our industry does not possess an image problem…
We are prodigiously photoshopped.
We are resplendently dressed.
We invented both personal promotion and self-reviews.
And the streets within our local communities are brimming with our BMWs.
Instead, we need to recast our value, and it begins with disrupting “listing agents.” Listing agents, no. Marketing agents…yes. And it’s not about semantics—it’s about value.
Chris Stuart is CEO of HSF Affiliates and president of Berkshire Hathaway HomeServices. Allan Dalton is CEO of Real Living Real Estate and senior vice president, Research & Development of HSF Affiliates. For more information, please visit www.bhhs.com and www.realliving.com.
Speaking to the Choir. I’ve been telling Sellers I’m more than a Listing Agent for some time now. I prefer Marketing Agent because I market their home in a manner that gets attention. Like marketing ads in magazines, commercials and movie trailers. Creating interest, emotion, desire to see in person and ultimately selling.
To me, if I say I’m a listing agent, it means I prefer working with sellers. Especially in my very competitive second home market with many unmotivated buyers. I agree there are some agent who list and abandon, many don’t. What you are doing is putting up a straw man argument
It is true that marketing exposes the product to those who might be interested in buying. But NOBODY buys ANYTHING unless they see value for them. A buyer buys when they want it or need it. And price is not a limiting factor when the desire is great enough. When it comes to houses, marketing has very little to do with creating want or need. Perhaps nothing to do with it.
When I read things like this, it demonstrates me why I don’t go to industry trade shows and listen to “panels of experts”. I list, market, and sell property. But that is not my job or title. My title is real estate agent, and my job is to represent my clients – whether, buying or selling. I have to do what it takes to represent my clients best interests – if that is just a sign in the yard, or extensive marketing over a long period of time – the end result is to do what I’m hired to do however I feel it needs to be done.
I dont understand why this industry likes to over complicate what we do. We aren’t buyers agents or listing agents, or sellers agents, or brokers, or licensed assistants, are team leads, or team members – we are Real Estate Agents. And all this sillyness just confuses the consumer to the point, they dont want to deal with us – they dont understand that what they need is representation. Therefore they dont need a listing agent, or a buyers agent, or a team lead, or a marketing agent, etc… so they just use Zillow and do it themselves. (unrepresented).
We need to define and market what our true value is – Representation. We need the consumer to not want to take a step further into the real estate abyss without a licensed professional representing their interests. That’s the marketing our industry needs!
For the past several years, I have been referring to “Listing Agents” as “Seller’s Agents” whether it is myself or the agent on the other side when I am the Buyer’s Agent. This is not only more accurate, it also makes it more clear who is working for whom. This is especially helpful when representing buyers so that they become keenly aware that the “seller’s agent” is working for the seller’s best interest, and vice versa.
Excellent article. I’ve referred to myself as a boutique marketing specialist. My value is not a grand presentation to sellers that will put stars in their eyes but to do this for the potential buyer. The way to do this is to know each niche of the market that I work, and I do work niches, to know it well enough to discern exactly what the most desirable aspects of the home and property are for the niche buyer that I need to attract, and then not miss a single detail about the property in the marketing that is going to attract that one highest and best buyer who will stand in front of the house with a stream of little hearts pouring out the top of his/her head and march forward to a nice clean closing willingly and joyously paying top price for the property.
Excellent perspective! Going to start using this.
Exactly. How often do we see homes lingering on the market and no apparent marketing done? Could that be why we are thought of as just putting a sign in the ground and collecting a fee? Change is needed now!
To Alan Castleman…You nailed it, we complicate our value proposition because every couple of years we have new “disruptive” companies that come in and create their own “buzz” words for consumers.
Our profession, organized real estate needs to do a better job communicating our value and stop coming up with new terms!
Excellent reply Alan. I have been a real estate agent since 1970. We have a fiduciary
responsibility to our clients regardless of how we may “specialize”. I do agree that
many of the things agents call themselves can confuse or mislead buyers or sellers.
Being a fiduciary includes putting our client’s interest above our own. Hopefully the client
appreciates that and reciprocates with loyalty.
Heading out this morning to instruct a Pricing Strategy Advisor NAR Course in Northern VA. Less than 1% of (Realtors/Listing Agents/Marketing Agents/Selling Agents/etc) certified PSA!! Yikes. Whatever we decide to call ourselves, need to know Markets, stratified Markets and economic principles as Sherry and others have stated. Great topic and dialogue!! I’ll be back!
Back from the National Association of REALTORS® Pricing Strategy Advisor Course (PSA), and everyone in the class said this should be “MANDATORY” for all REALTORS®. They were so excited and said it was the most important class they ever had. Will be loading some Youtube testimonials shortly. (www.pricingstrategyadvisor.org) Yes, by there presence and enthusiasm, they were fans of self-disruption as earlier referred. A lot of cheer in the course for the principle of “Marketability” or “Market-Ability” which is described on page 183 of 742 from – The Appraisal of Real Estate, 13th Edition, Appraisal Institute, 2008 – “A marketability study is founded on analysis of four factors that create value – utility, scarcity, desire, and effective purchasing power. The interaction of these four factors will determine the marketability of the property.” Not everyone understands these terms at standard definition. These factors of market-ability are like a master algorithm in the brains of every buyer. Once the buyer makes it passed any confusion, remember the purchasing principle that – A confused mind doesn’t buy – then the market-ability algorithm kicks in to compare property against property – 1) How will I live day to day – Utility 2) How many like this exist – Scarcity 3) Do I like the feel, finish, floors and features – Desirability 4) How much does this cost and compared to substitutes – Economic Purchasing Power. —> Then out comes the YES or NO! These principles should be completely understood by Listing Agents and Selling Agents (or whatever we call them) to provide a Symphonic Experience. We graduate class participants as Market Makers regardless of which side agency resides!! #MarketMaker
Residential real estate sales is a business with the following hard realities: you (agent) are working with people’s largest financial commitment and concurrently in a transaction they do not do with frequency. You need to put yourself in their place / perspective and be highly professional. Think: “if this was my property….” Be ethical. Work hard. Become an actual expert. You will then be irreplaceable.
Excellent Article.
As an agent I have to say this article is a perfect example of how stupid most agents are. Wrong goals. Wrong priorities. Wrong way of thinking. Keep it up. Makes it easier for me.