The challenges facing a new real estate agent

by Alistair Helm in


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I’ve been a fully licensed real estate salesperson for 3 months and I thought it would be interesting at this point to share my thoughts, experiences and insights. Valuable, I hope for others who may be thinking of embarking on this career path and also potentially a valuable reflection piece for those already established in this industry.

The fact is real estate is tough. There is a saying I remember from years ago and echoed at a recent training session “Real estate is simple, but by no means is it easy” – it is true; if a little overly simplistic. The fact is real estate in 2018 is a detailed process-based business with a high degree of legal requirements and obligations, more so each year. As I stated in an earlier article tracking the process of studying for the Certificate in Real Estate, there are 30 Acts of parliament that are studied on the course and all potentially have a direct impact on this process and need to be understood and adhered to by all agents.

However, long before you ever get close to talking to a buyer or seller and providing any form of service, the life of a newly licensed real estate is all about building a profile and making an impression so you can be seen at least as relevant. It’s all about building a brand. This is so key. The hard truth of this industry is that there is no shortage of real estate salespeople. Nowhere around the country is currently underserved by a real estate agent; and in the main cities there will be tens of capable, experienced and competent agents ready at the drop of a hat to list a property for sale. So this is the highly competitive marketplace into which you need to launch yourself and create a point of difference, and even before that, just get to be seen and known.

Real estate is a numbers game and in general terms the numbers (the odds) are not great. At any one time there are probably around 20,000 people in NZ actively involved in selling their home, that’s less than half a percent of the population – 1 in 200. However this group who are easy to target are not the audience you want to reach out to and engage in order to succeed to gain a new listing.

The target audience you want to address are the people in the stage before that. A very short window in which people who have possibly been looking to buy, get that confidence to say “right let’s going, let’s get our house on the market and let’s buy that new property” – I suspect that audience is fewer than 1,000 any one time and  with 14,000 agents in NZ today ready to serve that market that’s a highly competitive environment for a new agent to take on well-experienced and established operators. Imagine trying to identify that target audience in your local area, you are talking about a needle in a haystack; 1 person in 4,700 – virtually impossible. What you have to do is rely on connections and engagements. That is why agents constantly reach out through networks, make new connections, market extensively and make proactive approaches to everyone in their local area. For unlike established agents, new agents have no referral network of previous clients to rely on for future work or referral.

In my case from the outset I chose to focus and leverage on two clear points of difference when compared to my well established local competitors. These were my analytical capability focused on local property market trends and insights; matched to my unique and extensive experience in digital property marketing. That was the easy part, the hard part was to communicate these capabilities and break through the paradigm that sees people use the same agent time and again or rely on agent's presence (existing listing stock) as the arbiter of the decision of which agent to use.

As I will highlight in a forthcoming article this decision making process in selecting an agent, based on a survey I am currently undertaking is heavily skewed to established agents.

To substantiate my analytical capability of the local property market I am writing and publishing a hyper-local property report for Devonport each month. I maintain a detailed database of property listings and sales, enabling me to publish this report early in the month. This initiative is already bearing fruit with a growing subscriber base for the full email version of the report which enhances my brand awareness and my role and is supplemented through the publication of the abridged report in the local fortnightly local paper The Flagstaff.

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However passive marketing is as ever, a slow build. The massive hurdle that needs to be overcome to really kick-start an agent’s career is getting a listing; this is the mark of credibility. However the ‘chicken and egg’ conundrum kicks in – how to get a listings without having the credibility of a listing? This is where the numbers game comes back into play. You need to try a myriad of initiatives to see if somewhere, something bears fruit. As I described it the other day when sharing experiences with my fellow Bayleys newbies – it’s like growing crops, you have to sow masses of seeds and tend and nurture the ground, feed and water and eventually shoots will arise – it takes time, patience, fortitude and tenacity.

Here is a selection of the initiatives I have undertaken to date.

-       I held an local event with Bernard Hickey invited to speak about property and the economy. An excellent foundation with over 60 attendees

-       I personally door dropped over 500 flyers for Bernard’s event

-       I distribute my monthly property report to properties on the market. Sure these properties have an agent, but if the property remains unsold I want to make sure the vendors know of my presence should they decide to change agents in the future. This I see as classic reciprocity, I share the value in my report which has real contextual relevance and thereby establish my brand credentials

-       I target local streets where recent sales and listings have been active and communicate through personalised letters to all home owners with my property report and insight as to the local market dynamics. There is well know fact that properties tend to come onto the market when those around them are listed - a strange correlation that I think needs investigating!

-       I target private sellers offering my experience and advice on marketing, seeing if I can be of assistance to build trust and hopefully a future listing if they stumble in the process themselves

-       I contact owners who are undertaking renovations to discuss latest online valuations and the potential value-add of the work they are doing

This is sample of the tactics I have employed to date. To this you can add digital marketing through Google Adwords, Trade Me advertising, Facebook promoted posts. All focused to drive traffic to my personal brand website which I have tweaked regularly as I have reflected on what I can do to trigger the right engagement with my prospective target audience. I've also had produced a personal brand video so as to allow people to evaluate me as a person.

 

So what success so far?

– well as of today there is no listing with my name on it.

However there are germinating seeds which I am confident are soon to blossom. I have a client who will sell their home, however my task is to find them their next home which is challenging, but exposes me to the world of being a buyers’ agent which is a valuable experience. I also have three further clients for whom I am working to find them their next home and hopefully from that I may gain another listing or two. I am also working outside my home area when helping people as a buyers' agent which is surprising and valuable.

As I have said it is a numbers game. I should think that over this first 3 month period I have engaged and contacted over 250 people in my local area directly, plus an unknown number through other marketing. I’ve already invested over $12,000 in real cash in this new business of being a self employed agent which does not take into account the cost of my time everyday I work in this business, nor the cost of the time studying for the course and certificate.

The brutal fact is that more than half of all agents do not remain in the industry past 6 months, I am at the 3 month stage. I am sticking with it, I can see the future and I am confident that I can establish myself in this industry and deliver a professional service that is respected and valued. I’ll keep you all posted with future articles in the coming months.

and by the way...

I almost forgot this. If anyone tells you or you suspect that establishing yourself as a new real estate agent is a lifestyle choice, then tell them politely from me - if you are prepared to let that lifestyle consumes your every waking moment 7 days a week with no hope of a holiday then they clearly they are open to a new form of lifestyle.

Sure I choose to work where and when I like, but every moment you are not thinking about where the future business will come from, you will be worrying about where that future business will come from. Just some advice!


Real estate marketing – create a local presence through data

by Alistair Helm in


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I am embarking on my new career as a newly licensed real estate agent and looking to create a point of difference in my local market. This challenge is faced by literally thousands of new salespeople each year in NZ.

In 2017, there were 2,084 new license applications received by the licensing authority – the Real Estate Authority. That’s over two thousand aspiring new salespeople prepared to challenge themselves to make a career in real estate. The hard fact is that around half of all new salespeople fail to make it to their first anniversary. It is, as I have outlined before, a highly competitive industry; an industry where tenure and relationships hold huge value and getting started is a massive uphill challenge.

So set against this backdrop, I have been mapping out my own strategy as to how I am going to create a local presence in my own market – the Auckland suburb of Devonport. I want to share my approach, as for many years in my prior roles at both Realestate.co.nz and Trade Me I have advocated the importance of digital profiling as a means to build presence and to be found online; as prospective customers actively prospect for you and your skills; in stark contrast to the time-honoured tradition of real estate prospecting via the well-trodden path of door-knocking and cold calling.

My strategy is to position myself around knowledge and insight in the property market. Sounds familiar! As I am sure most real estate agents would propose that they can reference this positioning quoting the latest REINZ of QV stats on the property market from a national or regional perspective. However I am going for a more tightly defined hyper-local market of my suburb. I want to be recognised as a local expert able to talk confidently and write articulately about the trends of the hyper-local property market segmenting house sales separate from units sales and from townhouse and apartments sales.

In addition to sales stats and the median prices I am going to analyse and comment around the trends on the inventory and new listings in the suburb by property type.

This is a tall order and requires a lot of data analysis, but I judge that to establish this level knowledge and insight is critical to creating a highly differentiated credible and trustworthy platform in the minds of my prospective customers.

I’ve spent the last couple of weeks putting all this together into a single site that I have created. A specialised property website for Devonport and I am launching it now

Devonportproperty.nz

The site is a visually rich destination with a clear focus as a call-to-action of a monthly property report, added to which there are tracking charts that demonstrate the key trends by property type setting out the last 5 years.

I have combined this rich data and commentary with a visually engaging design which allows me to showcase the images of Devonport – all of which are my own photo collection, taken as I have walked the streets of Devonport over the past months. It’s great to combine the two passions of property analysis and commentary with a passion for photography.

At this time as I am still awaiting my full license to practice real estate so the "about" section merely profiles me, but once officially licensed I will be clear as to my role as a licensed real estate salesperson.

 


Newspapers have a future. It lies in a symbiotic relationship with real estate

by Alistair Helm in


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The excellent article “The future of newspapers” written by David Williams on Newsroom got me thinking about exactly that: Is there a future for newspapers here in NZ and globally?

I find it somewhat ironic that I ask this question given I spent many years at Realestate.co.nz confidently professing a belief that newspapers would be dead before the end of the decade, however I have to confess that I have somewhat changed my view over recent years.

I can recall so well the many presentations I made to crowded rooms of real estate agents up and down the country, confidently stating “Newspapers are dying.... people in their 20’s don’t read them, people in their 30’s barely read them; their readership is 40 and older and in time those readers will not be around!” Sure it was hyperbole to support my agenda – digital media is the future for real estate advertising. The data certainly supported my assertion and the declining readership trend over recent years has not been arrested. I even recall quoting the then editor of the Guardian who when unveiling new printing presses back in 2006 stated:

as we installed the new Man Roland presses, we knew they were likely to be the last we ever bought
— Alan Rusbridger

However, newspapers are not dead. They are dying; but at the same time evolving. In my view, their world is polarising. In the glitzy corner there is the world of click bait, of which our daily lives are awash – ever more dramatic headlines fighting for our limited attention spam but sadly racing ever faster to the bottom in terms of quality and ad cost, constantly fearing the competitive threat of Facebook. Sadly, so many of NZ’s metro newspapers have chosen this route.

In the opposing corner are the newspapers that still take the time to report and investigate rather than just regurgitate. Those I would place on a pedestal would include The Guardian, The New York Times, The Washington Post – major newspapers with significant backing. I am a big fan of the approach advocated by Gavin Ellis of the Trust structure. Whilst NZ doesn’t have the global scale opportunities to leverage as these major mastheads do, all is not lost. I am more confident that we can expect to continue to see local and regional (and potentially national newspapers) decades from now.

Newspapers have for the past 150 years relied on advertising, it's a symbiotic relationship at the core of their business model. One of the major groups of advertisers newspapers rely upon is the real estate industry. Pre-internet real estate agents relied on newspapers 100% - providing the right medium to the right audience at a cost-effective rate. Buyers valued it as a catalogue of what was on the market and equally sellers liked it as they felt it perfectly promoted their property. Property advertising in print is logical - strong images with clear attributes look great.

However the world has changed over the past decade or two and today newspapers are no longer the medium to showcase all properties on the market, certainly not for large national or regional papers. This is where I come to my point.

Local newspaper serving local communities can and do leverage local real estate advertising as much because properties advertised ‘feels’ right at home for the very reason that the content is hyperlocal. Sandwiched in with the local school events and sporting club news and all the other hyperlocal going’s on in communities real estate is complementary, comfortable, personal and local. Where I live in Devonport we are blessed by a great fortnightly publication the Flagstaff, it is the very epitome of this. If you want to know what is on the market in Devonport, it’s actually easier to flick through the latest edition of the Flagstaff than even to search on Trade Me or Realestate.co.nz. The same I am sure is as true and relevant for the Raglan Chronicle as for the Ruapehu Bulletin or the Te Awamutu Courier. There are 48 free local newspapers across the country which find a symbiotic relationship with local real estate companies, clients and agents.

As for the national or regional papers; in my view their approach has to be different, they can’t be the hyper local newspaper but on a larger scale. As clearly in the case of Auckland with the NZ Herald they can’t possibly offer to profile 9,000+ properties for sale across Auckland. What it can do though is deliver what is such a key part of real estate marketing – the serendipitous moment.

Advertising a property for sale is about reaching out to as many buyers in the market. These are the people who are deeply engaged on Trade Me and Realestate.co.nz. Buyers who set up email alerts and notifications and addictively check their mobile property apps. But not all actual buyers are so deeply engaged at the time, many don’t actually think of themselves as buyers; sure they certainly don’t represent the majority of people who buy property, but they could be buyers if as serendipity happens, they see a property that gets their heart racing, something that kick-starts them into action. This serendipitous moment doesn’t happen online. It happens in more traditional media of newspaper adverts, catching the eye of the reader as they disassemble the numerous Saturday supplements.

I put these thoughts forward as over the past year I have experienced first-hand the value of such real estate marketing – both hyperlocal newspapers and the serendipitous advertising in major metro papers, with significant success.

So, the truth is I have changed my tune over the years. Real estate marketing is about a broad marketing campaign, not simply online which is undoubtedly a critical base, but the complementary use of print media in newspapers as well.

It is just too important a process in the marketing a property not to consider the dual media, and for that reason we in the real estate industry need newspapers, so let’s hope they can survive and prosper.