How do you find a direct buyer as home seller?
We'll demystify this topic in the following video.
My name is Chris at Hauseit.
Hauseit is the largest for sale by owner a buyer commission rebate company in New York
City established in 2014.
If you have any questions about buying or selling real estate and how you can save
on commission when doing so, please check us out at www.hauseit.com the spelling is below.
As you may have heard, over 90% of home buyers are represented in New York City, this means on 90% of transactions that occur
the buyer has an agent and the seller has an agent.
Why does this happen?
How could this be possible in the age of the internet?
The first fact that keep in mind is that there are 30,000 licensed real estate agents in
Manhattan alone and over 50,000 licensed real estate agents in New York City metro area.
As a result, every New Yorker has a proverbial at least 5 real estate agent friends.
These friends will be discussing real estate with them in the market at cocktail parties
at social gatherings.
Or just running into each other.
This collectively represents the largest sales force in New York City and as a whole in the
United States the largest sales force in the nation.
All of the agents will be running around offering essentially a free service to the
friends.
Remember that a buyer never pays anything for a buyers agents services.
The buyer's agent is always paid from a split of the total listing commission by the seller.
If the buyer does not have an agent, the listing agent simply keeps both sides of the commission.
As a result, it's technically free for the buyer to work with the buyer's agent always.
A second major reason for why are so many buyers are represented by buyer's agents is
because many public search websites have a business model predicated on diverting leads from the
listing agent to an agent who has paid the public search website to advertise on their
website.
We will not name names here but many of the public search websites you heard of or will
find in a casual google search.
We'll when you go to a listing on that website you will usually see either a list of different
contact agents most of which are not a listing agent.
Perhaps only one if any will actually be the listing agent.
However if you accidentally click on any other agent listed, well you'll be contacting a
random agent who has paid to advertise there.
Other real estate websites make it even more difficult at high the real estate agent essentially
own together.
Sure, they may list the listing broker's name somewhere far below perhaps in the fine print
but in the main contact form or the main contact button where may ambiguously say contact agent,
well if you hit contact agent or call the number it will directly reach you to a random
agent who has paid to advertise on that listing.
This random agent again is not the seller's representative, it is a random agent who is
hoping to be the leads buyer's agent.
As a result, these two primary reasons the fact that there are so many real estate agents
licensed especially in the city like New York City and the fact that public search websites
have a business model of diverting buyer leads away from the listing agent to random buyer's
agents well this is the reason why over 90% of transactions for example in the metro of
metropolis in New York City are done between tuition's buyer's agent and a listing agent.
So what are the solutions to this problem?
The first and easiest solution is to hold as many open houses as possible.
Now were talking about general open houses that are walk in.
People see a time slap from 1PM to 2PM for example or 2 to 4PM and they can walk in at
any time without making an appointment.
These are extremely effective for receiving and getting direct buyers because there is
no way for leads to be diverted.
A second great method to find direct buyers when selling a home is to upload media such
as a floor plan or a property walk through video with your branding logo at contactive
mission.
As of this filming, most major search websites have not made a big scene about removing media
with self promotional material or contact information.
As a result, if you look on any major public search website and check out a listing, you
typically see that the listing broker has put his or her firms information logo and
contact information on the floor plan or somewhere in the corner of a floor plan.
Moreover, if there is a property video uploaded usually the video will have the contact information
logo and other self promotional information about the listing broker as well.
This helps buyers who view a listing on any website know and recognize who the actual
listing broker is.
You can of course go one step further and add your firm's logo or perhaps even contact's
information on every photo as a watermark.
However, this is a more extreme measure as we believe it distorts the quality of the
photo and takes away from the beauty of the professional photographs.
Lastly, you may be wondering:why can't I simply put my contact information or a line saying
please contact John Smith Realty or John Smith at this number in the listing description?
Well, most public search websites as well as many broker databases prohibit anything
but information about the listing itself in the property description.
So this means any contact information or other self-promotion information will automatically
be removed.
Anyway, we hope you found this video helpful and if you want to learn more about how you
can save money at closing cost broker's commissions when selling or buying property in New York
City or in New York please contact us at team@hauseit.com the spelling is below.