I was once told that achieving 100% of property’s value is unimportant. That being 100% accurate on a property's value is impossible...
He went on to say that is winning a sellers instruction to sell their home is what is important...
"And besides" he said, "who's to say 93.5% achieved by an agent wasn't all the property was worth anyway…"
In other words, it makes no difference if property is overvalued...
Which in my opinion is utter bollocks..
If 93.5% was really 100% of the property’s value. Why not have the courage to say what the real money was in the first place?
The problem with the stack em (property) high, sell 'em cheap model, is that buyers aren't stupid.
And buyers that are just knowledgeable as the estate agent asking them to view a property are not even gonna look at something thats over valued.
Especially when they're not competing with other buyers for the sellers signature.
It makes no sense.
If I'm honest. In this negative reputation industry, poor estate agents are just as bad as the sellers that employ them.
By the agent and the seller not doing their due diligence, just 40% of properties sell through the first agent (RightMove statistic)...
Look at the screenshot.
In W10, Mountgrange Heritage. Hamptons International. Dexters. Strutt and Parker all achieve just 93% of what they said they could.
WTF!
Thing is though, agents that portray themselves as experts have a duty of care to the seller.
In other words.
Have the balls to be an expert.
Performances this bad, whether individually or collectively, these agents should be made to sell or let for free.
Here’s why…
From leaving the Parachute Regiment and entering this industry. I discovered that there are three types of Estate Agents.
Manipulators. Salesmen. The Pro's.
Manipulators manipulate vs.Salesmen pretending vs. the Pro's.
Manipulators are Agents only interested in their back pocket. Con artists. Swindlers. Peddler’s of elixirs and potions.
These people are in the manipulation business.
Masters at utilising tactics and strategies for their own gain.
Strategies such as but not limited to...
* The Anchoring Effect.
* The Bandwagon Effect
* Choice-Supportive
* Pro-innovation Bias
Then there's the Salesmen.
These people are prostitutes to tactics and strategies that promise they'll get rich quick.
Valuation Accuracy Rates (VAR) in W10.
* Mountgrange Heritage 92.5%
* Mile - 92.8%
* Bective Lesley Marsh 91.3%
* Dexters 92.6%
* Strutt and Parker 93.3%
* Green and Co 92.9%
How?
Thing is...
Would you pay a taxi driver who delivered you to the wrong destination?
Would you pay a bricklayer if he dug you a driveway?
Would you pay a restaurant if they served you Steak, if you ordered vegan?
For all these agents to be so close across their valuations.
They're not valuing property.
They're simply delivering homeowners to the wrong destinations.
They're digging driveways.
They're serving Steak to Vegans.
But it's not just limited to W10…
A quick check in Marlow (Where I live). The best value for money has a VAR of 95.7% with an average 7 months on the market…
Savills in Marlow are 93.4%.
Hamptons International are at 94.6% VAR and 56 weeks on the market…
The Pro’s on the other hand…
They are the top 3 percent of Agents.
Like Florent Lambert the founder of Home Domus 360.
He's crushing it for his clients with an average VAR of 102% compared to his to his competitors average of 95%...
During Episode 3 of my Zero BS Estate Agency podcast he said, “It isn’t the amount of listings. It isn’t the amount of plush offices. It isn’t the lowest fee… it’s knowing how to skilfully tell the truth which yields the highest results.”
His average time on market before going under offer is 28.5 days compared to his competitors average 167 days…
He's not selling his clients home's cheap.
He consistently achieving superior results deliberately putting his clients in total control of their sale and at the highest profit and quicker...
'Speed' is the secret to a successful sale.
This is what the top 3% do…
RIGHT PROCESS + PROPER TECHNIQUE + DIRECTION + GUIDANCE = CLIENT SUCCESS.
The gap between manipulation and persuasion is so thin, 99% of sellers refuse to see or cant see the difference.
Early in my career, I was exposed to the difference.
I had a choice.
Do I go through the school of pain associated learning and hard knocks on a journey to become one of the 3%?
Or turn to the dark side of the force giving in to the world of false promises. Unrealistic results and distorting facts.
The Pro on the other hand is a highly skilled leader utilising facts to influence beliefs…
A lot harder to be a Jedi right…
Especially when you’re competing with Sith Lords using the dark side to win instructions and the crowd applauds...
Personally, I'm terrified of losing my clients money.
That said...
I'd rather be a lone wolf than than sell my soul to the devil...
Even if that terrifies me...
