Buyers are often the forgotten party in sales transactions, since they do not pay for a real estate agent's services when purchasing a property. As a result, the focus is often on the sellers, who not only pay the fees but also provide listings, vital to the sustainability of any real estate company.
A new report from Core Logic has found that there are a range of benefits real estate agents can reap by looking after buyers more. Here are some of the main reasons why Real Estate Agents should be focusing on buyers more.
Buyers are the promotional voice
A good experience will travel far and a bad experience will travel even further. A buyer becomes a prospective client once they purchase a property, with the potential to grow into a new listing later on. Yet according to the Core Logic study, only 25% of buyers would work with the agent they purchased their property from in the future.
Focusing predominately on sellers means real estate agents are missing out on three-quarters of customers and those customers are letting their friends and family know, with 43% of buyers stating they wouldn’t recommend their agent.
Do you expect to stay in touch with the agent you bought from or use them again?
A buyer is joining your local network
Real estate agents are known as hubs of local knowledge and work with people inside these local networks. Whereas a seller will often move out of the local area, buyers are moving in, which means real estate agents are likely to have more opportunities to work with them again.
Investment is the main reason behind 52% of buyers’ decisions to purchase a property, so buyers can provide real estate agents with long-term business relationships.
Would you use the agent you purchased your property from to sell your property in the future?
Sellers are restricted to local real estate agents
In most cases, sellers will use a local real estate agent rather than one from outside the area, even if they have helped them in the past. Real estate agents are somewhat restricted to their ‘patch’, which means their client base is in their immediate area. So if the seller moves out of the agent’s area, they are in most cases a lost client.
Every buyer at an open house wants to live in the local area
Building great relationships with buyers creates a network of target markets for selling in the future. Wasting buyers' time, failing to return phone calls and providing poor post-sale service means real estate agents are missing out on the opportunity to be invited to present to buyers when it comes time for them to sell. A buyer is more likely to remember a bad experience with a particular real estate agent so it pays to look after the buyer from start to finish.
Good experience increases word of mouth recommendations
Not every contact will result in a direct transaction, however, a good experience will increase the chances of word of mouth recommendation. 57% of buyers said they would recommend the agents they bought from to friends and family, providing additional opportunities for growth.
How real estate agents can focus on buyers
The reason top agents do well is because they focus on buyer’s needs, even when there are no immediate benefits. As a real estate agent, including the buyer in your focus means you can make the most of every opportunity in every sale and play a trusted advisory role to both parties.
What buyers want
- To be taken seriously - this is the biggest purchase of their life so be supportive
- Give them realistic recommendations for properties to view, taking into account their needs and budget
- Be upfront about any issues with the property
- Conduct a transparent process
- Provide follow up calls to let them know what else is available
- Give prompt notification when things change
- Recognise they just made the most expensive purchase of the life
- Provide them with a trustworthy relationship
Buyers are a valuable asset for real estate companies who wish to grow their business. Although they don’t provide the immediate financial gains of sellers, buyers should be treated with great respect by agents as they are integral to a successful real estate business.