For some reason I can not leave a comment in the comments section of this post. So … I am making my response a new post. Hey, that is what being one of the Geniuses is all about!
Russell, in a matter of a few minutes, can give you the names of dozens of listing teams across the nation doing equal or far more business than he does. He can’t, however, do the same for buyer agent teams.
Correct. I am in the top 200 agents in the U.S. again this year. But I am not “the” top. Last year (2006 stats) I was number 25 in the team “sides” category. There were a number of people who beat me (in both volume and units) who only had one assistant and were not even competing in the team category. https://www.realestatejournal.com/adinfo/res/20071113-intro.asp I don’t know of any high volume agent or team who has lasted, long term, that mainly works buyers. This isn’t to say that some mega teams that mainly work buyers don’t do very very well.
Am I all wet, Russell?
No, BawldGuy, completely dry. As usual, I pretty much agree with everything that you and Bill Lublin have to say.
Listing agents don’t need buyer’s agents whatsoever? That’s the biggest load of crap I have heard for quite awhile. I am willing to bet that there aren’t any listing agents (with the possible exception of bawld guy’s dad) doing hundreds of transactions who wouldn’t crash and burn if buyer’s agents didn’t sell most of their listings.
Allan Domb from Philadelphia: www.allandomb.com for years did not bother to even put his listings in the MLS. He sold them without the MLS. Long term, he is still one of the most successful Realtors to have ever lived – he was doing over 1,000 deals a year 20 years ago. He does more than that today but doesn’t still enter “contests” (like me:-)
How many of your listings do you sell yourself Russell? I am sure you can give us an exact number.
Less than 15% To me, using MLS is much easier. That isn’t to say if the DOJ/FTC had managed to “change everything” I wasn’t fully prepared to withdraw from the MLS. But thanks for asking so nicely.
The thing that is tiresome is that a lot of the people doing mega listing business have this arrogant superiority complex that their way is the only way.
I am not one of those people. I have never claimed my way was the “only way”. It isn’t. There are lots of ways. None of them require my blessing. However, I am flatly stating that if an agent’s primary emphasis is on correctly working listings vs. working buyers, it is better, easier, more profitable, more conducive to being run like any other successful business (owner can be gone and still make just as much money), and there might actually be something to sell to someone else when retirement time comes around.
There are plenty of people who make a great living working with buyers without investing 60 hours a week in the process. The trick is very similar to what it takes to be a good listing agent. Not working with just anyone, but learning how to generate enough buyer leads that you can afford pick and choose and only work with motivated buyers who are ready willing and able to make a decision.
No disagreement whatsoever with the above statement. But if you need to be gone for 6 – 9 months (like I did in 2001 when I had cancer) it is much much easier if the business is listings based to continue making money while not there.
A lot of people think the only way you can find buyers is by having listings. That is just simply not true.
Correct. Pay Per Click, SEO optimization, blogging – just to name a few. But the “thing” being offered as bait to the buyer is still a house. It makes no difference if that house is listed by you, your company or some other company. Buyers respond best to houses. Therefore – for optimum profit – it makes sense to have houses for them.
I don’t want to spell out exactly how it can be done, but trust me there are ways to advertise that will have your phone or email ringing off the hook. Then you can sift through the leads and find folks who have to move by a certain date, and have the money in hand.
I always do both. I generally have had between 10 and 20 good listings at all times for the last twenty years, and I am always working with at least 5 buyers.
I really don’t believe you and I have any real disagreement. You take and market listings and have lots of buyers that you sell homes to. Your business is listings based. Even if you are currently selling more houses to buyers than you are listing. My point wasn’t “don’t sell houses to buyers” but take salable listings. Anyone who believes there is some downside to taking salable listings has a false idea. That was – and still is – the main point of my original post.
July 15, 2008 at 3:37 am
Big shout out to my man Mr. Domb – he was the perons I referred to in my comment on your last post. He is one focused guy- and as you point out has never been a member of the MLS, even when he was GPAR President – and yet he still manages to be very very succesful Yo Philly!
I would also point out my Associate Ron Rudolph, who was the Top Agent in the Century 21 system three years running, selling more individual units then any other agent in the system – all a result of his listing activity.
July 15, 2008 at 5:27 am
I think that it is important to try to work out a deal that is a win-win for both sides. If you know the market and have some morals, one can look out for both parties and create a deal that works for both.
July 15, 2008 at 5:44 am
Is Mr. Domb a blogger?
I tell you, he has the most “irritating” website out there. I mean, that music… LOL…
Jennifer in Louisville
July 15, 2008 at 7:58 am
When you represent a buyer, not very many people are likely to find out about it (loan officer, selling agent, seller, home inspector, etc). Listings however can help grow your business by establishing a market presence (particularly if you make a point to take salable ones instead of anything @ any price). People see the signs – and if they see a “sale pending” sign go up regularly on your signs, they will notice it.
July 15, 2008 at 10:30 am
Hi Russell, Well I posted an answer over hereto your post which eventually did show up in that thread.
July 15, 2008 at 11:58 am
There’s also a psychological side to having a “listing” real estate model – If you have listings, you have business, and those listings generate even more business. We’ve seen buyer’s agents fall into a slum (or is it slump?…I woke up thinking in Spanish) that they can’t get out and end up teaming up with “listing teams” knowing open houses, street signs and property ads get actual business.
July 15, 2008 at 7:23 pm
Russell – I have been agonizing over this. I know we need to “list to live” but I have learned to be more strategic about which listings I take, which means I am not taking all that I can. One of the things I have been doing is looking at risk. I am spreading the risk. right now I have too many downtown lofts. That is the slowest part of the market and they are the hardest to sell. I just passed up on a fourth listing in one condo building, and a second listing in another. I will take listing of homes outside of downtown. I hate the idea of saying no to listings but feel I need to sometimes.
Yet I don’t emphasize working with buyers either. I like to do both and I continue to market my services as a listing agent and as a buyers agent the same way I always have.
Thanks for the post. Some of my peers have given up on listings, that is wrong. We need to be reminded that this business is about listings.
Atlanta Condos Advisor
July 16, 2008 at 12:31 am
Listing to last has always been the golden rule in the real estate business. However, with most all buyers starting their search online today, agents can now have successful business with no listings at all.
July 16, 2008 at 1:02 am
Teresa, good point on watching your product mix, since listings represent expenses and lost capacity until they sell, though I suspect many agents will envy you having the luxury of being able to pick and choose simply because they don’t generate your volume of leads. For selling, price is problem that cures most other problems. For agents, whether focusing on sellers or buyers, lead generation is the problem that cures most other problems.
July 16, 2008 at 1:11 am
Ines, I would think any successful agent who didn’t have a listing would pick up an open house to look for buyers. Working “listings by referral only” is often an excuse to stay home and cash fewer checks. I understand the concept of pacing yourself by working 40 hour weeks, but most listers I’ve seen didn’t put in those 40 hours unless they had several listings. I’m not sure the “slump” analogy is fair. I see picking up an open house as sign of dedication to growing your business at the expense of someone who either has plenty of business or is more likely using “listings only” as an excuse for complacency. I’ve seen more than a few listers who basically phone it in once they get the signed listing agreement.
July 16, 2008 at 8:07 am
Frank, we are not questioning those that don’t do their job correctly here – what I’m saying is that it is easier to fall into a slump if you have no listings. I asked week after week in my office if anyone wanted to help us do open houses and in an office of over 100 agents, we would never get a response (and these people were not doing great either). There will be agents that will go out of their way to make their business successful and will work way beyond the standard (heck…..I don’t remember the last time I worked a 40 hour week).
FYI – we just added a team member to Team Miamism that is an exclusive buyers agent and has never worked listings – she was top producer in her office in 2006 and is a go getter and will compliment us nicely. It’s a question of which business is more conducive to long term achievement and non-burn out.
Boston Condo Guy
August 31, 2008 at 2:58 pm
Jennifer in Louisville has a good point, regardless of what importance we give to the real estate “sign”, consumers do see them, and recognize the power brands in the area. A significant number of condo developments in Boston don’t allow the use of signs, for understandable reasons, thus making word of mouth and Internet presence more powerful.