Understanding your client’s needs is fundamental when matching suitable properties.
In this section, we discuss the general state of the real estate market and suggest ways in which you can improve how you serve property investors – things to do, things to avoid and things to be aware of.
If you would like to improve your effectiveness in uncovering and satisfying the investment needs of your clients, we are available to assist you by formulating and implement a training program specific for your business. We provide this on a paid consulting basis. Feel free to contact us to discuss how we may be of assistance. You may also like to view our ‘Skills Assessment Form‘ and a sample training schedule. Our training modules cover;
- Click here: For Beginners - submit referral only – people who have NO knowledge in investment properties.
- Click here: Professionals with sales and investment property knowledge. If you have a basic understanding of investment properties. And are already working with investors and currently selling one or more properties per year
Real Estate Market Ethos
Australian market ethos is currently focused on serving vendors (sellers). Real estate agents’ livelihood maybe mistakenly dependent on their ability to secure listings, creating a narrow view of opportunities to make a sale and a modern day real estate agency
Existing real estate websites and search sites were designed as advertising sites to generate sales leads/ enquiries back to the selling agent (or vendor). In essence these sites are electronic newspapers
Evolution of the industry has failed to accommodate the current and conflicting needs of the selling and buying community, for example:
- How to specifically match property to investors’ needs
- Real time information exchange
- Ability to engage franchise and business network databases to expedite matching properties to buyers’ needs, whilst keeping advertising costs to a minimum. Most franchise networks have hundreds of offices nationality/internationally and yet, none are linked technologically. Regardless of technology limitations or number of offices within a franchise the listing agent seldom if ever invites the entire franchise network to assist in finding a buyer.
- Little to no regard has been given to provide relevant timely information and disclosure to mitigate buyer risks. As known in the industry by, caveat emptor, Latin for “let the buyer beware“
Industry Practice
As it stands in Australia today, the real estate industry is geared towards serving the seller (vendor). Investors’ needs and motivations are markedly different to those of property sellers and owner occupiers. The Property Compass addresses these differences and in addition, it creates an independent representation for buyers and sellers, removing any potential conflict of interest and providing greater transparency for property investors.
If for some time you have seen or heard of the growing mismatch within the investment property industry where the needs of property investor’s were matched to so-called suitable properties, then a story of someone losing money may come to mind.
Then you may also agree that the industry is overdue for a new approach. An informative approach is needed, one that focuses better on serving the investors’ needs. By providing comprehensive disclosure of property information and highly sophisticated evaluation tools, reports and calculators online this can assist investors:
a) with securing a suitable investment property; and
b) identify and reduce potential risks.
The system and processes available by using the Property Compass will enable you to easily create a shortlist from a vast number of properties. This will help you to bridge the gap between properties and your client’s needs. This is ‘Product Matching’.
Market Clichés
Clichés used by some investment property companies such as “we have the best investment properties” are only true for a certain investor with specific needs matching those properties.
Wrong message
Another commonly used sales strategy focuses investors only on new residential properties. This style of selling is sending the wrong message to potential new investors and is blatantly inaccurate. Investment can be in ALL property types including; existing homes – units, commercial, car spaces, industrial units.
Potentially biased
Advocating that a property is worthy of investment simply because of duty; when representing the interest of the seller/vendor/developer is expected, but that does not mean the property is suitably matched to an investors specific need.
Old thinking
These views represent a very narrow approach on of how to best serve ALL your clients. Working with your clients is about removing any assumption that a suggested “best” list will suffice for all your clients and their respective varying needs. This approach is very unlikely to yield long term client loyalty.
Product Matching: new thinking
Product matching is about aligning your client’s needs against a suitable property. When a property is not (currently) available then it is best to delay the sale rather than try and convince your client of the potential of a prospective property that does not in reality match their specific requirements.
Property Compass is a great idea with a unique solution to a common problem in the investment property industry. It delivers a revolutionary new system connecting property sellers to networks of investors through market-leading technology.
This link can be found on the right side of the bottom of the page.
