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Evaluating Real Estate Agencies In Your Shortlist To Join
If you are really unsure of what you want and who can help you achieve career success, you might have quite a few real estate agencies in your shortlist. It is then important to narrow down that list to 2 or 3 of the most favourable ones so that you can do deeper research into them. If you decide to research 10 firms, you could be broke by the time you finish your investigative work. Let’s just say you have stroked off a few and now left with 3. Here are the things you should do.
1) As a consumer, rank them according to your preference. If you already have a deal done and dusted, and you need a realtor to handle the formalities for you, which would you hire. Take into account that the service level will be the same and the commission payable is also the same. The reason why you want to do this basic exercise is because the reputation of the company will follow you when you join it as an agent.
2) Evaluate the market share the agency has in the area you will be working in. If agency A has the biggest market share nationwide but agency B is dominant in the area you will be working in, you might have a tough decision to make. The reason why this can be critical is because if the company already has a huge presence in an area, it would also be very likely that they have the biggest pools of clients for you to tap into. If you acquire a home seller as a customer, you can effortlessly pitch the listing to the existing known buyers in the database.
3) Evaluate the strength of power players in the agency. The Pareto principle states that 80% of revenue will be generated by 20% of the workforce. This is no problem as you will no doubt be working your ass off to reach that top 20% tier. But what can be unhealthy is when one person is responsible for 40% of the agency’s transactions or listings. It could bring about problems with company politics or financial disaster should that person leave. You don’t want to be somewhere where any one or two individual has too much power in the organisation.
4) Research the types of properties you will be handling in the area. Find out which agency is the dominant one. The reason is that consumers might have an idea in their heads which agency they should hire when they have a particular type of property. This is because agencies sometimes carve out particular niches to serve. You could be joining the wrong people to work for if you don’t check this out beforehand.
5) Observe the type of advertisements that the real estate agencies run. You might not notice anything different when you first do this. But once you continue to observe them over time, you will realise that some are more aggressive, some misleading, some creative, and some might even be blatantly lying. If a company needs to depend on misleading advertising like dressing up an advert to look like an editorial, it says a lot about them.
6) Use the internet. There is a lot of information you can find on web portals and forums where consumers discuss about anything under the sun. You will find people criticising agents, people defending them, and even agents prospecting for leads online. See if these information forms a picture of an agency you want to join.