“You can’t sell a secret you know.” This is a line given by thousands of agents to thousands of home-sellers in order to persuade sellers to splash out more and more money advertising their homes. The theory goes like that the more places you advertise your home, the more buyers you reach.
Of course, anyone who knows anything about basic marketing knows that such reasoning is nonsense because most buyers look in several places during their search for a home.
The main purpose of real estate advertising (and all agents know this because it’s one of the first things they are taught in ‘agent kindergarten’) is to increase the profile of the real estate agent – and, in these days of the “celebrity salesperson” to increase the profile of the salesperson.
Agents who tell sellers that advertising their homes at huge expense is necessary are either incompetent or dishonest. Most (probably about 90 percent) of the money spent by sellers advertising their homes is totally wasted. It’s a monumental rip-off. And don’t except the newspapers or the on-line real estate portals to say anything about this massive rip-off because they are the ones profiting from it – to the tune of tens of millions of dollars.
But things get worse.
As well as perpetuating the myth that more advertising gets sellers more money for their homes, many agents also tell sellers that listing their home with a big agency (“Hey, look at us, we’ve got 34 salespeople!”) leads to a better deal for the sellers because they have more salespeople trying to sell their home.
Not only is this reasoning misleading, it’s a blatant lie. Instead of a benefit, most sellers who list their homes with the BIG agencies are at a distinct disadvantage.
This is due to what’s becoming known as ‘The HOG FACTOR’.
Here is what most sellers don’t know…
In most of the big agencies, the salesperson who listed the home is the only one who gets to handle enquiry from buyers about that home. These agents effectively hog the homes for themselves. They don’t let the other salespeople in the office show the home to buyers. The hogs are keeping the homes a secret to all but the buyers they happen to meet.
A large real estate office in Queensland is promoting that they are ‘doing something different’ by allowing all their sales agents to show buyers through all their homes instead of each agent only showing their own properties.