Agent Positioning 2

Q.
When everyone is doing the same, what can you do different from others?

A.
Read earlier post on Agent Positioning here.

In a nutshell, an estate agent can offer his service in three main fronts.

1. Represent the seller (that is what most agents would be and be paid);
2. Represent the buyers (that is what most agents won't do);
3. Academic and desk job in the research and publications.

It is like when you take the example of a hand phone business. You become the seller of hand phone. It is your job to do the promotion because it pays you the income.

You cannot (usually) charge the buyer a commission for recommending the brand of hand phone. You charge the supplier with the profit you earn in selling the brand. Of course, the profit is from the buyer who paid for the phone.

In between, there is the work of hand phone nerds who write review of hand phone in some tech-magazines. They are independent third party, who do not represent the buyer or seller. They are experts of their fields - however, due to their eagerness to be popular, they usually represent the voices of the readers (generally the buyers).

Now, seeing it clearer in the example of hand phone, what can a hand phone businessman do to be different from others?

There are generally three things he could do:

1. Different segment for the handphone (user);
2. Different intensity of the handphone (usage);
3. Different ways that handphone can be used (uses)

1. Example for different segment would be handphone for the senior citizens who require big wordings.

2. Example for different intensity of usage would be for purpose of gaming where usage will be very demanding for power and capacity.

3. Example for different uses would be biz use, social media, camera, music, movie and conversation.

Selling Hand Phone vs Estate Agency Practice

So, in the common front of estate agency, most agents go for the seller in conventional selling, renting and leasing. This means estate agents concentrate on securing listing from owners. The main purpose is to be paid for the uses "To Let" and "For Sale". Full definition of "Estate Agency Practice" you can refer to MEAS 2014 Definition.

From here, there spring out another three variables.

1. Agents who tag with Developer (Owner) for intensity of "To Let" for shoplots and shopping malls.
2. Agents who tag with Developer (Owner) for intensity of "For Sale" onto residential houses, strata livings - subsale and primary market.
3. Agents who tag with BUYER (of LAND), and dig out the owners of land.

NOBODY IS INTERESTED IN THE BUYERS!!! ONLY THOSE DEALING WITH LAND!!!

Why?

IT IS LIKE WHEN YOU ARE WHOLESALER OF HAND PHONE!

When you are sourcing of which brand of hand phone to carry as a sole distributor, you look for the brand which buyers go for. You won't not want to represent a brand which nobody wants, right???

Hence, you study why buyers want this brand of hand phone. Is it trendy? Or its battery lasts longer? Or it is thinner? Etc.

Similarly, an agent of land would study the type of land the BUYER wants. In which case, is it a buyer or many buyers? Of course, many buyers! This means demand for the land is high, the price will be high too. As a result, the commission pay out will also be high.

Now, what stands in between the Land Owner and the Land Buyer? The gap of knowledge between the land owner and the ready buyer is miles apart!!!

Take for example, Land Owner who is a farmer, illiterate and never know of a land deal. The Land Buyer who is a shrewd businessman!

Only when there is this GAP, that the role of Estate Agent comes in! (Don't get me wrong, An Agent should NOT conspire with the Land Buyer to cheat the Land Owner). When any element of fraud, undue influence, misrepresentation and coercion is found in a contract, the contract is voidable.

Thus, to develop a position in the field, one must MASTER this knowledge of GAP! Target a segment of market where there is BIG GAP between Seller and Buyer. Try to bring this GAP closer and close the DEAL!

The argument of closing the GAP is further discussed here.

Usually, a ready buyer is just about price. However, a ready buyer might not have the energy and precision of a foresight to see the GAP being near to close. The ART of closing this GAP is indeed a psychological one!

The GAP can also manifest in the other two segments -

For a developer who has many shop houses "To Let", the Tenants do not see the benefit of renting the Shops. There exist a BIG GAP!

For a property owner who wants to sell his house, the Buyer do not see the benefit of buying that house. He might think that the house is too highly priced. This is also BIG GAP!

As an estate agent, one MUST learn how to close that GAP! The ART to CLOSE the GAP is key to success in this game.

YET, you don't want to use a method which everyone is using. That means you are no better than any others. You also won't want to always change your method, for you will one day run out of the idea. Hence, you need to work on a STRATEGY!!!

So, when everyone is doing the same, what can you do different from others?