Domain asks buyers’ and sellers’ agents how to build good working relationships with those who get paid by the other party. Yet they must simultaneously achieve a positive end result on both sides.
Smart agents on opposite sides of the real estate transaction line see each other as allies and have formed strong working relationships. Consequently, this benefits their clients.
The ‘us and them’ story does not hold true
Frank Perri, an auctioneer for Jellis Craig in Doncaster, in Melbourne’s north-east, has been selling homes for about 20 years. He says buyers’ and sellers’ agents “can have a mutually beneficial” professional relationship.
“I have always viewed it that way,” Perri says. “I certainly don’t think it has to be an ‘us and them’.
“Their role is to source and negotiate a suitable property for their client, but it is more advanced than just that.
“We can actually cut through and talk directly to each other because we understand the industry and ultimately have the same goal. Therefore, I don’t get threatened by it.”
Perri is on the email lists of three buyers’ agents and says in an auction sale, for example, buyers’ agents are “not an obstacle but more an ally”.
Their clients are already financially qualified and in order – they are ready to buy. This can save a sales agent untold hours.
“Sometimes I have approached them directly [in an auction campaign] and said, ‘Look, I know you want to buy it, and I want to sell it. I am not going to make it hard for you.’ It is just about building open and transparent relationships.
“The buyer is qualified, and given that there is often about three months’ lead-in time before a buyer is ready to buy, a buyer’s agent saves a seller’s agent a lot of time. This agent gets a buyer to the point of purchasing.”
‘A match made in heaven’ for prestige agents
Jason Adcock of Adcock Prestige in Brisbane says his team has worked closely with buyers’ agents in the prestige property market over the past two years. This is “particularly in the past six months”.
“I have found it invaluable – we are working with buyers’ agents on almost every property listing,” says Adcock. He currently works with five buyer’s agents.
“The large majority of my properties are being sold to people from the south or coming back from overseas, and also Chinese buyers. Because they are busy people, they are prepared to pay 2 per cent to these buyers’ agents to save them time and stress.”
The perks are shorter timeframes before contracts and, often, before properties even hit the market.
It is also warmly received by many vendors who would rather keep their homes out of public view.
“They are getting all of our listings via our alerts and will often call me within 30 minutes of it going live,” he says.
“They have really been on the front foot in terms of engaging me this year, so you have this situation of strong demand. We have the listings, they have the buyers, so, look, it is really a match made in heaven.”
Oodles of mutual agent benefits – but ‘cut the BS’
Nicole
Marsh, founder of Eureka Property, agrees it is possible to have good dealings with sellers’ agents, with one caveat.
“Yes, it is possible … however, as a buyer’s agent, I’m always mindful of the fact that I work for the buyer, and in the buyer’s best interests, while the selling agent works for the sellers, and in the seller’s best interests,” Marsh stresses.
Her top tip for building a trust-based relationship with “the other side” is “no BS. Tell it how it is and no mind games. A lot comes down to the personality of the agent, too.”
The Gold Coast buyers’ agent only works with cash or pre-approved finance buyers, which she says reduces the risk of contract collapses for all agents. This is a standout benefit to associated selling agents.
Other benefits can include sales referrals, which may lead to new listings. Off-market deals can eliminate the need for open market inspections.
“Dealing with me as a buyers’ agent, the agents know that the risk of a deal ‘falling over’ under finance is a lot less. Therefore, they have a higher chance of a deal getting through to completion and actually settling,” she says.
“I’ve purchased hundreds of properties in my career as a buyers’ agent, and they also know we have the insight, knowledge and resources to work through any issues that may arise along the way. Therefore, this again increases the chance of the deal reaching settlement and of the agent not having to ‘sell’ the same property three or four times before it actually settles.
“It saves them a lot of work by dealing with me.”
Buyers’ agents can be ‘worthy’ adversaries
On the other side of the country, Emma Everett of Monumental Wealth in Perth says “absolutely” it is possible to work together without drawing blood.
“Although both parties work for different parties, the agents have a common goal, so there are many things we can work on together,” buyers’ agent Everett says.
“Most of our deals are with selling agents, very few are with vendors directly.”
Because “a lot of off-market deals” are put to her team by selling agents, “it is smart” for sales agents to approach buyers’ agent contacts before the open market.
She acknowledged that things can change “dramatically” when a property market is “really hot”, but added that this is the same for sales agents as the market cycles.
“We are both paid the same way, i.e. on transacting a deal, and buyers’ agents can take some of the communication load off the sales agent. Consequently, it is time-saving and means the selling agent can move on to the next listing without having to spend additional time on buyer customer service.
“Sometimes we can cross-refer to each other, so that is another benefit.”
Asked if she had ever encountered any negativity in the real estate sales battlefield, Everett quips: “It is not in anyone’s best interest to undermine each other as we are all learning from each other.”
“Look, in the end, we are all working for our clients; theirs are the vendors, and ours are the buyers.
“I have never heard anyone say ‘the enemy’ out loud, but once had a sales agent refer to me as ‘a worthy adversary’, and I took that comment as a huge compliment.”
Courtesy www.domain.com
July 24, 2019
Paul Mulligan is the Principal Buyers Agent at MULLIGAN Buyers Agents, Sydney. As one of only two buyer’s agents in Australia to complete Negotiation Mastery at Harvard Business School, Paul combines advanced negotiation strategies with years of market experience to secure the best outcomes for property buyers.
Passionate about helping clients avoid costly mistakes, Paul offers expert guidance throughout the buying process from search to settlement.
