How to be different in my business industry

[egglette80]

Hello

I am new to this business forum so hello to all. I set up my own estate agents in January this year but have struggled all year to get the branding out on such a low budget.

I worked from home first but that proved difficult, so listened to the public and set up an office, it went ok for the first 2 weeks, lots of interest but only 2 house sales and no further instuctions have come from when I officially opened the office 6 weeks ago. We have a very good USP which is our sales fee undercutting all the agents in the area but still this is no attraction.

I need help in gaining at least valuations so I can pitch to the people how good I am. Any ideas plaese?

Many thanks

 

[Mitch3473]

fixing your price to undercut the other agents is not a very good USP.It just tells customers and vendors you are cheap and maybe they wont be getting the service they need.Far better to go the other way,charge a bit more and spend more time with them and the vendors getting every fine detail sorted.

 

[egglette80]

I would gladly put my selling fee percentage up to match the next best brand but because I am franchised I have all the marketing material left to get out with this fee on.

There is also no doubt that this fee and my packages work either as I have successfully sold 2 houses within the last 3 weeks that had literally come on to the market, I have great customer service and regularly keep my clients informed of how their property is doing, advertise on the best portals around but still no joy.

Its hard to advertise on every portal, in the local newspaper and local property mags every week when you have no cash behind you do it. I just need some fresh innovative ideas to get the brand name out.

If I was selling my house I would well chuffed I could save at least £1000 on my fees by going with an agent that had a lower fee. I would certainly give them a chance anyway. I am not even getting the chance to step in the door.

 

[Scousejock]

Try to tie in to other businesses. financial services who may have clients who they know are going to sell so they could pass them on to you for a small fee.

Have you tried a direct leaflet drop to properties with for sale boards up. Time consuming I know but you will be getting your details to people who are actually selling.

Put on a homebuyers evening. Invite people along with the offer of some free wine etc and you can have professional guests such as solicitors, IFA's who could be on hand on answer peoples questions.

Like any new business the key is getting your name in front of your potential customers so that you can then at least have the chance to sell your product/services.

 

[egglette80]

Here is a list of everything I have tried so far:

1- leaflet drops to all houses in my area that are currently up for sale.

2- personal letters to vendors who have had their properties on for over a year giving them potential new marketing ideas to sell their property

3- my partners work van has been sign written and he works all over the region on different jobs

4 - supporting signs on main roads of friends properties (although we were told to take them down after 8 weeks from the council, its not allowed)

5 - offers of a further reduced selling fee but its subject to terms

6 - NO VAT on the selling fee

7 - Free merchandise, keyrings, umbrellas and mugs

Would I just email then financial service companies and tell them about my estate agents and offer a fee for a recommendation??

It seems that people in this region are set in their ways and want to go with an agent who has rows of houses displayed in their windows, but I know from some feedback that thats sometimes bad as they dont always pay attention to the property and its left on the shelf unsold for months, the agent can pick and choose the ones that they know will sell quick.

Hiking valuations to gain instructions is a big no no for me as its wrong and I know the estate agents act are bringing in fines for this but it seems to work to gain an instruction, the general public have too high expectations in this market and I am trying to turn the realisation round that times have changed but the snuff my valuations (well the small amount that I have manage to gain) and then go with the a company that has hiked it by a futher £10,000 to then be reduced 4 weeks later.

I dont want to be greedy, just comfortable and finding that one way to instantly make the phone ring to gain a valuation has been hard.

 

[Scousejock]

I agree hiking prices is a big No, No but it is how many agents get instructions. As a buyer (I have an investment porfolio as well as my house) I avoid those agents as they are time wasters.

If you are not already I would strongly suggest floor plans on all property details. Annoys me when agents dont do this as it gives a better idea of the property than any description can.

Sounds like you are already doing a lot of marketing. Have you considered that it is partly down to the fact that there are not as many people trying to sell.

I have a mortgage broking business and yes I have given instructions to agents in the past. Some I have received a fee from others I receive mortgage business from. So pick up the phone and give them a ring. Try to get a meeting if you can and explain what you are doing and sell it to them. They can in turn try to sell it to their clients.

Although having a shop full of properties does not sell properties any more it does give brand awareness as does advertising in the local papers. I have seen many agents come and go who try to work solely online and I am not sure this works but thats just my opinion.

I would say be proactive but it sounds like you already are. So either keep doing what your doing or take some time to consider if there is enough of a market for you.

 

[egglette80]

Thanks Scousejack.

There is definately enough room in the market for me, not so much in lettings as they are popping up everywhere. There are 6 other major agents within a 2 mile radius of me covering a radius of 10 miles, so there is enough room.

I will get on to the financial people this afternoon and see what I can do with them. Also going out this evening to some restuarants that have takeaway seating areas in to try and put down some leaflets.

The feedback that I have had from people just being nosy has all been good, I do wonder though if other agents have discussed my business to other vendors that have approached them first and those other agents have caused an impact on my bussines by giving bad vibes to them about me. I have heard that 2 agents have questioned how I can charge such a low fee and also been told that one agent snuffed me because they said it takes experience to sell a house, well the results of my 2 recent house sales within 3 weeks of instruction speak for themselves. I do hope that I am not being put down though, its something I never discuss with clients rival companies but let them rant to me about them.

I am not giving up just yet, if I can crack it now I can crack it in the good times of the future.

 

[estwig]

Hiking valuations to gain instructions is a big no no for me as its wrong and I know the estate agents act are bringing in fines for this but it seems to work to gain an instruction, the general public have too high expectations in this market and I am trying to turn the realisation round that times have changed but the snuff my valuations (well the small amount that I have manage to gain) and then go with the a company that has hiked it by a futher £10,000 to then be reduced 4 weeks later.

Whilst your honest intentions and desire to put the whole housing market to rights, is admirable. Your not in business to run around with a halo on your head, your in business to make money. If your competitors are talking it up to gain business and it's working for them, do the same.

If your concious won't allow you do to this, get a job at Tesco.

 

[Scousejock]

Whilst your honest intentions and desire to put the whole housing market to rights, is admirable. Your not in business to run around with a halo on your head, your in business to make money. If your competitors are talking it up to gain business and it's working for them, do the same.

If your concious won't allow you do to this, get a job at Tesco.

I disagree you dont have to go down the same path to make a success. You can be successful by going your own path. BUT doing it your own way is a long term option and will not help in the short term.

I would consider making this part of your marketing to answer the negative comments being made by others.

ie

1. Why put your property on the market for an unrealistic price only to reduce the price in a few weeks.

2. How can we market your property successfully and charge much less than our competitors. Costs are kept low blah blah blah

The problem you have is that people tend to use a firm that they know or have used before and it is not easy to break into the market but it is not impossible. Use your contacts locally and use your name (assuming you are known locally)

This was a business I considered getting into a few years back, and still might at some point, and my concept was similar to yours in not going down the path of similar agents. it is tough tho and I would expect to be not making any money from it for some time while you build up a name and a reputation.

 

[egglette80]

Totally disagree too, its all about being different not the same as the others, being unique and having your own USP's.

I am passionate about customer service and want to bring that aspect back to estate agency. I have seen far too many agents that are there just to take your money. My aim is to help and bring happiness to people when buying and selling property not just to take the money.

I am going to perfect my pitching to clients and push the name as far as I can. My own personal name is not as well known as I would hope as I have only lived in this region for 14 months and not got out there much but time to re-think this now and get out to events, pubs and talking to people.

 

[estwig]

I disagree you dont have to go down the same path to make a success. You can be successful by going your own path. BUT doing it your own way is a long term option and will not help in the short term.

Yes you can make a success of a business by doing it your way. But not this way and not in the housing market.

You are dealing with the two things people are most passionate about, their home and their money. You go tell a prospective vendor their property is worth £10k less than the last agent told them. Not only have you hurt their feelings, you've also just lost them £10k.

The best salesman in the World, a master at overcoming objections, is gonna struggle with that one.

 

[estwig]

Totally disagree too, its all about being different not the same as the others, being unique and having your own USP's.

So your USP is to hurt someone's feelings by telling them their house is worth less than they thought, basically your saying their house isn't as nice they think it is and then your going to lose them money as well.

Not a good USP.

 

[Scousejock]

The agents that I deal with that set a realistic price on properties and actually sell them instead of just having them in the windows gathering dust are still surviving in this market. It may not of course be for this reason it could also be that they have built up a very good reputation with both buyers and sellers.

When I sell property I do not always go with the agent that values it the highest. I do agree though that many people do.

If you were already established it might be easier but to break into this market with this thinking will be tough but not impossible.

I would focus more on the other parts of your plan and not focus specifically on the price. When you do get chance to give someone a price I would push your overall service and marketing plan.

Some people may be happy to hold out for more, dont lose them just educate them

 

[directmarketingadvice]

My aim is to help and bring happiness to people when buying and selling property not just to take the money.

You can't save souls in an empty church.

If someone doesn't want to use you, who are you helping?

So, for all your good intentions, if your sales pitch is, "I'll sell your home for £10,000 less, but I'll charge you a lower fee", it's not much of a sales pitch.

If you can get them the best price for their homes, then tell them what you do differently that makes that happen.

If you can't, then who's to say the higher valuations aren't correct?

(Unless you believe the price will be the same, regardless of who lists the property.)

Just my 2p,

Steve

 

[ruspieter]

this is an idea not saying its legal though.
when your customers come to see you offer them some special cakes (known as space cakes) then if your showing them around a house tell them the buyer also receives some sort of food hamper. Sold

 

[egglette80]

We are going slightly of course here, just gaining the valuations is a struggle, most of the time I can successfully get the instruction, but the actual valuation is very few and far between.

I understand that low fees can out people off in this current climate and people want to see a an agent who is selling fast, however I have seen too many times agents reducing prices within weeks of it going up for sale, why because they price too high. If I was a vendor I would want my house realistically priced, I dont want the expectation of x price to then be reduced down by £5000 - £10,000 within the first 2 months because the initial valuation is to determine whether I can move on to a bigger and better property.

E.G I valued a property based on it being a 2 bed terrace, in a fairly popular area, with a 2 year old fitted kitchen, bathroom and lounge/dining room for £155,000, thats was also based on comparables of properties elling at only £135,000 to £145,000 in the same street within the last 10 momths but the vendor was not happy as she paid that 5 years ago, justifying my actions was fair, proof of current house prices, she had dne a few minor improvements but not enough to hike it by 10 grand. I will watch and wait for that one to be reduced!!

But anywho, I think I will perfect my pitch and continue to get the name out to as many people as poss without fail

 

[Belmore]

Firstly Egglette - Well done on setting up your own agency. I think it is really admirable and great in the current climate.
Secondly your question is how to be different.. so here is my answer (for what it is worth)

As a home owner who has both brought and sold properties I can vouch for the fact that there are 3 things that I look for when instructing:

1 - Getting the highest realistic valuation
2 - Getting the lowest fees
3 - Not becoming another photo in a window of a shop.... meaning it gets sold quickly.

Your USP as a small agency, I think, should be to differentiate yourself from highstreet agents... so for instance you offer a 'personal approach'. - you charge cheaper fees because you only take on properties you CAN sell and do not have large overheads to pay...

I would highlight all of this in your marketing material - get it in the window be bold in your statements...
I WILL SELL YOUR HOME, CHARGE YOU LESS AND NOT LIE TO YOU!

Be completely transparent about what you are doing and trying to offer....

You are a local business... Get that in there! Speak to all of the local businesses around you, tell them your trying to help get the large fees down, explain to them what you do (even the sweet shop owner) get a support group up and then you will get the referrals - I would much rather support a local business trying to lower the fees on my house that has already depreciated in value and I'm sure most others will agree - you just need to tell them about it......!

Also boast a bit... we know you sold those houses quickly.. but do your potential clients??

Anyway hope that helps

 

[HLSSolutions]

You mentioned that you had sold a couple of houses very quickly that you have taken on. I would suggest you use these successes to build on.

Mail drop all the houses in the vicinity with a letter explaining that you have just sold a property similar to theirs and it sold within a very short space of time. Couple this with your competitive price deal and you may well pick up some tentative valuations that have not yet approached any other agents.

If you can get a small area where you have a lot of sale boards will be your best chance of getting a chance to take on others.

I would also have a look at all the private sales in the area as well and online and offer them a short term or special deal if they want to try out your services.

Hope this helps.

 

[Mitch3473]

I would gladly put my selling fee percentage up to match the next best brand but because I am franchised I have all the marketing material left to get out with this fee on.

There is also no doubt that this fee and my packages work either as I have successfully sold 2 houses within the last 3 weeks that had literally come on to the market, I have great customer service and regularly keep my clients informed of how their property is doing, advertise on the best portals around but still no joy.

Its hard to advertise on every portal, in the local newspaper and local property mags every week when you have no cash behind you do it. I just need some fresh innovative ideas to get the brand name out.

If I was selling my house I would well chuffed I could save at least £1000 on my fees by going with an agent that had a lower fee. I would certainly give them a chance anyway. I am not even getting the chance to step in the door.

You didn't say you were a franchise.I presume you are paying royalties of some sort to a franchisor.I have run 3 succesful franchises and even when one of the other franchisees were having trouble I would help head office get them back on track.That is the benefit of being under a corporate umbrella and what you are paying for....talk to your head office ( or some of the other franchisees) and keep on at them until it is sorted.They do not want unhappy franchisees

 

[pdhulme]

Well done for setting up in this market, I believe you will have to do something drastically different than your competitors to gain those valuations because well known "old" brands always get the most valuations.

Here some ideas I know have worked in the past:

1: BIG, BOLD OFFER - " I will get you a buyer in 4 weeks or your HIP is half price"

2: CALL ME FOR A FREE MARKETING PLAN TO HELP SELL YOUR HOUSE - STEP BY STEP GUIDE - FREE. This at least get's you in the door. Produce a 6 page factsheet and create an emailable pdf to send to the client AFTER the valuation.

3: Download Mozilla Firefox as a browser ( it's an Internet explorer equivalent ( then search for a free app called "Property Bee". This links to Rightmove and gives you all background data on each house in your area on the market, when it was listed, reduced, re marketed ETC. Target EVERYTHING thats been on for over 12 weeks.

4: Go further than just giving a price : advertise to potential vendors that you will research the market and give assistance to the property they are buying: Offer at least 2 open days which you will personally organise and attend. make 100% sure your current sales get the most amazing service, then take a picture of them, get a testimonial and post it on your site.

5: ASK EVERYONE FOR A REFERRAL : My best tip is to give your business cards to people like local window cleaners, milkmen handymen who have a very good idea of what is happening in your locality and guarantee to refer back to them also.

 

[Jacky Mac]

Some good advice given already but I personally agree with one of the first posters in that undercutting competitors on price can give a potential customer the impression that your not as good. I'm not saying your not ofcourse, just that this is how a lot of people think IMHO. Good luck and hopefully things will pick up as it does take time to establish a business for most people.

 

[IE152]

You have been offered some good advice here. I agree with the others about having a cheap price - it does give people an impression either that you are not very good or alternatively that you are desperate for business.

You should also, as well as some of the direct sales ideas that have already been mooted use the local media to try to position yourself as an expert on the local property market. Are you a member of RICS? If so, start to contribute to their property price survey - the comments from contributors on their are a very good way of getting your views (and more importantly, name) out there.