Writing from Australia

[SteveG]

Hi guys,

Yes, we do have an EAC Multi List, however, because our organisation is a franchise we don't belong to this multi list. Yes, I am an employee; to be your own boss you need to have completed your license (takes about two years and you have to be working in real estate).

[kensmith]

Well as an employee guess you are kind of stuck following orders until you find a better company to work for.

One thing to consider is to do some of the activities that you feel will bring in good leads on your own time. Once they start rolling in you can show the value in what you are doing and maybe your boss will change his opinion.

[naplesrealestate]

Steve,
Since you are in Australia, do real estate agencies work similar to the UK, where there are estate agents?

It my understanding that UK estate agents can only sell their own listings and not those of another real estate brokerage.

Also, I believe that in the UK there is also no formal Multiple Listing Service.

These items might explain some of the reasons for the difference between expectations of your broker.

[SteveG]

Hi guys,

In Australia, the term real estate agent refers to an employee who works for a real estate licensee. Under this scenario, the employee receives a small retainer and upwards of 35% sales commissions. You can work on commission only, but to do so, you must be a registered licensee and in such a case, you would generally receive upwards of 50% in sales commissions.

In Australia, you can list and sell your colleagues' listings along with your own. We do have to improve our listing professionalism though; for example, it's quite common to take down the details of a prospective vendor's home and without doing any research based on physical inspections, still get the listing. Quantity and not quality research is the pressure in Australia. We are constantly told to visualise what a home might look like (inside an out), this way we can print off a large volume of possible comparables for the prospective vendors to choose from.

The strategy is, if we print off enough comparables, we're bound to stumble across one home that looks and has similar features to the prospective vendor's home. If a prospective vendor asked us how long a property was on the market for, prior to selling, and what was the original listing price versus the sale price; we'd all be stuffed! Equally, if a prospective vendor asked us if we could walk to schools, shops and public transport, from their property, again, we'd all be stuffed!

In regard to price reductions, if we agree to list a property which is approximately 10% above what we feel the market would pay, we are struggling to get price reductions greater than 1% even after 8 weeks.

In my case, I've only listed the two properties, in my three months (vendor's relative purchased the second listing), but in regard to the first listing; after three weeks, the vendor invited me around so we could agree on a price reduction. I walked away with a 2.5% price reduction and a very excited vendor. As an employee, it's very frustrating to have to discreetly work differently to the company's corporate beliefs because you know they could be servicing their clients at a much higher, professional and personal level.

So, if you guys have any suggestions, please share them?

[naplesrealestate]

Steve,

Only from a business standpoint your first paragraph raises my eyebrows. It would seem that the broker is paying a retainer to you and 35% of the commission. Under that situation, if you do not sell anything he is taking a loss on having you in his employ. If you do sell something, then he pays you less commission than a registered licensee. Personally I would have you working a lot harder on prospecting and making deals to cover the fixed cost of your retainer and adding more to my bottom line, since the commission split is at 35% yield me the broker 65%.

Is the brokerage you are working for a listing agency or a buyer's agency?

Also, when you are in the office what are you doing? I don't remember if you made any comments about what you do when you are in the office.

[SteveG]

Yes, I also agree with your philosophy (having been a successful recruitment sales manager in the past). During my first three months, I have had seven of my buyers sign contracts and put down deposits, however, one of those did fall over, so to date, I have made six sales that have exchanged, resulting in total gross sales revenues of over $36,000 in sales. So to date, I have managed to just cover my salary and on-costs.

In regard to what I do during the day - not as much prospecting as I would like to do. I've always been of the opinion that a quarter of your time should be dedicated to trying to create new lead generation, a quarter of your time to attending new leads, a quarter of your time to trying to convert the new leads and a quarter of your time to servicing the existing business. Unfortunately, the enthusism is on servicing prospective buyers, whether they're qualified or not. Prospecting can only be done if there is another sales agent in the office.

In our office, you are required to list and sell, for this reason, I would much prefer to see a creation of territories for listing purposes only.

[naplesrealestate]

When I had a number of agents working for me - there were only 2 of us in the office. The agent on floor duty and myself. If another agent was in the office, they were either doing training or working on paperwork for their transactions or their marketing campaigns.

I did not want them sitting around the office, doing crossword puzzles, eating doughnuts and drinking coffee. Those activities do not make money for either themselves or myself.

I was thinking that your broker might have you in the office for training or education.

It sounds to me that you know what has to be done and you need to find a find broker that has the same philosophy regarding prospecting (= making money) as yourself.

Time for you to dust off the resume and start looking for a new brokerage.

[SteveG]

I know exactly what you are saying. Sadly, I've learnt more from watching DVD's and reading books than I have from my manager. I agree with you; if I am going to realise my full earning potential (and want to earn as much as I was in recruitment) I am going to have to find another employer.

[naplesrealestate]

Now, you have to just start looking for a new manager or brokerage.

[Ernie]

Hello Steve,

I just finished reading the string of messages about your budding real estate career. I was especially interested in your brokers position about limiting your prospecting. The more usual task is getting agents to do more prospecting, not less. Come to my office in WA State and prospect 24/6. Use day 7 to write up all the deals.

Ernie