Inspiration

Buyer Representation - Agency's Next Chapter!

RAT 69 (Rawlings Agency Tip)

If you are like most estate agents, I suspect that you actually only sell to about 5% of your registered buyers. The other 95% actually represents a cost to your business.

The chances are that, despite your best efforts, the reason why most applicants do not buy through you is simply because you do not have the right stock, at the right price, for the right person, at the right time. Additionally, the buyer probably has no particular loyalty towards your agency. Why should they? They just want the right property and they'll shop around until they find it.

Whilst a comprehensive Multi Listing System would significantly overcome this problem, we are not yet there in the UK. In the meantime, buyer representation substantially solves the problem. This is how it works:

A buyer registers, and you have two choices. You can either send them loads of details, show them a few houses, and hope they buy one of them. We know that they probably won’t. Alternatively you can sign them up as a fee-paying client, where you will represent their best interests in the purchase. You would show them everything suitable on the market, through any agent –not just your own stock. Importantly, you would advise them what NOT to buy, and generally be their trusted advisor in the property buying process, right through to completion and beyond. This takes away much of the hassle of house-hunting, and saves a lot of time, money and risk.

After all, it does seem slightly ridiculous that buyers should contemplate spending hundreds of thousands of pounds without an expert to represent them!! This is particularly the case when they are buying in an unfamiliar area. How do they know which areas are regarded as good or bad, where the best schools are, and which streets are rough at night?

Most buyers are not talented negotiators, unlike you! In representing their best interests your aim is to secure the best terms for the property, which justifies your buyer’s agency fee which is a percentage of the amount saved. (Average minimum fees are currently running at about £3,000 a time)

Of course, if you sell the buyer one of your pre-existing vendor client’s properties you could not represent or charge the buyer as well in that instance. Likewise if a property came on your books subsequently which your retained buyer buys, you would not charge the vendor any fees. You cannot represent both parties if you are to avoid a conflict of interests. In fact there is NEVER a conflict of interests in representing buyers when your agency is set up correctly to provide the service.

Buyer representation is surprisingly easy to sell to the right buyer, is also a great way to pick up instructions and has a number of great PR opportunities that really take your reputation to the next level, as well as your income!

How can we call ourselves professional, yet only seem capable of acting for one party, even though the requirements of buyer and seller alike are the same – they want to work with a property expert who can negotiate the best deal for them! It’s a bit like being a dentist, but only filling lower jaw teeth; “sorry, madam, I don’t do upper jaw work!”

I have been working with The Homebuyer Centre to design an arm's- length sub-brand that fully compliments your agency. This is a fully integrated system for approved estate agents and the initial pre-launch interest from agents and buyers alike has been superb as it can rapidly double your revenues.

Uncomfortable? Or Smart? Buyer Representation is big business, and I believe will be the next chapter in estate agency in the UK.

You probably have loads of questions and possible concerns about conflict of interest, commission levels, etc. That’s natural. But if you’d like more information on how to work this magic, please request an info pack via the email link at the bottom of this page and I’ll help you set up a Homebuyer Centre within your agency. Entry criteria are strict as we will only invite progressive customer focussed agents who already enjoy a good market share to become licensees for their area.

This is a low investment, minimal risk, high return opportunity. Too good to be true? Why not ask me for a info pack and decide for yourself. Your timing couldn’t be better!

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© Richard Rawlings 2012
Richard Rawlings is the founding director of Estate Agency Insight, which specialises in helping estate agencies harness opportunity through innovative method, marketing, publicity, and training. He can be contacted at or on 0845 838 1354.

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