The role of internet based applications in selling real estate is evolving. Breakthroughs in technology coupled with Australia’s increasingly sophisticated broadband network have allowed for new, improved and more cost effective ways of doing business over the internet.
Smart operators recognize that improving customer service through differentiation is the key to business growth. Today, the motivated real estate professional can use internet based tools to take their efficiency and effectiveness to new levels. Successfully leveraging new internet based applications can assist you in securing new listings whilst maintaining full commission.
Using internet applications to drive price
With the first home buyer’s market experiencing unprecedented levels of activity, many properties offered up in this price range are attracting multiple buyers. The most effective way to maximize your results in this situation can be to utilize the structured/streamlined nature of a silent tender and the flexibility/reach of the internet, whereby each party presents their best offer in confidence online.
Agents, such as Stewart Maloney of Century 21 Realty One Caringbah are turning to automated silent tender applications to better manage these transactions. He recently sold a townhouse in Cronulla with an asking price of $570,000. “The property was on the market for less than a week and after the first open home 5 buyers wanted to buy the property. This is a large office with many salespeople that each had buyers that all wanted preference. The seller decided to use PTY Property automated silent tender system because the system was transparent and was superior to the old “offer in an envelope”. Using the internet the buyers could download contracts, strata minutes and at the conclusion of the tender, the property sold for more than the asking price.”
“In today’s current market the occurrence of having multiple buyers is very high. The system ensures buyers put one offer forward that’s their best offer, along with all the conditions, like extended cooling off periods, 42 day settlement and reduced or 5% deposits. Buyers can at anytime register online to participate in the tender and be guaranteed their offer isn’t disclosed to any other party. It’s up to the agent whether or not they use this for cooling off contracts or unconditional sales, either way it’s effective and maximises the buyer reach.”
Silent tender automation is not only for the properties in the first home buyer’s price range. As the system encourages all buyers to only ‘put their best foot forward’, properties in all price ranges will benefit. A NSW property marketed by automated silent tender recently sold for $2.75 million, after being passed in for $2 million at auction.
Automated silent tender applications offer many benefits over the current pen and paper approach. These include:
- Buyers downloading property documentation such as contracts, building reports, floorplans, pest inspection reports etc directly from the internet.
- The ability to stamp out non genuine buyers by placing a finite time limit on offers.
- Issuing buyers with an automated receipt noting the value, time and date of their offer. No confusion, lost paper offers or lost emails to deal with. Buyers have confidence that the process is being dealt with professionally and transparently.
- A detailed buyer’s register produced for each transaction, offering information which is exportable to their internal systems.
Internet based live online bidding applications are helping to drive price at auction. Already being used by many agents in the Sydney and Gold Coast areas, live online bidding is designed to ensure that every bidder is able to ‘be in the room’ come auction time. The applications webcast the auction via the internet and allow bidders to bid into the auction from any location via an internet interface (they do require access to a broadband connection). The system delays are minor and features built into the applications guarantee that no auction can close with a bid ‘caught’ in cyberspace.
Live online bidding is being used by agents such as Thomas Skelly of Century 21 Cordeau Marshall to drive competition in the auction room. “I use live online bidding to know that that I have captured every possible bidder no matter where they are located. This has proved to be an invaluable tool in making sure my vendors have every chance of achieving a higher than normal price at every successful sale.”
Using internet applications to build a detailed buyer profile
The added bonus of automating your sales processes are the detailed levels of buyer information that are able to be captured. Indeed, the database behind the user interface is where much of the value for the agent will be concentrated.
Trackers that are present in the background of online applications are capable of collecting detailed information about your buyers such as: - first and last name - verified email address (as activation codes confirm the address is valid) - phone number - the price range of properties from which they have downloaded documents. - the location of the buyer’s computer and preferred language (do they speak another language in the home?) There is no further need to spend time retrieving this information from prospective buyers.
Detailed buyer’s registers can be generated for any private treaty or auction property and can be accessed by either the agent or the principal at the touch of a button. Information contained in a buyer registry will be exportable to other formats, allowing you to integrate this data for use in your ongoing marketing programs.
Embrace new technology and drive your business forward The internet offers many and varied opportunities for real estate agents who are motivated enough to explore them. Businesses should not be afraid to embrace some of the new opportunities presenting themselves on the internet. These exciting tools may prove to be effective weapons in your fight to win new listings.