Agents make money from selling property, that is easily understood. However what can differentiate agents is what listings they do take on. There is no point in taking on a listing that will sit, not move, have no-one turn up at inspections and consume your time. A lot of agents don't actually make money until they sell, they are purely commission based, so you better be smart in the ones you accept. Here are three types of listings not to go near.
1. The seller wants more than the property is worth:
This could possibly be the worst person to work with as a seller. If they have unrealistic expectations then it will be almost impossible to generate a sale. From the outset, stipulate a price that you believe the vendor should be happy to accept and get them happy to accept. Have them put it in writing as a reserve, once you have that figure you can work on that particular figure.
2. The property is incredibly unique and requires a specific buyer:
These listings maybe aren't ones you should avoid in entirety but you should be tactical in how many of these listings you take on. If you are able to win listings worth 7+ million or around that figure, generally consumers will argue for a very low commission and your target market to sell drops as the price rises, you shouldn't always avoid these, just don't over capitalise your time on them.
3. Properties you have little market awareness in or markets that have little buyer traction:
The way the best real estate agents work is they know their market. If you win a listing in an area you are familiar with, you can go to your contacts, people you know looking and start calling and letting them know something they wanted is now available. However if you win a listing in a market you don't know, it's hard to drive consumer engagement and really showcase the value as you won't have a sales history in that area for properties you have sold and how this compares in value.
As an agent you need to play to your strengths. One of the toughest decisions as an agent is turning down a listing, however long term that can pay huge dividends. If you don't allocate your time to a 5 million dollar listing you will find hard to sell, and instead focus in your niches of $1-2 million dollars, you will clear more property, breed more prospects and build a bigger market rather than trying to push your buyers in to an area you know is out of their range.