Thoughts about real estate from the buyer's point of view

A different approach to things          Honest Ed's Toronto Discount store

Most well known businesses have a special difference to them.  Either they offer a product or service that other people don't or they do so in a quite different way.  They stand out fom the crowd because they, as it were, operate outside the norm.
It's a principle that accounts for numerous retailing success stories.  It explains the appeal that Walmart has for shoppers.  It lies behind the attraction of the Big Box stores.  It reflects the belief that everyone loves a bargain.
And Ed Mirvish realized it half a lifetime ago.
But as his flamboyant career demonstrated, the real key was Honest Ed's recognition that all he had to do was find a need and fill it.
Discounting was part of it, of course, but there was also the fun element.  You not only saved money when you went to his store, you also had a good time while you were at it.
Moreover, while smiling at the amusing slogans hanging on all the walls, you could check the collection of photos around the store and understand that Ed would eventually get into the Theatre business -- because in that direction lay another unsatisfied demand he could meet.
And, well outside the retail sector, the World Wide Web also gives clear proof of what you can expect if you find a need and fill it.
The astronomical growth of Microsoft and Google has
made multi-millionaires of people who first offered what no one else made available (or perhaps thought -- or were capable -- of doing).  And there's little doubt that more of the same will follow.  There's a hunger for new applications and ideas that shows no sign of let up.  As one example, there's a fortune waiting for anyone who can think of how to eliminate spam and viruses altogether.  It's a need waiting for someone to fill it.

But does this have anything to do with real estate or, more particularly, in relation to my involvement in it?
Well, let me explain ....

Doing what no one else is doing
As I think you know, I struck out on my own as an Exclusive Buyer Broker two and a half years ago (which, I also think you know, means that I gave up the idea of listing in favour of working solely for buyers).  There were several reasons for this decision, but one of them certainly was my sense that a need existed -- and one that no one in my particular neck of the woods appeared to be filling.
I was right!
By now I'm greatly encouraged by the number of people who contact me and welcome the thought that my approach to the market -- and serving their needs as opposed to anyone else's -- is quite different from what they've experienced in the past.  In fact, I've also had people tell me that it goes beyond the service they've previously received from agents who've had them sign a Buyer Agency Agreement but didn't live up to expectations.
But is this an excuse to pat myself on the back?
No indeed!
Rather, it has led me to realize what's involved when you do find a need and fill it
Not the least, it seems to me, is a willingness to discard the rules and ideas that everyone else considers sacred.
Again, allow me to explain ....

Listing to live
People in the real estate industry are told that the rule is "List to Live."  That's where the money lies.  That's what you have to do if you want to earn a living.  That's what you'll hear from the day you get your licence (indeed, even before it), and you'll be reminded of it at every sales meeting.  Just concentrate on finding people who want to sell their homes and you'll be a Top Producer.
As an extension of this rule, it becomes a listing agent's primary responsibility to get the place sold for the most money, in the shortest time, and with the least possible inconvenience.  The ads say it.  The company and individual agent websites harp on it.  And every listing presentation makes a point of mentioning it.
Nor is there anything wrong -- or certainly illegal -- about all this. It's simply in accordance with the Law of Agency:  that an agent's client is owed a Duty of Care.
Ironically, too, it follows the idea of filling a need:   to get a home sold with the minimum of disruption to a seller's life and peace of mind.
It doesn't matter if you don't sell the homes personally.  In fact, it doesn't matter if you never sell a home at all. There are dozens/hundreds/thousands of agents out there who can take care of this part of the business -- and you'll earn a listing commision every time they do so.  And in any case, if you can spare the time for it, you can respond to some of the enquiries that come in on your listings and make a few selling commissions along the way yourself.

Selling to survive
There is, of course, an alternative:  "Selling to Survive" -- because buyers also have a need that, at the least, ought to have a chance of being filled, which is why the concept of Buyer Agency emerged a few years ago.
Indeed, many agents find themselves preferring this aspect of the business, just as I did in the dozen or so years I worked alongside topnotch listing agents.  Interestingly enough, too, there's a growing tendency for top listing people to create teams that include a buyer agent (and sometimes more than one) to service the enquiries that come in on their listings.
With all due respect, though, a team's buyer agent will usually act as a junior member of it.  The overriding objective will be to increase the odds of getting the team's listings sold.  In other words, the focus will still be on getting the most "money for the house" as many times as possible, rather than a serious adoption of what I'm fond of calling the most "house for the money" idea.
Moreover, the buyer agent will quite often be less experienced than the (listing) team leader and therefore perhaps not as effective as he/she could or ought to be.
In turn, the team concept kind of raises the Dual Agency question, although if the rules of conduct and relationship with selling and buying clients are properly laid down and observed, the "serving two masters" problem can be nicely avoided.
Nevertheless, I can't help thinking that the listing idea is too ingrained among all agents, whatever their preferred roles, for buyers to get the totally impartial service they need -- and deserve.
In effect -- or so I'm willing to argue -- a buyer agent who fully understands the difference has to
"operate outside the norm."

Doing what comes unnaturally
It was all this sort of thinking that, more than anything else, led me to embrace the Exclusive Buyer Broker idea and to launch a one man enterprise in the summer of 2002.
As I've implied, things have worked out well, too.  Perhaps from the beginning I was interested in identifying potential purchasers and wanting to work with them, but the ongoing distractions of looking for and trying to service sellers certainly got in my way.  Now, however, I'm able to spend as much time and to expend as much effort as it takes to help my clients find the "one right thing."
Needless to say, I like to think that this can only be to their benefit.
But guess what?
I've also come to realize that I'm a beneficiary myself.
I've in fact found a need of my own and can enjoy every minute of filling it.
Better yet, I've become conscious of following -- albeit on a much, much more modest scale -- in Ed Mirvish's footsteps!
Life can be interesting, can't it?


Duncan Pollock, Exclusive Buyer Broker
Duncan Pollock, Real Estate Broker,
427 Gate Street, Niagara-on-the-Lake, Ontario, Canada L0S 1J0
Tel: 905-468-3154 Fax: 905-468-3812 Cellular: 905-704-9037
email:
duncanpollock@sympatico.ca
Note: E-mail addressed changed as above on Nov 3 2007
website: http://www.duncanpollock.com



This is an online copy of my March 2005 newsletter -- and you can find a list of the other ones I've sent out by clicking here.
If you aren't already included in my mailing list, you are most welcome to add your name to it so you can receive a similar "Shot Across the Bow" each month.
There's nothing hard sell involved, I can assure you.  Rather, the idea is to share my thoughts with you about how I believe buyers can be better served by the real estate industry.
Thank you.


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