What, though, is more efficient, between a new buyer client and a new seller client?
To even the playing field a bit, let’s focus on deals that are otherwise equal. We are going to operate in a vacuum- it isn’t a buyer’s market, it isn’t a seller’s market, and the hypothetical buyer and listing are going to be the around the same dollar amount. So, is a $1 Million buyer or listing more valuable to a realtor?
First, let’s consider a million dollar buyer. This is probably not their first home purchase, and they probably have excellent credit. This puts them at the top of the list that most agents would want to work with. However, buyers are time consuming. Even with today’s technology, people like to walk through homes to get the best possible feel for them. It is very rare for someone to buy the home they plan to live in without personally visiting it first.
This process is not very efficient for an agent, as they will be driving around with the clients to a number of homes that will not be bought. What’s more, sellers in this price range are generally not distressed, so negotiating can be a painstaking process. You have to have a firm commitment and understanding of your client in order to be a successful buyer’s agent.
Not to mention, the buyer’s agent will also need to get their client through all of the hurdles necessary to purchase home, including:
• Mortgage pre-approval and underwriting
• Physical inspection of property (and possibly additional specialty inspections)
• Lender appraisal
• Negotiation with seller
Working for a seller, though, allows an agent to be more flexible. Once the listing agreement is signed, most tasks can be given to an agent’s assistant, and the agent doesn’t need to spend as much face time with the client. The expectations can be greater, and the stakes are certainly higher, but there is also much more to be gained. Listings help create and add to the agent’s brand in a way that buyers never will. With open houses and mailers that go out to the surrounding neighbors, a listing is far more likely to generate new business than a buyer is. Commission advance companies, like Express Cash Flow, will even advance portions of the agent’s commission on certain listings.
So, it is settled. It is far more efficient and profitable for an agent to be working with a listing than a buyer. Agents should devote their time and resources to securing as many listings as possible, and work with the buyers that come their way organically or by referral.
Express Cash Flow provides commission advances for real estate agents and brokers. Check us out at www.ExpressCashFlow.com or call us at 844-818-2274.