Top 5 Mistakes Realtors Commonly Make and How to Avoid Them
Real estate agents, probationary estate agents, and negotiators (collectively referred to as realtors only for the purposes of this article) play a pivotal part in facilitating smooth transactions between buyers and sellers. However, like any profession, real estate comes with its set of challenges, and realtors often find themselves making mistakes that can impact their success.
Here are top five mistakes realtors in Malaysia commonly make and how to avoid them.
I. Lack of Effective Communication
Communication is the bedrock of successful real estate transactions. Failure to communicate effectively can lead to misunderstandings, delays, and even lost opportunities. The importance of clear and timely communication cannot be overstated, whether it's with clients, other real estate professionals, or service providers.
Realtors should actively listen to their clients, respond promptly to inquiries, and provide updates on the progress of transactions. Regularly checking in and setting clear expectations can go a long way in fostering positive relationships. A good practice would be keep to landlords or sellers updated on enquiries and viewings, even if it does not translate.
The homebuying process or rental process can also be a daunting process especially for first-timers. It can be easy to falsely assume that all parties are aware of the next steps or necessary measures, and this can lead to misunderstandings or unintended consequences. Since these steps are often repetitive in nature for realtors, find a way to convey the process to the parties in a simple and concise manner. Provide an easy-to-read step-by-step guide on the process so all parties are aligned, or take it a step further by filming a short video that can used in future sale or rental transactions to build trust and effectively keep all parties in the loop.
II. Lacking a Focus Area
One prevalent mistake among realtors is the failure to establish a focus area, leading to a scattered approach in their business. Rather than concentrating on specific buildings or neighbourhoods, some realtors may take on any available listing, resulting in a lack of specialisation and expertise. This lack of focus can hinder their ability to deliver optimal results for clients.
Having a focus area is crucial as it allows realtors to deeply understand the properties and market trends in a specific locale. Realtors can cultivate a comprehensive knowledge base by specialising in particular buildings or neighbourhoods, enabling them to provide valuable insights to clients. This specialisation reduces travel costs and allows realtors to cross-sell properties more effectively, providing clients with more options in their preferred area and significantly increasing the chances of closing a sale or rental.
Realtors who focus on specific areas can become local experts, understanding the nuances of each neighbourhood, the unique features of different properties, and the specific needs of the residents. This level of expertise builds trust with clients, as they perceive the realtor as a knowledgeable and reliable resource in their chosen focus area.
Note that becoming a building or area specialist is not just about limiting oneself; it's about maximising potential and delivering superior service. Moreover, a focused approach allows realtors to develop strong networks within their chosen locale, from local businesses to other professionals in the real estate industry. This network can prove invaluable in generating referrals and staying abreast of market changes.
III. Inadequate Market Knowledge
Real estate is a dynamic industry, with market trends and conditions constantly evolving. Realtors who do not stay informed about these changes risk providing inaccurate advice to their clients. This lack of market knowledge can lead to pricing errors, uninformed decisions, and missed opportunities.
A savvy realtor would keep abreast of the current prices and listings of their buildings or within their focus neighbourhoods as listed on PropertyGuru.com or iProperty. This leaves realtors in a better position to discuss with sellers and landlords to update prices while also monitoring competition and the position of their own listings on the marketplace.
Realtors should also be aware of past transactions for a more accurate gauge on pricing and performance. Real estate agencies in Malaysia can subscribe to DataSense by PropertyGuru For Business so their agents and negotiators have access to rental and sale transactions, allowing them to better strategise career goals, identify new opportunities, advise clients and make data-backed decisions.
IV. Neglecting Online Presence and Marketing
In an era dominated by technology, a robust online presence is non-negotiable for realtors. Many clients begin their home-buying journey online, and realtors who neglect their digital footprint risk missing out on valuable leads.
Common mistakes include outdated websites, ineffective use of social media, and a lack of online marketing strategy. Realtors should invest in professional websites, utilise social media platforms strategically, and leverage digital marketing tools to reach a wider audience.
The key to social media is advertising is nailing down the target demographic to avoid wasting precious time and money on ineffective ad campaigns. Data analytics platforms such as DataSense provide buyer demographics within a specific building or area, allowing users to use vital information such as age, gender and ethnicity to target the most relevant demographics.
V. Overpricing or Underpricing Properties
The art of pricing a property is delicate and requires a deep understanding of the market. Overpricing can result in a property sitting on the market for too long without results, while underpricing can lead to missed revenue opportunities for clients. While the tasks of pricing properties fall upon valuers in Malaysia, real estate agents and negotiators often find themselves in a position to advise clients on the market value of properties before listing the said property – be it for sale or rental transactions.
This is why nevertheless, realtors should conduct thorough market analyses, consider recent comparable sales, and factor in current market conditions when advising clients on listing prices. Regularly reviewing and adjusting pricing strategies based on feedback and market changes is key also to success in generating enquiries.
Key takeaway
In the competitive world of real estate, avoiding common mistakes is essential for long-term success. By addressing issues related to communication, focus areas, market knowledge, online presence, pricing strategies, and client relationships, realtors can elevate their professional standing and provide unparalleled service to their clients.
Continuous learning, adaptation to industry changes, and a commitment to excellence will set realtors on the path to thriving in the ever-evolving real estate landscape.
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