Negotiation of exposure

 

We use the website to help agents negotiate that boards may be erected.

 

Agents should point out to homeowners that it is recommended to limit the number of boards in front of the property. One board would be better, but if the homeowner wish, the maximum boards should be two.

 

Sellers should know that if there are numerous boards, it creates the impression that the homeowner is under extreme pressure to sell. Clients will more likely put in a lower offer as a result.

 

Furthermore. We train agents to be different from the opposition.

 

Agents in general will only ask permit ion to erect a For Sale board… The agents will never arrange for a fixed period for example 60 days. (They do not know when the property will be sold)

 

Our partners should consider the following….

 

Design a Board Exposure Contract where you negotiate with the homeowner for exclusive board exposure if you do not negotiate a Sole Mandate on the specific property.

 

In this contract, you offer the homeowner in writing that you will reduce the commission from 7,5% to 7,0% if you are the only agency, or to 7,25% if you share coverage with another agency.

 

You commit in this contract that you will collect the For-Sale Board after 60 days, and maybe you will re-negotiate if needed. The homeowner can view on the Board Exposure report how you manage exposure and the Stock Controller will remind you to come and collect the Board on the specific date…

 

You can explain to the homeowner that you value the opportunity to place your board, and you will ensure that the board will always be in a good condition.

 

The result will be that the homeowner will through away the other agent’s boards, as they will realize that to much boards do create a poor image.

 

We recommend that the agents take photos of properties with too many boards in front and show one of these photos to the homeowners. (Try to find a picture of the worst looking property with lots of boards)

 

It is an important battle to win… The controlled method of arranging exposure will help partners in this WAR.

 

Boards that will secure mandates

We recommend that agent focus on the following boards

1. For Sale (Only on properties that are not well-priced if it is Open Mandates)

2. Renovations arranged by

3. Sole Mandate

4. Sold

 

We do not recommend that agents erect “Properties needed” boards. It creates an impression that the agency is not doing well.

 

We understand that it is hard work to win the battle in the market place.

 

One board that should be protected is the Sold Board.

 

The reality is that agents do not manage the exposure effectively. We recommend to principals that they even design a special contract when agents sell a property.

 

The Buyer must sign that contract. The contract should ask the buyer permission that the Sold Board can remain in front of the property for at least 90 days after registration… (The idea is that the Sold Board should be erected for as long as possible.)

 

In most cases, the buyer will take down the board the moment they move into the property. They do not remember to protect the board, especially if such exposure negotiations were included in the Offer to Purchase contract if it was only one of the many clauses…

 

If Sold Board exposure is a separate contract, the buyers will remember that they agreed to such exposure…

 

The average Sold Board exposure per property will be +6 months… If an agency sells 10 properties in a month, after 6 months there should be 60 Sold Boards erected and protected in the marketing area… This contributes to many homeowners contacting the agency asking for marketing support…

 

The agency only requires Renovation Boards, Sole Mandate Boards and Sold Boards to dominate the marketing area… For Sale Boards will help, but it is the other 3 types of boards that inspire homeowners to contact the agency if they want to sell.

 

We recommend that principals use boards that are of higher standard… almost like in the images. Boards that are made of cardboard and droppers are easily removed and get lost. The boards represent the agency…

 

The idea of presenting a Board Exposure Contract is to arrange that a board could be planted in the garden. These boards cannot easily be removed.

 

If the property is listed as Sole Mandate, it is worthwhile to erect such a board. That property might have board exposure for more than a year. (Could be up to 6 months for Sole Mandate, then 3 months for the registration period, followed by 3 months with the Buyer Contract)

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Collecting information for management

 

We recommend that the principal divide the entire marketing area into equal blocks… We refer to it as Board Management blocks.

 

These blocks are not the same as the farming areas, which is in general allocated by suburbs. A Board Management Block might spread over 2 suburbs, or a suburb might have 3 Board Management Blocks.

 

The size of the Blocks is planned according to the time it would take to drive through each street with a car.

 

The idea is to work a team and choose one morning in a week that is earmarked for Board Management purposes.

 

The agents each receive a block which they must drive trough and write down all the property related boards they can see. These lists must be handed to the Stock Controller. (The agents will on a weekly basis rotate on these blocks, so that each agent had equal costs to cover the marketing area.)

 

The Stock Controller will then combine the information onto a list…

 

Benefit of such lists

 

The most important benefit is that the Stock Controller can determine against properties that have contracts, which boards must immediately be replaced.

 

It helps the agent identify stock that is not on the agency’s books.

 

It will help the principal to get a picture of how the opposition is doing, and he/she can implement other action plans to arrange additional Visual Exposure to ensure that the agency remains under the top 4 companies in this regard.

 

When agents use these reports in front of the homeowner, it emphasises the fact that the agent is working in a well-organized company. That the agents are well-informed, and that all the information the agent supply could be accurate. Remember, it is about TRUST. The homeowner will only trust the price suggestion if he/she TRUST the agent.

 

We suggest that when agents negotiate Board Exposure, they use this website and mail the Stock Controller the period negotiated out of the website.