Curious about how to get more double-ended transactions? So was Valerie! Maybe this exchange will help you, too.
Question:
Hi, Walter. You often speak about marketing homes to find a buyer prior to putting the home in MLS, in an attempt to double-end more transactions. So many websites take their information from the MLS, even Postlets downloads from the MLS.
Could you please give me some ideas for marketing the home outside of the MLS so I can attract more buyers? Please keep in mind that some properties may not attract buyers from signs (highrises, interior locations, etc.). Thanks!
Valerie
Answer:
Hello, Valerie. That is a great question! Every agent should look for the easy ways to increase income. A few easy ways are raising the price point, raising your commission, eliminating clients who have not jumped through the motivation hoops, and my favorite — setting up systems for a double-end transaction.
The debate has been going on forever. Should we be allowed to handle both ends of a transaction? I believe that as long as you can be more efficient while achieving your client’s goals then the answer is absolutely yes.
I loved being able to tweak my business based on the higher returns of handling both ends of the transaction. I gained twice as much commission to keep, spend, or help to make the transaction. I was able to have more control with less posturing.
A double-end transaction allows you to put two clients into your database. It also makes your business smarter. For instance, I wouldn’t show short sales to my buyers unless they were my listings. I would not take one of my good buyers off the market unless I had control of the short sale listing. The same thing went for REO listings. Since both of these inventory classes are unreliable at best, I would not bother unless I had more control over the process.
Most people think of double-ended transactions as a means to produce a buyer with a new listing before it hits the market. This is tough because you don’t want to hold the property off the market too long, because that is not in your client’s best interest. When I listed a property, I would tell the seller: “One thing I would like to do at the start of this marketing plan is to create some buzz. Selling a secret property is always more exciting to a buyer than a retail MLS property. Could I please email my database about the availability and see if I can generate some showings because of its exclusivity?” In my long career, no one ever said no.
This is the process that my office would follow with all new listings:
1. I would take the listing with an MLS form that allows the property to be held off the market for 10 days. Everything needs to be legal with the MLS!
2. I would leave the listing presentation with an extra key that I requested in my pre-listing confirmation package. I would install a lock box and put up a stake sign from my trunk.
3. While still in my car in front of the house, I would go online and use a service to send my just listed cards to the entire neighborhood.
4. I would also update my social media sites with the new listing, notifying them of the “secret property.”
5. I would email my database with this secret property opportunity
6. I would let my office in on the “secret.”
7. I would personally call all of my “A” and “B” class buyers whose needs matched up with this new listing’s amenities.
8. I would hold an open house on the next available Sunday.
This process increased my double-end transactions to about 18% of my sold listings. This is just one more way to get paid for doing a good job.
Good luck, Valerie.
