Vendor Advocacy is growing fast – but what should you look out for?

0

Vendor Advocacy has been around for decades. However in Australia the concept is just catching on and it’s growing quickly because it offers real benefits. Sometimes huge benefits. Simply, with a good vendor advocate you can gain better terms for the sale process and sometimes a better sale price as well.

There are however a couple of ‘grey areas’ with regards to understanding vendor advocacy and how it benefits home sellers.

In this brief article we share our thoughts on what to look for, and what to look out for. It’s essential information.

vendor advocacy

Vendor Marketing is not a real estate agent. Although we have studied real estate to ensure we’re in sync with the industry at all levels.

We offer independent vendor advocacy advice. Otherwise you may just be engaging one licensed real estate agent (acting as a vendor’s advocate) to then recommend another licensed real estate agent to sell a property. It’s the non-aligned independence that safeguards the value in our service.

Instead, we work alongside and without interfering with the selected real estate agent to ensure the vendor’s interests within the selling process are protected 100% of the time. We provide qualified advice and strategies (vendor advocacy) during the selling process.

We’re independent property marketing experts, plus importantly we know who the best real estate agents are in Melbourne. And they are not always who you assume they are. Because a prominent real estate firm, with a big turnover, doesn’t necessarily equate with delivering the best outcome for the individual home seller. Some rely to an extent on expedient sales in order to benefit from mass turnover.

For starters, at Vendor Marketing we specialise in a more efficient sales process. Marketing a home these days can be the greatest expense in the sales process. Therefore we reduce, then optimise this expense. This means we carefully examine any proposed advertising campaign. We know what makes for the most efficient marketing and what doesn’t.

Essential things to watch for:

What home sellers should watch out for is vendor advocacy firms claiming that they do not charge a fee. Indirectly they do! Here’s how;

A. Vendor advocates may be tempted to recommend the real estate agent who pays them the highest split of the final commission.

B. Or choose a real estate agent with whom they have a good relationship with but who might not necessarily be the right person for the job. That is, in terms of achieving the best sale price for the client.

In these type of arrangement(s) you always find the real estate agent’s commission is higher. Because on average they split 40-50% of this with the vendor advocate upon sale. Quite simply, because the vendor advocate advises the real estate agent beforehand of their percentage split of the sales commission each real estate agent will come in at a far higher rate. Sometimes up to double what they would normally charge.

If a vendor advocate is receiving a high split of the sales commission the real estate agent’s motivation may be degraded. If offered a listing real estate agents will usually take it even if their fee is reduced. So this is a likely occurrence.

At the end of the day all they want is a listing and their board displayed. But will the real estate agent then give the sale 100% of their effort? Will the Vendor get the best real estate agent? The answer to both is “no” – not likely.

Unlike the overwhelming majority of vendor advocacy firms, we charge a fixed fee upon successful sale. For this fee, we offer more than just ‘protection’ i.e. ensuring the real estate agent does exactly what they say they’re going to do.

In addition we offer the best and most qualified independent marketing strategy advice. We firmly believe marketing is the most important variable involved when selling a home. The proof of this is asking yourself the following question. Would a real estate agent sell your home without marketing it? I think the answer is rather obvious.

Don’t just “pay” for a real estate agent’s branding:

On another important marketing note, real estate is one of very few industries where vendors basically pay for real estate agent’s branding (during the property advertising process). This is further exemplified with real estate agents now owning and receiving shares in the media they recommend. Therefore this needs to be scrutinised.

Other important benefits Vendor Marketing provides is exposing the ‘hidden’ value-add in marketing and recommending only the best real estate agents. Saving you time and money! Furthermore we create a detailed social media campaign for your property. And we’re by the vendor’s side from start to finish.

We believe this type of vendor advocacy service avoids any conflict of interest. It ensures one acts totally independently and without bias. It also encourages the real estate agent to put their best efforts into the sale for the benefit of all stakeholders concerned. Ultimately, this is how maximum sale prices are achieved!

One word of caution though. Beware of buyer advocates also offering vendor advocacy services and vice-versa. From our point of view this is unacceptable and also highly unethical. It could easily lead to a conflict of interest. That is, where one person advises both parties in the same transaction. It’s also used as means of increasing ones revenue base. In our opinion, an advocate can only be one or the other. Not both! Vendor Marketing only represents home sellers. That is, we offer vendor advocacy services only.

The fact is the market for vendor advocacy is growing at a fast rate in Australia. Vendors can gain huge benefits from this new service by engaging a qualified independent property professional. And why not? Selling a home is something one should never take lightly. Remember, you only get one shot at it! And it’s worth getting right!

Vendor Marketing – Melbourne’s most qualified vendor advocates offers expert strategic independent vendor advocacy advice in both property marketing and real estate agent selection. For more information regarding your particular property and circumstances just call 03 9696 5375. A quick chat will give you a clear idea about the options – and the benefits!

Want to learn how to sell for more? Download our free eBook and get the most out of selling with our 4 steps to success: The Essential Guide For Every Home Seller.

Vendor Marketing – Melbourne’s most qualified vendor advocates! Specialising in the following suburbs: Abbotsford. Albert Park. Alphington. Armadale. Ashburton. Ashwood. Auburn. Balaclava. Balwyn. Balwyn North. Beaumaris. Bentleigh. Bentleigh East. Black Rock. Box Hill North. Brighton. Brighton East. Brunswick. Brunswick East. Brunswick West. Burwood. Camberwell. Canterbury. Carlton. Carlton North. Carnegie. Caulfield. Caulfield East. Caulfield North. Caulfield South. Cheltenham. Clifton Hill. Collingwood. Cremorne. Deepdene. Docklands. Eaglemont. East Melbourne. Elsternwick. Elwood. Fairfield. Fitzroy. Fitzroy North. Flemington. Gardenvale. Glen Iris. Hampton. Hawthorn. Hawthorn East. Highett. Hughesdale. Ivanhoe. Kensington. Kensington Banks. Kew. Kew East. Kooyong. Malvern. Malvern East. McKinnon. Melbourne. Middle Park. Mont Albert. Mont Albert North. Moorabbin. Murrumbeena. Newport. North Melbourne. Northcote. Ormond. Parkville. Port Melbourne. Prahran. Richmond. Ripponlea. Sandringham. Seddon. South Melbourne. South Yarra. Spotswood. St Kilda. St Kilda East. St Kilda West. Surrey Hills. Thornbury. Toorak. West Melbourne. Williamstown. Windsor. Yarras Edge. Yarraville.

Craig Knudsen

Leave a comment

*

PO Box 435, Albert Park, Melbourne VIC 3206

03 9696 5375

enquiries@vendormarketing.com.au

vendormarketing