Paperturn version MARKET NEWS Year Book 24 revised - Flipbook - Page 14
Shelter By The Bay
The myths of Bayside’s
big agency brands
I am prepared to be
accountable for what I am
suggesting here. I would
honour on any James Buy Sell
property we chose to auction
in this market. No bids on
auction day in our quoted range
to you (if it was same to
buyers) and the agreed
advertising is free when you sell!
MAL JAMES BUY SELL
0408 107 988.
I guarantee that between
now and Easter 2025!
B
ayside’s auction clearance rate
consistently falls below 50%,
yet major brand agents insist their
branding makes a difference. In
reality, data shows big brands and
“special” databases fail to attract
additional buyers; if they did,
clearance rates would be higher.
Sellers, however, buy into the
safety myth of hiring a big brand,
only to face costly advertising with
little return if the property doesn’t
sell. Without accountability, Big
Brands fill the streets with unsold
boards while you pay the price.
The true value lies in the agent’s
energy, experience, and tailored
strategy, not corporate branding.
How can Bayside’s auction clearance rate be below 50% so often,
with fewer bidders per auction than
auctions themselves, yet major
brand agents still claim their agency
branding makes a difference?
It’s simple—sellers believe the
marketing spin, even though the
buyers and market stats yell out a
different story.
The Myths of Big Agency
Branding, Special Databases,
and Broader Reach.
Statistics reveal that big agency
branding in Bayside is a fallacy. As
auction stats indicate, the so-called
“agent network reach” is equally
flawed. There’s little, if any, evidence
that Big Brands attract any more
buyers from outside the area than
REA. In fact, the agent’s commission
structures can be discouraging.
Why do sellers go along with
it? Because big agencies rely on
the notion that “nobody ever got
sacked for hiring IBM.” Hiring big
brands feels safe in a tough market,
but listing with a Big Brand doesn’t
equal selling. After signing, the Big
Brand’s advertising costs add up,
with someone footing the bill for
their logo plastered everywhere.
That’s you!
Free Tip: Ask the big brand—or
any agency—to refund all advertising
costs if no bidders appear at the
auction. As a seller, it’s not your fault
if an agency recommended an
auction and a range that didn’t
attract a bid. Put it in writing: if no
bidders are at the range quoted, then
all advertising costs are refunded.
What Would This Achieve for
You, the Bayside Seller? Requiring
accountability from Big Brand
agencies could achieve several
things for Bayside sellers:
It would reduce your costs in
the event of a failed auction.
If agencies faced potential losses,
they’d be more cautious with the
promises they make.
No accountability: Big Brand
agencies often follow a volume
strategy in tough markets.
They put up as many boards as
possible, knowing that some homes
will sell and others won’t. For the
agency, this is a win-win: those
that sell bring in commission, and
those that don’t still add to their
branding presence at no extra cost
to the directors.
For the failed homeowner, it is
a lose-lose situation. They lose
because they pay to support the
BIG Brand, and they lose value
because their home appears a
failure to future buyers.
An agent who fails at auction
and then has a higher pass-in price,
time after time discourages buyers
on the next home they list, and that
could be your home. Buyers hate
snakes as much as sellers do and will
avoid them if possible. One of your
biggest brands is your agent, and you
are putting yourself behind the eight
ball if you engage a snake as buyers
shy away. Many Boards up, not selling,
same agencies, is a warning sign
there are snakes nearby!
