The truth about testimonials

In nearly every guide to selecting a real estate agent, homeowners are instructed to look at, not just an agent’s sales history, but also how satisfied the buyers and sellers who dealt with that agent in the past were. Most agents will include a few testimonials on their websites and in the shop windows of their offices, but those are mostly subjective, because they’ve been cherry picked from a stack of other similarly glowing reviews. People are more aware of this now, so they’re more sceptical about relying on testimonials supplied to them from the agent.

Enter two real estate agent ranking and review sites: RateMyAgent and RealSatisfied. Both services provide a platform for buyers and sellers to leave honest reviews, so that future vendors can use this feedback to make their decision about appointing an agent to represent them in the sale of their home. They also provide detailed statistics about each region throughout Australia, including the top agencies by market share, the number of recent sales in the region, and the number of active agents and agencies operating in the area.

Ratings sites offer tools for agents, too

For agents, a platform like RateMyAgent, which was developed in Australia, and is now in beta mode in the United States, where it plans to launch a US version of it’s service in September, provides a range of tools, such as the ability to broadcast reviews on the RateMyAgent website to your social media accounts, create listing reports that contain detailed statistics about recent sales history for prospective vendors and clients, connect RateMyAgent to your website and include a live feed of client reviews, and more.

Of course, there’s also LinkedIn, which allows agents to include much of the same information in their profile, and also has the capacity to handle recommendations from people they’ve worked with in the past. But LinkedIn is a tool that’s mostly used by recruiters to find staff, and is likewise used by individuals who are looking for work. While there’s certainly no harm in an agent creating their own LinkedIn profile and using it to connect with other professionals, it’s unlikely to help them generate new leads and get more listings.

Consider your online presence carefully

The internet is practically teeming with social media platforms and other tools to help businesses develop their online presence, but just because there’s a platform, like LinkedIn or Pinterest or RateMyAgent or something similar out there, it doesn’t mean you have to be using it to have success online. Remember that the more social media accounts and other platforms you’re active on, the more time you will need to spend keeping them up-to-date, even if many of them fail to deliver any new leads.

With this in mind, develop your online presence strategically by selecting the platforms and channels that are most relevant to you, your business or industry, and your clients, and only creating a profile on the ones that will help you to achieve your goals. Before investing time in a particular platform, look at its performance metrics and consider whether they’re aligned with your own business goals. If they’re not, then there may be other options that are more worthy of your time.

If you’re looking to kick start your online presence, using social media or a platform such as RateMyAgent, contact our team to discuss which options are best suited to you and your business goals. Alternatively, to learn more about digital technologies that help real estate agents build an online presence, subscribe to our blog.

Is the internet helping to keep real estate agents honest?

For homeowners looking for a real estate agent to sell (or rent) their property, it’s traditionally been about visibility. The agent with the most signboards, ads in the local paper, the greatest street presence, so to speak, always got the most listings. But just as it did for other business models, the internet is disrupting the real estate industry’s decades-long way of doing business.

Lead generation and comparison websites, like OpenAgent and Local Agent Finder, promise to deliver leads to agents, while also promising to cut through agent spin to help homeowners to find the agent who is truly best suited to sell their property. They promise all that, and to retain their neutrality in the process, even though they don’t charge homeowners a fee for their service.

How lead generation sites work

OpenAgent is the darling of real estate lead generation sites. It’s raised $12 million in venture capital since it launched in 2013. In the last 12 months, it’s also doubled in size, and in that time, matched more than 10,000 homeowners to sales agents; in the next 12 months it hopes to double its revenue. The way OpenAgent operates is pretty simple, and not much different to other sites of its kind. OpenAgent collects information about real estate agents and their sales records by scraping it from other sources, such as Domain and realestate.com.au, while also encouraging homeowners to write reviews about their experiences with a particular agent on their site, which it vets before publishing online.

Agents don’t get to submit their profiles to OpenAgent, nor is their inclusion on the site optional. If they’re a licensed real estate agent, with listings on a property portal, such as realestate.com.au or Domain, they’re automatically listed on the OpenAgent website. When a homeowner registers their details with OpenAgent, they’re able to peruse the recent listings, sales and reviews of all the agents in their area. OpenAgent then follows up by calling each homeowner to get a clearer picture of their property and the kind of agent they’re looking for. Following this, OpenAgent then provides the homeowner with a shortlist of agents to choose from.

OpenAgent doesn’t disclose a homeowner’s details to an agent unless they’re instructed to do so, at which point they contact with the agent on the homeowner’s behalf. If OpenAgent does introduce a homeowner to a real estate, who is ultimately appointed to sell the property, they’ll stay in touch with the owner throughout the process, to ensure the agent is being held accountable; they’ll even help the owner negotiate a better rate of commission. Once the property is sold, OpenAgent then takes a 20 percent fee from the agent’s agreed commission.

What this means for agents and homeowners

Success as a real estate agent today, in an era of lead generation and comparison websites, requires honesty and transparency. Agents can no longer cloak the sales process in mystery or exaggerate their sales history, because, whether a homeowner does their own independent research or uses a comparison site like OpenAgent to do the legwork for them, they’ll find out which agents are truthful and reputable, and which ones aren’t.

With so much information freely available on the internet, whether it’s about an individual agent and their track record or about the local market itself, homeowners now spend less time researching an agent’s credentials and more time weighing up whether they like and trust prospective agents. One of the first things a homeowner will do, once they’ve received a shortlist from OpenAgent or even a recommendation from a friend or relative, is look them up online.

Agents with an extensive web presence, and who are able to show people that they understand the market, that they’re open and honest about their previous track record, and that they’re friendly and approachable are more likely to win a new listing, than those agent who still operate under the old model of smoke and mirrors.

To learn more about the real estate sales process, including how to manage inspections, offers and following up with buyers, download our free educational guide. Alternatively, for more real estate news, insights and analysis, subscribe to our blog.