I do not believe in OFIs
SET TO SOAR 2024 - A HUGE SUCCESS
What a great crowd yesterday at the dynamic, Zali Reynold’s Set to Soar Real Estate Conference @ Domain headquarters, Richmond.
Melbourne’s real estate royalty wherever you turned from Adrian Butera, Frank Greef, Annalise Newel, Barb Gregory, Simone Clarke, Blake Montgomery, Craig Shearn, Frank Cirone, Nic West, Liz Walker, Kylie Charlton to name a few.
Bigger than last year and the best real estate conference we’ve been to. The highlight for us was Frank Greens Claypots, 5000 an hour and you don’t make the decisions content and the very warm and moving Barb Gregory about staying in your lane and being true to yourself.
To those behind the scenes led by Adin, Shaneah, Mel, Sarah, Dom, Alysha and Danny – and others from Shelter – well done, brilliant.
Thank you to her sponsors Zenza, Printforce and Domain and AJ from Alpha Juliet Visuals for the great pics.
I do not believe in OFIs
Let’s talk about what I believe in. No. Let’s talk about what I don’t believe in.
True I don’t believe in underquoting and poo(r) presentation and low commissions because as a buyer agent, I know that underquoting, poo(r) presentation and low earning agents, standing on doors, helps me buy better for my buying clients often.
But this is still not the biggest thing I don’t believe in. The biggest is the OFI and the higher the home on the food chain, the stronger my aversion to Open For Inspections.
So, what are the key good points about OFIs, that cannot be achieved at a private inspection?
Here they are AND none of them are good for sellers!
Firstly, for those looking to renovate or neighbours looking for stickybeak or future buyers looking to learn about the marketplace; OFIs provide a wonderful, structured anonymous, and organised way to learn.
How that helps the seller I am clear. It does not. In fact, like when you get 100 emails in your inbox, all that does is increase your chances of your agent not seeing the forest (who is your best buyer) for the trees (bodies thru the door).
Secondly, there are logistical plusses that allow a frightfully busy agent, managing a dozen campaigns, a helicopter oversight of how things are traveling. I sometimes go to OFIs to disguise my interest (not all homes I negotiate through me, (but I digress)). I often go to OFIs to get a market feel and to be seen (by prospects). Some top-quality selling agents cruise around their OFIs to say they were at the client’s house (for 3 minutes and 45 seconds) more so than to engage with buyers. You know them, you are speaking to them…. the lights are on, but nobody is home.
Yes, numbers thru are a stat and yes it has some minor importance, but like the stats you get from realestate.com.au and domain about your campaign, they are largely meaningless.
Wow, you had 3157 internet impressions and Mary’s house down the road had 1223 impressions, what does that tell you? I am into my third decade of real estate and doing a Masters at RMIT in new technology and what 3157 and 1223 impressions tell me of value about your buyers are ……. drum roll please……. nothing.
Thirdly OFIs provide great training venues for young and inexperienced staff. I mean when an agent puts a newbie on a $3 million home inspection by themselves, then this is a real on-the-job experience for a trainee. I’m unclear where the win for the seller is.
So, there are three key good reasons for OFI’s. More stickybeaks, easier for a busy agent to manage many campaigns and minimise attendance at a home and great for training real estate newbies. Mmmmm.
If I am selling, I prefer no OFIs or at the very least, structured OFIs where a buyer has to prebook. I like all homes to have an off-market component and some go better with internet advertising, but consistently I think mass OFIs (especially at the Top End) stink. They do more harm than good and they lessen, not increase your chances of selling a home well.
Oh, shut up Mal, everybody who is anybody, knows it’s a numbers game. What you are saying is so stupid Mal. What about that one in a million who floats through an OFI on the way to pick up their pizza? Yep, your strategy is structured around that one-in-a-million pizza buyer…. Good strategy! What would you know anyway, you are a buyer agent, you deal with buyers, you dumb schmuck! Fair point, I mainly deal with buyers.
It is a numbers game and the number that occurs the most often at a Top END sale including auctions is 1.
Late last year:
- I/We sold 111 Sackville Street over $19m – 1 buyer
- I/We sold 26 Kooyoongkoot Road over $16m – 1 buyer
- I/We bought 3383 Point Nepean Sorrento over $7m – 1 buyer.
None of these had open for inspections where you just rocked up.
OFIs hurt many TOP END home campaigns as they give that one real buyer a read on the agent and the level of interest. When you want to buy a home and the key agent is not at your OFI, or is scrolling his or her phone, or does not engage with you, what a great piece of intel that is!
So back to a numbers game, what are the real stats that matter.
Number of inspections, number of internet hits, number of phone enquiries. No. They are all largely baloney stats, fillers and right up there with counting the number of promises politicians have broken – it’s a stat, but of what use is it to you?
Anyone can lower the quote enough to get a stack of enquiry, but all that achieves is less time for the agent to deal with a real buyer. And time is important.
Here are the stats the count.
Number of private visits. Times a busy agent allocated ½ to 1 hour in their day to be at your home with a single buyer. This is my number 1 stat I look at.
Number of repeat visits. People rarely come back to your home a second time for any other reason than they are considering it.
Number of contracts (only from a repeat visitor) Contracts out by themselves are a BS stat, now that many Asian-Australian people simply asked for contracts like Anglo Aussies would ask for a brochure. Of course zero contracts out is an unpleasant but need to know stat.
Number of building inspections. If somebody is paying for a building inspection that is an action that one should take notice of.
Number of offers. No, not verbal BS. I can get you 3 verbal offers at any OFI. No, number of offers on contracts.
Number of pre booked attendees at a auction.
Above and two others are the ones that count.
Almost always these numbers are less than the fingers on your hand. You might have had 100 through your home, but still only 2 or 3 actually bid and that means a lot of dirt needs time to be removed (97) panning for the gold (3).
My second claim after
- In the final week the reserve will be in the range – because you the seller on balance, get a better deal.
- Homes I stand on, do not have open slather OFI’s unless there is an exceptionally good reason to do so. It will be largely private appointments – yes perhaps grouped, but not 50 people walking thru gawking at your family photos and bed linen, whilst cluttering the mind of your selling agent with inane time-wasting questions about a home they will never be the buyer on.
Mal James
Buy Sell Agent
0408 107 988
mal@james.net.au
Why are private appointments often the best way to go for the seller and often the agent as well?
Let me explain my thoughts next week. It’s about quality, respect, and time!
Every time as a buyer agent, I have been to a home with a buying client, I have only been there for them, and I have had time for a coffee and talk afterward. I have given them an individual rating and we have followed up with how they feel and organising housekeeping and so on.
Buyers need to be cared for, nurtured, and not treated like cattle to the slaughterhouse.
