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Are You Sat On a Goldmine? - Edition 3

The story of how an estate agent missed £230,000.
Are You Sat On a Goldmine? - Edition 3
I recently had a conversation with a great estate agent, (I promise I'm not saying that just because I like them, but from my market research I could see not only their market share, but how effective they were at selling properties). However, this was ONLY in the residential market, i.e., listing and selling properties around the 'average house price' mark. 

They had no idea of the value of the premium market - the market IN THEIR AREA, it was going on under their noses...certain agents were having a field day, selling high value homes at high fee levels, and the agency I was talking to were barely scratching the surface of that market, missing out on hundreds of thousands of pounds. 

Well, to be exact, this agent, this particular agent, in a very 'normal' town in the midlands, was missing out on £230,723 per year in additional income because they did not have a strategy to target the premium market.

How am I arriving at those figures? Well, that is just 6% of the market share of exchanged properties over £750,000, at an average fee of 1.5%; conservative figures for the premium property markets, all derived from using market statistics from our friends at TwentyEA.

The agency had just over 1% marketshare of the premium market, at the time of writing. There was a goldmine of commission they weren't tapping into. 

Could they sell these homes if they had the chance? Of course they could - they have mountains of experience and connections in the local area, but they weren't being invited out to these properties and they weren't winning these instructions, as their branding, marketing and offering for those clients didn't resonate with them and wasn't differentiated enough from the 'normal' market.

So who was taking this market from them? It was the 'usual suspects', customers are faced between a choice of working with a national corporate premium brand, or a smaller independent business. Both of these options have their advantages, and their disadvantages.

The best proposition for vendors? My experience is what customers want is the best of both worlds: the personal service and care of a local independent business, but with the marketing reach and buyer database of a national brand...

They are a company I am looking forward to working with at By Design, to arm them with the branding, marketing, technology and training for them to take advantage of the premium market gold mine they're sat on...

What about you? Do you know how much business you are missing out on in the premium market, and importantly, do you know who is taking those fees home instead of you? And what are you doing about your £230,000?

I can show you what the premium market would mean to your bottom line, who is taking that market off you for now, and even show you what their weaknesses are! Im happy to do it for you for free, confidentially, and also share with you how we can help you tackle that market - just book in a 30 minute zoom call on the Join Us page of our website. 

David Lindley.

To receive a premium market report for your area, click here to book a 30 minute zoom call.