Tue 18 Nov 2008
Real estate as a zero-sum game
Posted by Marlow Harris under Real Estate
[8] Comments
“Real estate, like car insurance, is usually a zero-sum game. You aren’t convincing people who otherwise would not buy a home to buy. You are stealing share from another broker who otherwise might get that client. Why should they choose you instead of them?”
Seattle marketing stategist Joe Hage discusses why marketing strategies for real estate agents is so hard.
8 Responses to “ Real estate as a zero-sum game ”
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I’m glad you found the article valuable.
Here’s a link to a letter I wrote to help mortgage brokers through this.
http://blog.joehageonline.com/2008/08/03/this-oughta-help-mortgage-brokers/
Thanks,
Joe Hage
Really great links- I appreciated the article. Real estate isn’t as bad here in NC, but we’re definitely hurting with the rest of the country…
Thanks for linking this article.I’m a new REI and I’m looking for ways on how to be successful on this business.
I agree with you “Real estate, like car insurance, is usually a zero-sum game”
I have read that Real estate is like the insurance of your car and its a zero-sum game. You aren’t convincing people who otherwise would not buy a home to buy. You are stealing share from another broker who otherwise might get that client. Why should they choose you instead of them?
Myrtle Beach Real Estate
Huh? Are you serious?
First off, while theoretically there could be a limited number of buyers, there isn’t a limited number of transactions. After all, a client can purchase or sell as many houses as he can afford. And what he can afford isn’t an unchanging, absolute number. It contingent on many circumstances. The point is, the pie isn’t limited. It’s constantly expanding or contracting.
Second, many real estate brokers/agents do in fact try to get people who aren’t seeking to buy or sell to buy and sell. It wasn’t long ago when they would convince those who can’t afford a house to buy one. Or how about blockbusting in Chicago, Detroit, Philly?
Third, losing a client isn’t necessarily a bad thing. Good real estate agents will refer a buyer or seller to another agent more familiar with certain neighborhoods. When customers get good service, everyone wins because the profession is elevated. And each sale–assuming it’s to a qualified and responsible buyer–generates economic activitiy that can create new buyers and sellers.
Don’t make real estate into conflict warfare. It’s not and treating it as such will only lead to unethical business practices and continued downturn. The Soviets and many totalitarian governments believed that the world is a zero sum game. That’s why they were so belligerant instead of collaborative.
I agree there is no stealing going on. It is much like any sales situation – the more creative marketing you do, the more sales you are going to make, the more commission you will earn. Isn’t it still that simple?
Effort is directly proportional to gain. Not inversely proportionate, as some would believe. What’s wrong with being the best?