Perceptions of Real Estate Agents

Transcription

1 2015 Perceptions of Real Estate Agents

2 Contents What impressed you about your real estate agent? 1. Executive summary 4 2. Respondent Profile and Methodology 8 marketing strategy experience advertising weekly local fee worked advertise agent knowledge process bidding provided area auction expected contact communications organising existing talk negotiation skills whole sales nothing sold property help quick sell good service day market home house price touch styling sale constant agents gift offered made organised honesty feedback 3. Introduction 9 4. Vendor sale insights Agent selection process Agent profile 12 a. Male and female agents: is there a difference? Agent market knowledge Agent skill levels Vendor knowledge and market awareness How Vendor s feelings about Agents changed throughout the sales process Vendor satisfaction with the price achieved Vendor rating of the overall sale experience Vendor recommendations The impact of data on the quality of the vendor experience Conclusions 27 a. The surprises b. What agents do poorly c. 6 Behaviours to Improve Service Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 3

3 1. Executive Summary Market research company, Roy Morgan has been polling Australians about the trustworthiness of different professions since Real estate agents have always polled poorly - in its 2015 Image of Professions* only 9% of those surveyed rated them as very high or high ethics and honesty. Only advertising people and car salesmen score worse. The 2015 Consumer Perceptions of Real Estate survey wanted to test this stereotype by going directly to people who had experience of agents and their performance. The key finding was that the majority of vendors reported positive experiences with their agents with 31% rating the experience as Excellent and 35% rating it as Good. 34% said the service had underwhelmed and even angered them. The survey also highlighted behaviour that made vendors satisfied that is easy for agents to deliver. Beating the stereotype - 8 lessons for impressive service 1. Be professional The number one behaviour highlighted by vendors as essential was professional behaviour demonstrated by being proactive, pre-empting their needs and delivering as promised. 2. Regular feedback Vendors stressed the value of agents who were proactive about delivering a transparent sales process and who used data-based insights to support their processes. 3. Be friendly and approachable Vendors appreciated agents being easy to talk to and with whom they felt safe to ask questions at any time. 4. Know your market Vendors felt confident they were in good hands when agents demonstrated their market expertise, showed them the data they had used to determine price estimates and took the time to explain market behaviour to anxious vendors. 5. Provide advice and help Vendors highly valued advice on presenting their homes in the best possible light especially when it was supported by recommending and helping coordinate tradesmen. 6. Be on their side Vendors felt championed by agents who negotiated hard on their behalf and offered to assist them with the purchase of their next home. *Source: Roy Morgan 7. Be thoughtful Vendors were impressed by agents who demonstrated thoughtfulness either by ensuring multiple agents were located around the home during opens, to offering bottles of waters to buyers on hot days through to thank you gifts at the conclusion of the sale. 8. Don t dump them at the end Many vendors flagged they felt dumped by their agents as soon as the sale was signed, while those whose agents who stayed in touch were more likely to be delighted and recommend their agents to friends Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 5

4 Key Statistics Regardless of market conditions the majority of vendors 66% rated their overall experience when selling their home as either Excellent (31%) or Good (35%) with 20% claiming the experience was average and 14% below expectations. Excellent: 31% Average: 20% Good: 35% Poor: 14% Female agents had higher scores when it came to exceeding the expectations of their clients and were more likely than male agents to have their sales skills rated as Excellent. However, female agents also had a higher proportion of clients who reported being disappointed with their service. 45% of female agents were rated Excellent at providing feedback. 68% said they would recommend their agent to friends or family The survey identified that real estate agents are managing price expectations well with 23% of those surveyed selling above the expected price and 50% selling for the expected price. One in four sold below the expected price. 68% of respondents said they would recommend their agent to friends or family. Separately, 36% of respondents claimed they expected to stay in touch with their agent or use him or her again and an additional 26% saying they would consider it. 23% 50% sold above the expected price sold for the expected price The more information an agent shares with their vendor, the more satisfied the vendor is likely to be with the end result and the more likely the vendor is to recommend the agent. Local auction clearance rates and average time on market were the least shared information points by agents. 50% of vendors who were given Local Auction Clearance Rates by their agent reported their sales experience was Excellent, as did 49% of those who received Average Time on Market information. This was 14% higher than the general response where 34% of vendors rated their overall experience as Excellent. 38% said they interviewed just one agent before making their decision on which agent to use. 38% of respondents said they interviewed just one agent before making their decision on which agent to use. 55% chose to interview two or three agents before making their decision. Only 8% interviewed more than three agents. The survey showed few real estate agents demonstrated their market knowledge using technology. Only 17% used an ipad or video to share market information, and 12% received market information in an . 17% 12% of Agents demonstrated on ipad or video of Agents delivered market info via Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 7

5 2. Respondent Profile & Methodology 3. Introduction The 2015 Consumer Perceptions of Real Estate Agents Report is based on the responses of 300 vendors who sold property across Australia. The survey was designed on the basis that people who had used an agent were the most qualified to reflect on the behaviour their agent demonstrated and comment on their professionalism. Respondents were sourced from recent users of MyRPData via , and a call out on social media over six weeks. There were 254 fully completed surveys received and an average of 266 respondents answering each question. Each state was represented with 108 vendors in NSW, 63 from Queensland and 53 from Victoria. No state-based assumptions have been made with the data. The majority of respondents (54%) had sold within the past two years, with 38% selling their property in the past 12 months and 26% selling in the past six months (to end January 2015), ensuring their experiences with agents were fresh in their minds. How long ago did you sell your home? Within the last six months 26% Six months to a year ago One to 2 years ago More than 2 years ago 12% 16% 46% As a consumer survey, 300 respondents, while small, delivers an acceptable quantity of data from which we can start to identify insights about the industry. The expectation was that as a selfselected survey, respondents would be likely to skew towards those who had had very bad, or very good experiences especially very bad, as these people would be attracted to the opportunity to vent. But analysis of the responses challenge this hypothesis as the responses clustering consistently in the mid-range. Respondents were also asked to provide comments on key questions which resulted in a further 450 pieces of qualitative data. As such, the conclusion is that achieving the expected price is only part of what defines an agents success with a client. Over coming months, we will continue to survey vendors to increase the sample size and report every six months on the findings. In which state did you sell your home? My agent organised a dinner voucher for my husband at a local restaurant while I was away during a weekend of inspections I was touched by their thoughtfulness as it was a stressful time. Popular mythology stereotypes real estate agents as being untrustworthy smooth-talkers who put their own needs above those of their clients. This perception is highlighted in the Roy Morgan 2015 Image of Professions survey where only 9% of those surveyed rated them as very high or high ethics and honesty. Only advertising people and car salesmen score worse. 58% of vendors were influenced to choose their agent after seeing them successfully sell a local property At CoreLogic, we wanted to understand whether this perception had any bearing on reality, or was it an urban myth? No industry can truly understand itself by simply talking about change - the only way to counter such criticism was to gather the data and take a measurement. The 2015 Consumer Perceptions of Real Estate Agents is a new report that seeks to understand the quality of real estate agent performance and service in Australia and how it matches - or misses - the expectations vendors have when selling their homes. The survey attracted nearly 300 respondents identified through our consumer data base and through call outs on social media - who had recently sold a property, asking them to rate their experiences and rank behaviours and skills that they thought their agents had excelled at, or done poorly. The report helps us start identifying what excellence in real estate sales service looks like and how to lift standards more broadly across the industry. The report delivers insights into agent market knowledge, professionalism, and agent training standards and ways to improve these. CoreLogic is the number one provider of property data to real estate and property-related industries with insights into property values and markets, but this is the first time we have sought to collect and analyse vendor experiences in the market. This survey will be ongoing and added upon twice a year as additional data becomes available. It is our passionate belief that it is only through transparency that we can ensure the ongoing success of the industry by demonstrating how professional services are meeting and exceeding - consumer expectations if we are to change the reputation of the industry once and for all. Kylie Davis Head of Real Estate Solutions kylie.davis@corelogic.com.au Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 9

6 4. Vendor sale insights 5. Agent selection process We had a high debt, bad neighbours and prices were strong. It seemed like a good time to get out. The most common reason stated by respondents for selling was to Upgrade (41%) with moving for work cited by 15% of respondents while 24% chose Other and outlined reasons such as selling investment properties and family reasons including divorce. Making the most of strong prices was cited by 10% of respondents while an additional 10% chose to sell to Downsize. The majority of respondents (77%) chose to sell by private treaty/normal sale while auction was the preferred method chosen by 20% of respondents. Just 3% of vendors sold by other means including tenders. Speed of sale was notable with 63% of those surveyed selling in less than 45 days and 12% selling between 90 days and a year. Only 5% of respondents took more than a year to sell their property. Next time I will interview several agents, look at the sales record of the office and chat to friends for word of mouth recommendations. We will not sign a long contract with an agent, but tell them we expect regular updates. And we ll make sure they do what they say they turn up to open for inspections by parking outside and watching. The sale of a property as one of the most valuable assets in most families is arguably one of the most important transactions many of us will ever undertake. For this reason, as well as the effort and time it takes to prepare a property for sale and the myriad of decisions required, the process is regarded as highly stressful. Only 3% of vendors were influenced by social media How long did it take to sell your home? 5% 12% 39% 21% 24% What was the main reason for selling your home? 24% 41% 10% 15% 10% The approach vendors took to selecting an agent was an insight into the disconnect between some vendor expectations, their behaviour and their experience with real estate agents. 38% of respondents to the survey said they interviewed just one agent before making their decision on who to use, 55% chose to interview two or three agents before making their decision. Only 8% interviewed more than three agents. The insight is telling because when vendors were asked what they would do differently the next time they sell, a significant number stated they would interview more agents. When asked to choose which influences had helped them decide upon their agent, 58% were influenced by seeing an agent successfully sell a local property and 36% relied on recommendation by friends. These two elements were significantly more influential than traditional marketing such as seeing the agent on a property website or newspaper advertising, or signboards. Only 3% of vendors said they had been influenced by an agent s social media*. Less than 30 days days days Between 90 days and a year More than a year Upgrading Making the most of strong prices in my area Moving for work Downsizing Other How many agents did you interview/meet with before you chose who to use? Which of the following influences helped you decide which agent to choose?* Recommendation by a friend 36% Seeing the agent successfully sell a 58% local property Newspaper advertising 5% Seeing the agents website/listing on a 18% real estate portal Local signboards 12% Seeing the agent on social media 3% Which sale method did you choose to sell your property? 38% 27% Auction: 20% Private treaty/ normal sale: 77% Tender or other: 3% 28% 8% *Multiple options selected Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 11

7 6. Agent Profile The age of our agent surprised us. He was just 20 years old. But he did a great job. According to the most recently available data (2011 Census), the real estate industry is fairly evenly balanced in terms of gender equity, with 52% of agents men and 48% women making up its ranks although the ABS does not identify what roles they hold. On this basis The Consumer Perceptions of Real Estate skewed with 70% of respondents stating they had chosen a male agent and 30% using a female agent. While the survey showed that the sex of the agent had no discernible difference in the final result of the sale, there were some marked differences in satisfaction levels achieved by male and female agents in other key areas (see separate section: ) Regardless of sex, the majority of agents selected by vendors were highly experienced with 40% having more than 10 years in the field and 33% with five to 10 years. Agents with less than five years experience were chosen by just 13% of vendors. Interestingly, a further 13% claimed to be unaware of the experience levels of their agent. 40% of vendors chose agents with 10 years or more experience Male and female agents is there a difference? What gender was your real estate agent? Male: 70% Female: 30% * Footnote: Responses add up to more than 100% due to allowance of multiple answers How much experience did your agent have? 13% 33% 40% 13% When it comes to achieving an expected or better price for a property, the survey shows there is no difference between the sexes. But price is not everything. The survey shows 24% and 22% of male and female agents respectively sold the vendors property above the expected price and 49% of male agents selling around the expected price compared to 52% of female agents. Both sexes were evenly represented at 21-22% in selling below expectations. Nevertheless, the survey revealed a difference in the satisfaction levels vendors experienced when dealing with a female agent compared to a male agent: female agents were more likely to deliver a consistent experience for vendors. This does not mean female agents were better at various elements of the sale process simply because they were women. It does however correlate the finding that the better the skill levels of the agent, the more satisfied vendors are likely to feel. Female agents outperformed their male counterparts in the skills of handling open for inspections (41% women agents rated as excellent compared to 33% men), providing regular feedback (45% of female agents rated as excellent compared to 31% of male agents), following up of potential buyers and leads (43% of female agents rated as excellent compared to just 29% of male agents) and negotiation skills (38% of female agents rated as excellent compared to 28% of male agents). Female agents were more likely to be identified as Excellent at managing the sales process 42% for female agents compared to 28% for male agents. Female agents were more likely to deliver an Excellent quality presentation (33%) compared to 22% of the male agents. Preparation levels of vendors who used female agents were also higher with 66% feeling very well prepared before going through the sales process, compared to 56% of vendors with a male agent. The take out of this insight is not to assume an agent will be better at various skills of selling simply because of their sex, but for vendors to be clear about the type of selling experience they expect, and to select an agent who demonstrates these skills Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 13

8 Male Agents Female Agents 7. Agent market knowledge CONFIDENT 39% 48% 58% CONFIDENT 45% 55% 59% Our agent suggested a marketing strategy which I wasn t aware of and it worked wonderfully. Obviously the strategy had been developed by him through experience and local knowledge, HOPEFUL DOUBTING 12% Before the sale 38% 42% of vendors with female agents said their agent had excellent skills in managing the sales process compared to 28% of male agents. HOPEFUL 40% 36% 44% 5% 1% 17% 19% During the sale After the sale DOUBTING 9% Before the sale 36% During the sale 40% After the sale The survey identified a high level of market knowledge and skill in presenting key data to vendors while at the same time highlighting the slowness with which real estate agents appear to be embracing technological change. When asked what information the agent had provided to show their market knowledge when seeking to win the vendor s business, 79% said they have been shown information about recent sales and 74% were given an estimated value of the property in the presentation. Nevertheless this does call out the surprising finding that one in 4 vendors were not provided with information about their property value during the presentation. How did the agent demonstrate his or her knowledge of your local market?* Even fewer agents (52%) demonstrated to potential vendors recent sales they had personally made, and just over half the agents (54%) demonstrated their ability to sell homes similar to the vendors by showing recent sales of homes of a similar nature. Just over half (55%) the agents delivered commonly available information about the suburb such as median prices, growth rates. Only 28% of agents delivered information on the current time on market to vendors as part of their presentation. 50% Female Agents and Excellence High quality printed presentation: 45% Video: 3% 40% 30% 20% Low quality printed presentation: 10% 12% 10% 0% Marketing Open for inspections Providing regular feedback Following up leads Negotiation skills Handling the process Presentation on a computer or ipad: 14% Spoken presentation: 71% Excellent Ratings Male Agents Excellent Ratings Female Agents *Multiple options selected Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 15

9 8. Agent skill levels Nevertheless, 66% of vendors rated the standard of presentation that was given by the agent about their property as Very Good or Excellent. Only 7% said the standard was poor. Only 28% of agents shared current time on market with their vendors. What information did the agent demonstrate to you in the presentation to show their market knowledge?* Recent sales in your area (general) An estimated value of your property Recent sales by their agency The gift of the sales gab is still a prevalent agent skill however with 71% saying their agent demonstrated their knowledge about their local market mainly by talking about it and 55% presenting printed material of some kind. The survey showed real estate agents are slow to embrace even now common technology to demonstrate and share their market knowledge - only 17% used an ipad or video to share market information, and 12% received market information in an . 51% 74% 79% Our agent followed up on everything and was proactive with all communications to me. I never had to initiate contact to find out information she provided feedback regularly and promptly. The survey showed that the customer service and response time delivered by agents was rated as Very Good or Excellent by 65% of respondents. The skill that most agents excelled at was Confidence (41% of respondents said their agent s confidence levels were Excellent), followed by Market Knowledge (40% rated it as Excellent). Only 28% of vendors rated their agent s ability to Negotiate as Excellent. (32% said they were Very Good, while 28% said their ability to negotiate was Good). Agents were consistently rated very highly by vendors at their ability to handle open for inspections (35% rated as Excellent and a further 32% rated as Very Good) and the sales process. However, these were seen by vendors as part of the minimum service level that agents were expected to achieve in order to do the job. The skill that agents were the least effective at was providing regular feedback about progress with 13% of agents rated as Poor in this area and 13% identified as Poor at keeping me up to date on what to expect. The survey showed that 65% of agents were rated as either Good or Excellent at following up potential buyers and leads. Recent sales of homes similar to yours 54% How did you rate the skills of the agent you finally chose to sell your property? How well did your agent handle the following elements of the sales process? Suburb information - median prices etc 55% Agent confidence Marketing Local auction clearance rates 11% Agent knowledge about the market Marketing materials and presentation Open for Inspections Providing regular feedback Average time on market 28% Follow up Negotiation skills Follow up of potential buyers and leads How did you rate the standard of the presentation about your property by the agent you finally chose? Agent experience Negotiation skills Excellent: 25% Good: 42% Average: 26% Poor: 7% Track record of sales Customer service/ response time Keeping me up-to-date Handling sales process *Multiple options selected Excellent Very good Good Poor Excellent Very good Good Poor Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 17

10 9. Vendor knowledge and market awareness 10. How Vendor s feelings about their Agent changed throughout the sales process Next time I sell, I will do more research myself and ask a lot more questions in order to be sure the agent achieves the best price. Agents need to be more honest about the price appraisals upfront so they don t have to condition you down through the sale and leave you disappointed, Vendors surveyed identified the importance of doing their own homework on the market as part of selling their home with 82% of vendors conducting their own research to some degree. Nevertheless nearly one in five were completely reliant on their agent for insights into their local market with 18% claiming their source for all real estate market information came from their agent. When asked what type of research they had conducted, 79% said they had looked at properties online that were similar to their own to see the competition, 55% read up on local market conditions and 37% attended open for inspections of properties similar to their own.* What will you do differently next time you sell? The survey also flagged the rising importance of property reports nearly a quarter of those surveyed had sourced a report - either free from their bank or mortgage broker, or purchased one themselves. When asked what they would do differently the next time they sold a property, a significant number of respondents nominated more research in the comments section or alternatively ask their agent more questions. Many vendors nominated their own research as the best way to feel confident that their agent was performing properly and telling them the truth. One of the most important findings of the survey was the decline in confidence that consumers of real estate agent services experienced as they went through the sale process. The issue of managing down vendor price expectations was flagged across comment sections identifying the need for agents to have hard price conversations earlier with vendors. The survey identified that vendors had high hopes and confidence in the skill levels of their agents before the sales process commenced at the time of selecting the agent, however this declined during the campaign, and was most marked when compared to post-campaign. Before the sale process began, 57% were confident the agent would do a good job and they would get a good price; 39% were hopeful and 4% dubious that the agent would succeed in selling the property and meet their expectations. During the sales process, this level of confidence slipped to 50% with the number of vendors becoming dubious jumping by 7% to 11%. Once the property was sold, only 41% reported being delighted with the performance of the agent, 42% feeling okay about the experience, and 17% unhappy with the final result. In this way, the survey identifies that a significant number of vendors experience agents who over-promise and underdeliver. There were marked differences in the way male and female agents performed in this space. (See Male & Female agents is there a difference?) preparation more present questions better photos used longer information inspections time property local allow use internet home price prices ask choose research agent get sale expectations consider out selling area valutaion best days ads so first agents market auction interview process current sell back sold houne prepared well commission nothing How did you feel about your agent... Before the sales process began? During the sales process? 4% 11% 38% 58% 39% 50% After the sales process? 17% 41% 42% Confident Hopeful Dubious Confident Anxious Dubious Confident Okay Upset * Footnote: Responses add up to more than 100% due to allowance of multiple answers Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 19

11 11. Vendor satisfaction levels with the price achieved 12. Vendor rating of the overall sale experience Our agent got us a higher price than even he expected through good negotiation skills. My high expectations were met by my agent. I didn t need to experience anything out of the ordinary to be happy with the service I just needed the agent to do what he said he would do. The survey identified overall consumer satisfaction with real estate agent behaviour is determined by more than just achieving the intended sale price. The survey shows 74% of vendors were satisfied with the results of their sale in relation to the price achieved. Half the respondents stated the sale price achieved their expectations with 24% claiming the result was higher than expected. Only 5% of those surveyed failed to sell with 21% stating they sold below their price expectations. Interestingly, vendors with the least experienced agents were most likely to have sold their properties above the expected sale price with some vendors commenting that lack of experience was made up for by enthusiasm, commitment and professional behaviour as agents sought to prove themselves. The survey revealed 32% of respondents who chose agents with less than five years experience sold above expectations. This compared to 22% of vendors who chose agents with five to 10 years experience, and 24% of vendors who chose agents with more than 10 years experience. This identifies that while market experience will always be important, there is value in energy, enthusiasm and fresh eyes for many vendors. Perhaps unsurprisingly, market conditions played a role in the price satisfaction expressed by vendors. Vendors who sold six months to a year before end January 2015 were most likely to have sold above their price expectations (43%), while those who sold more than two years ago (26%) were most likely to have sold below their price expectations. Interestingly, there was no little variance in the number of vendors who failed to sell at different periods in the market with the number remaining stable at around 5%. Honesty was identified across the survey as the number one imperative that agents needed to demonstrate to vendors from day one to build trust. This was achieved through regular communication and behaviour that was accountable and dependable. Respondent after respondent identified the need for regular feedback and communication with their agent. Where agents achieved this personal connection together with an expected or better than expected price, their vendors were likely to describe their performance as Excellent or Exceeding their Expectations. Where agents were unreliable with communication and feedback, even their ability to exceed the price expectation ensured they earned only a Good or Met Expectations rating for their performance. This was demonstrated through both individual comments to the question What do you think real estate agents should do to improve their services? and through the recognisable difference in the number of survey respondents who reported they were happy with the price achieved compared to a lower number of vendors who said they were happy with the overall sale experience. When asked how they rated the overall sale experience, 69% of vendors claimed it was Excellent (34%) or Good (35%). Only 14% claimed the experience was Poor or Disastrous (4%) with the remainder describing it as Average. How would you rate your overall experience selling your home? What was the final result of your sale? Broken down by when the property was sold Sold above expected price Sold for around expected price 21% 5% 24% Within the last six months Six months to a year ago Excellent Average Disastrous 31% 35% 20% 26% 4% Sold below expected price Did not sell 50% One to 2 years ago Good Poor More than 2 years ago Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 21

12 13. Vendor recommendations The timing of the sale and market conditions did play a role in the overall satisfaction levels with 71% of those vendors who had sold less than two years ago rating the experience as Good or Excellent. This compared to 60% of those who had sold more than two years ago rating the experience as either Good or Excellent. Breaking these numbers down further, 43% of vendors who sold less than two years ago rated their experience as Excellent compared to just 17% of vendors who sold more than two years ago. 34% of vendors rated the overall experience of selling their home as Excellent with a further 35% rating it as Good. The next time we sell a home we will use the same real estate agent no need for comparison. He s the one that we highly recommend to others and would use again, no questions asked. He is very honest and upfront and provides full information about the sale, the progress of the sale and the completion of the sale. Nevertheless, when identified in terms of a positive or negative experience, 43% of those who sold more than two years ago rated their experience as Good. This shows that regardless of market conditions, vendors are more likely to have a positive experience selling their home (60% of respondents) compared to a Neutral or Negative one. How would you rate your overall experience selling your home? (Overlaid by how long ago the property was sold) Underlining the overall positive experience most vendors had with their agents, the survey found 68% would recommend their agent to friends or family with 32% saying they would not recommend them. 36% of vendors said they would definitely stay in touch with their agent The score was underpinned by 37% agreeing they would definitely stay in touch with their agent or use him or her again, and a further 26% saying they might use them again. The survey showed 37% did not expect to stay in touch or use their agent again. Vendors were more likely to recommend agents who demonstrated behaviours that championed their needs and took into account the stress of selling, or recognised a personal situation. Behaviours singled out as examples included helping coordinate the work needed to make improvements to the property, from things as simple to window washing, small styling recommendations through to organising minor renovations, painting and repairs; alternatively, demonstrating marketing and sales techniques to get the vendor the desired outcome. Vendors also highly valued agents who were empathetic to their situation and offered emotional support, recognising the stressfulness of selling their home with the offers of gift vouchers, or thoughtful touches. Do you expect to stay in touch with your agent or use him or her again? Would you recommend your agent to friends or family? Within the last 6 months Size months to a year ago One to 2 years ago More than 2 years ago 36% 26% 68% 31% Excellent Good Average Poor Disastrous 37% Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 23

13 14. The impact of data on the quality of vendor experience One of the most important things agents can do to deliver high satisfaction levels for clients is to share more information about the market with them in their listing presentation, the survey showed. The survey showed that agents who were more open and transparent and provided their vendors with Local Auction Clearance Rates and the Average Time on Market were overwhelmingly likely to rate their overall experience selling their home as Excellent. 49% of vendors who received Time on Market information from their agent reported their sales experience as Excellent. These data points are not automatically scored as part of standard agent programs so this data point correlates to the findings that agents who go the extra mile to service clients and demonstrate their expertise have higher satifisfaction levels. The data showed that 50% of those vendors who were given Local Auction Clearance Rates by their agent reporting their sales experience as Excellent, as did 49% of those who received Average Time on Market information. This was 14% higher than the general response where 34% of vendors rated their overall experience as Excellent. The value of sharing important market information was underlined by additional results which demonstrated the role of data in helping agents develop trust and an understanding of the sales experience with their clients. Agents who provided their clients with Local Auction Clearance Rates and Average Time on Market information were significantly more likely to stay in touch with their agent or use him or her again. The survey showed 61% of vendors who received Local Auction Clearance rates from their agent reported they would definitely stay in touch or use their agent again, while 56% of vendors who received Average Time on Market information said they would use again. This compared to 37% of vendors on average who said they would stay in touch with their agent. When maybe was added to the count, the survey showed 82% of respondents who received Local Auction Clearance Rates were likely to stay in touch with their agent or use him or her again, while 76% of those who received Average Time on Market information would do similar. The third piece of evidence about the importance of sharing market information was evidenced in the question Would you recommend your agent to friends or family?. While 68% of respondents generally said they would recommend their agent, this number jumped 15% to 83% of those vendors who received Average Time on Market information from their agent, and by 18% to 86% of those vendors who received Local Auction Clearance Rates. The survey identified a correlation between the level of information a vendor received and their sense of preparedness about the sale process. While only 59% of respondents generally said they felt Very Well Prepared for the sale process, 78% of vendors who received Local Auction Clearance Rates felt Very Well Prepared, and 85% of those who received Average Time on Market data reported feeling Very Well Prepared. How would you rate your overall experience overlaid with the type of information the agent presented Excellent Good Average Poor 31% 35% 20% 26% Do you expect to stay in touch with your agent overlaid with level of data provided 36% 37% 26% Disastrous 4% Recent sales in your area (general) An estimated value of your property Recent sales by their agency Recent sales of homes similar to yours Suburb information - median prices etc Local auction clearance rates Average time on market Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 25

14 15. Conclusions The surprises: 6 behaviours that improve service Would you recommend your agent overlaid with the data provided by an agent 150 Yes The survey identified some surprising behaviours that many agents do NOT do when working with vendors, especially when considered in light of the importance that vendors placed around better transparency and communication around price. 1 No b*&$s*&^ vendors smell it a mile off. It is the fastest way to guarantee an angry and disappointed client. 120 No Nearly one in 5 agents did not present any information about recent sales to the vendor. NUMBER OF RESPONDENTS Recent sales in your area (general) An estimated value of your property Recent sales by their agency Recent sales of homes similar to yours Suburb information - median prices etc Local auction clearance rates Average time on market One in 4 agents did not estimate the value of the property to the vendor as part of their presentation. Just under half the agents did not present any recent sales to their vendor that their agency had achieved. Just over half the agents (54%) did present to vendors homes similar to theirs that had recently sold on the market. Only one in 5 agents did demonstrate the average time on market to vendors 2 3 Be honest, open, transparent and realistic especially when discussing price expectations. Listen and understand the needs of your vendors - take them into account when determining a sales and marketing strategy don t force fit people into your model. How well prepared vendors felt overlaid with quality of data What some agents do poorly 4 Be accountable do everything you say you will do. NUMBER OF RESPONDENTS Just over one in 10 vendors rated their agents skills as a negotiator as poor. 15% of vendors rated their agent s ability to follow up as poor. 5 Communicate regular contact and follow up is essential, especially if the news is not good. 0 Recent sales in your area (general) An estimated value of your property Recent sales by their agency Recent sales of homes similar to yours Suburb information - median prices etc Local auction clearance rates Average time on market 12% of agents were rated as poor in their ability to handle the sales process. 6 Improve customer service after the sale the relationship is not over until the new buyer has moved into the home. Very well prepared Prepared but would have liked to have known more Not at all prepared Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 27

15 Vendor Comments: Impressive service The following comments are a selection made by survey respondents about the behaviour of their agents that delighted them. Our agent followed up on everything and was proactive with all communications to me. I never had to initiate contact to find out information she provided feedback regularly and promptly. She provided advice on homes we were looking to buy in an area outside her agency area which we found enormously helpful. Our agent kept us informed about everything throughout the process and was always happy to talk to us about our concerns. My agent rang me about six months after the sale just to chat to make sure all was well and we had settled in. It was a very nice touch. My agent offered great advice. He suggested a marketing strategy which I wasn t aware of and it worked wonderfully. Obviously the strategy had been developed by him through is experience and local knowledge. Our agent was extremely thoughtful. He made sure there were cold bottles of water for people at my open house on a hot day. After selling our home, our agent assisted us with purchasing our new property and bidding for us at auction. My agent never rushed. He always had time to talk or meet. Our agent supplied a website that we could login to so we could read the feedback provided by potential purchasers. We received a congratulatory gift following the sale which was a nice touch. He also offered to attend a subsequent auction with me and advice on the process and a bidding strategy which I appreciated. Our agent styled our home and advertised to the Asian market as our local school was very popular. Our agents did what they said they would do and they were respectful. What vendors say agents should do to improve service The following comments are a selection made by survey respondents about what they believe agents should do to improve their service levels. Agents need to communicate with the seller. Keep the seller continually informed with what s going on and what needs to be done. Be completely honest with vendors and buyers don t bulls@*!. Our agent didn t. It was why we chose him. Agents need to communicate more honestly and effectively even when the news is not good. Agents need to follow up on buyers rather than just wait for them to contact the office or walk by an open house. They also need to communicate what is going on, not just Oh well, no one came to the open house. Be open and honest with people and provide good guidance throughout the process of selling. Pay more attention to detail with the marketing. The photographer had to redo the shoot for us and still shot the bathroom with all the cleaning products in the shower. This was the image that was printed on the sale board outside our house! Agents need to continually keep both vendors and buyers informed of progress and let both sides know if their prices are unrealistic. They should provide a realistic expectation of what the property will sell for. I was very disappointed at the explanation on how to set the price for our property. Agents need to be more accountable and honest about the expected sale price. Most agents I have dealt with really talk themselves up and then manage to underdeliver in some way. Our agent offered to arrange storage to help us declutter, which we thought was a fantastic service. But then he didn t deliver! Some of the agents we interviewed only wanted you to sign up and be their next 2.2% - 3.3% commission. Some were openly critical of other agents which we found disappointing and unprofessional. What vendors will do differently the next time they sell a home The following comments are a selection made by survey respondents about what they will do differently the next time they sell a property. More research myself beforehand to make sure my home appeals to its target audience. I will do more preparation myself and start earlier. I will do more research and stage my home. I will do more research on prices in my area so that my expectations are realistic. I will do my own research on market price and only approach an agent after having a solid opinion of market value. Next time I will obtain a valuation. I will spend more time identifying an agents local profile. I will meet with more than one agent to compare their advice, offers and expectations. Do more research on the experience of the agent. I will have a greater say in what photos are used in advertising. I will insist on seeing photos before they are put online and have the right to supply photos if they are more flattering. I d also insist on having some involvement in the wording of the ad Perceptions of Real Estate Agents 2015 Perceptions of Real Estate Agents 29

16 About the survey s author: Kylie Davis is the Head of Real Estate Solutions at CoreLogic, responsible for category business strategy and innovation within Australia and New Zealand s largest property data supplier. Kylie has an MBA from AGSM University of NSW, and 25 years background in media, working at News Corp, Fairfax and 10 years in her own newspaper publishing business. Follow her on LinkedIn (kyliecdavid) or Kylie.davis@corelogic.com.au To win more sales and rental listings To measure and improve your performance To engage your clients using the most innovative tools To grow your brand as the trusted adviser Unleash the power of data for your business. Visit corelogic.com.au or call Perceptions of Real Estate Agents

17 About CoreLogic CoreLogic is the world s largest property data and analytics company Exclusive strategic partnerships with leading industry players Operating in 8 countries with 5,000+ employees and revenues over $1.5 billion Vision: To deliver unique property-level insights that power the global real estate economy corelogic.com.au For more information please call