Being a channel agent is a lucrative industry
Whether you live in Australia or offshore, owning a property in this country is a dream that most people aspire to which makes selling Australian property lucrative.
Residential agents are educated and trained to know ‘a lot’ about all aspects of residential real estate covering each transaction point. With selling ‘off the plan’ you need to learn the skills of laser focus. The type of focus to know the intricate details of each Project and be able to absorb and communicate to your potential buyers’.
The main difference to being a Channel Agent and a Residential Real Estate agent is that a channel agent has a plethora of listings and a residential real estate has to ‘graft’ for each listing they win.
Sounds great doesn’t it…. read on.
Understanding what’s needed to be a successful channel agent is critical to your success as you’re selling what’s on a piece of paper as opposed to opening a home on Saturday morning. This is where laser focus comes into play.
You need to be able to paint a picture in the mind of your potential buyer as only 5% of people can see what isn’t already there. Which means, you’re working with 95% of buyers who can’t envisage what you’re selling. People are tactile and you need to take them on the journey. If you’re a story teller, then this is the career for you. As a Channel Agent, you need to know more about the project than the Developer.
Channel Agents in Australia have a great database of potential buyers in Australia and off shore. Lead generation is critical and being able to market effectively to these buyers. Traditional marketing doesn’t work. You need to be on top of your ‘marketing & selling’ game and know how to use tools to tap into all the segments of the market.
When a Project is launching, Channel Agents prepare for the pre-launch strategy which takes place 3 to 4 weeks before the ‘official’ launch. At this time, the Channel Agents are communicating with their database and understanding their buyers’ needs. The next stage includes the official launch, where you have a display suite or if a smaller project, you have your Agent Book prepared where you can take your buyers’ through and present all the elements of the project.
At an official launch of a ‘bigger project’ you can (on average) expect to sell 10 to 20 apartments on a launch weekend. (Most residential agents would aspire to achieve this in a year). However, in project sales, you’re a in this for the long haul. You’re on a journey with your buyers’ that on average takes two years to completion. Through this time, Channel Agents and Project Marketers continue to communicate to their buyers on where the project is at. It’s an exciting time for all when construction starts.
Commission rates for Channel Agents are generally higher than residential agents. Depending on where you’re selling, commissions can range from 3% to in some instances – 7 to 8% with additional incentives. Agents can expect to receive 50% commission on exchange and the remaining at completion of the sale which can be two years’ later.
Channel Agents are rewarded in two parts; short term and long term which is why they’re in the industry for the long game.