The reciprocal relationship between buyers' agents and selling agents

There is an important relationship between selling agents and buyers’ agents in the property industry, and this association is based on trust and integrity. At the end of the day we work together in the best interests of our respective clients and it is a win-win situation all round. 

As a former real estate sales agent I have to admit I often fell into the comfortable habit of “list, market and wait for the buyers to contact me”.  This was the equivalent to being a trapdoor spider waiting for its prey to show up and swallow it. But complacency is a fatal mistake unless you are an arachnid. 

As well, the other strategy in those days was to offer conjunctions to other agents and hope they would solve my problem for me. 

But nowadays there is a brilliant option that you should use for every property on your books, not just because it will benefit you but because it will benefit your client. And it costs you nothing! It is simply to work with a buyers’ agent. 

You can even include this tactic in your marketing pitch for listings and you will be pleasantly surprised to see that vendors welcome this strategy with open arms. After all, it doesn’t cost them anything and hugely increase the chances of finding a buyer. And it is a great option to flogging your extensive and out-of-date client database to prospects; no one ever bought that strategy. 

Real estate agents should recommend prospective buyers to buyer’s agents simply on a goodwill basis, and this is good practice for you. 

As an example, imagine that you have been dealing with a buyer who wants a specific type of property but you don’t have a suitable listing currently on your books. This is the perfect opportunity to demonstrate your desire to help them and initiate an on-going close personal relationship in the future. 

There are important benefits to you: 

• You have done a favour to the buyer by demonstrating your desire to help them with no personal gain, and they will appreciate your selfless advice and integrity as an agent. Sooner or later they will come back to you. 

• The client may go cold on you and begin dealing with another agent (most likely a competitor). So it is better to use the opportunity to refer them to a trusted buyers’ agent who you know will look after their best interests. They will remember you for this. 

• The buyers’ agent will reciprocate the favour in future by personally recommending you as a real estate agent as you have now established a relationship based on trust and goodwill.

So talk to your favourite buyers’ agent about your listings and what you have coming up (don’t wait for them to contact you). Build up a close working relationship with them and grow your reputation by recommending buyers’ agents you know and trust. 

Everyone wins!

Tim Mansfield is founder and principal of Sydney-based buyers' agency Prime Property Buyer.