New data and analysis from PropTech product, Hello Again, has revealed that only a very small proportion of property owners choose to sell their property with the agent they originally purchased through. Why is this?
The new tool, launched earlier this year by Agent Software, reports that on average, an agent will convert less than 15% of their past purchasers into vendors. And it would appear that this low percentage is not a reflection on the purchaser’s satisfaction with the agent at the time. It is in fact because most purchasers simply forget about the agent they purchased their home from over time.
It's therefore estimated that when the time comes for a purchaser to move home again, over 80% of those consumers will list their property with a competitor of the agency they originally purchased through.
This means agents could be missing out on thousands of pounds in commission by allowing a customer they already have a relationship with, to sell via one of their competitors.
Stella Nicol, Head of Product for Hello Again, says: "In our experience, on the vast majority of occasions agents don't even get the chance to re-value the property they once sold. Most agents only realise that past purchasers have decided to move on when they see the property listed for sale with one of their competitors on the portals."
Agents are being encouraged agents to place value on relationships with past purchasers as they can provide a significant and steady source of new instructions for the medium and long term.
One of the key reasons for this is that the majority of property buyers have a positive experience with the selling agent. In fact, according to government research, over 80% of purchasers are very happy with the agent when they complete.
Nicol explains: "On top of the fact that most buyers interact positively with the selling agent during property transactions, the agent has already demonstrated that they are proficient in selling the property in question.
This should give them a head start against the competition when the owner comes to sell. However, many agents aren't securing these repeat instructions due to neglecting these existing relationships.
Even the agents who do try to keep in touch, it’s often simply an anniversary or Christmas card, which provides nothing of value and often goes straight in the bin."
Hello Again is urging agents to take a more strategic approach towards their past purchasers.
This can be done by continuing to provide a service even after they’ve moved in, by sending them useful content about their property every year, for less than the cost of a Christmas card.
Nicol concludes: "Too many agents are forgetting about the potentially lucrative relationships they have already forged with purchasers of properties they have sold in the past.
Hello Again ensures that your past purchasers keep your brand, values, and service fresh in their mind for when they do consider coming to market."