Selling Real Estate - How Lawyers Do It Better #1

by Peter Mericka B.A., LL.B
Real Estate Lawyer
Qualified Practising Conveyancer Victoria
Director Lawyers Real Estate Pty Ltd

In this series of postings we examine the role of the lawyer in real estate sales, and explain why the lawyer is returning to displace the real estate agent as the primary adviser and consultant to consumers who are contemplating the sale or purchase of real estate.

Why Lawyers Are The Best At Marketing Real Estate

Real estate is NOT sold, it's BOUGHT

Selling a refrigerator or the latest style of mobile phone requires salesmanship - the ability to convince the purchaser that they should buy what the salesperson is trying to sell. But the sale of real estate is something entirely different. Real estate is not sold, real estate is bought!

When a purchaser has done their research, determined where they want to live, what type of property they need, and how much they are prepared to spend, they begin the search for what they want. When the purchaser has found something that satisfies their search criteria, they make enquiries about it. It is at this point that the purchaser makes contact with the person in charge of the sale.

There is no need for any salesperson to work on "convincing" a purchaser that a property has the physical features they want, as the purchaser has already made this determination. The salesperson per se is irrelevant.

Marketing in the context of real estate sales takes place AFTER the purchaser has decided that the property satisfies their search criteria, and BEFORE the purchaser has determined the QUALITIES of the property and of the sale deal itself.

Marketing is more than just advertising

Advertising is a single component of the marketing process. Erecting a sign at a property, or posting an advertisement on a real estate website, are basic examples of advertising. Advertising is the presentation of information in such a way that it attracts attention.

Marketing, however, more complex, particularly when it comes to the sale of residential real estate. In this context, marketing is a blending of advertising with a range of legal and transactional imperatives, the purpose of which is to create a mutually advantageous outcome. Proper real estate marketing involves the building of trust, mutual respect between the parties, and a safe environment within which the purchaser feels comfortable and keen to do business.

Marketing the qualities of a real estate deal requires a lawyer

It is the role of the lawyer to satisfy the purchaser that the property will meet the purchaser's expectations. Remember, the purchaser has already found the property attractive, and has made the first move by making contact with the vendor. Now it's time for the lawyer to properly market the property to the purchaser.

It is up to the lawyer to demonstrate to the purchaser that the property is all that it appears to be, and to confirm to the purchaser that all legal requirements associated with the sale have been attended to. After all, the sale of real estate is fundamentally a legal transaction.

The lawyer must ensure that the purchaser is satisfied with a number of important matters:

• The vendor is entitled to sell the property, and that no third parties will dispute the sale.
• The vendor has made full disclosure in accordance with the Sale of Land Act 1962.
• The information provided about the property can be relied upon and is verifiable.
• No misleading or deceptive strategies are being used to influence the purchaser's decision to buy.
• Negotiations will be conducted fairly and transparently.

A purchaser who has doubts about the quality of the sale itself is likely to see the property as less attractive and of lower value than they would otherwise. This can result in low offers, timid bargaining in competitive bidding situations, and the insertion of various "escape clauses" in the contract as safety measures to counter perceived problems.

Lawyers are the experts in marketing the "big-ticket" items

The more expensive, valuable or sought-after an item is the more important the marketing role of the lawyer becomes. Lawyers are called upon to market a variety of big-ticket, and highly valuable things. For example:

• A person accused of a serious crime will call on a lawyer to "market" their alibi to a judge and jury.
• A victim of crime will call on a lawyer to "market" their claim for compensation to a tribunal.
• A contractor in a dispute over a faults found in submarine built for the navy will have lawyers "market" it's position with a view to retaining its contract.
• Entrepreneurs seeking venture capital "market" the benefits of their ventures to potential investors through their lawyers.

In each case, the marketing must be done in accordance with rules of law, in the best interests of the client, and with a view to convincing the decision-maker to arrive at a conclusion that represents the best outcome for the client.

The marketing skills of the lawyer are similarly employed by a lawyer who represents the vendor in the sale of residential real estate.

Conclusion

Real estate agents do not have the training, legal knowledge or practical skills required to properly "market" a real estate transaction. While the use of "whitegoods salesmanship" works for the purposes of selling real estate services to potential vendors, it has no place in the legal transaction that takes the vendor and the purchaser from the initial introduction to the execution of a binding Contract of Sale.

The lawyer is the true expert when it comes to the marketing of real estate.

To post your comment on this item, please return to

Legal Notice
All visitors to this website are advised to visit our
Conveyancing Section for real estate consumer information, and to our
Disclaimer regarding the limited use of information provided on this website.

© 2009 Lawyers Real estate