The Real Estate - Sales Pipeline

The 4 Stage Process

You don`t get past Stage 1, no chance to Stage 4i.e., Sale and Settlement


The Sales Pipeline identification in any industry is essential to develop appropriate strategies and the media mix essential to deliver required results to the sellers.

Geoff Grover has an extensive background in sales and marketing management in international companies, Australian Stock Exchange listed companies and in building his own businesses in several industries. He is currently a successful licensed real estate agent on the Sunshine Coast, and has used these experiences to layout the specific real estate industry sales pipeline stages in a way that brings understanding to those seeking to buy or sell a residential property.

The Real Estate industry is identified as a “4 Stage Pipeline” process whereby a skilled agent moves people through the stages to obtain the maximum market price.

The sales process should be clearly identified as not about simply erecting signs, loading to websites, conducting open homes and handling documentation at the cheapest price possible. It is a highly skilled and qualitative process that impacts on the end price and the true cost is the “net return”, not the individual component costs.

Whilst the real estate industry now requires qualifications to perform the functions of a sales person, the disparity of participant skills in terms of life and people qualifications, negotiating ability and business skills remains an important factor.

The sales process outlined below does not change, only the outcome does. So the objective of sellers is to select the agent/agency combination delivering the experience and skillset together with the relationship compatibility to drive through these stages to deliver the best result.


Stage 1 – Exposure
The ability of the agent and the effective resources of the agency to put the property professionally to the maximum number of prospects in all forms of media.

Measures here include
INTERNET - on top of the obligatory realestate.co.au and domain.com.au websites, a global syndication capability to property search engines such as google.base and the disparate comparisons of an Australian/international real estate group as opposed to a local independent who offer differing advantages needs to be considered, as well as agent website capability.
Computer listing is much more than simply posting to websites. Content is most important to capture attention, given the limited time spans consumers allocate to their individual property searches. Quality of photos, e.g., not the garage or fluffy toys on beds, but the key attraction features of the property is required. Working with search engine optimization techniques is also critical to bring to prospects attention when they are “surfing’ the web. Use of floor plans and a crisp, concise headline attracting attention, plus bullet points rather than text have been proven to be effective.

PRESS – leveraging local and relevant press at discussed levels and costs. Innovative agents look to maximise return on expenditure by use of classifieds as well as colour pictorials, and use of recorded property descriptions via free call 1300 or 1800 numbers.

DATA-BASE – the investment and general public community register with appropriate agents/agencies, and dependant on the prevailing economic circumstance and the agent/agency reach, the potential is variable and clearly requires investigation by the seller.
For instance, it is all very well to have a listing of names, but how well have they been qualified and kept current. Innovative agents will again maintain constant contact by means of informative newsletters delivered by e mail, Australia Post or hand delivered.

DIRECT MARKETING – strategies exist here that are utilised to varying levels by different agencies. A strong local agent will maintain constant communication with his local area by regularly “letter box dropping” newsletters/flyers providing information of interest.

The correctness of a choice between alternates and the success of the strategies employed is revealed in the performance of the following stages.


Stage 2 – Inspections
The number of inspections to follow from the initial exposure, or reach to Buyers, reflects the ability of the agent and agency combination to realise their articulated strategies and translate that exposure to interest and subsequent inspections.

The number of inspections can be nothing other than a direct reflection and measure of the quality of the marketing in the exposure stage and a price in the zone to provide interest.

A lack of inspections is cause for concern as to the adequacy of the initial stage of the marketing strategy or the pricing strategy.


Stage 3 - Serious interest
The ability of the agent to overcome objections & generate desire to capitalise on interest flowing from Stages 1 and 2.

Requirement is deep knowledge of local market pricing and developments, council regulations and communication skills to identify real objections and satisfy them.

It goes without saying that people skills to build and develop relationships with a disparate bunch of prospects and the seller are a pre-requisite. Continual communication on at least a weekly basis with all parties is demanded, plus the production of quantitative and qualitative reports as to exposure and results (or lack there-of) in the various media.

Stage 4 – Offer
The ability of the agent to negotiate and deliver.

The really serious stage requiring extensive life and people skills. A critical requirement. For example, you need to be careful if you consider dealing with an agent/agency who has discounted their services or relied on “gimmicks and giveaways” to win your business. How strong do you think they will be in negotiating the best price for the seller if they are forced to offer discounts on their price to win business?

Your agent must have the experience and demonstrable and proven marketing expertise, negotiating and people skills in all stages to get the best buyers to contract stage and deliver a premium result, and the agency to have premium BUYER REACH

These are the measures by which agent/agency selection should be considered.