EXTREME SELLER’S MARKETS in our major cities over the past few years mean most agents haven’t had to work too hard to manage vendors. However, there’s no denying we’re now seeing a shift. Lower auction clearance rates and less intense buyer demand indicate the pendulum is swinging towards creating a more balanced market. With this comes a need for agents to get back to basics and really bring their salesmanship skills to the table. Story by leading industry coach, Claudio Encina.
AS THE STRONG market conditions that have seen phenomenal price rises begin to ease, vendor management will be the key to success for agents in 2016.
The key to successful sales in a changing market is setting up the framework around vendor management. We all love structure, so framework is important. This is what distinguishes the ‘pros’ from the ‘amateur’ agents.
Implementing the below step-by-step framework on all your new listings can set you up for success in a challenging environment.
ESTABLISH REASONABLE BENCHMARKS WITH YOUR VENDOR AT YOUR ‘SET TO SELL MEETING’
Also known as the ‘expectation meeting’, this appointment with your vendor lays the foundation of what you’re expecting. It should take place a few days prior to the first open home and the focus should be on establishing benchmarks. How many contracts do you expect requested after the first open home? How many buyers through the first inspection? How many buyers requesting a second inspection and what level of price guide feedback?
Finally, explain that sometimes the first offer can be the best offer and in a changing market we should consider it and not discount it. We’ve all heard vendors say ‘It’s only the first week’ and then your buyer with the offer is gone!
HOLD WEEKLY FACE-TO-FACE MEETINGS WITH YOUR VENDOR
Aim to have the meetings in your office if possible; pull your vendors away from the comfort zone of their home, where they may be distracted by their surroundings and won’t help you get your message out clearly. Discuss each week the progress on the sale of their home by reviewing and analysing the benchmarks. This will allow you to make any recommendations for price adjustments or change the sales strategy based on facts and evidence. Book your weekly vendor meetings at the set to sell meeting, weekly for auctions and fortnightly for private treaty sales.
PRODUCE WELL-CONSTRUCTED AND DESIGNED WEEKLY VENDOR REPORTS
If you want to create influence and move people towards action, it’s not about manipulation; it’s about creating a logical, clean, persuasive case. To build a persuasive case that is logical you must support it with facts and evidence. Well-constructed weekly vendor reports, supported by visuals such as a price/buyer feedback graph, can increase the delivery of your message.
PROVIDE YOUR VENDOR WITH A SUMMARY REPORT
This is where all the key indicators are summarised after three to four weeks of the sales campaign. It should include web hits, buyer feedback, similar properties on the market that have just sold and those currently in competition with their property. Outline a recommendation plan for moving forward in the lead-up to the auction or private treaty sale.
REAFFIRM AUCTION DAY EXPECTATIONS AND PROCESS
After your reserve meeting, follow up with an email summarising all the points from the meeting. This will reinforce and reaffirm everything that should happen on auction day so there are no hidden surprises for the vendor.
HOLD CARING AND CANDID CONVERSATION WITH YOUR VENDORS
The ‘pro’ agent is able to have caring and candid conversations with their vendors. There is a balance to strike here: too candid a conversation can create resentment between you and the vendor, whilst too caring a conversation creates a dysfunctional relationship. Balance is key.
SET UP A BUYER’S MEETING
Finally, it’s not a bad idea to set up meetings with your buyers prior to auction day to build relationships and help them have a game plan. Inviting your buyers to the office on a Friday to pre-register if you have a Saturday auction can be quite effective in discovering the qualified buyers and seeing who is committed.
BREAKDOWN TO BREAKTHROUGH
Most salespeople start the year full of goals and ideas but without a plan for change. Old habits die hard and goals fall by the wayside.
Have you figured out how you are going to achieve your goals in 2016? The answer should be ‘yes’, because you are the one responsible for your failure or success.
To give you a great start, here are three key things to do in your business which I call the ‘3R Principle’: Reflect, Recharge and Refocus.
Reflect: Take time to review every part of your business by understanding where your results in 2015 came from. Reviewing your business will allow you to identify where your ‘breakthroughs’ were and create a compelling picture of where the opportunities lie for 2016. Then do a SWOT analysis – strengths, weaknesses, opportunities and threats – to discover and learn about your business. What major lessons did you learn in 2015 from your clients? What challenges did you face? What about the market conditions then and now, and your competition? The answers will help you start mapping out a plan for 2016 by using the information you already know.
Recharge: Taking the opportunity to recharge your batteries is just as important as everything else we do, because sometimes real estate feels like we are on a treadmill. Next year may be challenging, so plan three breaks to get re-energised throughout the year. You will work on a completely new level and be more engaging with your clients.
Refocus: Do you have a plan to avoid last year’s mistakes? What are the short and long-term goals for your business in 2016? Make this coming year the one where you focus on the right areas, rather than areas that drain and dilute your attention and energy. Plan 2016 completely, with ideas, actions, outcomes and results.
TIPS TO REFOCUS AND MAKE 2016 YOUR BEST YEAR EVER
- Organise – Aim to have appointments scheduled for the New Year before you go away as this will allow you to hit the ground running. Once you get back to the office, get on the phone and start to set up appointments as quickly as possible; after having a few weeks off you need to get face to face to build momentum back in your business. Prioritise a list of people you can contact to make an appointment that day or that week.
- Change – Take a look at the systems and processes that are currently in your business. Are they working? Are they the right ones? Do any need updating? Are they helping you close business? Make 2016 the year that you change things that aren’t working!
- Plan – Have a plan for every part of your business, from writing your 2016 Business Plan goals to breaking down how you expect to generate leads in your core market. This is not the year to ‘wing it’ but have a carefully drafted plan to be in complete control.
- Learn – What skills would make you a better salesperson this year? The beginning of the year is a great time to evaluate your skill set and figure out how you can improve in the next 12 months to be the best salesperson you can be. Skills play a large part in agents succeeding, especially in a changing market. Sharpen your skills for 2016!
Establish your goals and develop a system of accountability that will keep you on track over the next 12 months. By learning from what you know and mapping your year ahead, you can succeed at the highest level and ensure you have your best year ever in real estate!
