I've talked to and seen a lot from real estate people upset about the stories of doom and gloom for the housing market reported on the news. While looking at the media might be one resource. I feel sales people can do better. Looking at how to engage with clients is, I feel, far more effective than simply trying to deliver a blanket message.
I'm on record as stating that it's important to give your clients the truth, whether you loose the deal or not. One of the most common questions for a client to ask is often related to the conditions of the market.
“Is now a good time to buy/sell?” The question begs for a market explanation. But if you look at a second time you'll realize the the question really depends upon the asker. The answer is, “It depends.” And, “It really depends on you.”
The credit market is currently very volatile. Real estate market conditions are less certain than many are accustomed to. Yet in almost any market the decision to buy or sell and benefits therefrom are highly dependent upon the specific needs of the questioner.
It's the job of a real estate sales person and a mortgage officer to understand their clients situation It's the loan officer or agent's job to help them determine what's really in their best interest.
In my experience a sales person looses a lot of credibility at that moment that they stop taking the clients interests into account. An effective salesperson looking to make a sale, repeat business and referrals knows that to get the sale they've got to be forthright with the customer. Sales isn't about “duping” people.
It is, in fact, in the thoughtful and considered investigation of this question that a salesperson delivers a significant amount of their value to their client. Working within the bounds of their experience and limited area of expertise, it is imperative that a salesperson deliver to their client the benefits of that knowledge and experience.
In declining markets there are terrific opportunities, and in appreciating markets there are dogs. In most cases a good opportunity isn't going to depend upon the state of the market as much as it it will on the unique needs of the client.
“I don't know, it depends upon what you need.” Offers a much more compelling chance for discussion than simply "yes."
Caleb
I absolutely agree. And, the agent who tells the truth and perhaps dissuades the customer from making the move may have a very loyal client for life because of their actions!!!
Honesty is always the best policy- someone once said. I believe we have to go deeper with clients and assess their needs and then give them an honest answer regarding questions they pose to us. At that point, we can truly meet their needs both emotionally and financially.
Great point- Caleb
Vernon
www.knoxvilleleadershipnetwork.com
Caleb,
I could not agree more. Last week I tried talking a client out of selling one of his rental properties. He tried to talk me into to listing it. I know I could sell it, but based on his needs, he should keep it. It is this kind of honesty that keeps them coming back to me because I care more about meeting their needs than making a quick commission.
Nice blog, I agree. I like to concentrate on all the homes that have sold in the last 3 months. Someone is still making money out their. I hear agents all the time saying 'nothing is moving' well that is not really true. There are homes selling, find out which ones and why. Change is good, we should be able to be flexible.
Nancy
www.nancylohman.com
Caleb,
I like to let my clients know that I am only the messenger not the message. For buyers, I let them know it is a great time to buy if they can qualify because there is so much available inventory to choose from - if they don't buy soon, I am afraid their choices will disappear as the sellers will be pulling the homes from the market and there just wont have any choices.
The sellers have it tough - as long as they can see the loss of the equity they have experienced as monopoly money, then it really doesn't matter much. I will explain about the advantages of buying up in a down market - they may lose 10$ on thier $300,000 house ($30K loss) but if they can pick up a $500,000 house with a 10% discount ($50K) then they are actually saves $20K plus have a lower tax base for the more expensive home than if they had bought a year earlier.
It is tough - but there are still plenty of lemons for my picture of lemonade that I serve daily.
Now Have a Blessed Day,
John Occhi, Hemet CA REALTOR®
Mission Grove Realty
Caleb,
Great post--It comes down to always doing the "right" think for your clients.
Diligent property research and probing client needs have no substitutes in any market.
Good post, Caleb!
Caleb,
"Or" I like to say: "It depends on which seat you're sitting on"! Great food for though!
I started my real estate career at the begining of 2001. I was very successful from the start and then came sptember 11th, I couldnt get a return phone calll for 2 months. I thought I would have to get a job outside of real estate. Once the initial shock wore off everything was fine. I think we need to get past the initial shock of a buyers market, and get back to fundamentals.
Wasn't signed in...
Someone in the business I respect just recently told me he's looked forward to the down cycles in his 30+ years. That's when his business has grown the most! He picks up many new loyal customers when he delivers for them. I was impressed with his enthusiasm.
That said, in my market right now we have a split market where the "west valley" is good and the "east side" is not. I CAN tell my westside sellers that the market in Sept and Oct is usually good, but no guarantees of future performance. It's good now, we don't know what will happen in the future.
For move-up buyers, even a declining market in which it's hard to sell is a good time to do both transactions because if they're moving up. often the loss on the lower priced home is not as great as the loss on the one they're buying - so the net is a plus.
It depends, as you say. It really does.
No cutting corners....straightforward and honest. And that is what I intend to do. I have local buyers who are going to live here. I have client's who moved to CA and called me to buy for "investment".....I told them NO. They respect me for what I am telling them and in the end I sleep very good at night.
You have a deep sense of writing Caleb and though you do not write often you "say" it very well in writing.
You stated: An effective salesperson looking to make a sale, repeat business and referrals knows that to get the sale they've got to be forthright with the customer. Sales isn't about "duping" people.
Why can't everyone see that? It's the quality of relationships we have with others...and without that quality was is a professional worth? (I keep reciting myself but it sure hits home with me every time)
Have a good night!
Caleb, You are right on target. In this market more than ever Integrity is KING.
We refer to ourselves as Real Estate Advisors and consider our most important function to advise, guide and facilitate. i f we make a sale that's good, but it's not the raison d'etre!
Great piece!
Ginger
Caleb - some excellent advice. Not keeping in mind what is best for the client only does them a disservice. We need to be truthful with them and convey that we have THEIR best interests at heart, and not ours. Thanks for sharing this important advice.
Jeff
Caleb............I am going to start answering with "depends on you and your needs" .....Great post.
Congrats on your feature blog...........Duane Hosek in the Black Hills of South Dakota
Caleb,
I like this post.
"It depends" on the reason that an agent got into the real estate field in the first place. Is it to make a quick buck... or to make the industry better. To serve the general public in a better way than the next agent?
Let our "conscious" be our guide.
p.s. I like the picture update :)
Caleb, yes it depends on the client and what their needs are. I have told several clients this year that if they are only going to be here 3 years, expect to not make any money when they sell. No one can predict the future of the market so as long as all the cards are on the table, all is good.
In Michigan, people love their basements. I have sold homes without them and it takes forever. They also do not make as much. I warn buyers moving in from the South about this, some go forward with purchasing a house with no basements anyway. Wish me luck when I have to sell them, but at least I warned them.
Caleb - good post. At our office, we take the attitude of "its what YOU make of it" If your going to be doom and gloom, then your piece of the pie isn't going to be so sweet. But if you look at the market in a positive light, regardless of whats going on, then your piece will be large and sweet. We have a client who came to us after interviewing 3 other agents because we had a better attitude towards the market slow down.
Kathy
Right on
I'm a Rotarian. Our members believe in the Four-Way Test
There is no better way to live your business and personal life. Rotary International is a worldwide service organization with 1.2 million members in 33,000 clubs in 200 countries.
Agreed! This is a funky market right now and I think in many senses we are moving ahead technology wise, but in other aspects we are "going back to the basics", when it comes to honesty, integrity, your word, and loyalty.
If you can't be brutely honest, you won't be effective in this market today, which means you'll be gone tomorrow.
Chrissy, Thanks you have a good point about the weeding out. I believe honestly and truthfulness shines through while distortions, or even “pitchiness” tarnishes.
Dianne, I think that doom and gloom can be too much, but honestly what I’m getting to is just being open. Sometimes for some clients, the doom and gloom could be apt.
McHugh R, it is what you make of it, but it always have to be appropriate for the client’s conditions. Ascertaining the client’s position is where a large part of a sales person’s value is.
Christy, yes it is very much about getting a discussion going.
Katrina, “back to the basics” is right!
Karen, The Rotary credo is so effective and true.
JR, it sure makes work easier that way.
Kelley, You have a point there. I think a we were caught in a bit of a storm there.
Missy, That is a good piece of information to help inform the client about their decision. A client would have to know that their purchase now is a commitment of some period of time. They must understand that commitment as a part of what they are bargaining for.
Bruce, Thanks!
Duane, great start, it makes you come across as much more concerned and it gives you a chance to demonstrate your knowledge.
Ginger S, you’re right, and establishing a salesperson’s value to the consumer is a part of the challenge these days. Otherwise why not go with the lowest bidder?
Sally, Thanks for the terrific compliment. Relationships and trust are of key importance in this business.
Mary, your point shows the fact that different markets, even small niches within markets all have different positives and negatives. This is why it really depends upon the unique situation of the client. It is important for the sales person to be able to bring this knowledge base to the client to help them make an educated move.
Jeff, there is a time and place for everyone. The person you respect clearly has their ideas formed about what is good for them.
“It depends on which seat you’re sitting on” great quote Lisa
Mike, “Probing client needs,” I love it.
Diane, doing the right thing goes a long way I believe.
Joe, staying informed is a challenge, but passing it on demonstrates your value. You’re right.
John, I’d have to say that the fact a home is off the market doesn’t mean it’s “off the market.” My best deal ever resulted from narrowing down the specific neighborhood and property my clients wanted. I then went door to door to matching homes. I netted a lot of deals off that little one.
Nancy, terrific outlook.
Ginger W, “it’s what keeps them coming back.” What I hear you saying is that Quality leads to Quantity. Excellent!
Cyndee, it’s truly about being professional.
Vernon, “At that point, we can truly meet their needs both emotionally and financially. “ So true, and you can’t really make a sale without that!
Sharon “How can you prescribe without diagnosing?” I love it!
Neal, you’re so right.
Gary, Thanks.
Joeann, “very loyal client for life” very well said.
Midori, it is in need now more than ever. Times are volatile to say the least. It is through having the knowledge and sharing it with clients that we can help them to make a decision in this time. The value of a sales person goes up so much higher when things are uncertain. You bring up an excellent point which has got me thinking about another post ;)