Maintaining Seller Momentum – Real Estate Business
Current market movements are causing many sellers to lose motivation to sell and many potential sellers to be hesitant to come into the market.
There’s also a lot of guesswork about how you can “convince” sellers to sell their spot, including hitting them over the head with the scaremongering news cycle, but is that really the right way to go?
We need to look at this from both angles, but more importantly, we need to keep in mind the ramifications of our actions in the short term for the medium and long term consequences, and then develop a plan that will give us the best chance. to spend a market winter while sowing for a good harvest in the future.
Interest rate hikes, an uncertain economic future, the remnants of a COVID-riddled world – that’s enough to freeze a lot of people. Everything feels more like a gamble, and the slightest thing that goes wrong is made much bigger than reality suggests.
Most of the chatter I hear from agents fighting these barriers to entry is about reiterating the latest news headline and using it as “the” reason a provider should either lower their asking price and/or accepting a lower offer.
The same applies to future sellers, except you are asked to scare them off by saying something like “sell now or lose the buyers who are in your price range.
Instead of creating more anxiety for them in an already stressful situation, why not start by telling our suppliers that we appreciate the genuine concern they are having, thereby validating their feelings, which I have found helps to establish trust.
One of the first things I say to sellers when introduced to me at an auction is that “you’d have to live under a rock not to hear what’s going on in the market right now according to public/media opinion. . But all is not lost, and we still have the opportunity to bring you closer to your goals. It’s a safe assumption that if they have a phone and/or a TV, they’ll know what the market is doing, so just hearing that everyone knows is comforting.
Acknowledging what is causing them anxiety is the best way to make them feel that their worry is valid and that they are being listened to, which helps alleviate their worry. Once there is a level of balance, you can then seek to paint the big picture when it comes to them and their goals.
The short term wins, but at what cost?
Suppose you follow the path of “least resistance” and try to scare off a few potential sellers in the market by freaking them out via the current news cycle.
With all the news and with the end of the year fast approaching, it’s likely that most vendors coming to market now will already have some degree of urgency, and that urgency is already likely to create a some stress without the addition of the current market. movements, and this can ultimately damage your relationship with them.
I think it’s still worth making the call and arranging the visits so you can help them solve the puzzle in front of them, but the focus should be on solving their problems , not on your income.
knowledge is power
If you’re getting into any of these conversations, then you better have done your homework on the broader economy beyond the term “interest rate.” Knowing your current market numbers, understanding what inflation is, how it is affected by Reserve Bank of Australia measures and why it is needed will give you more credibility in the eyes of those looking to sail soon on stormy seas.
Talk about the circumstances, NOT just the transaction
Focus conversations on their goals rather than a deviant market. The more you do this, the more likely you will be to gain greater buy-in to any suggestion to go to market, especially since you will have rightly made going to market the more reasonable option. .
Ultimately, if you can show them a path they can follow based on their goals and the current circumstances they understand, they will keep moving forward. But you need to be more thorough with every element of your presentation to ensure you have a collective buy-in, instead of just presenting your wares and asking for their business.
For each element of your pitch, I recommend following the “5 Cs” that will help you get vendors into a “can-do” mindset:
- CLARIFY their understanding of this component.
- Provide them with CONTENT around the topic.
- Put the information in the CONTEXT of their situation.
- COLLABORATE with them around possible solutions, get their thoughts on your recommendations, and provide logic to support any suggestions.
- CONFIRM that they understand and agree that the course of action is right for them in this market, given their objectives.
If you do this every moment, you’re much more likely to alleviate any additional anxiety your potential vendors may be feeling given the noise around them.
Andy Reid is an auctioneer and director of Sold By Group.