According to Dirk Zeller, “Most highly successful agents are listing agents who represent home sellers. But the majority of all agents — and nearly all newer agents — earn most of their commissions by serving as buyers’ agents.”
The following tips should be used by new estate agents and those who intend to make it big in the real estate industry as the grow their business in the early or intermediate years.
Qualify Your Potential Buyers
It’s factual to say either prospective buyers are motivated and able to buy, or they are not. Therefore, an agent hoping to raise buyers’ interest levels especially those with low-quality buyer leads in other to convince them to take action, most often times are wasting precious time.
Unmotivated clients in most cases cannot be prompt to adopt a sense of urgency. However, an agent can offer advice on viable interest rates, low inventory levels and the benefits of being proactive on the part of the client.
In doing these, estate agents must always remember that quality potential buyers must be motivated to buy, taking action within a short time frame, while committed to working with the agent exclusively.
It is a good skill of moving on to the next potential buyer if the current one lacks these attributes listed earlier because time is money. In knowing a potential buyer, the agent should answer the following questions;
- How is the potential buyer going to make the decision?
- When is he going to make the decision?
- Does he have the financial capacity to move forward?
- What, in particular, does the potential buyer want to achieve?
- What, specifically, does he need from you?
- How do you assess his ability to move forward with a decision?
- Does he have enough motivation or desire to finish off a sale or purchase?
- How will he judge your performance?
- Who else is the potential buyer considering?
- Does he have another influence before making a decision?
Work Only with Committed Clients
The right question to ask a potential buyer is “Are you committed to another agent?” because this goes straight to telling him to exclusively work with you in all commitment, rather than asking the client whether they are working with another agent.
It is good for agents to work with committed clients because they receive compensation from them. Clients who claim to “work” with you make no promises regarding the outcome, and the probably might switch to another agent at any point in time living you with nothing as compensation.
When you receive a call from an advert placement, it is very important not to offer to meet and show the home rather make it a priority to meet the potential buyer in your office. However, if you feel that you need to show them one property to win their commitment, do so.
Nevertheless, don’t show additional properties without determining their motivation to buy, confirming his commitment to buy, and gaining their exclusive loyalty to you as their agent. Loyalty in this regard is best achieved through an “outright right to represent” contract with the buyer.
Never Assume the Buyer Is Exclusively Committed to You.
It is wishful thinking to reason that a client who comes to your office, respond to your advertisement, call after seeing your billboard or contact you through your website is dealing with you and only.
Make it a priority to be the first agent to set a face-to-face meeting appointment with a specific client, also ensure that such meetings conclude with an agreement of your exclusive working relationship. Not until then, you are still in a very big competition in your marketplace.
Demand For and Win an Appointment
Regardless of whom (buyers or sellers) you are working with, the pathway to success starts with a direct appointment in an office setting. Here, you can demonstrate your quality to the client.
The pathway to every new client is an appointment, to close a deal and get paid your commission. Therefore, it should be a skill to ask for an appointment on every conversation with a qualified potential buyer. Handling an appointment as Estate Agent
Be Prepared to Counter Typical Misconceptions of Buyers
Newer agent’s whose clients comprise mostly of first-time buyers need to know that this category of clients often come to the transaction with limited knowledge and a series of misconceptions about how real estate agents and real estate deals work. The estate agent should be ready to confront and overcome the following gray areas:
- The need to work exclusively with a particular agent to find and buy a home.
- No understanding of the importance of beginning a home search by being prequalified.
- A preconceived idea of getting enough agents to help find their perfect home fantasy
- The thought of not offering full price for the property
Explain the Services You Provide
A very big mistake for an estate agent to make is to assume that buyers understand what you do. They don’t. Also, they can’t differentiate you from all the other agents in your marketplace.
It will be a good practice if you would detail what you do and how you do it better than other agents by following this advice:
- Provide a comprehensive explanation of the various process involve in buying a home
- A complete overview of the trends that is that is current and emerging real estate conditions in the marketplace should be provided.
- Your clients should know that you can and are ready to help them select the best home in their price range, location, and other factors.
- The estate agents should write his purchase agreement (buyer and seller contract) to correctly and clearly express his intentions and the mode of representation his client will get.
It is worth noting that the estate agent should endeavor to distinguish himself from the competition. This he does by excellent proof and conviction to the client that he offers personal services that they can only receive by choosing him exclusively to represent their interests in the purchase of their new home.
Ask Clients Lots of Questions
Most times, clients don’t want to listen to what you have to tell them about your sales. All the needed is someone who will listen to them about what they want, need and desire as well as the benefits of the agents. Agents should always arm themselves with a good list of thoughtful questions, and they will be well on their way to not only gather the information they needed to do their job well, the agent should in the same process establish a good conversation and confidence necessary to gain the client’s commitment.
A tip is to gather every possible information about what the clients are looking for in a new home, their desired location, type of property they have in mind, their preferred design, the time the intends to move, number of bedrooms, bathrooms and any other types of rooms they want.
The agent should also ask how long they have been looking, have the seen any home the have interest even though not fully desired, their financing arrangement and probable duration it will take them to secure the financing, the mode of communication. Finally, the agent should ask them their expectation of him as an agent.
Take Control, Be In-charge
When working with selling clients, it is easier to know whether you got a listing contract or not. You usually know that you either have a committed client or not right then and there. Also, you know the exact expectation of the seller in the deal, because the sales price is right in the agreement.
Buying clients are however hard to pin down. They tend to work with a number of agents. Also, the may change their minds about what they really want. Some of them may have lofty and unrealistic expectations. Therefore, as the agent for the buyer, you need to control and manage the relationship in between.
To take control, the agent needs to convince the buyers of the need to work exclusively with one agent. Secondly, find out the buyer’s purchase and service expectations by asking the kinds of questions outlined in the above section.
Finally and most importantly, the agent should take control and guide the clients through the actual inspection, property evaluation, home selection and purchase phases.
A tip for the agent is to serve as the client’s reality check. More often than not, he’ll have to lower the client’s expectations regarding what his money can buy by gently adjusting their high expectation budgets to align with what looks more like a meager budget.
Know When to Say No.
If the client wants to push you to do something beyond the scope of your work ethics say no. if he wants you to do something you feel you can’t, say no. if you can’t meet them on weekends, say so.
If they are asking you to write offers that you feel are ridiculous in nature, especially one that will make you look bad to the other agent and seller, say no. if they want you to participate in a shady transaction where money trail is covered, say no. ‘A Good Name Is Better Than Great Wealth’ (Proverbs 22:1)