Blog / Vendor Management

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Exerpt from The Benefits of the Team Business vs The individual Business workbook by Christian Bartley Bellarine Property

To Establish A Good Relationship With A Potential Vendor You Must:

• Impress.
• Unlock the client’s motivation for moving.
• Ask the right questions, such as, what have you loved about this house?
• You must also demonstrate: Energy. Structure. Control. Honesty. Humour. Creativity.

You are presenting an opportunity to sell the property and you will secure the best price if it is handled the right way, with the right marketing, with the right method. It’s the winning model. Establish you are the right person for the job – that you are likeable, able and trustworthy – and extract information you can use for marketing the property and selling the story of the sale. Demonstrate your capacity for constructing a compelling emotionally engaging narrative for the property and why and how the magic of marketing works.

Take Your Potential Vendor On A Journey With Marketing

To draw the vendor into the journey of a sale, describe the five steps in the sale process:

1. Enquiry,
2. Inspection,
3. Offer,
4. Negotiate,
5. Sold.

Explain to the client that your role is to generate the greatest amount of enquiry to create the greatest contest, to create the greatest price so you are reassured you are accepting the best price and not giving it away. You will not give the property away easily.

 

Focus On Generating Enquiries

There will be no campaign unless there are enquiries. The vendor tends to be focused on getting it sold. A lot of agents will focus on how good they are at negotiating after they’ve got an offer. A lot of agents may also discuss their inspections and their processes and how they do things. These are all crucial parts and do need to be raised, but none of these events of inspection, offer, negotiate and sold, will occur unless there is enquiry. In order to sell a property therefore, you have to attract the initial interest of buyers. If you don’t get an enquiry, there is no sale.

Using a visual prop, draw three squares and paint a picture of what a buyer’s mind does in five seconds. The buyer’s mind will look on the internet or print media and see photos, how good they look, and the photos will be what captures their attention to that particular property.

 

The photos will determine the buyer’s desirability.

The next thing they’ll look at after they like the photos will be the address. The address will determine the buyer’s likeability of that location. Then the next thing they’ll look at will be price. If you get three ticks in all those boxes or at least two boxes, the buyer will then enquire on the property. If you do not get enquiry, then you will not get an inspection.

It’s crucial to have the correct photos, the address and the price. The enquiry has got to come, and you are going to get the enquiry either through photographs or video marketing, where it’s promoted, and the right process. Explain the critical role enquiries have in the sales process, then discuss marketing assets that generate the most and the right amount of interest.

 

Pricing

The most important thing to communicate to a client is that you don’t want to give away a property. Be very clear, precise and down-to-earth with them. Level with them. If you are going to show them that they are not going to choose an agent based on price, they are going to level with you in your understanding of pricing the property and the advantages and disadvantages of that. Have them select you based on your enthusiasm, your energy, your marketing requirements, your structure, your components and your communication of feedback and service throughout the entire campaign – then price should not come into it.

Dealing with pricing:

1. Spend no more than three to five minutes.
2. Compare apples with apples – show the client the market currently for sale right now, and what has sold prior that is similar to theirs, or is the same sized land, similar location, bedrooms, size, and age.
3. Give them the opportunity to tell you where they believe their price then sits.
4. Look at their reactions: frowns, lip and hand movements, how they sit, what their body language is, arms folded, arms behind their back, nodding, tight-lipped.
5. Deliver what you think the market value is and be prepared with dialogue to back up and support them at their value. Explain that there is:

• a. an agent price,
• b. an owner’s price,
• c. a land and improvement modest appreciation price, and
• d. the market price which is based on emotions, mass, and competition.

The market price based on emotions and competition is the way you can explain that a buyer may be able to pay well above the odds to buy this property, and they will pay higher than an agent’s price. They’ll pay higher than an owner’s price and they’ll pay higher than the land and improvement modest appreciation price. The agent price is based on comparable sales and other levels of interest that are coming through on properties that are currently on the market. The owner’s price is what you need to get out of there today, and to move on with what you want to do.

If you are in an area where there is a low shortage of demand and supply, then the opportunity of getting in on certain properties may be extremely hard, so the market price based on emotions, mass, and competition, is what you need to work on.

Listing is clearly not for the fainthearted, but if you can muster the energy and self-belief and learn to paint pictures and dreams with words, vendors will believe in you too. As Seth Gordon says, “Be genuine. Be remarkable. Be worth connecting with”.

Christian will be speaking at The Benefits of the Team Business vs The Individual Business in Melbourne, Sydney and Brisbane on the 23rd, 28th and 29th March 2017. Included in the registration fee is his new book. Visit realestateacademy.com.au/store or call 1300 367 412 to book your seat.  

 

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