Are conditional auctions possible?

Can you hold a conditional auction?

Well, yes, but why would you want to?

Every auction is different, at times, we are running high with multiple registered bidders and at other times, we are dealing with a crowd of conditional or ’non auction’ buyers. It's paramount to recognise that the reason we have buyers wanting to purchase is due to the deadline that the auction process dictates, without it, we would have little structure to the desired timeline.

An auction buyer or what we often refer to as a ‘cash buyer’ can act swiftly, often without the inclusion of bank approval and on many occasions, limited other conditions that could net be fulfilled by auction day such as a building and pest inspection or similar. Conversely, the conditional buyer is not afforded the same transactional agility. Whilst the finance landscape is changing and again favouring our buyers, there are still hoops that must be jumped through and various issued to be navigated. If a conditional buyer discovers the property early in the campaign, it is entirely feasible that all matters including bank finance and bidding approval may be in place before auction day. In the event that a keen buyer has not been able to gain approval to bid with guaranteed finance, it can stay auction proceedings at times or leave them feeling like second class buyers as the cashed up purchasers fight it out. Most vendors will negotiate to secure an unconditional contract rather than endure the uncertain wait on the conditional buyer.

This brings us to the quandary of a property that has attracted only conditional buyers and this can happen intermittently. It needn’t be ‘game over’ for the auction process in fact, far from it. I have been the appointed auctioneer on enough conditional auctions to know that as a plan ‘B’, it can still yield a favourable result. What we recognise in this scenario is that whilst conditions remain, the most powerful friend to best results also exists - competition. Simply, the cooling off period can be removed, a strict condition offered to all buyers can be announced ands the auction can proceed. For example, the vendor may allow the agent and auctioneer to afford all parties a 7 day finance or building and pest inspection as part of the contract. In this case, buyers still benefit from a transparent process that can prove a fair market value with willing buyers and secure the property.

It’s not a text book auction but still benefits from urgency, competition and social proof.

One for the money! - One bidder auctions?

It’s a question that I often get asked - am I able to conduct an auction with just one bidder?

The reality is this: At times, there may be a shallow pool of buyers for any property.  Whether it’s the location, price, or general suitability, the reality is that there are not always multiple buyers for a property on a given day.  Sometimes, there is only one buyer willing to part with their hard-earned for the home.  

The auction process when followed accurately, provides a deadline.  If they have interest in the property, can buy at auction and/or complete prior to auction day, it is best practice to elicit the offer early and commence a negotiation whilst still continuing to market the property.

The auction process dictates an action timeline and if there is one unconditional buyer who can purchase under auction conditions, I will pull every stop to affect the sale.

However, to gauge the effectiveness of my beloved auction process and whether it will benefit or indeed, burden the seller, I need to assess:

  • What has the price feedback been?

  • How many interested parties have you met with to gauge interest?

  • What offers have been made?

  • Has there been a valuation completed?

  • What are the three most recent and comparable sales?

  • Are we reasonably convinced that we have flushed out the best candidate for the property?

There are two potential outcomes when the purse-clutching buyer fronts their potential new home;  either they have enough ‘folding’ to make the transaction or fall short and we are looking to the market for another hopeful.

If I were to simply front the crowd on auction day with one buyer and have them not feel the weight of competition, I may find myself with a low bid and a hard slog to drag any momentum into the auction and indeed, the one buyer to an acceptable level.

This is when I have a direct conversation with the sole purchaser and test the cut of their jib.  If the terms of their offer align reasonably with the sellers expectations, we press forward with some old fashioned argy bargy and unsheathe the biro.  If the expectant purchaser falls short of a reasonable exchange point, the negotiation then widens to include conditional hopefuls into the mix.

Capitalising on the energy in any transaction is key.  Multiple bidders at an auction will create momentum but when you are faced with just a single registration, strategy, care and consideration are needed to drive the outcome.  If we miss the initial deadline of auction day, phase two kicks in.  The crowd and any potential conditional buyers present need to experience the genuine energy and feel motivated to act.  Opportunity to promote and spruik the property is embraced, setting a new swift deadline so registered bidders, hesitant auctions participants and hopeful participants can put their best foot forward.

At the end of the day, my charter is clear - I work tirelessly for the seller to bring them the best offer the market can offer in that window and let them make an informed decision.

Bidders, Balloons & Baristas.

It’s 3 days out from auction day and I phone the marketing agent – Julie, to find out exactly how the campaign has gone and what her expectations are for the auction day.  Julie naturally is ecstatic!  She has spent the past 3.5 weeks doing open homes, had the brochures hand delivered to the neighbourhood and the online ad looks formidable with the sunset in the background of the lowset, brick, three-bed, one bath, and one car garage home.

 

Julie is pumped for the day!  Saturday will yield a day no less exciting than a school fete, yes indeedy, there will be a sausage sizzle, a coffee van and a random contractor running around in a animal suit offering youngsters balloons and dubious sweets to tempt in the punters.

 

All the fun of the fare!

 

Julie has forgotten one thing…. let’s be honest…several things have been omitted from sound auction process or any process for that matter.

 

It’s 2019 and the world is an amazingly transparent place with little place to hide and increasingly fewer covers to pull over buyer’s eyes – if that was ever your intention.

 

I happen to agree with coffee vans at auctions or open homes in fact, I am partial to a cheeky piccolo on almond milk.  That said, do I think these are the gimmicks necessary to engage buyers, align vendor’s expectations and actually achieve a powerful unconditional contract on or before auction day?

 

No.

 

Simply, in this challenged market, we need oxygen, transparency and clear strategy.  What we did in the boom market, the ‘good times’, if you will, wont set you up for success today.  

 

In this market, we need to act with incredible urgency.  We need to consider that our vendors time and investment are precious and that the quality of information is the catalyst for success on auction day.  The way forward here is simply to get uncomfortable.  As professional agents, we need to get comfortable having the uncomfortable conversations with our sellers and also the buyers.  Our sellers need to be advised from day one, exactly what the buyers are thinking around value and similarly, buyers need to understand the level of motivation from the sellers.

 

My three tips for successful campaigns:

 

1)    Act today as if the sale was to occur tomorrow.

2)    Treat every buyer with dignity, courtesy and with the very real knowledge that they are likely the actual buyer – it’s professional and necessary.  Ensure that your strategy around garnering feedback from buyers includes a simple, comprehensive plan to aid in gathering offers prior to auction.

3)    Never change the end goal of achieving the best possible price for the vendor but give all presentation and price feedback direct to the owners – good, bad and ugly – you’re the messenger…. sweating bullets is good.

A complete strategy - plain and simple. Pt 1

Auction is not magic, it is not a gimmick created by a Public Relations company and it is certainly not some mystical beast to be feared.  Auction is an open and transparent process that has been used for thousands of years for sellers and buyers to exchange goods by determining their value through competition…plain and simple!

Many sellers and agents over-complicate auction in their mind.  As a result, they either don’t choose auction as their sales strategy or don’t manage the process effectively and may miss the opportunity to achieve the best sales outcome for the property.  Auction has many distinct advantages for a seller, lets discuss one of them. 

1.       NO CAP ON PRICE

Choosing to market a property with a price (Private Treaty) can provide the seller and agent with a sense of comfort by offering some invisible protection behind a price.  Unfortunately, this instantly moves the power of the negotiation to the buyers and this is definitely not in the sellers’ best interest.  Coming to the market from the outset with a price is liking playing poker and immediately showing our cards to your competitors.  Why would you reveal your hand upfront and pass the advantage your opponents? 

Revealing a price upfront tells the market you don’t believe the property is worth any more than this figure.  You have unwittingly set a ceiling on the price and capped it from possibly going higher.  Buyers will see this price as negotiable, automatically offer you less and put pressure on you to accept.  The buyer now has the ball firmly on their side of the court!

Since the dawn of time, the value for goods, services and property have been determined on the principles of supply and demand.  Supply and demand is a near perfect law of nature for determining an items value in the market of buyers seeking it.  Listing your property with a price is interfering with the laws of the Universe.  Auction uses this law to your advantage and heightens demand through competition and emotion. 

Join us for our next instalment when we look in more detail how competition and emotion in an auction campaign helps you achieve the best outcome

Damian Borger

Auctioneer & Qld Head of Business

Auctions Continue To Rise In Slowing Sydney Market

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Auctions Continue To Rise In Slowing Sydney Market

While reports swirl about the Sydney market flat lining over the early spring months it is promising to see the Sydney auction market on the increase for the third consecutive week. We reported not long ago the impact that the footy finals had in terms of volume of auctions, while clearance rates, remained fairly steady. Since the long weekend both auction volume and clearance rates have been on the improve, with last weekend in Sydney yielding the best auction results weekend since September 9, with a 70.4% preliminary clearance rate reported by Domain.com.au.

While other regions across Australia experience an increase in activity throughout the spring months, the data relating to Sydney report this is a traditionally a period that slows in terms of buyer activity, putting pressure on property prices. The lack of buyer activity simply means that there is less competition for each property forcing owners to be realistic about sale prices if they are serious about selling.

According to industry experts, Sydney buyers are simply taking a little more time to make decisions and are able to comfortably do so as there isn’t the same level of aggressive competition for each property as we have seen in previous months. The very nature of the auction process counteracts this occurrence, ensuring that regardless of the buyer activity on any given week, the property is presented to the market with a clear deadline forcing buyers to compete in the auction arena to place the winning bid.

We will watch with interest this week as we approach the highest volume of Sydney auctions this financial year with more than 1000 homes scheduled to be sold under the hammer.

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

The Supercharged Housing Market

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THE SUPERCHARGED HOUSING MARKET

The Metro Auctions insight into the Sydney Property Market

The explosive property boom continues despite the consistent doom and gloom reporting from media outlets across the country. The low interest rates set to remain steady as announced by the Reserve Bank Australia earlier this week is just one factor driving the supercharged Sydney market, with lack of supply and a tax system that continues to favour property investors also contributing.

Reports indicate that Sydney has now surpassed London and New York to rank as the world’s second most expensive housing market and there is nothing certain to indicate that this trend will slow in the near future. In fact, statistics shows that home prices in Sydney have surged more than 140 per cent in the last 15 years, with the average home price now just shy of the $1 million dollar mark.

Investors continue to dominate the market, using negative gearing to claim the majority of costs associated with their investment property including mortgage interest, using this as a tax offset against other income. Investors have flooded the Sydney market and other capital cities since 1999, when capital gains tax was halved making property a much more appealing and lucrative asset.

While the market continues to boom, there remains those that cannot break through the entry barriers with fears that the Australian dream of home ownership in the major city could become impossible for many. Potential buyers from the Southern states instead continue to push further north or into outer suburban areas which are substantially more affordable.

While some recent media reports indicate that the Sydney market has ‘flat lined’ across August and September the data suggests that this trend would be considered normal given annual trends. Tim Lawless of CoreLogic commented that the ‘marketplace is slowing down, it certainly hasn’t gone negative yet but if we see a continuation in this trend over the coming months we may see Sydney move into negative territory’. Mr Lawless continued on however to state that ‘historically, we’ve seen downturns generally somewhere between 3 and 10 per cent across major capital cities’.

While there is no certainty in the future, it is clear to see that the Sydney property market is a formidable force within Australia and will continue to be analysed, watched, critiqued and scrutinised as time goes on.

Sydney Morning Herald

The Australian

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

Footy Finals Don’t Stop Auction Results

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Footy Finals Don’t Stop Auction Results

The long weekend has come and gone, taking with it the football season with both the AFL and NRL finals being played out over two consecutive days. Footy fans were out in force, cheering relentlessly for their favourite teams and hoping that they can secure the illusive and prestigious victory. On the day, the Tigers claimed their spot in history while the Cowboys couldn’t overcome that underdog title being defeated by Melbourne Storm. In the real estate world however, the show must go on.

While the 953 auctions nationally showed significantly fewer numbers than recent trends, the clearance rates held strong. The preliminary results for the footy final long weekend showed a 69.4% clearance rate which is an increase on the 66.2% from the week prior.

Melbourne performed well with almost 90% clearance rate, but given the volume slump to just 85 auctions this is no ground breaker. Sydney, likely the most impressive, with a total of 447 auctions and a clearance rate just under 70%, showing that the Sydneysiders can either multitask or were not too phased by the double header weekend, focussing on buying and selling instead.

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All stats aside, auctions are progressing strongly throughout spring and are tipped to continue generating healthy clearance rates right into summer. Certainly, auction remains the best way to achieve a premium price in any market, getting buyers to compete head to head for the illusive victory.

Congrats to all the winners over the weekend, whether it be AFL or NRL fans, buyers, sellers or agents!

 

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

#metroauctiontip Number 1: Choose Your Auctioneer Wisely

To date we have brought you a series of auction tips to help improve your success within the auction arena, but we have saved the best until last! This tip is beyond a shadow of a doubt the most important component in ensuring your auction strategy hits the mark time and time again.

Our #metroauctiontip number ONE is… ‘Choose your auctioneer wisely!’

During each auction campaign you want to be working in ‘partnership’ with an auctioneer that can add value to your service, engage effectively with your sellers and buyers and support you in achieving success under the hammer. The right auctioneer won’t just turn up on auction day and call your auction, they will assist you every step of the way, becoming an important and active participant from the first day of your auction campaign.

Our number one tip is to team up with an auctioneer that is proactive and will play an integral role in your auction success. If you want more information about Metro Auctions or our three point auctioneer involvement program then contact us today!

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

#metroauctiontip Number 5: Plan For All Outcomes

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The auction process is designed to present a property to the marketplace in a manner that creates a sense of urgency, to generate increased buyer interest and enquiry within the set timeframe. The ultimate goal is to sell the property at a premium price under the hammer… however this is not always how the script plays out. This is why you need a second phase plan as part of your auction strategy.

It is important to be prepared and have a strategy in place to get a result after auction if the property is passed in. Working with your vendors in the lead up to the auction will help you devise a plan that they are comfortable with and save you from having to start discussing phase two right after the auction when emotions are usually running high. Remember, a large portion of auction properties passed in sell in the two weeks post auction – so be ready to capitalise on your efforts post-auction.

Being strategic post-auction will boost your conversion rate and deliver results for your clients. If you need training or guidance on devising a second phase strategy, then contact Metro Auctions today!

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

#metroauctiontip Number 8: Keep Your Vendors Informed!

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You know what they say, ‘a prepared vendor is a happy vendor’. Ok, so that is not an actual saying but it should be. Throughout the auction campaign it is quite common for an agent to get overwhelmed with a higher than normal workload, inevitably letting vendor communications fall by the wayside. It is important however to keep in mind that your vendor ultimately decides if the property will sell come auction day and that there is no better way to secure a result on auction day than effectively preparing your sellers.

Regular vendor meetings and reports are absolutely essential to equip your sellers with key information such as buyer comments and concerns, price feedback and the possible outcomes to be expected on auction day. Your sellers should be educated well enough about the activity throughout the campaign that they feel comfortable and confident with the process and potential results.

Keeping your sellers informed won’t eliminate the stress and the nerves associated with auction for either yourself or your sellers, however it will give them more understanding and realistic expectations relating to the auction outcome. If you need training or guidance on the appropriate dialogue to use regarding price during your auction campaign, then contact Metro Auctions today!

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

#metroauctiontip Number 7: Use Price Enquiry to Gather Feedback

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In an auction campaign, you will be asked about price…  over and over again. Expect this question from buyers, neighbours, friends, family, colleagues and competition. Your job is to turn this question into an opportunity to gather feedback from the wider market.

If you were to provide a price or price guide you can do extreme harm to the end result and potentially eliminate the opportunity to achieve a premium price for your seller. You are also bound by Section 216 of the Property Occupations Act 2014, which states the selling agent must not disclose to a person other than a person acting for the seller in relation to the sale, regarding the reserve, the amount the agent considers a likely price or provide a price guide for the offered property.

It is therefore essential you utilise strong, quality dialogue in your interactions regarding the price. Use the question as an opportunity to extract information and discover their opinions about the value of the home and compile this into your vendor reports. If you need training or guidance on the appropriate dialogue to use regarding price during your auction campaign, then contact Metro Auctions today!

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

#metroauctiontip Number 3: Conduct Buyer Meetings

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During an auction campaign it is quite easy to slip into the habit of concentrating all efforts and energy on the seller. Your valuable time is consumed with holding regular vendor meetings to condition them with feedback, data and current trends however the same energy needs to be dedicated to working with buyers.

Buyer meetings have so many benefits and should be a consistent inclusion in your auction process. Conducting buyer meetings is a great way to get the buyer committed and locked in well in advance. During your meetings you can address their individual situation, ensuring they qualify and gaining more insight into their potential budget. A buyer meeting will also give you the opportunity to discuss bidding strategies, ensure their finance and deposit is in order and gives you a chance to explore their settlement terms. Finally, buyer meetings will assist in giving your sellers confidence in the fact that you are dealing with the best possible buyers come auction day.

By conducting buyer meetings throughout your campaign you are significantly improving your chances of a sale under the hammer on auction day making it an essential part of your auction process. If you need training or guidance regarding how to conduct buyer meetings, then contact Metro Auctions today!

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

#metroauctiontip Number 2: Support your auction with VPA

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This auction tip will not detail why your vendor should pay for marketing, but will emphasise the need for a tactical marketing campaign to support your auction strategy.

A strategic campaign provides several tangible benefits that will be reflected in the sale price and the overall success of your auction. There is no doubt that quality real estate marketing attracts enquiries, encourages competition between buyers and acts as an insurance policy against underselling. With a strong marketing campaign you can rest assured, knowing that every suitable buyer in the market for this property has seen the advertising and been given the opportunity to inspect, present offers and bid at auction. There is certainly no one-size-fits-all solution for auction marketing, instead customising or tailoring your advertising to suit the property and effectively capture the interest of the most suitable prospective purchasers is imperative. Your marketing needs to be the perfect platform to launch the property into the marketplace, drive urgency, provoke emotion and deliver outcomes.

If you need training or guidance on how to pitch, secure and execute effective vendor paid marketing campaigns, then contact Metro Auctions today!

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

#metroauctiontip Number 9: Should I negotiate prior to an auction?

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Picture this; Your campaign is two weeks in, everything is running smoothly, you’ve had good turnouts at your open homes and positive feedback from buyers… actually it is going so well that a buyer wants to negotiate a deal here and now. What do you do?

Whatever you do, be very clear about how you handle pre-auction negotiations. By entering into negotiations prior with out a clear objective and strategy, you run the risk of making a critical mistake which is showing the vendors hand. The beauty of an auction is that there is urgency, competition and emotions. It’s these emotions that drive the price upward and make you a superstar come auction day. Buyer psychology has shown us that if your vendor doesn’t countersign, it makes the buyer hungrier and of course willing to spend more.

The dialogue you need to call on here if the offer comes early in the campaign is; thank you for the offer, the vendor is appreciative of your serious intent to purchase prior to auction, however it really is too early in the campaign and we still have numerous interested buyers that need to inspect the property for us to evaluate serious feedback. At this stage, my seller is committed to selling at auction.

OR

The dialogue you need to call on here if the offer comes later in the campaign; thank you for the offer, the vendor is appreciative of your serious intent to purchase prior to auction, however being so late in the campaign, we have so many unconditional buyers in the mix that my seller is committed to selling at auction.

Of course, be sensible in this situation. If the buyer is showing tenacity, consistency and actually willing to offer an auction busting amount with no conditions or cooling off period… take the cash! It could be the best offer and again, the process has worked for you.

If you need training or guidance in regards to handling offers, negotiating with buyers or dialogue to use throughout your auction campaign, then contact Metro Auctions today!

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

#metroauctiontip Number 6: Implement An Auction Calendar

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One of the fundamental elements that makes an auction successful is time! You are setting a time limit on reaching a result for your sellers, so it is imperative that you manage the campaign and your time within the campaign with the utmost of precision. One of the best ways to do this is to implement an auction calendar.

The beauty of an auction calendar is that it’s multi-faceted. It is a great tool within your listing presentation, it provides your sellers with a clear and tangible promise of what you are going to do throughout the campaign and when you will do it.

Think of the auction calendar as an ‘accountability partnership tool’ that you can utilise to demonstrate your performance and keep your sellers informed. Also a great communication tool, you can simply report back to your sellers based on the milestones within the calendar, making the entire process more transparent, gaining your sellers trust and building their confidence. The auction calendar also adds to your value proposition, within the listing presentation you can itemise the tasks you will complete and their objectives, show your sellers the workload involved with an auction and essentially justifying your commission through demonstrating value. Finally, an auction calendar will keep you accountable to yourself; it will boost your prospecting plan by giving you nowhere to hide and ensuring that you don’t just go through the motions.

There are so many positive benefits associated with the auction calendar and its implementation that you simply shouldn’t run another auction campaign without it! If you need training or guidance regarding the auction process, or how best to strategically handle the setting of the reserve price, then contact Metro Auctions today!

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

#metroauctiontip Number 4: Utilise Assisted Reserve Setting

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Many agents find it difficult to respond to buyers asking questions about the reserve price during an auction campaign, often feeling uncertain on the best approach and not wanting to give away too much information. It doesn’t have to be like this, instead you can utilise the buyers to assist in setting the reserve.

Clever agents are able to incorporate price feedback into their reserve strategy, allowing buyers to become involved and sellers to feel comfortable with the process of setting the reserve. Explaining that the reserve price has not yet been agreed upon but that the sellers are keen to hear from interested parties is a great way to increase buyer involvement and really start those serious conversations around price throughout the campaign.

This technique, coupled with preparing a thorough comparative market analysis will improve your interactions with buyers, encourage honest market opinions to discuss with your sellers and ultimately assist in setting the perfect reserve price.

If you need training or guidance regarding the auction process, or how best to strategically handle the setting of the reserve price, then contact Metro Auctions today!

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

#metroauctiontip Number 10: Always Trust The Process

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It is all too easy to get lost in the noise when running an auction campaign. Focussing too much on buyer feedback, on your competition, or insignificant details and forgetting about the big picture.

Remind yourself that you used your professional judgement to recommend an auction and why was that? Because you know that it is the most suitable sales process, allowing you to present the property to the marketplace, generate interest from genuine buyers within a set timeframe and ultimately get buyers competing for the property, ensuring you secure the best price for the property in the given market conditions.

If you execute your auction strategy effectively you can remain confident that you have; grabbed the attention of the most suitable buyers, are equipped to handle any objections or reduce any buyer hesitation, have adequately prepared your vendors prior to auction day and are going to achieve the best possible outcome. It is a matter of following and trusting the process.

If you need training or guidance regarding the auction process, how to setup your auction strategy or how you can achieve optimal results using auction, then contact Metro Auctions today!

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

Top 10 Phrases Agents Dread Hearing… But Do!

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Being a real estate agent is often a thankless job where you need to have pretty thick skin to survive. Yes, there are amazing perks that come with being an agent, but we think the following 10 phrases will have been encountered by all agents at some point and all have that little element of ‘ouch’.

1.     Oh, I didn’t even think, I just listed with ‘insert any other agent here’ –  friend or family member that has known what you do for years

2.     Why don’t you pay for the marketing, it is only going to increase your profile anyway – prospective seller at a listing presentation

3.     We have been instructed by our clients that they have not been able to obtain satisfactory finance and therefore your contracts is now terminated – solicitor that just advised your holiday you had mentally planned is now delayed

4.     You don’t mind if we hang about for the open home do you? – current seller that wants to micromanage the entire process

5.     Did you see this mistake on your print advertisement for ‘insert address here’ – office colleague that has a strange look of fear andamusement as they point to the magazine

6.     I got told by ‘insert any other agent here’ that my property is worth wayyyy more than that – prospective seller trying to make you squirm

7.     We are so keen, we will just have a talk about it and then we can get back to you with an offer – the infamous disappearing buyer who suddenly never returns a call or message

8.     Your job is so easy, I could sell ice to eskimos, I bet I would be a good agent – budding sales person with no real estate experience

9.     It must be nice getting to sleep in as long as you like every day, I wish my job was as easy as yours – annoying friends that think you don’t have to work hard

10.  Ohhhh, you’re a real estate agent – someone you just met as they screw their nose up

 

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER

5 Ways To Prospect You May Have Never Tried (But Should)

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There are so many ways to prospect and we probably feel as though we have tried them all, cold calling, letterbox drops, door knocking, the list goes on. But here are a few ideas that you may have never tried before that could boost your success rate when prospecting for new business.

1.    TAP INTO YOUR OLD BUSINESS

Set aside some time to call all your happy vendors that you have previously sold for and ask them verbally what they liked about your service, let them explain – take notes if you have to, but at the end of their response, ask them who they know that could benefit from your service. This way you have them thinking about your positive performance and they are more likely to provide a name and number for you to add to your list of warm leads to follow up.

2.    TEAM UP WITH OTHER PROFESSIONALS

pend some time to organise a group of non-competing industry professionals to meet for a ‘Referral Lunch’, each member of your group is aware of the purpose for the activity and comes prepared with prospective leads for other members of the group. This could be a regular occurrence and will help each members business through building a strong network and providing a set time to communicate regarding prospects.

3.    SEND A HANDWRITTEN NOTE

People like to feel special and there is nothing more personal than a handwritten note rather than a mass produced marketing letter. Take the time each week to select several clients you want to make contact with and tailor a handwritten note that will make them feel important to you. Most importantly follow up in the days after with a phone call to acknowledge the communication and continue forward with your prospect.

4.    LOOK INTO THEIR EYES

It is very easy to assume that adding a prospect to your company CRM and relying on automated communications will convert your prospect one day. But do not forget that your competition are also using these techniques and may be working harder to develop an actual relationship with your prospect. There is no better communication to build a relationship than face-to-face interactions. Segment your contacts into categories and make time to physically see your ‘hot contacts’ at least once a month. This will set you apart from your competition.

5.    RESEARCH, RESEARCH, RESEARCH

There is nothing more powerful than being equipped with knowledge about your prospects interests, likes and dislikes. There are so many ways you can obtain information about a prospect these days, simply by doing your research. We are not suggesting you stalk your clients, but you can easily connect with them on LinkedIn and other social platforms that will provide you with a greater understanding of your prospect and will help to develop a stronger relationship long-term.  

DAVID HOLMES — INDEPENDENT REAL ESTATE AUCTIONEER