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Julian O’Dell is founder of TM Training & Development
TheDilemma
JULIAN SAYS: The size of the sales market has contracted so dramatically that I now fear there are insuffi cient volumes of sales to support the number of estate agency outlets. Already a number have closed and a further number are likely to do so, according to conversations I have had in recent weeks. Reports abound stating that agency branches are averaging “a sale a week”, which for many will not come close to covering the bills. Exceptional agents conduct their business
in a signifi cantly superior manner to the typical agent, from the moment a new customer comes into contact through to the day of their move. The key mantra that such agents embrace is that “good is no longer good enough” and as such they seek ways to raise the bar through training, coaching, consultancy or the sharing of ideas with other practitioners in order to become exceptional at what they do. One area of work which varies wildly in
quality is the handling of off ers. The best agents have a clear strategy on how best to deal with these situations in order to ensure successful negotiation is achieved. It is important to consider what negotiation
really means in the context of estate agency – one relevant defi nition might be, “The bringing about of an agreement between a number of parties by a third party on unambiguous and mutually satisfactory terms.” Preparation for putting the off er forward is
key. Tempting though it is to get straight on the phone to try and get a sale together, some minutes spent paving the way for the conversation pays off massively.
Firstly, who should make the call? Choosing the right person for this task has a direct impact on the outcome – the person with the best rapport and the best chance of securing the right outcome should be the default setting. In some cases this might be the least experienced member of staff or even the mortgage adviser. The vital research here is to ensure you know the clear motivation of
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“The key mantra is that ‘good is no longer good enough’. You have to be exceptional.”
the client – people take action to avoid penalties or achieve goals. Do we always know what the aims of our clients are? In other words, can we reinforce how their acceptance of an off er from the right buyer will help them achieve their key objective. These will vary hugely from vendor to vendor but will include getting children into the right schools, being closer to an elderly relative or specialist health care, reducing the cost and the time of their commute or ensuring they can aff ord to live in their home without undue fi nancial concerns. It has always struck me as particularly odd that agents put off ers forward to clients when
Despite a good sales month in January, we’ve lost business by failing to tie up off ers. I want my staff to be capable of dealing with off ers eff ectively. What are the key tips and techniques for them?
the negotiators are oblivious to the amount of outstanding mortgage and equity on the property. An off er of £225,000 on a house on at £250,000 is likely to be better received by a client with a £40,000 mortgage than one with a £240,000 mortgage after all. Next, who should the negotiator speak to?
Inevitably, if the vendors are a couple, one of them may well be more motivated, receptive, open-minded and/or intelligent than the other – it is this party the agent should contact. Does the negotiator have an absolutely unambiguous grasp on what the amount of the off er is and what the buyer is expecting to get for that amount? I have witnessed so many sales fall through over squabbles about fi xtures and fi ttings further down the line because they were not clarifi ed at the outset. Other preparatory work that infl uences the outcome would include but not be limited to:
● What is the buyer’s specifi c timescale? ● What is motivating the buyer to move? ● What is the buyer’s specifi c position? ● What price did the buyer initially register up to?
● How far has the buyer got with arranging their mortgage?
● What amount of mortgage are they intending taking on the purchase?
● Did the buyer hint/state that they would go higher?
● What have they previously off ered on? ● Have they seen anything else that they are considering?
● What level of choice is out there if they don’t get this property?
As with many things in life, the level of
preparation undertaken links directly to the quality of the outcome. There are a vast number of other questions that should be posed prior to putting the off er forward – too many to list here but the basic premise is unquestionable – a few minutes taken to pave the way for the discussion of the off er can make or break the sale. ●
TheNegotiator ● April 2012 ● 31
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