Tony Brazier

www.braziers.co.nz

Tony Brazier

The Press - Wednesday 24 February 2010

New Recruit to Real Estate

A new recruit to real estate quickly learns that the industry at times has not been held in the highest regard by the general public. One can hardly blame them when the media seems fixated with regurgitating the relatively few transactions (compared with the tens of thousands that are done) that end up in the courts.

It is quite difficult for the new rookies to keep their confidence when the person on the other side of the table presumes them to be ‘embellishing’ the facts even before they’ve opened their mouth. This may seem a little harsh but it is a fact that good salespeople learn to expect and come to understand as not being the fault of the client/customer. After all when did you ever see a news article on how greatly appreciative and impressed a member of the public was with their real estate salesperson.

This appreciation tends to be a result of the transaction, not a pre-requisite, therefore the new recruit knows that coming from a position of suspicion they must earn the clients’ respect, not expect it.

One of the hardest jobs in real estate is to prove to some vendors that you are actually on their side, unless of course, you have had the benefit of proving that in the past. Future business comes from clients who have had their suspicion taken away who then start referring others to that salesperson. But for a rookie, or for a first contact, it can be all hard work.

Why then do vendors use the industry if they are so suspicious? There are many reasons, most of which are psychological, some of which are practical, like their lack of time. Most people, for example, don’t like confrontation. By its very nature negotiation is confrontational, albeit usually in a minor way. Most buyers don’t agree with most vendor’s prices at the onset of a negotiation, which many vendors find an uncomfortable position to start from.

In hiring an agent they expect their salesperson to be their advisor, confidante, problem solver and hard nosed warrior. A good way of determining how good your salesperson is at negotiating your price is to ask them about their fees. If they turn “belly-up” at the mention of it or you successfully get them to halve their fee, what on earth is a buyer going to do to your asking price. Don’t be offended if you lose the negotiation on fees for if you win it you may as well carry on negotiating your own price as well.

There are many old but true sayings in real estate which most vendors unfortunately seem to need to learn at least once before they believe them. When the salesperson mentions them it is with decades of history from the industry behind them to quote. For example “The first two weeks of marketing are the most important”. Why? Just think of fish in a tank. Do they wait until tomorrow when fresh offerings are to be pursued? Also, “Your first offer is often your best” is proven time and again by those buyers who have been in the market looking long before your property was dropped in front of them. Some have been looking for up to a year prior and move quickly when they find the perfect property.

One saying for our investors, which the more experienced investor knows to be true, is to “Leave some in for the next guy”. I’ve noticed for active investors it is easier to make the first 50% of the next profit than it is to squeeze the last 5% out of the property being sold. Move on.

As time goes by and the public find their salesperson of choice, (that they have learnt did speak the truth and did give good advice,) then the true benefit of our industry comes to the fore. These special relationships are a pleasure to be a part of where the vendor (who often comes back as a purchaser,) begins to trust the advice of their chosen salesperson acting upon the knowledge they have gained for the best result for that client. ‘Client for life’ is the ultimate in relationships and is one that the client dictates, not the agency. The agency’s job is to break through the barrier created by bad press and build a healthy professional trust built on good ‘client first’ advice, honest appraisals and compassionate understanding of the client’s position. Sometimes this can take years.

Those of us who have been around awhile know that it takes a very long time to make a good name in our industry and a very quick time to make a bad one. So cut your salesperson some slack as their Principal will be very conscious of the above and you may just have met the best asset your property portfolio will every pay for.