As rate rises and affordability pressures continue to hold buyers back, agents are often held responsible when sales campaigns don’t go to plan. This is how they can maintain their credibility no matter what.
In a slower market, emotional sellers may be quick to single out their agent when they don’t see desired results, which could have negative ramifications for professionals’ reputations.
Buyers have continued to hold back following the fourth rate rise of this year, with the combined capital clearance rate last week slumping to 45.4 per cent, the lowest since June.
Meanwhile, properties have been remaining on the market for longer, with listings six months or older making up 28 per cent of listings nationwide.
According to Barry Plant Docklands sales manager, Alice Geddes, agents needed to know how to deliver bad news strategically to remain trusted experts in the eyes of sellers.
She said to maintain credibility, agents should use accurate market data to back up updates to vendors, deliver feedback in an honest and timely manner, and remain sensitive to sellers’ emotions.
Here’s how to do it:
Timeliness
Some agents may hesitate to deliver bad news straight away, but Geddes said timeliness was essential to maintaining trust with sellers and giving their clients the best chance of success.
“If you are not going to … give them the news as soon as possible, you're really doing them a disservice by not having that conversation with them,” she told REB.
Geddes argued that the longer the property remained on the market, the higher the potential cost to the client, as it could signal low interest and create buyer skepticism.
“[Update them] weekly, if it's required – you shouldn't wait to give people the news,” she said.
“Agents might hesitate if they feel they've overpriced a property or overshot the mark. But I give my clients weekly updates so they can make informed decisions.”
Give supporting data
By providing market data, including comparable properties, similar homes on the market, or local supply, Geddes said agents can back up their advice and maintain credibility.
“For our market, we are a little bit specialised. So if we are looking at a potential price change, we will also take into account the amount of supply on the market,” she said.
Geddes said if the seller was competing against numerous similar apartments, they needed to be aware of exactly how much competition they were up against.
“Generally, the person that will make the move first will be the one that secures the buyer and gets the sale because the buyer has so many options,” she said
“As long as accurate market information and data relevant to the clients is provided throughout the campaign … there shouldn't be any loss of credibility.”
Be honest and transparent
According to Geddes, being honest and upfront, instead of sugarcoating buyer feedback, was pivotal to helping sellers make the right changes to sell their property for a good price.
“People work hard for their money, and you're listed to sell one of their biggest assets, even if it’s moms and dads that have worked really hard just to have an investment property,” she said.
Geddes said that, particularly in a tougher market, many sellers would appreciate the honest truth, as the sale of their home may greatly affect their lives.
“Obviously they should deliver news in a respectful manner, but sugarcoating it so they don't have a full grasp of the situation would be the key mistake.”
Be sensitive to sellers’ emotions
Additionally, Geddes said agents should be sensitive when delivering bad news to vendors, including in their mode of communication.
“We're all human beings and so are owners, and when it comes to money and assets, clients need to hear at least a voice on the phone or a face-to-face meeting if possible,” she said.
For interstate or overseas clients, Geddes agents could arrange an online Zoom meeting where the seller could hear the emotion in their voice.
“They’re paying you to do a job, and they need to know you care, so on the emotional side of things, it’s important that it does get translated through.”
However, Geddes warned that some buyers may choose not to listen to the agent or take longer to accept the news, particularly if it meant they were likely to lose money.
“It sometimes takes people longer to come to the point where they're ready to make an adjustment … it’s important they know we are doing the best we can for them and that we care; it’s not just transactional.”
Want to see more stories from trusted news sources?Make Real Estate Business a preferred news source on Google.
