Common Mistakes for Real Esate Agents
3 COMMON MISTAKES THAT AGENTS ARE MAKING & HOW TO FIX THEM
Here at Commercial Brokers International (CBI), we have a mantra that our agents are constantly reminded of every day. It is ABC – “Always Be Closing.” However, this saying works only in theory. In reality, this is not always happening for two reasons. One, the process of selling real estate is a lengthy one, and includes qualifying, researching, etc. Two, agents are sometimes not doing enough to close more deals. The following are three main reasons, according to co-founder of Pono Asset Management, George Pino.
Mistake 1: Agents That Don’t Qualify Clients
Lots of time (money) is being wasted on agents not qualifying clients. Qualifying can mean making sure a potential buyer has enough liquid assets or can afford a loan, but agents should be doing more. As mentioned in an earlier article, it is important to “D.A.M.” your clients by checking a prospect’s "Desire, Ability, and Motivation" to invest. The standard qualifying done by an agent only examines a client’s ability to invest. An agent needs to have the intuition to assess if the client is personally and emotionally ready for a real estate transaction. A person’s speech and body language can be interpreted in multiple ways while financial records (numbers) can be interpreted in only one way. Agents should spend some time making sure a client is financially, emotionally & personally ready before any proceedings take place so that time is not wasted for either party.
Mistake 2: Agents that Don’t Ask for the Business
A second barrier that prevents an agent from closing more deals is, simply, he/she is not asking for the business. This could mean not adequately advertising their expertise of real estate – their location knowledge, notifying contacts of their previous closings, as well as continually calling and proactively staying in front of clients and other contacts. Some agents feel embarrassed to call on friends and family to get connected to people that need aid in commercial real estate, yet these are your best people to spread the word about your knowledge and expertise.
Agents are not doing enough cold calling to let a prospective client know of their experience and how they are different than every other agent. Another reason to cold call is that it is harder for the individual on the other line to say ‘No,’ in getting the same response via email or in ignoring an advertisement. Better yet, it is better to get together in person.
Mistake 3: Agents that Lack Persistence
When agents have a client, it may be difficult to get them to communicate their thoughts and ideas. In order to get the client and agent on the same page, the agent must show a high level of persistence with the client. The agent should be following up with the client almost daily until an answer is received. Preferably, the conversation will take place over the phone as opposed to an email. The key to following up consistently is to not appear as desperate, aggressive or annoying. Instead, maintain a positive tone and be friendly.
Although the phrase used at CBI, “Always Be Closing,” may not always be permitted in some market conditions, agents can certainly be closing at least more deals if they qualify clients efficiently, proactively ask for their business, and show relentless persistence.