Making Business Happen

Making Business Happen


With the second half of 2012 already well under way, it is time to focus on raising standards to ensure a successful remainder of the year and a healthy pipeline going into 2013. Our new training course dates have just been released with more to follow - their sole objective is to add money to your bottom line. Details can be found below.

There are also a couple of articles directly focusing on winning and retaining stock, key elements to running a successful agency at any time but particularly in a challenging market.

The old rule still holds as true as it ever did..."The definition of insanity is doing the same things tomorrow as you did today and expecting a different outcome..."

What is your agency doing differently in the second half of 2012? If the answer is nothing, call us for proven practical ideas to make business happen!


Autumn Tour Dates - book now!

New training course dates for the Autumn just released! To book please visit our website www.tmtraininganddevelopment.co.uk or email admin@tm-traininganddevelopment.co.uk or call 01480 405583...

September 21st 2012 - Gaining More Instructions this Autumn - Bristol

October 2nd 2012 - Gaining More Instructions this Autumn - Gatwick

October 9th 2012 - Selling in a tougher market - Newcastle

October 16th 2012 - Selling in a tougher market - Manchester

Feedback from recent courses...

"So refreshing to be trained by an existing successful agent, not a failed one or a trainer who has never done the job!"

"We would normally quote 1.5% and they would probably have matched the other agent's fee of 1.25%. However we had just come back from the Julian O'Dell training and felt confident about our service and about asking for a decent fee. So we quoted 2%. And guess what the seller said? "Yes, that is fine". A &60,000 fee instead of &37,500....Thanks Julian!"

"I have to say the best course/training I have been on and would do it again – I can’t think of any negatives, really would love to see Julian back."

"He kept me interested and involved all day. Much better than any other training I have had"

Hope to see you and your colleagues out on the road!

 



Mind the gap!

One vital role of a negotiator is to spot and convert opportunities for market appraisals, yet little attention is given to this critical area of the business. It is all very well to target for exchanges, sales, viewings and so on, but none of these will ever be achieved without going through sufficient front doors in the first place. Therefore monthly team and individual targets for appraisal generation are key to thriving in challenging times.

Effective valuers will do all they can on the appraisal to convince the client that their services will be the most likely to get them the result they are looking for, whether it be the best possible price, the quickest possible sale, the avoidance of hassle and inconvenience, or ideally all three. But this highly skilled approach can only be employed once an appraisal has been secured by the valuer's colleagues. To achieve the appointment often necessitates the non-valuers possessing a similar skill set to the valuers in terms of promoting the merits and USPs of the company's services as well as having a detailed knowledge of the competitors' proposition to highlight one's own strengths against their weaknesses.

In reality, many non-valuers have not been supported by training or coaching in this discipline, and some have never even been out on an appraisal to enable them to understand the process and pick up key phrases or soundbites used to persuade clients of their firm's superior services.

If a non-valuer meets a local applicant with a property to sell, whether that be at registration stage or at a viewing, he/she needs to be as proficient as the valuers at converting that opportunity. In other words, when offering a free valuation and being faced with resistance (eg "I've already had two valuations" or "We're going to put it on the market with Bloggs and Co as we bought it from them"), an appraisal appointment MUST still be achieved. This can be done by highlighting one's own key selling services in comparison to the other agents, by explaining recent sales successes that your agency has had particularly where other agents have failed, by pointing out market share stats where relevant and crucially by focusing on how your USPs will achieve a better result.

This high calibre persuasive approach can only be achieved by way of training/coaching the non-valuers to reach the levels of knowledge and confidence of the valuers. Failure to address this issue will  undoubtedly lead to missed appraisals and thus less instructions and sales.

Our "Supporting the Valuer" course has worked wonders in helping non-valuers achieve more appraisals by converting opportunities, handle fee enquiries and book appointments in an exceptional manner. Do give us a call if you feel this course would help your agency.

Julian O'Dell 07718 634235

 



Withdrawal Symptoms?

Instructions can only go down one of two ultimate routes…they become an exchange or a withdrawal. The former makes you money, the latter costs you money.

Many agents pay surprisingly little attention to their "withdrawal rate" – however, it is a brilliant snapshot of an estate agency branch’s effectiveness.

As a starting point, it would be interesting to assess your performance as an office or individual valuer in 2012. To do this, the following calculation applies…

The critical calculation…

1. Total of available resale stock as at January 1st 2012.

2. Add total number of resale instructions over next 6 months.

3. Subtract number of net resale sales agreed during that period.

4. Subtract available resale stock total as at June 30th 2012.

5. This gives a total number of “withdrawals” over the 6 month period.

For example: Office has 62 available resale stock as at January 1st 2012. It then lists 71 resale instructions between January 1st 2012 and June 30th 2012. Total = 133. Subtract the number of net resale sales during that period (39) = 133-39 = 94. Total available resale stock total as at June 30th 2012 = 65. Total withdrawals = 94-65 = 29.

 The calculation completed…

6. Divide total number of withdrawals by total number of resale instructions taken during the first 6 months of 2012

7. Multiply by 100

8. That shows the withdrawal percentage (range around the country seems between 20% and 80%)

9.  Take average fee on net sales during that period and multiply by withdrawals total

10. That shows the amount of missed commission during that period….

In example office above...29 withdrawals divided number of resale instructions - 29/71 x 100 = 40.84%. Average fee of &2200 x 29 withdrawals = &63800 missed commission in 6 months = &127600 per annum.

But the true cost is much more significant than that because of money invested in time, marketing, printing, postage, communication etc etc PLUS THE HIDDEN COST OF YOUR TARNISHED REPUTATION WHERE YOU HAVE FAILED TO SELL A PROPERTY!

A 0% withdrawal rate will never happen, but there are a number of key actions, measures and techniques which can be put in place to reduce the withdrawal rate. If you would like to know more about how we can help with this issue, please call 01480 405583 or email admin@tm-traininganddevelopment.co.uk