By Cath Dickinson
As the impact of the COVID-19 pandemic continues to unfold, we spoke to two leading residential sales agents about what they’re doing to meet the challenges posed by the current operating environment.
Braden Walters
John Cunningham
That activity in the market has fallen away in recent weeks is no surprise, but it’s how you deal with this changed environment that will make all the difference, according to John Cunningham, Managing Director at Cunninghams Real Estate and former REINSW President.
“We know that numbers are going to decrease dramatically,” John said. “They already have. For us, private viewings halved in a week, as did appraisals and new listings. We know that we’re going into a hiatus of sorts, because everyone needs time to take a deep breath.
“But, at the same time, there are still people who need to transact. People need to sell and they need to buy. We need to be there to help them do it, and we have to do it in a way that gives them confidence in our ability to meet their needs. This means we have to discover their needs and build trust.”
John explained that his sales team are expecting to close around 60 per cent of the sales they budgeted for in April.
“Given everything that’s happening around us, that’s great,” he said. “It’s the quality of the conversations we’re having with our sellers and buyers that will ensure we get there. That’s it in a nutshell – quality conversations.
“We call them our ‘care and value calls’. When you’re talking to a seller, the number one thing they want from you is the assurance that you know what you’re doing. Shallow agents, who are relying on bluster and bravado, are going to fall short of client expectations at the moment.
“Now is the greatest opportunity we’ve ever been given to demonstrate our true value.”
According to John, the reality is that consumers constantly question the value provided by real estate agents.
“That’s why we’ve seen fees diminish significantly in recent years,” he said. “Because we’re not sufficiently articulating our value – and this is where there is the opportunity. You have the opportunity to put a strategy in place, help clients understand what you’re doing and, importantly, why you’re doing it. Then, when your clients understand this, your value increases exponentially.
“The two greatest things a client can say to you are ‘that makes sense to me’ and ‘what do you think I should do?’ This is where we all need to be at the moment. We need to be trusted advisors. Moreover, we need to be trusted guides, because, right now, we’re guiding them on a journey into the unknown.”
John said these ‘care and value calls’ are equally important with buyers.
“They might tell you that they’re not looking at the moment,” he said. “But what if the perfect property comes onto the market? Do they want you to call them about it? If the answer is yes, then they’re still in the market; they’ve moved from active to passive status. That’s fine. The important thing is that you know what their status is, so you can communicate with them appropriately.”
John believes trust is the most important currency agents have right now.
“For sellers, it’s trust,” he said. “For buyers, it’s the right property at the right time, under the right conditions, with trust.”
Communication counts
Braden Walters, Principal at Belle Property Byron Bay/Lennox Head and REINSW Board member, also pointed to the fact that communication with sellers and buyers is now more important than ever.
“Yes, the market has slowed, but we’re still open for business and property is being transacted,” he said. “That’s the message we need to send to our clients. Case studies are a great idea, because they demonstrate results. We’re also explaining how this ‘new normal’ works. It’s really an education process.
“When it comes to sellers, it’s a case of explaining that while we’re not holding open homes and enquiry rates have dropped, there are still genuine, motivated buyers in the market.”
Braden explained that one of his biggest hurdles is that 50 per cent of his buyer pool has disappeared virtually overnight.
“Being where we are, half our buyers come from outside the area,” he said. “They’re from somewhere else in New South Wales, another state, or even overseas. However, because of all the travel restrictions currently in place, they can’t come and physically inspect properties.
“Yes, we’re doing virtual tours and videos – everything we can possibly do to show the property. But, the reality is that there are very few people who will spend upward of $1.5 million on a property without physically walking through it.”
To combat this, Braden is keenly focused on nurturing his database.
“As a team, we’re talking to as many people as we can,” he said. “That’s what is most effective for us at the moment. Finding the local buyers who have sold, have finance approved and are ready to buy – that’s who we’re connecting with. Not the people who are just thinking of moving, but those who need to move.
“There are also sellers in the market who need to sell, so we’re focused on booking one to three appointments a day for inspections. This creates activity and keeps the wheels turning.”
Braden said he is drawing on all the foundation skills he’s built up over the course of his career.
“In this market, it all comes down to being a good sales person,” he said. “It’s about going back to basics.
“Importantly, you need to have your dialogue nailed. When you’re talking to 50 people a day, most of them are going to tell you how bad the market is. But the worst thing you can do is encourage that fear and negativity. It’s OK to disagree.
“It all comes down to how you handle objections and what you’re saying to educate them. You need to constantly fine tune how you’re talking to sellers and buyers, and what you’re telling them.”
Positive outlook
While times are challenging, Braden said the industry is fortunate to have so many technology solutions available to keep businesses running.
“Imagine if this had happened five years ago,” he said. “Today, we can work from the cloud, do virtual inspections, conduct online auctions and smoothly transact property using a range of digital solutions. While technology will never replace our role as agents, it has certainly helped us keep the wheels turning over recent weeks.”
John agreed and added that we all need to look at the opportunities the impact of the COVID-19 pandemic has afforded us.
“Thoughts like ‘this is terrible’, ‘we’re not going to get through this’ and ‘everything is falling apart’ are useless,” he said. “We need to turn these useless thoughts into useful beliefs.
“It’s a choice. We’re in an environment of opportunity. Why not learn a new skill? Try some different software? Implement a piece of innovative technology? Or do an online course?
“Whatever it is, the important thing is to do something positive, because this will influence how you emerge on the other side of this current situation.”