Inspiration

Buyers - who needs ‘em?

Reaping the benefits of treating buyers differently.

Estate Agency News

Last month’s article by Peter Knight provided a striking example of one of the current weaknesses of many estate agents – a desperate inability to regard buyers as a highly valued component of our business. Twenty-two out of twenty-five estate agents he visited in a particular town demonstrated a service that “wasn’t just poor – it was appalling!”

Estate agents spend thousands of pounds advertising properties for sale to attract buyers. A hugely disproportionate amount of most agencies’ websites is also dedicated to buyers. Yet once we have them as an expensively captured resource, we squander our investment and watch them walk out of the door, waving our reputation goodbye as they leave.

Peter described many of the agents he met as being “untidy, unshaven, scruffy, tired, bored, demotivated, no spark, little humour, no attempt to engage in proper conversation”.

Not only could these characteristics be regarded as negligent, let alone disrespectful, but it also flies in the face of commercial wisdom and common sense.

So why are so many estate agents weak in this area, and what are the incentives to do a better job? I believe the reasons for this shoddy approach can be can be summarised into the following categories:

Under-management

Some managers assume that as they have hired staff from other agencies, or have trained them to do the job, the staff no longer need managing. Staff regard themselves as employees with no real incentive to turn opportunity into profit. If the cat is away, the mice will certainly play. People always need managing, and preferably well!

Over-management

Here the reverse is true. Too much control by a dominant principal leaves staff feeling powerless to do anything without the direct approval of their employer. They have no accountability and cannot speak on behalf of the company with any authority, giving the impression that the outfit is run by incompetent staff. Over-management is poor management.

Underselling

Some agents believe that you cannot make a buyer buy, and that properties eventually sell themselves if they are offered to enough people. They do not want to appear pushy and just shove details into the unfortunate buyer’s hands. This apparent indifference can only be rewarded by indifference towards your agency – and no agent can afford that.

Overselling

Staff who are not trained in the art and science of estate agency technique are often guilty of overselling. The thrust a property onto a buyer thinking that if they push hard enough they might make a sale, because they do not have the subtle talent of the pro. This is like shouting at a Frenchman to overcome your own inadequate grasp of French.

Negative probability

Because we have historically given buyers minimal service – that is what they have come to expect. They simply come in wanting property particulars, and experience tells us that the chances of them actually buying one of our properties is relatively low. So why should we bother with them at all? If we looked after them superbly, they would actually want to buy from us, and would register with fewer agents. Contrary to common belief, this has surprisingly little to do with the stock that you have on your books (unless it is minimal, in which case use a multi-listing service such as Partake MLS).

A free service

Unlike almost any other business, estate agents offer a free service to their customers, if not to their clients. Some agents therefore see little value in the buyer and take a superior attitude thinking how ungrateful the buyer is. “They have the details, what more do they expect –a smile?”

Agent abuse

Once bitten, twice shy. There are occasions when a past buyer has abused the agent through rudeness, indifference or conceit. This is possibly because of the low regard our industry has encouraged the public to have of us, but whatever the reason, we continue to do little to improve the situation.

Nosey neighbours

Here the agent assumes that the enquirer is not a serious buyer, but simply a curious neighbour. The agent’s attitude is “how dare they take advantage”. The fact is that neighbours form part of our community and future client base. If we look after them, they can prove to be our greatest source of instructions and buyers. They are the conveyors of our reputation! We should be proactively encouraging “nosey neighbours”.

Saturday syndrome

It is astounding that we put the lowest paid, worst trained, least incentivised staff in charge of our offices on the busiest day of the buyers’ week! As fee rates have dropped, there is now a tendency to cut corners by employing cheaper low-calibre staff. This is probably the most counter-productive mistake an agency can make. There are far more cost-effective ways of reducing overheads.

Mailing list Cop-Out

Some agents have difficulty sorting the genuine buyer from the “time-waster” (although there is no such thing as a time-waster when your reputation is at stake), and the easiest thing to do is ask if the applicant “wants to go on a mailing list.” If I were a buyer, I’d say, “keep your mailing list and show me some houses”. But most British people just take the list and don’t make a fuss – then they buy through a more pro-active competitor.

Poor Training

Agents who have little or no training are simply not able to recognise opportunity in context, and convert it into profit. Don’t just employ good agents – create them!

In summary, we have effectively trained the public to expect shoddy service, and that is exactly what we give them, although I know of some superb agents who understand the importance of buyers to their business and our industry, and are harnessing this to their considerable advantage.

Most buyers, irrespective of whether they buy through us or not, are likely to end up living within ten minutes of our agency. A high proportion of their friends and colleagues will live in the area as well. In the competitive, geographically confined, business of estate agency, who needs enemies?

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© Richard Rawlings 2010
Richard Rawlings is the founding director of Estate Agency Insight, which specialises in helping estate agencies harness opportunity through innovative method, marketing, publicity, and training. He can be contacted at or on 0845 838 1354.

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