Maintaining fees and winning instructions

Experienced sales trainer Boyd Mayover, co-founder of Sales Doctors, explains how agents can overcome price objectives, impress prospective clients and offer them the value for money they desire.

How can agents show vendors their true value for money?

The best way for agents to show vendors true value is to demonstrate their differentials from the moment they take a call through to the market appraisal.

Most agents tell the vendor how they are going to market the property. However, I know the best agents add value by explaining how they are going to sell the property – it shouldn’t be a dirty word in our industry.

What are the little things agents can do to impress their clients?

Do you post a hand-written letter through the door of the potential vendor before going on the market appraisal with a mini bio on the valuer, testimonials and link to the meet the team page? This sort of action adds value to your fee.

Do you meet potential buyers or do you just allocate them the standard 15 minutes? Where appropriate, make sure the people doing viewings have seen the property.

Does the buyer feel loved? We need to ensure the buyer feels engaged and that we are interested in their needs at all times. Communication via phone is key.

What should agents do when vendors quote competitors charging rock-bottom fees?

We must demonstrate how we are worth the difference. We must use comparable figures and ask what costs the competition has presented.

Most importantly above all else is this question: 'If our fees were the same, who would you choose to sell your home for you?' Unless they say your agency, fees are irrelevant and it’s something else.

How can an agency keep their average fees high and still take on more instructions?

One of the easiest ways to keep fees high is to believe in what you are doing, ensure that your sales progressor is featured highly in your documents and work very hard at explaining why you are worth the difference.

For example, if you are charging a commission fee of 1.5% and your competitor is charging 1%, you need to show why you are worth the additional 0.5% and turn that into 'money'.

Most agents are wary of talking money. If you show how on a £500,000 property you are only £2500 apart, you can show that if you get them £505,000, they are ahead of the game by £2425.

What is the biggest challenge for agents trying to achieve more sales?

The biggest challenge for agents today is the perception of the public. The public believe that agents don’t care, won’t give feedback, don’t follow up and only do what is good for their own businesses.

In order to change that perception, we must be world class in every area that our agency delivers. We must work hard at ensuring we are the agent of choice.

How can agents motivate their teams to get more instructions?

The best way to incentivise teams to get more instructions is to realise that not everyone is motivated by money.

Find out what motivates the team and set targets and incentives based around that. The best agents I work with know that sometimes and for some people, money is not enough to motivate.

How can agents stand strong when negotiating their fees with prospective vendors?

When a potential client says fees are too high, they are normally alluding to one of the following four scenarios:

1. I can’t afford it, but I’m embarrassed to tell you.

2. You are more expensive than your competition (can’t see value).

3. I don’t like you, but I’m British so I won’t tell you that.

4. I actually think your fees are fair, but let’s see if I can negotiate a better figure.

As far as the last one is concerned, why is it that when we buy a car we don’t mind lying to get a better deal but when a customer says we are too expensive we automatically believe them?

If you question the above rather than answer you will have much more chance of succeeding.

*Boyd Mayover is co-founder of Sales Doctors