In the Loop - May 08
Agents prepare for stormy weather
19 May 2008
As conditions toughen, we want to make sure that those of us who are still thriving share our secrets of success with those of us who are finding it more difficult. Last month, Nigel Higgins, movewithus agency network director, listed his top tips for agents.
Click here to read the full article.
Nigel Higgins said: “It’s time to get real. The agents that want to continue achieving in the current market are going to have to make some significant changes to the way they do business. We have to revert back to traditional estate agency methods. This means assessing each and every buyer and seller as soon as possible to see if they have the financial means and motivation to move.”
Some agents have already started implementing changes to the way they do business. Aidan J Reed, a Leicestershire-based agent, has recognised the urgency of the situation and has been proactive in making the necessary changes.
Company founder, Aidan Reed, explains: “We recently called a staff meeting and went through 120 properties on our books. Out of these, only 20 were from motivated vendors with accurate pricing.“
This is a more common occurrence that many agents would like to admit. Not only do unmotivated, overpriced properties not sell, they cost money through maintenance and administration costs and create a negative image of the agent’s effectiveness locally.
How was the situation rectified?
Aidan Reed continued: “We took action and made sure that the remaining properties were priced accurately. We’ve been spending the maximum amount of time with the motivated buyers and sellers and those vendors who have low motivation have been dropped. This has resulted in a more efficient, leaner team that is able to deliver a more effective service in the current conditions.”
Nigel Higgins commented: “As I mentioned last month, we suspect that many of these methods are already being followed but it is always useful to review them against your own businesses. Aidan Reed have certainly got the right ideas but some agents are still living in the past – in a world where every instruction leads to a sale and every buyer has the financial means to move. This simply isn’t the case anymore.”
With the current mortgage uncertainty severely affecting the ability of buyers to proceed, early assessment is vitally important.
Nigel Higgins said: “An agent told me a story recently which shows the importance of early assessment. A prospective buyer explained that he needed to move urgently and was deemed by the agent to be a ‘hot buyer’. The agent made 11 appointments, eight of which were accompanied. The buyer chose a house and after a meeting with the vendor, a price was agreed. It then emerged that the buyer wasn’t able to qualify for a mortgage and the whole sale fell through…
… imagine how much time and effort could have been saved, just by following the golden rule: assess every buyer and seller for their financial means and motivation to move!”
