The Importance of Reputation in Real Estate Sales: Strategies for Building Trust and Closing DealsApr 27, 2023
In today's shifting real estate market, it's more important than ever to establish yourself as a trustworthy and effective agent. Your reputation can make or break your success, especially when it comes to listing sellable properties and closing deals.
We'll explore the key strategies and insights that can help you build and maintain a strong reputation as a local property market expert, prioritize effective communication, and ultimately close more deals.
Whether you're a seasoned agent or just starting out in the industry, this content will provide you with the tools and knowledge you need to position yourself to close more deals in today’s real estate market.
A critical element of not only surviving but thriving in real estate sales in a shifting marketplace is in fact the strength of your reputation as a local real estate agent within the local marketplace especially so among the sellers and potential sellers within that local community.
The universal rule of real estate sales is this, property sells in every market.
And property will also always sell in shifting and negatively declining markets. Events such as life changes will call vendors to sell, regardless of market conditions, life changes such as job relocation, family changes, or financial hardship may force a seller to put their property on the market. Or even the need for liquidity, in a declining market, some sellers may be looking to sell quickly to free up cash and minimize potential losses. Often in these type of market conditions, sellers will sell for fear of further decline as they may fear that the market will continue to decline, leading them to sell their property now rather than waiting and potentially facing further losses.
Another reason we will see some sellers selling in declining markets is they may choose to downgrade their property and purchase a smaller or less expensive property to reduce expenses.
And very often in declining markets we’ll see sellers who purchased the property as an investment and may choose to sell in a declining market to minimize losses or reinvest in a more profitable opportunity.
So albeit property always sells even in a negatively shifting market, what we as real estate agents have to understand is that the needs and attitudes of the potential sellers in such markets are different than the selling population of a booming market.
In a declining market, potential sellers can often feel anxious and stressed, especially if they are concerned about potential financial losses. The uncertainty of a declining market can cause some sellers to feel fearful and uncertain about the future, especially if they are relying on the sale of their property to make a move or cover expenses. We also see that some sellers may feel disappointed or regretful about having to sell their property in a declining market or may feel that they are not getting the price they deserve.
So the balm that soothes these very uncomfortable and often present emotions and energies in the potential sellers, and in fact, is what will separate you from the competition in the marketplace, is the strength of your reputation in the marketplace as a reputable, trustworthy and effective real estate agent.
In declining property markets, potential sellers will look to the real estate agent who they feel can provide valuable expertise and guidance on pricing, marketing, and negotiating in a declining market, giving sellers the confidence and reassurance, they need. An agent who they feel can provide a high level of professionalism and trustworthiness, which can help put sellers at ease and alleviate their anxiety and stress.
The potential sellers will look to the real estate agent who they feel can provide them with objective and honest advice, helping them make informed decisions and avoid potential pitfalls in a declining market, an agent who can provide emotional support and empathy throughout the process, helping sellers feel more comfortable and confident in their decision-making.
So how do you position yourself to be such an agent within your local property market, and how do you communicate to the potential sellers that you embody the attributes of professionalism and integrity and that you possess of the necessary skills, such as excellent communication, marketing, and sales skills, and strong negotiation skills?
Well believe it or that, it all starts with becoming and being the local property market expert.
Sellers want a real estate agent who is a local property market expert because they want someone with knowledge and authority on the local property market.
When an agent speaks with authority on a subject, people listen.
By embodying the role of a local property market expert, an agent can make sellers feel safe in the knowledge that they are the right choice for them.
Additionally, sellers are more likely to trust an agent who is well-informed about the local market, including pricing trends, buyer preferences, and market conditions.
Overall, being a local property market expert can set an agent apart from the competition and make sellers more comfortable working with them.
A real estate agent who is a local property market expert, will know every property that has sold in the marketplace over the last 12 months, and often even further back than that, they will know what properties are currently for sale, what properties are overpriced, what properties have been withdrawn, who is buying the properties, and what are the needs of the buying markets.
All top-performing real estate agents will be a local property market expert of their local marketplace, however, becoming the local property market expert is in fact a skill you can acquire within 30-days or less.
By being a local property market expert, you will have a deeper understanding of the market and its trends. This knowledge will help you to better advise your clients, provide effective marketing strategies, and negotiate optimal deals. It will save you from listing properties that are not willing to meet the market and are likely to become a distraction from your path to success..
Ultimately, this expertise will help you to win more sellable listings and build a reputation as a reliable, knowledgeable, trustworthy, and effective real estate agent in your local marketplace.
- It will also help you understand how best to present the marketing text and imagery of your listings to communicate the property’s value to the buying market based on your understanding of what their needs are within that marketplace.
- By possessing such local property knowledge, you will be better able to engage your sales skills and communicate effectively benefits and selling points to both sellers and buyers.
- It will support your negotiation skills by arming you with the information of the performance of property within the local marketplace to equip you to reassure both sellers and buyers alike in the negotiation stage of both the pricing strategy and the offer negotiation of a deal.
- It will arm you better to employ the correct pricing strategy to ensure the best sale possible for the potential seller’s property.
- It will improve the content of your sales communication in all areas including in the supply of the pre-listing presentation and in the face-to-face listing presentation.
So how did I become the local property market expert for my marketplace? What steps and actions do you need to take to become the local property market expert in your marketplace?
Let's break out the action steps
Step 1: As a real estate agent, it's crucial to start your business day by driving through your local marketplace. Take at least 30 minutes to drive through every street, closely observing each property and getting familiar with the area.
Look for signs of renovation, extension, rental, or sale. Pay attention to the For Sale signs and become well acquainted with each property. Knowing your suburb inside out will help you make a lasting impression on potential sellers.
Imagine how impressed a potential seller would be, if when they call you to talk about the potential of listing their property, and when they share the address, you’re able to answer, "Ah yes, I know the property, beautiful apple tree in the yard" or "The new fencing looks great" or "Yes, I see the tenants moved out during the week." Daily cruising around your marketplace with a coffee in hand is an effortless way to gain valuable insights and knowledge.
Step 2: It's essential to review the last 12 months of sales in your suburb on a daily basis.
The 12-months sales document or PDF is easy to access from any real estate sales software. While it may take some time to get into a routine of carrying this task out each morning – I always like to do it as soon as I reached the office over a coffee, you'll soon become familiar with each property on the list.
Take the time to then look at each property online, the photos, the property marketing text, and the price it sold for, and how long it took to sell.
As you refresh your sheet daily, you'll only need to familiarize yourself with the new properties on the list.
Imagine impressing a potential seller by mentioning off the top of your tongue mid-sales conversation, "Ah yes, I know that property, it sold last April for X amount, and do you know the one on such and such a street did slightly better, achieving X price."
This type of information and communication will establish you as a local property market expert. All it takes is a great cup of coffee and the ability to pay attention to what matters in your marketplace
Step 3: One of the keys to succeeding in this endeavor is to stay informed about your local government and the local government representatives.
By getting onto the local government mailing list, you can stay up to date on what's happening in your marketplace and identify opportunities that support or hinder the local real estate market.
In addition to keeping up with the local government, it's also essential to have a good overview of the state of business and the economy.
By staying informed on these matters, you can hold intelligent and informed conversations with potential clients. But more importantly, being informed about the latest developments and changes prepares you to seize opportunities that arise in your local marketplace.
And finally, Step 4: It's essential to know your competition, and that means more than just knowing your competing agents. It's also essential to understand the neighboring/similar marketplaces and why they may be in competition with your Marketplace.
Consider what value and price points these neighboring marketplaces offer potential buyers. By understanding the competition and its impact on the local marketplace, you'll better understand at which price point potential buyers may move to another suburb.
Being informed about the competition also enables you to negotiate offers more effectively. By understanding the value and price points offered by competing marketplaces, you'll be able your clients with more accurate information and help them make informed decisions..
Knowing your marketplace to this extent enables you to become the local property market expert. It paves the path to a financially abundant and successful career in real estate sales and a consistent supply of listing opportunities, successfully listed and successfully sold property.
Establishing a solid reputation of being a local property market expert, fostering trust with clients, and maintaining excellent communication standards will ensure you as a real estate agent not only attract more business but also close more deals and achieve greater success.
To supercharge your real estate business, listing success of sellable properties and then inevitably multiple sold properties monthly pair your intention of being the local property market expert with championing good communication with your sellers, potential sellers, buyers and potential buyers.
To supercharge your real estate business, listing success of sellable properties and closing of multiple sales every month, combine your efforts to establish yourself as a local property market expert with a dedication to championing effective communication with both potential and current sellers and buyers.
The number one complaint that the general population has with real estate agents is their poor communication. By prioritizing your communication efforts with your marketplace, you can set yourself apart from the competition and establish a reputation as a real estate agent whose communication is relevant and effective
Arming yourself with expert knowledge of the local property market and its performance can greatly enhance the relevance of your communication, both written and verbal, to both sellers and buyers. By being knowledgeable and informed, you can better guide and educate your clients, leading to greater success in effectively closing more deals
Prioritizing consistent, relevant communication with your local marketplace - whether through your profile marketing materials, online presentation of a listing for sale, guidance to a buyer during the offer negotiation stage, or face-to-face listing presentation - will result in building trust with those engaged in the process of selling or buying property. By establishing trust, you'll be better positioned to succeed closing more deals consistently regardless of the property market state
In the world of sales, a reputation for being a trustworthy salesperson is invaluable. By establishing yourself as someone who can be trusted, you'll never be short of lucrative deals and a constant flow of commissions into your bank account. Building trust is especially important in the real estate industry, where clients are making significant financial decisions and need to feel confident that they are working with someone they can trust.
Operating from the knowledge of a local property market expert makes it easy to champion relevant and consistent communication. With a deep understanding of the local property market, you'll have the information to share and know exactly where and how to share it to support the successful closing of a deal. By being well-informed and engaging with clients in a meaningful way, you can build strong relationships and establish yourself as a trusted advisor in your local marketplace.
When you prioritize communication and establish yourself as a local property market expert, you'll find that your selling style evolves into a more consultative form of selling. You'll become a trusted member of the local community, and you won't have to worry about where the next listing or commission paycheck will come from because clients will naturally seek you out. By focusing on building strong relationships and providing relevant communication to your clients, you'll establish yourself as a respected and successful real estate agent.
The key elements that truly shift the needle in your real estate business and sales success are your reputation and the trust that clients place in you. By building a strong reputation as a reliable and trustworthy agent, you'll attract more business, close more deals, and ultimately achieve greater success in your real estate sales role. By focusing on establishing trust with your clients, you'll be able to forge long-lasting relationships that lead to repeat business and referrals.
In shifting and declining markets, potential sellers can experience a range of negative emotions, including frustration, anxiety, disappointment, uncertainty, and regret. Similarly, buyers can also experience a sense of paralysis due to fear of making the wrong decision. However, trust can neutralize all of these emotions.
That's why your reputation is a critical element in closing deals and building a fulfilling and financially abundant career in real estate sales. By establishing trust with your clients, you'll be able to navigate even the most challenging market conditions and ensure that both sellers and buyers feel confident and secure throughout the selling or buying process
So, once you have prioritized and become the local property market expert and are championing relevant, honest, and transparent communication with those who you deal with, how can you broadcast this to the marketplace so that you do indeed list multiple sellable properties monthly and close more deals even in more challenging property markets?
As Chris Ducker, who’s known for his expertise in building and scaling businesses says; Your reputation is your personal brand. It's what people say about you when you're not around.
The most powerful way you can broadcast your reputation as a trustworthy and effective real estate agent out into your marketplace of potential sellers, so that you not only effectively list more property but close more deals in shifting, declining, and challenging markets is through the collection and public sharing of client testimonials and reviews.
The most powerful way to broadcast your reputation as a trustworthy and effective real estate agent into your marketplace is through the collection and public sharing of client testimonials and reviews. This approach not only helps you list more properties but also close more deals, even in shifting, declining, and challenging markets. By showcasing positive experiences from satisfied clients, you establish credibility and build trust with potential clients who are looking for a real estate agent they can trust.
In closing, building a strong reputation as a trustworthy and effective real estate agent is crucial to your success in effectively closing more real estate deals. By prioritizing expert knowledge of the local property market, championing relevant and consistent communication, and collecting and sharing client testimonials, you can establish yourself as a local property market expert and attract more clients, ultimately closing more deals.
Remember, success in real estate is built on trust and credibility, and by consistently delivering value and demonstrating your expertise, you can position yourself as a trusted and reliable agent in your community. So, take the strategies and insights covered here and put them into practice, and you'll be well on your way to building a fulfilling, financially abundant, and successful career in real estate.