Market Changes

Whether you win or lose business, the reason is the same: It’s all about the energy you bring to the table. My Coaching Tip this week is about how to talk to clients about today’s market changes and still be upbeat about their prospects.

You can discuss market conditions in creative ways. Start by asking questions about what the customer is seeing in the media and how they feel about current market conditions. As their agent you can help them make their best transaction by maintaining positive energy and putting the conditions of the day in perspective for them.

Some agents don’t want to call people because prices they may have quoted them last year are different from today’s, and most likely the value is less than it was when you did their property appraisal. Still, most people who buy from you will make money over the long term.

Managing your energy so that you stay positive about today’s conditions even as the major markets continue to decline is so important. Some markets are actually entering a recovery stage, but understand that what we’re experiencing now is likely to continue over the next few years.

Your job is to realise that there’s never been a better time to get into the market than right now. It’s a great time for buyers when you look at market changes that will happen over the longer term. For sellers the reality is that the market price is not going upward any time soon, so it’s a good idea to do the transaction today.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Ep 164 – Leading Your Team Through a Changing Market

In this High Performance Podcast for Real Estate Agents Josh Phegan and Alexander Phillips look at leading your team through a changing market like the one we’re experiencing currently. Josh notes that some agents react by putting more pressure on their assistants, and Alex explains how to lead from the top instead. He also notes the importance of consistency and a long-term mentality. Josh lists methods that drive focus, momentum and motivation with your team, and Alex describes some ways he achieves that in his agency.

Josh tells why training is so important, and Alex shows how vendor meetings and reporting increase the number of deals that get done. He advises assistants to develop themselves and find mentors. Josh finishes on leading from the front and getting back to basics.

Growth Stalls

What are you going to do if 20% to 30% of the volume in your marketplace stops? This week my Coaching Tip is about growth stalls, why they happen, and how to avoid them by putting yourself in a position to achieve all that you’re capable of.

The reality is that when you hit a growth stall there are only a few things you can do. You can increase your average sale price, get a higher volume of transactions, or increase your average fee. And there’s a balance to maintain – If you lose fees because there are fewer sales and lower volume, then you have to increase your fee.

It’s up to you to learn how to sell what you do in a way that’s meaningful to the customer. This is not a like-for-like service, you’re different from your competition and you bring unique advantages to the table.

It may not seem obvious, but one of the best ways to keep your business growing and reduce your lead generation costs is to simply think about customer experience. When you do hit a growth stall you can go deeper with your existing customers, get your landlords to buy and sell, and get more past clients doing transactions with you.

When you improve customer experience your customers will tell other people about you, and that reduces your lead acquisition costs. And remember that every member of your team has a part in delivering that higher customer service experience with your firm.

Of course, the best way to deal with growth stalls is not to hit them. In this market the best agents will be the ones who really get going, do the work, and earn even more than last year.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

What problem are you solving?

The last 10 years have radically reshaped the way we live. The adoption of mobile phones, the socialisation of our relationships and the amplification of remote work have also changed the way we do business.

Software is eating the world. What was once done by a team of people is being automated, forcing fewer people in the process to deliver the service. It’s changing job roles to be more human, personalised and intimate. We have all the information we need at our fingertips, thanks to Google, meaning that consumers don’t need another market report, update or agent in their street today. Instead what they need is someone who’s prepared to ask the questions around their dissatisfaction and vision, to help the customer make the first steps.

With the adoption of tech, we’re making appointments faster to build rapid rapport and helping customers to make decisions face to face.

It’s forcing the industry into a corner. In our rush to be amazing on social, we’ve forgotten the basics of what makes a business move. To be successful in business you have to make sales, and the first sale that’s made every day is booking the appointment.

No one’s asking what happens when we get to the point of digital saturation – we’re already here. More and more effort is needed. Before I put in any technology, I ask, ‘What’s the problem we’re trying to solve?’. Plenty put in tech or go all-in on social before they ask the question or even define if the problem’s worth solving. 

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What the savvy agents are doing is building out the tech to automate the workflow to deliver on their customer experience. And this where you need to start. Define your brand. It’s not a logo; it’s a set of customer moments that are either carefully curated or not. Think in moments, then see what technology you can use to automate and improve them for the customer. In the UK, online appointment booking is a massive driver, yet it’s hardly taken off here in Australia. 

Most of the offshoring we’re seeing happen in the property management and sales administration spaces will end up onshore again as automation makes those roles redundant, or the consumer forces a more human experience for the fees we demand. 

One thing that’s certain is that technology doesn’t recognise booms or recessions; it just makes progress. In your business, I’d be surprised if you didn’t already have 20-plus applications in what’s called your app stack. It could be as simple as Dropbox for file storage and Slack for team communication. Your app stack is allowing your workforce to be more remote, yet the evolution of the workplace with global workplaces like WeWork suggests we actually want to be together to do our work. What we’re building is flexibility, and a mobile-first approach to make working on the road between appointments even easier. 

How can you automate your workflow? 

The app stack that you’re using today is great for now, but what other parts of the workflow process can you improve? One of our clients has automated the listing process. When he enters the appointment in his diary using LAP at the start of the appointment title, that triggers in Zapier to start a process in Process St, which then also triggers a direct message in Slack to his administrative assistant to prepare the recent sales data. It’s simple but shows you how you can improve workflow. 

 User adoption still matters 

People hate change when it happens to them, but they love change when they are a part of it. Think before you bring that next app to the sales meeting, and ask some simple questions: 

  1. What’s the problem we’re trying to solve and is it worth solving?
  2. What’s the vision for what it will look like fixed?
  3. Who will it impact? And how do we champion their passion for the problem?
  4. What’s our action plan to implement?
  5. Do it.

This is a profoundly human business amplified by the use of technology that works. It should speed you up, not slow you down. Clunky systems are just that. Design from a mobile-first approach, and watch your business thrive.  

This article first appeared in Elite Agent: https://eliteagent.com/josh-phegan-what-problem-are-you-solving/

Ep 163 – The Property Cycle

This High Performance Podcast for Real Estate Agents features Josh Phegan and Alexander Phillips on stages of the property cycle. Alex begins with suggestions around how agents can respond to where the current declining market is going, advising that you work hard and don’t live above your means. Josh outlines events that triggered the downturn in the market and how the government could remedy the situation. And Alex emphasises the importance of really understanding your marketplace by asking the right questions.

Alex recommends working out the numbers on paper and showing them to the vendor to help explain changes in market, and tells why this is the best market for selling and renting property. Josh ends with the most important question to ask your client, “Why now?”

Price Reductions

You expect that if you list a property well it will sell equally well, but what if the market changes? In my Coaching Tip this week we’ll be discussing price reductions – those things you need to get but are afraid to ask for.

In every negotiation you have bargaining power, but it can quickly change from low to high depending on a variety of circumstances. What’s important is that you understand the leverage you have for your owner, and know how to talk with them about positioning the property when that leverage evaporates.

The reality is that the owner already knows they have to make a change, but it’s what you do as their agent that determines whether they’ll do it. The key to justifying a price reduction is for you to go out and get an offer on the property. Do that and the owner has to make a decision.

You should be having a daily phone conversation with your owners. Tell them about new properties coming to market and properties that have just sold, and how that affects buyer demand. Then have a face-to-face conversation with them about their expectations, how many people should be looking at the property, and what needs to happen to get those buyers to make an offer.

Understand that suggesting price reductions seems like you’re saying No to the owner’s ability to achieve their objectives. But you don’t want to take their dreams away – you want to be the dream maker. You do that by explaining to them how you will get their property sold by always knowing what’s currently happening in the market and adjusting to those new market circumstances.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Ep 162 – David Tyrrell on Energy and Time Management

Our High Performance Podcast Special Edition series wraps up with Josh Phegan and David Tyrrell discussing energy and time management. David notes how his team maintains consistency by using the calendar, holding regular team meetings, and planning for work flow. He details his normal business day, and notes that the team runs really well even when Alex isn’t there as Pru steps up to keep things moving. David tells how their open-plan office helps everyone keep informed and working together as a team. He also relates what it’s like to work inside of a fast-paced team.

David describes Alex’s management style inside of his team, how he gets really good knowledge about each listing he’s representing, and how lucky he feels to have this opportunity to build his profile and develop as an agent with Alex.

Lead Acquisition

How do you generate your leads, and what are your costs for each lead generated? In my Coaching Tip this week I’ll tell you how your approach to lead acquisition determines whether you’re working in the best, most cost-effective way.

You can spend thousands of dollars on lead generation websites and social media just to generate one lead. In reality, the best agents understand some easy ways to generate lots of leads, and we cover those in the 10-step process that we train.

One way to get your lead generation on fire is to remember your past clients sitting in your database. It’s about looking at the people you already know who can refer you to others that they know.

Think about people who know lots of people. Get to know business owners, restauranteurs, and others who engage with large numbers of people. Also look at demographics of people in transition, like elderly people who are downsizing, and growing families who are expanding.

There are really only around 10 customer scenarios we work with. The real secret to lead acquisition and marketing is to know where those people hang out before they need you, so you can be where you need to be when they’re ready. Limit your marketing funds and direct those funds toward generating leads.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.

Ep 161 – David Tyrrell on Building a Database

Our High Performance Podcast Special Edition series continues with Josh Phegan and David Tyrrell talking about building a database when you work in someone else’s business. David tells how he does it through buyer work, and how his team’s open database works. They present the issue of over-servicing a client and ways to avoid that happening, and David outlines how he builds his sellers pipeline and hitlist. They discuss taking a long view and setting targets, especially prior to taking a holiday, and the satisfaction of coming back to active listings in progress.

David details what a Saturday looks like for him and how the day ends with direct feedback to Alex. Josh advises always working independently to generate your own leads, and notes how Alex leads his team to become fully-fledged agents.

Listing Well

If you’re having trouble selling properties then maybe you’re not fixing the right problems. In my Coaching Tip this week I’ll explain why listing well is the easiest and best way to sell a property.

A business that does well is well planned. Focus on the fundamentals of listing. You want exclusive authority, the right fee, the right marketing, the right pricing, a motivated seller, and the right location. Of these 7 desired pre-qualifiers every listing should have at least five. That way if any one thing is out of kilter, the rest will keep things in line and still make things happen.

Even more important is getting clear on what you’re doing inside of the listing presentation. I’ll tell you how to inform the customer about changing dynamics in the current marketplace. They need to have confidence in your market knowledge and the ability to sell their property. I’ll also give you some dialogue that will help you win the listing.

What you must do as an individual agent is to know your market. Break it down, understand it fully, and be an absolute student of the game. Know what’s being listed and sold, and how that impacts your clients. We’ll also discuss bargaining strength and the factors that influence your ability to negotiate for the best price point.

There is no magic dialogue to fix the right problems. Listing well is about starting with the listing, being truly interested in your marketplace, and keeping your owners informed right the way through the campaign. Fix the problems that are worth solving and then watch how many others disappear.

I hope you’ve enjoyed today’s Coaching Tip, and I look forward to seeing you here again next week.