By Katrina Creer
It is one of the toughest parts of being a real estate agent – conducting a property appraisal and not landing the listing. You may have arrived punctually, dazzled the homeowner with your market research and given a full history of your sales background. But despite your best efforts, the seller decides to go with another agency. So, how can you avoid rejection and win over a vendor, particularly in the current changing market?
Why order is important
It is not uncommon for a vendor to request an appraisal from three agents before going to market. Being the ‘last one in’ has long been considered favourable as the vendor has already seen the competition. So, if possible, try to stack the odds in your favour.
Ewan Morton, Joint Managing Director of Morton Real Estate, agrees presenting your appraisal after everyone else is a smart idea. But be aware sometimes a vendor may have already decided on their preference before you even step foot inside their home.
“You could be the agent who they have called to come in to do the price-check and they have no intention of going with you,” said Mr Morton, who is an REINSW member.
“You have to be able to read that situation - even ask them directly - and potentially derail it. So if you have just been called in for a price-check, you might be able to change that perception. You are sitting in their lounge room, so just go for broke - at least make that decision difficult for them.”
Set realistic goals
The property market is changing rapidly making it challenging to give vendors an accurate idea of how much their property is worth.
Braden Walters, who is Chair of the REINSW’s Residential Sales Chapter Committee, said current best practice is to use comparative sales data from the past 30 days rather than from even three months ago. The seller’s expectations should be on what the property is worth today as opposed to the market peak.
“Keep the discussion around what the vendor paid for their property and how much gain they have made since owning it,” he said.
Mr Walters, who is Principal of Belle Property Byron Bay, said they are now taking price out of their market appraisals. Instead, they are promoting their expertise, customer service, marketing and selling strategies.
“We are taking the approach that we can get the best price if everything is done right and people seem very receptive to that,” he said.
Make a connection
While the COVID pandemic has proven it is possible to generate appraisals virtually, it is always best practice to visit in person.
Agent Cathy Baker, Principal of Belle Property Central Coast, said it is important to work out who is intending to sell and those seeking a market update. This will dictate how best to prepare for the appraisal.
She takes a holistic view of potential vendors’ needs and why they may be looking to sell. This may even include research on where the buyer is looking to relocate and the types of homes available.
“For me, it is always about the people and not just the property,” said Ms Baker, who is a committee member of the REINSW Residential Sales Chapter.
“An appraisal really needs to be done in person because you want to build the trust and the connection that gets you the listing. If you are going to go to someone’s property make sure it is a quality connection with them and get as much detail as you can – you need to understand the whole picture.”
Get back out there
Rejection has a sting even for the most seasoned real estate professional. If your appraisal was unsuccessful, it is important to review your own performance and look at how you can improve.
Being able to dust yourself off and keep trying is tough but essential in the property industry. Look at ways of establishing your name as an expert in the local market and fostering relationships with potential sellers ahead of time.
“One of the arts of real estate is that you need to know somebody who owns a property before they know they want to sell it,” Mr Morton said.