The Sales Coach eNewsletter

May 5 2005 Issue No. 57

Make the sale - converting lookers to buyers

by Dennis McMahon and Narelle Stratford

In this article, we address the change in the market cycle from a Sellers Market to a Buyers Market - and how YOU have to change to convert more lookers into buyers.

Sellers vs Buyers Markets - What Does That Mean?

In Queensland, where we live, and from reports around Australia, the stage of the property cycle has moved from a Sellers Market to a Buyers Market.

Probably the best way to explain the difference is to say that in a property boom or a Sellers Market, buyers are willing to pay anything right now to secure a property, because the hype in the market is that there are easy short term gains to be had (the GREED factor).

So the power and control is with the Sellers.

However, when property price increases have settled back down, then the mostly genuine buyers (as against speculators) still in the market have an edge.

And guess what - they have no external reasons to buy now (greed, market hype, a desire to "not miss out") that the boom buyers had.

So what do they do?

They look - and they look - and they wait for the "perfect" home to come onto the market......and they look and they wait.............

Sound familiar?

In the meantime, you can't understand what's going on!  

They're not buying - and you're not making any money!

Buyers used to chase you and throw money at you - it was the listings that were hard to get.

Now, getting the listings is OK (even though many vendors don't seem to understand the boom has finished and many still want boom prices, but that's a whole other story), and you're getting couples, groups, singles - all shapes and sizes of buyers through your Open Homes......

BUT NOBODY is BUYING!

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Or even making halfway decent offers.

So what do you do?

Well, the first thing you do is realise is - IT'S YOUR FAULT!!

Now, that we have that out of the way, let's fix this thing.

The main problem is that the skill level of most Agents (maybe even yours) has decreased through the boom cycle.

And I'm talking about the skills of being a good salesperson - not pushy, but solution driven for the potential buyer.

You see, buyers aren't just looking because they WANT something different.

They are in fact looking to solve a problem.

In a way, buying a house is like buying a hammer.

You don't really care too much about the hammer, (although if it looks and feels nice, all the better).

You're buying the hammer because the problem you have at home is a loose board, or wall sheeting - or something that's bugging you.

And that's what you're buying - the solution.

Now, think about all of your buyers coming through your Open Homes.

Put yourself in their shoes - what problems do you think they may be putting up with, that one or more of your homes could help them solve?

If you have a listing with big bedrooms, would that solve the problem of a growing family?

If you have a listing with a small herb garden, and no lawn, would that solve the problem of an older couple with health issues?

If you have a listing that is near a train line, would that solve the problem of spending too much time in the car commuting?

Now, let's say that you thought these listings of yours would solve that range of problems.

The next thing is how do you know what problems people are facing?

Target Marketing

Firstly, your marketing should pre-qualify people.

Your ads should be crafted to target the section of the population that has the problems your listing can solve.  

So when people respond to your marketing and turn up for the open home or make an enquiry to you, they have already established themselves as being in your target market for that home.

Qualify Again

Secondly, qualify them again at the Open Home.

You should have a series of questions that you ask, or better yet, get them to answer on a form, which help you to better understand their particular problems.

Questions like:

1. What do you want in your new home that you don't have now?
   

2. What are the 3 most irritating things about your existing home?
   

3. What 2 things would you never have in a home again?
   

4. If your new home could solve your biggest hassle, what would that be?
   

5. Now you've seen around this home, how would it help to solve your biggest headaches with your current home?

Can you see how those questions are helping your buyers get a very clear concrete picture in their minds about what they're putting up with in their current home situation.

Situation 1

It may be 2 kids in the one small room, and they're driving their parents (particularly mum) crazy with their bickering over every little thing. 

They just want 2 big bedrooms to split the kids up - and some peace and quiet!

Situation 2

It may be mature gardening lovers, but the years are passing too quickly for the big landscaping projects of the past - not to mention the guttering, painting, etc., etc.  

They want to keep pottering - without the strain of the maintenance of a big house and big garden. And they may want to travel, so living where they are now is holding them back from doing what they love.

Can you see where their pain is?

Well, let me tell you - people will buy and make buying decisions much quicker if they are feeling their pain!!

What Should You Do Now?

Your challenge now is to up skill yourself - or regain those skills you once had!

Hone your rapport building skills and your questioning techniques, so that you are understanding where their pain lies.

And then, if you have a listing that does meet both their wants (the features they like) and their needs (will remove their pain), you can use your communication skills to show them how and why making the decision today will help them get all that they want.

Are You Up to that Challenge?

If you are, get started.

• Check the internet for all available info.

• Go to the library and check out sales books.

• Talk to experienced, currently successful agents who seem to have no problems selling now.

• Go to caryards and learn how the mental attitude of a caryard salesperson is 
  
  "If you come onto my lot, you are intending to buy today - and I'm going to help you TODAY!"

That's exactly the same mental attitude you need to adopt for your Buyer enquiries and Open home visitors.

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