By: Taro Systems, Inc.

       6157 28^th. S.E.

       Grand Rapids, MI 49546

       www.viewmylisting.com

Introduction

Agent handling of initial property calls is often criticized.  More than 80% of the time, agents fail to ask for the callers’ names and phone numbers.  This makes lead follow up impossible.  Most frequently agents take a passive role and give out information without getting anything in return.  On average, less than 20% of the time do agents even ask for a second conversation via the phone or an appointment for a showing.  Studies by Taro also indicate that qualified buyers will call 4 to 6 different agents before buying a property. 

 Management criticism of agent responses is misplaced, because the industry’s own training solutions have stimulated little change in agent approaches to initial property calls.  What the industry has failed to realize is that agent behavior is driven by the objectives that have historically been in place and that no fundamental change in behavior will occur unless the objectives change first.  The failure is not the agents’ responses to initial property calls, but the objectives that they have been trained to achieve.

The following are actual transcripts of initial property calls to agents with minor name changes.  Based upon the thousands of investigative calls by Taro, these transcripts are representative of agent responses industry wide to callers.

The purpose of reading through these transcripts is not to judge whether the agent responded well or not.  Instead the purpose is to identify the agents’ objective(s) while responding to initial property calls.  This prior step is critical because it is the objective that determines and drives the behavior.  Therefore the question to ask while reading each transcript is “What is the agent attempting to achieve?” 

Transcripts

 Call 1

Agent:       “This is Mike.”

Caller:       “Hi Mike.  I was calling on a house you have listed in Sunday’s paper.”

Agent:       “Yeah.”

Caller:       “I wanted to know the price.  It is at 1801 South 10^th Street.”

Agent:       “Sure.  That is listed right now at $155,000 even.”

Caller:       “Thank you very much.”

Agent:       All right.  Thank you.  Bye bye.”

Agent Objective:            To provide the requested information.

Agent Performance:       Agent fully achieved the objective.

Call 2

Agent:       “This is Troy.”

Caller:       “Yes, I was calling about a house for sale you have advertised in Sunday’s paper.”

Agent:       “Okay, which one?”

Caller:       The ad says it is a 4 bedroom, 3 bath in a great area.  I wanted to know the price on it.”

Agent:       Yes, that is a 4 bedroom, 3 bath that is currently listed at $175,800.  I also have a 3 bedroom, 2 bath in the same area that is listed for $154,000.”

Caller:       “All right.  Thank you.”

Agent:       “You bet.  Goodbye.”

Agent Objective:            To provide the requested information as well as additional related information.

Agent Performance:       Agent fully achieved the objective.

Call 3

Agent:       “This is Charlene.”

Caller:       “Hi.  There is a home you have listed in Harmon Homes magazine.”

Agent:       “Yes, isn’t that a beautiful home.  It is made to look Victorian inside and out, but it is only 7 years old.”

Caller:       “It is beautiful.  As a matter of fact, I was calling to get the address on it.”

Agent:       Sure.  It is at 289 Burton Lane.  So it is out in farm-like rural area with a half acre.  Go ahead and drive by and if you would like to see the inside, give me a call back.”

Caller:       “All right.  Sounds good.  Thank you.”

Agent:       “Uh, huh.  Bye bye.”

 Agent Objective:            To provide the requested information as well as additional related information.

Agent Performance:       Agent fully achieved the objective.

Call 4

Agent:       “This is Eddy Douglas.  And you are?

Caller:       “My name is David Hamilton.”

Agent:       “David, how can I help you?

Caller:       “I am calling about the home at 256 Pollack Avenue.”

Agent:       “David, it is 984 square feet, built in 1930, with a half basement, new sump pump, new air conditioning, and it carries a home buyers warranty.  This home has 3 bedrooms and is owner occupied.  When can I show you this house?”

Caller:       “Let me get with my wife.  Maybe later in the week.”

Agent:       “Well I can be reached 24 hours a day at this number.”

Agent Objective:            To show the property.

Agent Performance:       Agent did not achieve the objective.

A Critique of the Current Objectives

To summarize, the agents’ objectives for responding to initial property calls fall into two primary categories:

                1.                  To provide requested information and any related information.

2.                  To show the property.

 Based upon Taro’s monitoring calls, about 75% of the time the agent tries and succeeds in providing any and all relevant information.  About 15% of the time the agent’s goal is to show the property.

 As the transcripts demonstrate, the agents usually achieve the objectives of the initial property calls.  They provide all the requested information and sometimes even arrange showing appointments.  But the transcripts also demonstrate that the agents fail to engage the callers into a sales process.  Therefore the problem is not the agents’ performances, but the objectives which drive the agent responses.

Objective 1:    To provide the requested information

 When the objective is to provide information regarding the property in question, the agent fails to establish his or her value to the caller.  The caller therefore feels no need to develop the relationship with the agent and makes no commitment to that agent.  The caller continues to float in the market from agent to agent, company to company, until either some agent elicits a commitment from the caller or the caller needs an agent to submit an offer.

A Critique of the Current Objectives,    continued

The basic error of this objective is the assumption that the caller’s need is limited to the one property in question.  However, the caller is on a search and may require assistance with market trends, property values, neighborhood histories, and financial planning (consulting services) as well as information regarding 1 to 100 other properties.  Since the agent fails to focus on these caller needs, the agent provides no real value to the caller.  And the caller moves on to another agent.

 Objective 2:    To show the property in question

 When the objective is to show the property in question, the agent attempts to force a commitment from the caller to that property.  In doing so, the agent establishes his or her value as the gatekeeper of the property.  If the caller’s interest in the property is strong enough, the caller will engage with the agent and commit to view the property.  However, the agent’s value (as a gatekeeper) has only been established regarding this one property.  If the caller’s interest is not strong enough to view the property, the caller feels no need to continue the relationship with the agent.  The caller therefore continues to float in the market. 

Note:    Showing property is just another way of dispensing information.  It does allow for the opportunity for the agent to develop rapport with the customer.  But many agents will not exploit the opportunities if their base objective is to convey information, albeit in a visual format.  This is why one agent can show 20 houses and still lose the buyer to an agent who shows just 1 house. 

  The basic error of this objective to show the property in question is the assumption that the caller is strongly interested in the property in question.  But the caller is on a search and may not be ready or informed enough to buy or even to view properties.  Since the agent focuses on showing that one property, the agent creates an all or nothing environment.  And because the agent’s value is limited to that one property, unless the caller is willing to commit to view the property, the caller will move on to another agent as he or she continues his or her property search.

 Even if the agent asks for the caller’s name and phone number, the sales process still falters and fails if these 2 objectives remain.  Because the focus is the single property in question, no future need or value has been established.  The caller has no reason to continue working with the agent and the agent has no strategic reason to pursue the caller.

The reason these 2 objectives persist is that agents still perceive themselves as information providers.  What is needed is a different initial objective that establishes an agent’s broader value and focuses on the caller’s basic needs in the buying process.  And this new objective will be achieved when the agent perceives himself or herself foremost as a consultant and no longer as an information gatekeeper.

Alternative Agent Objective

 1.                  To solicit a commitment for a 2^nd conversation

 It is critical for success, given the changes in the industry, that a new objective be established.  The old information gatekeeper model and related initial property call objectives worked well when the value of the agent was to provide information.  But since the value of an agent is no longer found in his or her knowledge and control of property information, the agent’s objective to provide information during an initial property call no longer creates value to the caller.  A new objective is needed.  And that new objective needs to be based upon the model of the agent as a sales consultant.

When the agent’s objective in an initial property call is to solicit a commitment from the caller for a second conversation, the focus is not on a single property but upon the caller’s needs and the agent’s value as the service provider (consulting, negotiating, and coordination of sale).  This second conversation is a consultation regarding the caller’s needs, desires, and abilities.  This is the true value of an agent.  And this objective recognizes that the caller is on a search (buying process) and that the agent’s true value is as a sales consultant.

 The measure of this new objective will be an increase in the number of agent consulting appointments established during the initial call.  (Consulting appointments need to be distinguished from showing appointments.  Some agents may use showings as opportunities to establish their consulting value, but the solicitation of a showing appointment on the initial call is based upon false values and demonstratively yields limited success.)

Conclusion

The basic problem regarding the agents’ objectives for initial property calls is one of self-identity and function.  As long as agents perceive themselves and their roles as information providers, they will continue to focus on property information and access (showings) during initial property calls.  The result is that a caller feels no need to continue with an agent who provided them with information or even access to properties.

Once agents start to perceive themselves as consultants, they will start to focus on the caller’s needs in the buying process.  The result will be that a caller will commit to an agent because of the consulting value that the agent provides and the caller will no longer float in the market from one agent to another.  Download the Freeware front and back office software “ProGold i2” and use the tools that can assist to manage agents, leads and build a consistant business model for success.

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