It's not you...it's me...actually, it is YOU!

Building Credibility

If you read my previous post about "losing customers," you know that I have this issue burned into my mind. When I ask my agents what happened, usually the response is what the customer told them, or what they thought the customer told them. I find that when I lose a customer, the problem is ME! Customers do not leave if they feel that I am critical to their success! Credibility creates a bond with the customer that holds them to you now (for this transaction), and more importantly, in the future for referrals.

Here are the Top Five Signs that your customers may not think You are Credible:

1. They asked you to step outside while they "talked it over"
2. They won't call you back
3. They just won't listen
4. You find yourself saying "Buyer's  are Liars"
5. They listed with someone else!

Due to the current mortgage crisis and the public's perception of the current housing market, building credibility may be the single most important thing that Realtors need to know how to do. And let's face it, the barrier to entry to becoming a Realtor is pretty low. The public has every right not to immediately trust us. It is Our Job to convince the public that we are a credible source, one agent at a time.

Building credibility is simple, but not necessarily easy. The following steps show you "how" to build credibility.  The steps of this model need to be considered with each customer. No steps may be skipped. 

I. Propriety

You only get one chance at a first impression! Are your clothes appropriate? Do you greet the prospect with a firm hand shake? Do you make eye contact? Do you smile? What about your breath? These are all questions you need to ask yourself during the first contact with a prospect. Make no mistake about it, the prospect is sizing you up to determine if you "appear" to be someone that can solve their problem.  If you "appear" ok, then you get to go to the next step.

II. Commonality

It is important that the customer feel that you have something in "common" with them. They want to know that you have similar experiences and will be able to relate to them. A great way to achieve this is during the "fact finding" portion of your discovery process with them.  My basic formula for achieving commonality is as follows :

• Kids (I have them)
• Sports  (I love them)
• Military (I Served)
• Moving frequently (I've done it)

If I can have a brief, honest, and genuine discussion with a prospect early in the relationship about one of these topics, then we are well on the way to achieving commonality. It is probable that at some point during the discussion that we will discover a "shared" experience that will let the customer know that I am a "real" person.

III. Competence

We train our associates to use the HP 12C Financial Calculator for two reasons. The first reason is that the calculator is a great tool to help solve financial mathematical problems. The second reason is that it helps the associate demonstrate "competence". (and perhaps a third reason is because it is the one I know how to use....)

If you have gotten to step three of the Building Credibility Process, then the customer already thinks that you "look" the part, and is starting to "trust" you based on shared experiences. The next thing that they will wonder is "Does he/she know what they are doing"? As stated earlier, it is not difficult to become a Realtor. Every customer should wonder if you have done anything more than pass a state exam (they had to parallel park to get a driver's license!).  After all, in many states, it is more difficult to become a hair dresser than to become a licensed Real Estate Sales Associate. Displaying competence is critical.

Here are a few ways to "display" competence (the best way is to "be" competent)!

• Know the Inventory
• Know the Contract and associated documents inside and out!
• Share situations where you have helped "solve" similar problems with other customers (be careful not to sound as if you are bragging!)
• Know financing!
• Have a winning Team of Experts (Inspector, Title, Finance, Insurance, Attorney, etc...)

IV. Intent

The final step of Building Credibility is the most important and the most frequently skipped! To be quite frank, the first three usually happen on their own for good associates. The last step is almost always missed. It is demonstrating "Intent". The customer is wondering in the back of their mind, "What do you intend to do with the information I have given you?" Unless informed otherwise, they may be thinking that you "intend to get a commission" instead of thinking that you "intend to solve their problem".

Ideas for communicating "Intent"

• Demonstrate the process for solving their problem
• Understand their Dominant Buying Motive and reference it often
• Offer solutions that may solve their problem but do not necessarily earn you an immediate commission.  For example, during a listing presentation, you could recommend to a seller than they lease their property instead of selling it. A recommendation like this will go a long way toward establishing in the customer's mind that you are much more concerned with helping them, than helping yourself.

The public is more wary of our services now than ever before.  Like it or not, the average public perception of a Realtor is not all that high. It is the Agents responsibility to earn their trust one customer at a time. The Tallahassee Real Estate Agents that practice, drill, and rehearse these steps to building credibility will lose less customers, develop stronger relationships, and earn more referrals.