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Are you the reason why your client's say no?

By
Mortgage and Lending with American Family Insurance - Ryan Carlson Agency

I was reading AR Ambassador Richard Wessier's recent post "Creating a sense of urgency amid a sea of complaceny" and it got me thinking about the typical attitude of sales people. I must warn you; I am generalizing a bit but I don't think I'm too far off from the truth.

Weisser mentions creating the sense of "overwhelming urgency" to make move people into a buying decision. This reminded me of scenes from the "Boiler Room" where the brokers would use this "sense of urgency" to make persuade investors to dump large amounts of money into stocks (in case some of you have never seen the Boiler Room, I will not say what happens next).

Sleezy From the fly-by-the-night operations to the sleazy used car salesman to the <insert annoying sales person here>, our society has obviously developed a distaste for sales people in general. Consumers want to feel like they are in control. For those of us that are in sales (myself included), this phenomena has created the birth of the "I'm not a sleezy used car salesmen" sales person. 

What is it about the used car salesmen that turns us off so much (we, too, are consumers when we are not working)? Is it the mental image of an unpleasant looking man with the slicked back hair using every sales pitch in the book? Or is our own feelings of insecurity, not wanting to get taken advantage of? It's probably a little bit of both.

The fear of turning a client off through the use of pressure sales tactics has caused the sales industry to move towards the opposite end of the spectrum: to be a door mat to be stomped all over. Our training tells us to be the expert. To be in control and direct the client towards the sale. But our instincts tells us to give everything to the client and take what we can get. Why? Because many of us don't want to give off the impression that we are a sleazy used car salesman. Therefore, we back off when we should push. Especially when the client wants us to push.

Over the years, I've learned that customers want to be told what they need to do. That is why they ask us for our expert advice. Instead, sales people give their customers options. Options means the customer has to make the decision. Usually, options come in the form of not as good, good, and best. This usually translates into cheapest, cheap, and expense.

I understand that customers have the right to choose who they do business with. If they have chosen you then it is your responsibility to make sure that the customer is doing the right thing. If your vision statement is "Do what's right for the customer" and you base all of your actions on this vision statement, then you can tell your customer what to do. You are not misleading your customer because your intentions are good. This is called ethical persuasion.  If you are certain that your advice is the best course of action for your customer, be firm with your recommendation. Back up your advice through your past accomplishments and give yourself the credibility to be listened to.

The difference between the sleazy used car salesman and you is trust. Don't worry about pleasing your client's every desire because by doing so, you'll convince your client that you are not the right person to do business with. It is the client's choice to listen to your advice. If your client chooses to ignore your advice, they will soon find out how right you were. Never forget that you are the expert and don't ever compromise that just to please a client because more times than not, you want get a profitable sale anyway.

Posted by

Mike Kang

Business Development Manager

American Family Insurance - Ryan Carlson Agency

Office: 206.525.0069

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Carol Costanzo
Montague Miller and Company - Charlottesville, VA
GRI, SFR

Very well said Mike. Thank you for a great post. My favorite part is the difference between you and the sleazy salesman is trust. You are absolutely correct, and trust is built on honesty.

Nov 16, 2010 11:21 AM
William James Walton Sr.
WEICHERT, REALTORSĀ® - Briotti Group - Waterbury, CT
Greater Waterbury Real Estate

Spot-on analysis of the conundrum that we face as agents, Mike. Good post.

Nov 16, 2010 11:32 AM
Donna Paul
Keller Williams Realty Gold Coast - Dix Hills, NY
Long Island Home Specialist,All About Real Estate

Mike: They  hire us to inform then of the market therefore we have to make sure we know what going on in our area. If they don't believe us ... all we could do is tell them and then move on if that doesn't work.

Nov 16, 2010 12:55 PM
George Koppel,
CASTLES UNLIMITEDĀ® - Newton, MA
The Lowenstern Team

trust is everything...without it you are out of the business very quickly...or at least you will lose the potential customer.

Nov 16, 2010 01:39 PM
James Call
RealtyCandy.com - Saint George, UT
RealtyCandy - IDX Broker for WIX, Wordpress & more

I agree.  Trust is the key, then let them feel a little urgency.  It makes things happen.

Nov 16, 2010 02:02 PM
Jim Wire
Chase International South Tahoe Realty - South Lake Tahoe, CA

Mike,  Great article and more needs to be said about this.  There are those that fail and then there are those that are very successful.  What is the difference?  One always puts the customer first.

Nov 16, 2010 02:16 PM
Robert Amato
Bob Amato of Empire Home Mortgage Inc - East Meadow, NY

Mike,

 Great post. We always advise our client their options and let them decide.

Nov 16, 2010 02:55 PM
Leslie Ebersole
Swanepoel T3 Group - Saint Charles, IL
I help brokers build businesses they love.

I'm a little confused by your title and elements of your post. I read and commented on Richard Weisser's post, twice, I think. The point of Richard's post was that sellers who want to sell -- and their agents -- should create and sustain a sense of urgency in promoting the house.

I think a few too many people jumped into the murky waters of ethics and assumed that the post was intended to push agents into inappropriately pushing clients into hasty decisions for purchasing a home.

In this market there isn't a salesman in the world who is slick enough to push a home buyer into a decision they aren't truly committed to -- inspections, attorney review, financing contingencies -- it takes nerves of steel to buy a house these days and an uncommitted buyer falls out quickly.

 

Nov 16, 2010 04:21 PM
Ryan Pringle
Realtor, GRI, Keller Williams - Woodland Hills, CA

There is nothing wrong with having conviction in your beliefs. If you are truly the exepert in the transaction than you have a duty to inform your client of their options as well as let them know of the downsides to not heeding your advice (ie. longer marketing times, lower eventual sales price for sellers or higher rates, losing a home that meets all their needs for buyers) At the end of the day the client makes the decision but I agree that the decsion made should be an informed one.

Nov 16, 2010 04:59 PM
Melanie Serrato
Melanie Serrato, Rawlings Realty ~Corona, Norco, Eastvale Ca - Norco, CA
CA Realtor - Corona-Norco-Eastvale Homes

It is definitely a fine line that we walk, trying to properly advise a client while not being "pushy" like a salesman.  Many tend to feel that agents are just in it for the commission and would advise a client to do whatever is going to get the deal closed, even if it is not in the client's best interests.  Unfortunately, this perception is correct far too often!

I work very hard to educate my clients, giving my perspective backed up by numbers from the local market, and then let them make the best choice based on their personal circumstances.  A deal that is not right for the client is no deal for me either - that's just asking for trouble down the road.  

However, because I sometimes leave the options too open for my clients, they may pass up on what would likely be a great deal.  It is quite the conundrum!  Ultimately, whatever I might say or advise, the client will be making that decision because they are the ones who have to live with the consequences - good or bad. 

Nov 16, 2010 06:58 PM
Fernando Herboso - Associate Broker MD, & VA
Maxus Realty Group of Samson Properties - Clarksburg, MD
301-246-0001 Serving Maryland, DC and Northern VA

I never see myself as a salesman. . .I'm a consultant and my job is to help facilitate a transaction on my clients terms

Nov 16, 2010 10:42 PM
Joel Gwillim
CIR Realty - Condo Specialist - Calgary, AB
Associate - REALTORĀ®

I never give advice unless it is asked of me.  If I feel compelled to give it, I will ask for permission first.   I think my customers appreciate that, and I've never had any problem competing with anyone, not even on the commission.

Nov 17, 2010 12:56 AM
Michael Simcock
Coldwell Banker (Elk Grove, CA) - Elk Grove, CA
Elk Grove, CA Realtor 916 425-1084

I agree, as an industry we have stopped selling for the most part because we want to be liked and not be like a car salesman. The part we forget about is that it is better to be respected by our clients then liked by them.

When we work with clients and come across a home that meets their needs to a high level, as sales people we should try to sell them the home because it is in their best interest. Depending on the client we should know what approach is needed. Often times, it is just a little "nudge" gets the process rolling in the right direction for the client and they will thank you for it.

Nov 17, 2010 01:30 AM
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Good post...I operate best when I am asked questions. Then, we begin the bonding experience through my answers. I even let people know that my passion for certain subjects can come across persuasive and to make allowances. I personally detest and abhor hard sales approaches....I am not alone as the buying public has made it clear that they want to be the moving party. We are to be the servicing party. I am ready when they are ready.....

Nov 17, 2010 02:49 AM
Kristee Leonard
The Leaders Realty, LLC - Lakeway, TX
Broker, GRI, SFR - 512-695-5144

I completely agree that trust is a huge factor.  We have a bad image of used car salesmen because we think they will take advantage of us and don't care if we get a working car or good deal.  However, sometimes agents need to make clients aware of the sense of urgency.  If there is a foreclosure priced below market that will have multiple offers, your clients need to make a move quickly if they want the home.  I have had several clients lose out on homes because they thought about it too long. 

Nov 17, 2010 03:00 AM
Kate McQueen
Realty Associates Texas - Cypress, TX
Tailored service for your real estate needs!

This is an insightful post -- I appreciate the term "ethical persuasion."

Nov 17, 2010 04:02 AM
Li Read
Sea to Sky Premier Properties (Salt Spring) - Salt Spring Island, BC
Caring expertise...knowledge for you!

This is an insightful post....thanks for the reminder as to our true role/benefit for our client base.

Nov 17, 2010 06:21 AM
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Mike, …customers want to be told what they need to do. That is why they ask us for our expert advice.

There is a fine line between telling people what to do and making recommendations … in real estate it ties to liability.

The only time I tell my clients what to do is when it relates to an action they are required to take to perform under the contract.

Nov 17, 2010 06:23 AM
Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Mike,  Interesting post and comment thread.  As agents we all need to be totally candid and honest with our clients.  It is very common for a client to ask us what we think they should do.

Nov 17, 2010 08:12 AM
Mike Kang
American Family Insurance - Ryan Carlson Agency - Seattle, WA

Thank you everyone for your comments. It is obvious that there are great realtors on AR that truly care for their clients.

We cannot force anyone to buy anything but if we have built up the relationship to a point that the client understands how important we are, our opinion has much more weight. So much weight that the client wants and will take action on your advice. Has anyone experienced this type of influential behavior that they would like to share?

I feel that the sales industry itself is so afraid of being pushy, it went to the other end of the spectrum - being too passive. Where's the middle ground?

I hope to continue this conversation!

-Mike

Nov 18, 2010 05:41 AM