February 29, 2024

Behaviour Over Processes

The whispers of change have become a roar. The real estate landscape is evolving, and agents clinging to outdated scripts and rigid processes risk being left behind. Success in this new paradigm hinges on a fundamental shift: understanding and influencing buyer behavior.

Forget the booming pronouncements of the past. Today's market demands a nuanced approach, one that recognises the powerful influence of social dynamics on purchasing decisions. The key challenge lies in igniting confidence in a hesitant market, where buyers grapple with uncertainty and a lack of purchasing power.

This calls for a deep dive into customer psychology. By understanding how buyers react to market fluctuations, anxieties, and opportunities, agents can tailor their approach to resonate with their audience. Gone are the days of price-centric pitches; value proposition takes center stage.

Here's where behaviour over processes becomes the new mantra:

1. Empathic Communication: Ditch the robotic script and embrace active listening. Validate anxieties, address concerns, and personalise your communication to create a sense of trust and understanding.

2. Market Interpreter: Don't just report the market; explain it. Translate complex trends into digestible insights, highlighting opportunities amidst the uncertainty. Position yourself as a trusted guide, navigating the market alongside your clients.

3. Value Beyond Price: While price remains important, focusing solely on it creates a shallow connection. Highlight the intangible value of a property – the lifestyle, the community, the long-term investment – fostering emotional engagement and a deeper understanding of its worth.

4. Calm in the Storm: Panic is contagious. Exude confidence and composure, demonstrating your market expertise while offering reassurance and guidance. Your steady hand can be the anchor they need to make informed decisions.

5. Technology as a Tool, Not a Crutch: Leverage technology to personalise your approach, not replace genuine human interaction. Data and tools are valuable assets, but remember, you're dealing with people, not numbers.

Remember, your behavior is your most powerful tool. By shifting your focus from processes to understanding and influencing buyer behavior, you transform from a salesperson into a trusted advisor, a beacon of clarity in a dynamic market. This, my colleagues, is the key to unlocking success in the face of change.

February 08, 2024

How to Win with Framing

Our response to fear has never left us, our primal brains still overreact to fear of loss.

This overreaction in the brain prevents us from thinking straight.

A client will generally have to think a little bit longer about what they will gain from your proposal, but they will understand what they stand to lose
far more quickly.

It’s as if they can’t help themselves.

But Loss aversion effect works both ways: you can also use it to control a prospect’s attention.

Here are some examples of the loss aversion effect in play:

  • When properties are auctioned, as a bidder starts to bid on the property and a competitive bidder joins, you will often see the first bidder quickly increase their bids as they don’t want to miss out.

  • A car salesman offers you a deal that they say is a one time offer which will be withdrawn you if you leave the dealership. So now you don’t want to lose the deal.

  • We tend to hoard things that we don’t need for years, yet we won’t throw them out.

A study conducted by the University of California, Santa Cruz involved salespeople from a power company selling free energy audits to home owners.

Half of the owners were told ‘If you insulate your home, you’ll save X dollars per day’.

The pitch was reversed for the other half who were told ‘If you don’t insulate your home you will lose X dollars per day’.

Both of these statements are the same, yet the ones that were told that they would lose were more motivated to take action.

The takeaway for sales people: when presenting, show how your solution will prevent losses, then present what a prospect stands to gain.

In negotiation this is called framing. It’s important that you frame your numbers in a way that the client understands the potential loss more than the potential gain, especially when summarising at the end.