In a hot market property will fly off the market and agents will find it easier to clear properties with much less work. However even in hot times, there are properties that won't sell as easily and will clog your pipeline. One of the main sales tactics taught to agents is funnel management, moving a property from the beginning to the end with the steps below.
Whilst this is pretty common, what are the steps to take when you aren't having luck at each step of the funnel?
1. No potentially interested parties:
If you have no interested parties this could be for a few reasons. The most simple is that the price it is advertised at is too high, that is why it isn't driving leads. It could also be because there are a vast amount of similar properties that can compete that are offering more value for money. If this is the case, you need to change one of two things, the product or the price. If it is unrealistic for your vendors to spend money on the house, you may need to drop the asking price to get more interest.
2. You are getting people through, informing them, but not much happens after:
A very common story for agents is that they get people through but they don't get much of a follow up. If this is the case you need to find out what their hesitations are. They decided to come and look, there must be some primary interest. If they aren't following up you need to find out why there interest is falling short. You must drill down here, in order to take it back to your vendor. If they are complaining about vanity things that can be fixed and multiple people are complaining it may be worth fixing them for the long run. This is the biggest challenge in sales, turning informed parties in to interested ones.
3. You have interested parties but no one is making an offer.
This can be a positive and negative at the same time. It is great to have interested parties, in fact its great to have 100 interested parties. However only 1 person ever ends up buying a property. You really only need two interested parties to force competition to see which person will pay more. If you have people who have asked for a S32, shown interest, provided all of the right signs, but haven't made an offer, you again need to find out why. The reasons here can change drastically, it is important to find out if this is price driven, neighbourhood driven or any one of a number of other reasons.
4. You have no highly interested prospects.
Much like having interested prospects without people making an offer, having no highly interested prospects is one of the most serious concerns as an agent. You need to drill it down to one of the following reasons:
- The price is too high
- The house is not well presented
- The surrounding area has drawbacks
- The competition is providing better value for money
- You as an agent don't know the market
If you think and of these may be the reasons you need to go back to basics and reassess these issues with your vendor. You need to discuss what elements you want to amend first before taking it back to market.