When times are tough and sales are few and far between, it is common for some salespeople to “over promise and underdeliver”.
In real estate though, it is something you need to watch out for a lot of the time, especially when there are fewer properties on the market than normal, or where inexperience plays a part in an over eager salesperson’s objective to win a listing.
In some countries, salespeople will earn more from listing a property, while the selling agent who sells it within the company will earn less.
For example, the person who lists the property for sale will get the higher percentage of the sale.
The company they work for will get their share regardless, but it is often the case where you will get somebody who is good at selling, receiving less of the commission and somebody who is good at listing properties for sale get the larger portion of the commission.
Of course no commission is payable if the property does not sell! So why take the chance and over promise on price when you cannot deliver?
In my humble opinion, no matter what you are selling, you should never over promise and underdeliver.
Imagine giving a higher than normal price appraisal for a home just to secure the listing and then months down the track the property does not sell. In most countries there is a code of conduct that is set to keep up professional standards so salespeople can be kept accountable for their actions. Read more about the code of conduct in NZ Rule 10
Loss of marketing time
Not only have you lost the most important period in marketing time, but you have lost credibility, and in the end that would have cost your client in more ways than one.
It is not only damaging to their bottom line, but also to their mental wellbeing as emotional stress suffered because of higher expectations is not that great to endure or manage.
The disappointment of realising that you have been over promised something unachievable and then having to adjust to a much lower price expectation, is not something you want to do when listing your property.
This will often result in more marketing costs and a longer time on the market for you as the seller.
As a salesperson, it is damaging to your reputation and you will definitely not gain a lot of future business from it, as why would they refer you to their friends and family if you failed to get them what you initially over promised for their property?
Of course, the bigger picture for a salesperson would be that they could be going against the Professional code of conduct that many real estate salespeople happily adhere to as is legally required.
There could be other legal ramifications if you have promised something unachievable just to get the listing.
Bad publicity is something nobody wants despite the saying that any publicity is good publicity.
Rather look after your clients and treat them like you want to be treated.
Be honest and ethical, and if it means that you have to tell them that the market statistical analysis of sales makes their property worth less than what they might think it is worth, then tell them the truth and do not give them false hope.
Rather “under promise and over deliver”
You cannot please everybody by telling them what you think they want to hear if it means that the end result will be a huge disappointment and possibly damage your reputation and future business prospects.
Develop your sales business to one of rock solid trust and above average service and expert reliability.
That way you will always be able to sleep at night, knowing you did the right thing.
Business will come to you because of your good reputation and professional conduct in getting the job done.
A satisfied customer is the best business strategy of all.
“You are what you do, not what you say you will do”
© 2023 e-propertymatters.com|women-in-realestate.com| Author Kathryn