Today I will discuss how important your reputation is in your overall ability to execute at a high level for your clients. I will also define the word influence: a nuanced approach to procuring more opportunities. These topics are not discussed nearly enough in our industry. I'll make my best attempt to address it today.
Let's start with reputation. In today's market, it's widely understood that most listings priced right and marketed correctly, will have multiple offers. In many cases, the terms are similar and the differentiating factor becomes the agent and in some cases, their brokerage. If an agent has a reputation of being difficult and untrustworthy, that will 100% factor into the seller's decision, as it should. If you have a reputation of being fair, easy to work with, collaborative, responsive and skilled, those traits will benefit you.
How do you build, maintain and protect your reputation in a competitive market or any market for that matter? Here are some ideas:
- Have a long-range view on your career instead of focusing just on a particular transaction. You will most likely engage the same brokers consistently over the course of your career. Build your reputation one interaction at a time.
- Understand that every broker is dealing with the same craziness. They have the same stresses you do. Engage each broker as a "client" not an adversary. From time to time, you'll feel like your actions are not being returned in favor, but brokers have a long memory towards the positive and the negative. The best situations are where everyone wins. Unfortunately, some get competitive and feel there has to be a winner and a loser. Build your reputation one interaction at a time.
- If you lose a multiple offer situation, thank the listing broker for the opportunity and the consideration. They are probably getting blasted by 10 other brokers that were unsuccessful. Have transactions you've lost ever fallen through? Do buyers get cold feet after they've won a multiple? All the time. Who might that broker call in that situation if you were the one that handled the "bad news" in a kind and understanding way? Is there any downside to being a kind and understanding professional? Build your reputation one interaction at a time.
- Have you considered gifting or acknowledging, with a handwritten note, the other broker after a successful transaction? What's the downside? Build your reputation one interaction at a time.
- Respond appropriately and timely. Being a professional means that you have systems, processes, habits and routines that allow you to communicate the inflows and outflows of communication within a timely manner. Proper planning is key. You need to play on offense to maintain quality interactions with those in the brokerage community. If you can't, it's time to invest the money and time into your business by creating capacity. Build your reputation one interaction at a time.
Your reputation matters. Let's move onto influence.
First I want to define influence and then explain how you can use it to create opportunities for your clients.
Influence is defined by Merriam-Webster as "the power or capacity of causing an effect in indirect or intangible ways.” They also define it as the power of producing an effect without apparent exertion of force or direct exercise of command.”
In Robert Cialdini's book "Influence. The Psychology of Persuasion" he talks about the 6 principles of Influence. The 6 principles are reciprocity, commitment and consistency, social proof, authority, liking and scarcity. It's a book I highly suggest if you are needing some nuanced ideas on how to navigate this market and identify ethical ways to get to a "yes".
Today, I only want to focus on the "reciprocity" principle. Reciprocity essentially means that "if you do something for me, I will feel compelled to do something for you".
As an example, in 1985, Ethiopia, a nation already struggling with famine, sent emergency aid to Mexico following a devastating earthquake, simply because Mexico had done the same thing for Ethiopia 50 years earlier. People, including brokers, tend to return a favor. Cialdini goes on to explain how the Hare Krishnas would give a free daisy to solicit a donation. Without the free daisy, they were relatively unsuccessful. With the free daisy, they were so much more successful. How can we use "reciprocity" to build influence within the marketplace? Here is an idea I'd use immediately and test for effectiveness:
I've discussed at length the last few weeks that this will be a lucrative market for "brokers." The "hobbyists" will struggle mightily. Brokers find the best opportunities for their buyers and identify the best, most qualified buyers for their sellers. Hobbyists are traditionally order takers. To be a broker in this market, you have to work the phone 20% of the time. (I think that number is light). Yes! You have to actually talk to people for maximum effectiveness. Emails can be deleted. Texts can be ignored. So, using the reciprocity principle of influence, try making calls to agents in the market that you've had successful closings with and give them a head start on your listings that are going "live" in the near future. Use that kindness or "influence" to find out if these agents have product coming that might fit the needs of your buyers. Most agents call and ask "what do you have coming up?" which basically comes off as "can you help me survive this crazy market." A "request for opportunities" comes off way more powerful if the requesting broker gives something (knowledge or opportunity) prior to asking for knowledge or an opportunity. You've got to be skillful in your communications.
Here's a sample script you can use: " (Agent name), hi, how are you? I've enjoyed the transactions we've worked on together over years and I wanted to let you know that I've got a great unit/home coming up at 123 Main St. I'm launching it on Friday and wanted to give you the opportunity to get a jump start on it if you've got clients that could be a fit. (Agent Response). While I've got you, do you know of anything coming up that might work for a buyer looking for _____________?"
That's a better approach, isn't it?
Just imagine for a minute the success one could have in this market if they combined a "polished, fair, skilled, responsive and reasonable reputation" with an understanding and execution of "influence though reciprocity." What would be the downside? Would you identify multiple, additional opportunities throughout the year if you executed with this mindset? Would you feel better about how you operate your business if you navigated the market in with this new/updated approach?
My goal here is to teach you how to think as much as I tell you what to do. Today's topic is something that I've learned over the long haul of a 20 year + career in this business. I've spent my entire career building and protecting my reputation through giving to and supporting others. If you are a professional, this market shouldn't scare you. 2022 will be a transitional year into the new normal of low inventory. Investments in real estate will be widely held as a go-to, solid investment over the next decade. Many financial brokerages predict that stocks will struggle due to inflation, geo-political conflict and labor shortages. It's time to commit to being a professional broker (if you haven't already done so) that uses a solid reputation and ethical influence as foundations for their business. Those that are committed to a relationship-based model will benefit and thrive in this environment. Transactional brokerages and brokers will be exposed and become obsolete.
Team, you were built for this. Now that you've pivoted, it's time to commit or re-commit to playing the long game. I'll be there leading the way.