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Posted: 17 Mar 2009
The turnover in the real estate industry is as high today as it was half a century ago.
Each year, more than half of all real estate salespeople continue to leave their companies, either to go with other real estate firms or to leave the industry entirely. This incredibly high turnover rate continues to exist, primarily because of what we have termed the warm body approach to recruitment and selection.
Many owners and manages of real estate firms have been lulled into erroneously believing that a high turnover rate costs them little or nothing. However, when the hidden costs of real estate’s high turnover in salespeople are considered, it’s clear that there has to be a better way.
Counting the costs
Ineffective salespeople can actually cost a real estate firm an incredible amount.
First, consider advertising. When managers are asked why they advertise, they invariably answer, “to make the phone ring”. Nobody pretends that advertising, by itself, sells a property. Successful advertising creates enough interest to cause prospects to call your company. The ball is in the salesperson’s court.
So what happens when an interested prospect contacts a salesperson who is unsuited for selling real estate? The odds are that the prospect will not become a buyer. It’s a real possibility that your less capable salespeople are driving away the prospects who contact them-losing the business that could be converted into profit by true professionals.
How to do it
The key to selecting productive salespeople in the real estate industry is to make sure they have the personality strengths needed to succeed. Of course, many factors have to be considered: size of the real estate firm, geographic location, management structure, and the type of property sold, to name a few. But while the specifics will differ- and will need to be addressed when making a final hiring decision- there are three basic personality qualities that all successful real estate agents need to begin with.
It starts with empathy
The first quality we have found that is shared by all successful real estate salespeople is empathy. This is the ability to pick up the subtle clues and cues provided by another in order to get an accurate read on what that person is thinking and feeling. Salespeople must understand the prospect’s or clients viewpoint if they are going to effectively adjust their presentations and approach, while still maintaining a clear sense of identity, purpose and objective.
A strong ego drive
We term the motivation to persuade and close as “ego-drive”. Ego-drive is a special inherent personality quality that makes the salesperson “need” to make a sale. To the top salesperson, getting a prospect to say “yes” provides a powerful means of ego enhancement. Such a salesperson’s self-image inflates dramatically by achieving that “yes” and diminishes with each “no”. Whether the “yes” involves a commission is far less relevant than the “yes” itself.
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