Want to know why people request valuations and then back out of the process? Ask them!
Picture the scene – you’ve got a client with a high value property they are interested in selling. They approach you for a valuation and you put your best people on the task. Then… nothing. The period between valuation and being instructed is one in which many estate agents are losing clients. A big part of the reason might be valuations.
Valuing a property can be a complicated task. Estate agents have a vested interest in getting this right, of course. Set the price too high and you might struggle to sell the property. Set it too low and the seller might go to another estate agent who will tempt them with a better price. If you find yourself failing to convert valuations into business for your agency you need to know why.
One of the most common problems with valuations is the experience and expertise of staff. Pricing a property can be a subjective business based on an assessment about the property, the current state of the market and local amenities or transport links. More often than not it can come down to the individual judgement of the estate agent. Indeed, if buyers go to three different estate agents, they often receive three different valuations. They will then be left with a decision about which valuation they trust most.
Low valuations
In many cases people may feel a valuation is too low. When looking at the current state of the market property owners can be forgiven for getting over excited about their prospects. As a species we are naturally inclined to believe those statements which are most in tune with our interests. So, when a seller gets three different valuations they may be more inclined to go with the higher estimates.
Estate agents, therefore, can feel under pressure to come up with a valuation which reflects the optimistic expectations of the customer. However, this may backfire. A high valuation may make a property difficult to sell, especially considering that buyers will conduct their own assessments of a property’s value.
Surveyors work on a much stricter set of criteria, which means their assessment of a property’s value may differ from the estate agent. If they come back with a value which differs significantly from yours it may not only lose the sale, but it might affect the seller’s faith in your judgement.
Lack of follow up processes
Another way estate agents might be missing out is a lack of a follow up process. If you simply provide the valuation service and leave it at that the customer may end up going somewhere else. You need to think like a salesman. The valuation service is a lead – to convert it you need to follow it up perhaps with a gentle email some time after the event or even a phone call.
Whatever the reason why people decide to bail out after a valuation, it pays to know about it. Regularly surveying customers who have had a valuation is important in understanding the factors which weigh on their decisions. This can tell you where you’re going wrong and offer some pointers about how you can put things right.
