SIX PRINCIPLES OF PERSUATION IN TERMS OF REAL ESTATE

During the decade of 1980’s many iconic things took place, one of them was Apple launching its first Macintosh and Michael Jackson’s ‘Thriller’ that dominated the music charts around the globe. Within the same time line, psychologist Dr Robert Cialdini penned a literary number entitled ‘Influence: The Psychology of Persuasion’.

This book became a universal best seller and bible for marketers and sales professionals as within this book he introduced six pillars of persuasion that if followed rightly would compel anyone to say ‘yes’.

Based on his theory ‘six principles of persuasion’, we look specifically at how these principles could be applied ethically in real estate. Here are some practical tips that involve real estate and pillars of persuasion together.

Principle of  Reciprocity

​​“Give and ye shall receive”

The first theory of persuasion revolves around the importance of interchange derived by persuasion itself, many studies provide support the principle that people feel obliged to give back to others when they receive goods or services.

The takeaway for real estate agents from this is that by giving away little extra to potential clients and buyers such as free market appraisals to actual gifts and deals or even information which is also an valuable offering , you maintain your clients in good terms and chances of hearing a no falls to near zero.

Major takeaways from this could be

• Giving out a ‘thank you’ cards to clients
• Offer a valuable yet manageable discount or deal
• Offer a free service

Scarcity

The human nature revolves around desire and a fair of losing what you desire. One does not want to miss out on something he/she finds interesting and likeable especially when an item is limited or there’s only a small window of opportunity to acquire it.

In terms of real estate, the principle of scarcity perfectly fit in to both property and expert handling. The catch here is using the right terminologies such as, ‘limited time deals’, ‘run out sale’, ‘once-only sale’ etc.

Major takeaways

• Let buyers know the unique attributes of the property they are interested in. Bring it into their notice that there are few such properties and the list of buyers is high, so quick actions are required in either way.
• Use terms such as: ‘Unique property’ ‘Limited Availability’ and, when applicable: ‘Under Offer’.
• Highlight what makes you stand out from the crowd with vendors, whether that’s video or live social media feeds.

Authority

In a society one thing will always remain constant is the respect of authority. Due to this people tend to follow ones with expertise and command. That’s why we look for credentials, seek out experience and are swayed into buying with seals of approval or industry recognition.

Major Takeaways

• Keep checking and updating your business and personal profile along with your cv/resume and portfolio to be more credible in the eyes of the consumer. Display testimonials and awards.
• Keep a strong grip onto conversations with clients and back up your opinion or advice with supporting evidence.
• Have knowledge of every listing and sale on your patch

Consistency and Commitment

Standing to our commitment and keep a consistency in the work and performance will always gather up clients. Even considering the smallest of the commitments will make people to say yes for your deals and this could continue literally forever.

Major takeaways

• When you ask permission to keep a client updated about sales in their area, follow through. Use local quarterly report emails and follow-up phone calls as touch points.
• Rather than asking for appraisals out of the blue, build up by asking if someone would like to know when something has been sold locally. Then ask if they would like to receive a quarterly report, and then an appraisal.
• Provide the same level of communication on a daily and weekly basis. Be consistent with the checklists so the level of service is the same.

Social proof

Authority play a very important part in guiding our decisions but at the same time we also seek the consensus of our peers. Effectively, that means people tend to stuff that others do it just as people are more likely to use a product or service recommended from their friends and family.

Major takeaways

• Leave behind your estate cards at settlement asking for a referral to friends and family if they were satisfied and happy with your work.
• If starting up new in the industry or anyone relocating to a new region, consider starting with a team. Attach yourself to a good, high-performing agent, work your tail off for them and support them.
• Statistics are very important if used in the right manner. Use them when advertising regarding the trends in society and days on market, and the results you get for your clients.
• Use Facebook, YouTube and Instagram as they are the best, most accessible, cheapest platforms to show your community your success.

Liking

Understanding this in simple terms, we are much more likely to say yes to people we like, and the fact is we tend to like people who are similar to us, who make us feel good, or who help us achieve what we’re looking to do.

Major takeaways

• Compliment people and find common ground before you get down to business.
• Engage with people on a personal level. Find common ground and break down any barriers before talking business.
• People reflect body language. Stay positive and show an interest in what they want to discuss. Don’t be too set on business. Offer to assist in arranging trades or any other person that can assist them to get their house sale ready.