The value of experience

This week I had the pleasure of presenting to a room of eighty-something property managers from around the country at the PM Reach Conference. Not only did I enjoy sharing my insights as a Buyer’s Advocacy business owner, I loved hearing the adventures and proud stories of some amazing industry professionals.

Topics were varied and rich, and one discussion that struck me as a common thread was about value, and the critical mistakes that some of us make when competing for clients.

Discounting is a very real action in our industry and property managers, sales agents and buyer’s advocates are not immune from the practise. Whether it be a reduction of a base rate, elimination of a letting fee, a lower percentage sale fee, or a willingness to match a competitor’s sharp pricing, we’ve all experienced the concept before.

Aside from overlooking our point of difference though, we sometimes de-value ourselves when we discount. Being aware of about what makes us unique to others is imperative when it comes to pricing.

Consumers don’t want cheap. They want good value.

In my presentation, I recalled a situation from five years ago. I was contacted by an expat working in a senior role in the US about assisting with a purchase in North Melbourne for him to return to. He’d been on the internet, had an affinity with North Melbourne and felt that he’d accurately picked a great future-home when he spotted the townhouse for sale. He asked my fee for the assessment and acquisition of the property and I cited it, but told him I had a few concerns about the property from my quick glance at it. The zoning was Commercial and it was adjacent to a social housing block that I knew all too well.

This property was on the same walking trail I’d become familiar with in a role prior; situated between the office and the train station, and on the same side of the road I’d cross away from when there was trouble brewing outside the adjacent block of flats. My sense of safety was often heightened at times during my commuter walk and I felt it was appropriate to let this prospective client know.

He was still motivated to pursue the property so I promptly arranged the authority for signing and invoiced him before scheduling a visit to the property.

I filmed the streetscape, captured the internal layout of the property and discussed the campaign and vendor’s terms with the agent. Four hours later, my US expat client had a written appraisal report, accompanied by video links and due diligence documentation in his inbox.

From the initial phone call to the resultant report and recommendations, my time spent on his file was six hours.

His subsequent email shocked me.

“Cate. Thanks for the report, very helpful indeed. I won’t be proceeding with the property. Your points about the social housing and zoning are noted and I feel it’s prudent to search elsewhere.

“Regarding your fee. I find it surprising that you have charged this figure after just six hours of work. Given you are only a realtor, I am prepared to pay you on an hourly rate. Let’s call it a deal at $180.”

My recommendation had potentially saved him from a very expensive and quite negative outcome. I was justifiably upset.

Karma has an interesting way of sorting out situations like that. His subsequent property of interest was in my own neighbourhood and a local agent refused to take a phone bid, and recommended a local advocate. Namely, me.

Needless to say, I didn’t take the job and he didn’t buy the property.

It did remind me though of a fantastic fable that illustrates the value of experience beautifully. Because it’s not the time spent on a task or the hourly rate apportioned that should be counted when it comes to a role commanding experience or specialisation.

It is all about the years of training, the learnings from leaders and mentors that have shaped us, the important lessons we’ve learnt the hard way, and the passion that we’ve channelled into our role over the years.

To all of my industry friends and other passionate professionals who often find themselves contemplating the value they offer, we are all unique and must remember that we can’t easily compare ourselves to others.

A special thank you to Hayley and the conference conveners who organised a very impressive PM Reach Conference this year. It was a joy to be a part of it.